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India's central bank is poised to deliver its fourth successive quarter-point interest rate cut on Wednesday, amid calls from investors and the government for further easing as a slowdown gripping the economy becomes more pervasive. The Reserve Bank of India will lower the benchmark repurchase rate by 25 basis points to 5.5 per cent, according to almost all of the 36 economists surveyed by Bloomberg. Swap markets are pricing in at least another 50 basis points of reductions before the end of 2019.  Finance Minister Nirmala Sitharaman has ratcheted up pressure on the six-member monetary policy committee for a "significant cut" to lift economic growth from a five-year low. Inflation that's stayed below the central bank's 4 per cent medium-term target for 11 months in a row and the Federal Reserve's first rate cut since the financial crisis allows room to retain the policy makers' easing bias. A quarter-point cut will take the benchmark rate to the lowe

The Reserve Bank of India (RBI) has tightened the fit-and-proper criteria for directors on the boards of state-run banks, and said the Centre’s nominee director shall not be part of the nomination and remuneration committee (NRC). The revised criteria also, for the first time, laid down an exhaustive list for the disqualification of directors.  The terms with regard to the NRC and the manner of the appointment of directors have been aligned with the practice in private banks, the recommendations made by the Banks Board Bureau, and with the provisions in the Companies Act.  While the revised norms are applicable only to public sector banks (PSBs), separate guidelines for private banks and non-banking financial companies (NBFCs) may be in the offing. The NRC will have a minimum of three non-executive directors from amongst the board of directors. Of this, not less than one-half shall be independent directors and should include at least one member from the risk management committee of

The Securities and Exchange Board of India (Sebi) has received a string  of recommendations from its working group on tightening the regulatory framework for the portfolio management service (PMS) industry.  One of the proposals pertains to increasing net worth requirement of PMS players to Rs 50 million.  Some of the other proposals involve improving the reporting disclosures, high exit-loads in PMS products and improving the overall industry standards.  The working group commissioned by the Sebi said higher net worth requirement would deter non-serious players while seeking registration and also put pressure on the fringe players. It observed that it has been over 10 years since the net worth requirement was last revised from Rs 5 million to Rs 20 million. However, the focus of the working group’s recommendations was to improve disclosures in the PMS industry, make it more investor-friendly and less expensive for investors.  The working group also took representations from the CFA

Capital markets regulator Sebi slapped Rs 94.5 lakh penalty on 17 entities for indulging in fraudulent trade practices in illiquid stock options segment on the BSE.  The regulator, during the course of investigation between April 2015 and September 2015, found that 81.38 per cent of all the trades executed in the stock options segment involved reversal of buy and sell positions by the clients and counter-parties in a contract on the same day.  These entities were among those "whose reversal trades involved squaring off transactions with significant difference in sell value and buy value of the transactions," Sebi said in similarly worded separate orders on Friday.  It further said trades of the entities are non-genuine as they are not executed in normal course of trading, lack basic trading rationale, lead to misleading appearance of trading in terms of generation of artificial volumes, and are hence deceptive & manipulative.  By indulging in such trades, the entities h

Reserve Bank of India Governor Shaktikanta Das has expressed concern over the impact of stressed trade negotiations and rising geopolitical tensions on global economy while backing the building up of forex reserves by emerging economies as safeguard against global contagion.  The balance in global economic order has already seen marks of stress with low interest rate policies followed by advanced economies over a period.  “International coordination has become somewhat weaker in the very recent years. Many advanced economies have been pursuing low interest rate policies for long, perhaps without adequate recognition of their adverse impacts,” Das said.  “Solutions are turning more difficult to come by as the global economy seems to be moving into a new and unsettling phase in an environment of stressed trade negotiations, rising geopolitical confrontation, limited policy space and high debt levels in several economies. General government debt of advanced economies as a group has surp

Market regulator, the Securities and Exchange Board of India (Sebi), has expanded the horizon of all compulsory delivery contracts under staggered delivery, a move that aims to reduce price manipulation and improve liquidity on commodity exchanges.  Sebi has also cut the minimum staggered delivery period to five days from the existing 10 days, leaving the discretion of fixing the higher number of days on the concerned exchange, depending upon the history of the relevant commodity.  In a circular issued on Friday, Sebi said, “All compulsory delivery commodity futures contracts (agriculture as well as non-agriculture commodities) shall have a staggered delivery period. The minimum staggered delivery period should be five working days”  Staggered delivery period is the period beginning few working days prior to expiry of any contract and ending with expiry, during which sellers / buyers having open position may submit an intention to give / take delivery.  The markets regulator has been

Under the scheme, brokers and other intermediaries are given incentives for a specified period to bring in liquidity and generate investor interest in securities, which have limited trading activity Markets watchdog Sebi on Friday eased the conditions for exchanges to provide incentives under liquidity enhancement schemes (LES) in the first five years of operation.  Under the scheme, brokers and other market intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in securities, which have limited trading activity.  The move comes after the regulator noted that "an exchange in early years of its formation or commencement of business may not be able to generate profits or have free reserves from business operations".  Laying down the conditions for such exchanges, Sebi in a circular said the yearly incentive that an exchange can earmark for LES will not exceed 25 per cent of its audited net-worth as on the last d