Banks are mandated to lend a portion of their funds to priority sectors. Allowing NBFCs to serve as middlemen for such lending provides them a liquidity backstop.
The task force recommends implementation of margin requirements for non-centrally cleared OTC derivatives “at the earliest”.
The RBI will increase bank exposure limits for NBFCs, allow on-lending to priority sectors, and enable near-real-time tracking of payments fraud through the creation of a centralised registry.
The so-called ‘NSE IFSC-SGX Connect’ is set to become operational by end-2020, ending a dispute between the two exchanges.
The fines, involving 15 banks in total, were related to delays in reporting fraud and non-compliance with various other RBI norms.
SEBI proposes a higher net worth requirement, a higher minimum investment, and standardised performance reporting for portfolio managers, among other changes.
The revised criteria for determining the 'fit and proper' status of proposed candidates include age, education, experience, and track record, among other criteria.
Fines charged to members for misreporting or non-reporting of margins collected from clients may extend to 100% of the incorrectly or nonreported amount.
SEBI has granted qualifying central counterparty status to Multi Commodity Exchange Clearing Corporation.
NBFCs can use overseas borrowings to fund working capital, repay rupee loans, and on-lend to domestic customers. Banks can also sell distressed loans to eligible overseas lenders.