Weekly Roundup – November 28

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CAMS brings to you the important happenings in the BFSI segment during this week. In this weekly roundup, we will attempt to cover key events, milestones, regulatory updates that have an impact on the BFSI sector in India and the world.

Foreign banks have been deploying expatriates for their operations in India. With this in mind, the RBI has ruled that a foreign bank can have a maximum of four expatriates for each branch in India and not more than six expatriates at their head office.

For the second year in a row, mid-cap and small-cap stocks have posted postive returns. 53 out of 84 mid-cap stocks have outperformed the broader market in 2015.

HSBC Holdings Plc will shut down its private banking business in India in the first quarter of 2016. Though India is Asia’s third largest economy, it has not translated into profits for foreign banks.

Equity mutual funds saw an increase in the number of investor accounts of about 2.43 million. Strong retail participation helped in increasing the number during the first seven months.

Microfinance companies have now joined the large number of corporates that are moving towards short-term money market instruments to raise funds at a lower cost.

SEBI may shortly introduce a sectoral cap for investments in corporate bonds by fixed income mutual fund schemes. By doing this SEBI hopes to mitigate excessive risks and prevent investors interests.

Rating company, Fitch has said that capital raising will be an important issue for Indian banks to look into, in order to revive credit growth. The Fitch report also mentioned the challenges that may be in store for state-owned banks, given their weak core capitalisation.

The RBI has doubled the limit for loans given by NBFC micro finance lenders – they can now give loans of up tp Rs.30,000 for tenure not less than 24 months.

About CAMS:

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 60% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also is a service partner to leading insurance companies, banks, NBFC’s and private equity funds. To know more visit www.camsonline.com .

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Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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