India

Liquidity Risk

RBI Defers Implementation of NSFR, Final Tranche of CCB

By Editors | 02/10/2020

The delays are a result of “continuing stress on account of Covid-19”, giving banks a further six months until 1 April 2021 to meet the higher requirements.

Clearing & Post-Trade

SEBI Orders Faster Liquidation of Defaulting Brokers’ Assets

By Editors | 01/10/2020

Stock exchanges and clearing corporations should sell brokers’ securities if debit balances are not cleared in 5 days, and to sell other broker assets six months after the default.

Trading & Investment

SEBI Guidelines for Investment Advisers Take Effect

By Duruthu E Chandrasekera | 29/09/2020

The guidelines, finalised in July, require investment advisors to only offer either advisory or distribution services to a client, but not both.

Liquidity Risk

SEBI Considers ‘Backstop Facility’ for Debt Mutual Funds

By Duruthu E Chandrasekera | 29/09/2020

The backstop facility would have to be able to buy relatively illiquid investment-grade corporate bonds from mutual funds in times of stress.

Conduct, Culture & Accountability

SEBI Quadruples Penalties Against CRAs Over IL&FS Failures

By Editors | 26/09/2020

In December, SEBI issued INR 2.5 million penalty orders against ICRA, India Ratings & Research and Care Ratings. This has been raised to INR 10 million.

Credit Risk

India Establishes Netting Certainty for Bilateral OTC Derivatives

By Manesh Samtani | 24/09/2020

Parliament passed a bill providing legal basis for bilateral netting of OTC derivatives contracts which are not centrally cleared.

Market Risk

SEBI Issues Risk Management Rules for Negative Commodity Prices

By Editors | 23/09/2020

Clearing corporations are directed to ensure their systems are ready to implement the alternate risk management framework by 21 November.

Trading & Investment

SGX, NSE Formalise Agreement to Operationalise ‘Connect’

By Manesh Samtani | 22/09/2020

The Connect will bring trading of SGX Nifty products to GIFT City to create a larger pool of liquidity, comprising both foreign and domestic market participants.

Trading & Investment

SEBI Modifies NAV Rules for Mutual Fund Schemes

By Sanday Chongo Kabange | 22/09/2020

The move is expected to create a more level playing field for all mutual fund investors and promote greater use of digital payment channels.