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  1/10 IPO Candidates While startups like Zomato and CarTrade are awaiting clearance from markets regulator Securities and Exchange Board of India (Sebi) to launch their initial public offerings (IPOs), there are at least nine other companies that have got the nod. According to a list of upcoming IPOs prepared by Axis Capital, nine companies have got regulatory approvals. These nine companies may launch their IPOs in the coming months. 2/10 GR Infraprojects Ltd The integrated road EPC company got Sebi's nod for its offer for sale (OFS) of upto 11,508,704 equity shares last month. With experience in design and construction of various road/highway projects across 15 states in India, GR Infraprojects had recently diversified into projects in the railway sector. 3/10 Shriram Properties Ltd Shriram Properties has Sebi's nod to issue equity shares worth Rs 800 crore, including a fresh issue of Rs 250 crore and OFS of Rs 550 crore. The company is among the 5 largest residential real e...

  Shares of rate sensitive sectors were trading mixed with banks largely lower after the Reserve Bank of India (RBI) maintained 'status quo' on interest rates during the bi-monthly monetary policy decision. While, automobiles, real estate, select non-banking financial companies (NBFCs) and housing finance companies stocks were trading up to 1 per cent higher, the benchmark Nifty50 index was down 0.06 per cent at 10:38 am. The Reserve Bank of India's six-member monetary policy committee, headed by governor Shaktikanta Das, on Friday kept the benchmark interest rate unchanged amid coronavirus uncertainty and fears over inflation. The repo rate (lending rate) will continue at 4.00 per cent and reverse repo rate (RBI’s borrowing rate) at 3.35 per cent. With this, the repo rate has remained unchanged for the sixth consecutive time. Among individual stocks, Hero MotoCorp, MRF and Mahindra & Mahindra from the automobile pack; and Phoenix Mills, Brigade Enterprises, Godrej Prop...

  The Securities and Exchange Board of India (Sebi) on Thursday revised the overseas investment limit for mutual funds (MFs). The market regulator stated in a circular that MFs can make overseas investments up to $1 billion each, within the overall industry limit of $7 billion. MFs had made representations to the regulator to increase the investment limit. Last November, Sebi had enhanced the overseas investment limit from $300 million per mutual fund to $600 million. Industry participants say this announcement was the need of the hour as several MF schemes that were international focused were attracting huge inflows. Sebi in its circular stated, “MFs can make investments in overseas exchange-traded funds (ETFs) subject to a maximum of $300 million per mutual fund, within the overall industry limit of US $1 billion.” Earlier the limit was $200 million per mutual fund. Indian fund houses have launched various international-focused fund of funds (FoF) in the last few months as such p...

  The Reserve Bank of India’s (RBI’s) policy comes at a critical time when the economy is in the midst of a confused lockdown with different perspectives on growth and a definite direction for inflation. The monetary policy committee (MPC) has reiterated in the past the accommodative stance, and hence the takeaway is that there are few chances of the repo rate being increased in the near future. Some of the important signals provided are the following. First, is the outlook on growth and here the RBI has scaled down the forecast to 9.5 per cent, which is now closer to what most analysts have done (CARE is 8.8-9 per cent). A single-digit growth sounds less attractive than a double-digit one. In fact, the rate would be declining over the quarters sequentially. Therefore, this also supports the MPC view that growth is weaker than expected and hence requires support from the monetary authority. The second view is on inflation, which is still unchanged at 5.1 per cent for the year. This...

  The Reserve Bank of India (RBI) has cut its projection for gross domestic product (GDP) growth for fiscal 2021-22 (FY22) to 9.5 per cent from the earlier forecast of 10.5 per cent. Consumer price inflation (CPI), the central bank said, is likely to be at 5.1 per cent in FY22 as compared to the earlier forecast of 5.2 per cent (5.2 per cent in Q1; 5.4 per cent in Q2; 4.7 per cent in Q3; and 5.3 per cent in Q4) with risks evenly balanced. “Going forward, the inflation trajectory is likely to be shaped by uncertainties impinging on the upside and the downside. The rising trajectory of international commodity prices, especially of crude, together with logistics costs, pose upside risks to the inflation outlook,” the RBI said. Adding: “Rural demand remains strong and the expected normal monsoon bodes well for sustaining its buoyancy, going forward. The increased spread of COVID-19 infections in rural areas, however, poses downside risks.” The lowering of GDP projections comes on the b...

  The Reserve Bank of India (RBI) on Wednesday took a series of liquidity-boosting and loan-relief measures to aid broad swathes of the economy walloped by the second wave of the covid-19 pandemic. Governor Shaktikanta Das said RBI will make available an on-tap liquidity window of ?50,000 crore, with a tenor of up to three years, under which banks can provide fresh lending support to a wide range of entities, including vaccine makers, importers of vaccines, covid-related drugs and priority medical devices, hospitals, pathology labs, manufacturers and suppliers of oxygen and ventilators, logistics firms and also to patients for treatment. This facility, which will be offered at the repo rate, will be available till 31 March 2022. The steps are likely to help the stressed healthcare industry expand facilities to treat more patients amid the rampaging second wave. With thousands of sick people seeking treatment, hospitals are overwhelmed and are running out of medical-grade oxygen. Va...

  Unlike monetary policy, which is conducted under the explicit mandate of inflation targeting, foreign exchange management is left to the discretion of the Reserve Bank of India (RBI). For many years now, RBI has maintained that it does not target any value of the Rupee, and only steps in at times to control some unstated measure of currency volatility. However, the sheer magnitude and nature of RBI intervention leaves it as a substantial determinant of currency market rates, irrespective of its stated policy or intent. And the central bank’s role in the currency market has been manifesting in a major way particularly over the past few months. The core of RBI’s intervention policy through FY21 was excellent. It acted as a volatility heat sink amidst massive foreign exchange inflows. It prevented excessive rupee overvaluation that could have impeded India’s domestic output, employment, and the prospects of the Atmanirbhar Bharat tilt. However, aspects of the impossible trinity—the ...

  With the beginning of new financial year from Thursday, there will be a host of changes in how you spend money. From changes airfare to standard insurance policies, several new norms will be effective from 1 April. The interest earned on employee's contribution above ?2.5 lakh in a year will be taxable from this month. Buying a pension cover will become easier. Take a look at key changes that are going to take place from 1 April. LPG cylinder prices to become cheaper Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have announced to reduce the price of domestic cooking gas (LPG) by ?10 a cylinder from April In Delhi and Mumbai, a 14.2 kg non-subsidised LPG cylinder will cost around ?809. A LPG cylinder will now be available at ?835.50 in Kolkata. In Chennai, a LPG cylinders will be priced at ?825. Air travel to become costlier Starting from this month, you air travel will become costlier. Aviation regulator Directorate General of Civil Avia...

  The Reserve Bank on Monday asked banks to implement the image-based Cheque Truncation System (CTS) in all branches by September 30, a move aimed at faster settlement of cheques resulting in better customer service. There are about 18,000 bank branches that are still outside any formal clearing Last month, the Reserve Bank of India (RBI) had announced pan-India coverage of CTS by bringing all bank branches under the image-based clearing The CTS is in use since 2010 and presently covers around 1,50,000 branches. All the erstwhile 1,219 non-CTS clearing houses (ECCS centres) have been migrated to CTS effective September 2020. It is, however, seen that there are branches of banks that are outside any formal clearing arrangement and their customers face hardships due to longer time taken and cost involved in collection of cheques presented by them, the RBI said. "To leverage the availability of CTS and provide uniform customer experience irrespective of location of her/his bank branc...

  The Finance Ministry on Monday released the 11th instalment of Rs 6,000 crore to states and UTs to meet the GST compensation shortfall, taking the total amount provided so far under this window to Rs 66,000 crore. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. The Ministry of Finance in a statement said it has released the 11th weekly instalment of Rs 6,000 crore to states/Union Territories to meet the GST compensation shortfall. Out of this, Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore to the three Union Territories (UTs) with Legislative Assembly (Delhi, Jammu & Kashmir and Puducherry), who are members of the GST Council. The remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation, it said. "The amount has been borrowed this week at an int...

The Reserve Bank of India has raised concerns on the increase in assets of money market mutual funds (MMMFs) in the past few months. The central bank observed that the infusion of liquidity in the wake of the pandemic had led to a sharp decline in term rates. Even as deposit yields fell, assets under MMMFs have grown, indicative of a search for yield. “Such risk taking among institutional investors, specifically in illiquid investments to earn targeted returns, may lead to build-up of financial vulnerabilities, with adverse implications for financial stability,” the RBI said in its financial stability report released on Monday. Average net assets under management of such money market funds rose to Rs 96,210 crore in December, up 61 per cent over Rs 59,512 held in April, the data from Association of Mutual Funds in India shows. The central bank said excess returns of MMMFs had started to normalise after turning negative in the previous quarter, reflecting increased proportion of liquid ...