Leading Stock Exchanges Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) have put in place a mechanism that will generate automated alerts for Stock Brokers & Trading Members whenever suspicious transactions are detected in their clients‟ accounts. The alerts will be generated in case of unusual changes in the trading pattern of the clients, sudden trading in dormant accounts as also in suspected cases of circular trading, ‘pump- and-dump’, „front […]

The Reserve Bank of India said the new valuation norms for the perpetual additional tier 1 (AT-1) bonds of banks has led to distortions in the market. The market regulator Securities & Exchange Board of India introduced a standardised valuation regime for such perpetual bonds from April this year after concerns were raised on the pricing of AT-1 bonds. Following this, RBI analysed the bond prices of one large public sector bank and one large […]

The Reserve Bank of India has formalised the framework for payment companies outsourcing payment and settlement related activities to third party operators. The central bank’s fresh guidelines come at a time when India’s tech ecosystem has seen several high-profile cyber attacks such as those at Juspay, Upstox and Mobikwik over last year targeting customers’ payments data. As per the new rules, licensed non-bank Payment System Operators (PSOs), cannot outsource core management functions, including internal audits, […]

The Reserve Bank of India has tightened norms for appointing auditors and has capped the numbers based on the asset size of the bank with an aim to prevent wide variations in asset classification and misleading accounts statements. Banks shall take prior approval from the RBI on the appointment of auditors, but non-bank lenders can go ahead with just intimating the regulator. As per the new norms, banks will be required to take prior approval […]

The Reserve Bank of India (RBI) is in discussion with banks to revise guidelines for syndicate loan arrangements of ₹2,000 crore and above. This may entail a detailed single point inspection of syndicated loan accounts and norms for a more structured approach by lenders to take care of the entire life cycle of the loan. “In order to mitigate the shortcomings in the existing arrangements for credit delivery, it was decided to relook at the […]