SEBI Extends Surveillance and Trade-for-Trade Settlement to SMEs Introduction: In a recent circular issued by the stock exchanges, the Securities and Exchange Board of India (SEBI) has announced its decision to extend the trade-for-trade settlement framework and short-term additional surveillance measure (ASM) to include small and medium enterprises (SME) stocks. This move is aimed at addressing concerns regarding stock price manipulation in SME stocks. This article delves into the details, providing insights into the purpose, […]

Cabinet Approves Viability Fund to Boost Battery Energy Storage Systems: Understanding BESS and its Importance for India’s Renewable Energy Future Introduction: The Indian government has taken a significant step towards promoting renewable energy and strengthening its commitment to non-fossil fuel sources. The Union cabinet approved a viability gap funding scheme (VGF) aimed at encouraging the establishment of battery energy storage systems (BESS). With an allocated budget of Rs3,760 crore, the scheme aims to create 4,000 […]

Banks’ Fraud Account Classification Faces Legal Challenges: No Personal Hearings, Potential Court Battles Ahead Introduction The process of classifying companies as ‘fraud’ accounts in India has undergone a significant change. Banks are no longer required to provide a personal hearing to the management of a company before labeling it as a ‘fraud’ account. However, if the borrower legally challenges the classification based on principles of natural justice, the decision will be comprehensively re-evaluated. This updated […]

NBFC-MFIs Outpace Microfinance Industry Growth, Banks Falter Introduction The non-banking finance companies-microfinance institutions (NBFC-MFIs) in India have shown an impressive 43% year-on-year growth, allowing them to capture a larger share of the microfinance market. Over the past year, their portfolio has increased from 35% to 41.28%. In contrast, banks have struggled, with only a slight growth of 0.86%. This article explores the reasons behind the success of NBFC-MFIs and the challenges faced by the banking […]

NBFCs Expected to Report Strong Profit Growth on Loan Disbursements Introduction The second quarter financial results of non-banking finance companies (NBFCs) in India are anticipated to reveal a notable 20-30% growth in net profit, primarily driven by robust loan disbursements. However, the rising cost of funds may exert pressure on margins. Analysts predict that consumer-facing sectors, such as microfinance, consumer durable goods, and vehicle loans, will experience significant growth, while affordable housing and gold-loan companies […]