Govt to speed up Rs 5,000 crore refund to MSMEs

Source: ETRetail.com, Aug 25, 2019

NEW DELHI: The Central Board of Indirect Taxes and Customs is finalising ways to speed up the refund of Rs 4,000-5,000 crore to micro, small and medium enterprises as finance minister Nirmala Sitharaman gets down to making the entire GST refund process seamless for businesses.

On Friday, Sitharaman had announced that all pending refunds of MSMEs will be cleared over the next 30 days and going forward, no dues will be pending for more than 60 days. On Sunday, she is due to brainstorm with officials from CBIC as well as GST Network, the company that provides the IT backbone, for working out an efficient refund mechanism. Read the rest of this entry »

Foreign investors pull out Rs 3,014 cr from capital markets in Aug so far

Source: Business Standard, Aug 25, 2019

New Delhi: Overseas investors have pulled out a net amount of Rs 3,014 crore from the Indian capital markets this month so far, but the trend may reverse following the removal of enhanced surcharge on FPIs, experts said.

According to depositories data, foreign portfolio investors (FPI) withdrew a net amount of Rs 12,105.33 crore from equities, but pumped in Rs 9,090.61 crore into the debt segment during August 1-23.

This has translated into a total net outflow of Rs 3,014.72 crore from the capital markets (both equity and debt).

“Out of 15 trading sessions, foreign investors were net buyers in only two sessions. The sell off in equities continued due to a mix of factors including US Fed rate cut, US-China trade war and the post Budget tax hike on high income investors,” said Harsh Jain, co-founder and COO of Groww. Read the rest of this entry »

RBI allows e-mandates on cards, advances RTGS timings

Source: LiveMint.com, Aug 21, 2019

MUMBAI: The Reserve Bank of India (RBI) on Wednesday permitted processing of e-mandate on credit and debit cards for recurring transactions (merchant payments) with a cap of ₹2,000.

RBI has been receiving requests from industry stakeholders to allow this with an additional factor of authentication during e-mandate registration and the first transaction.

“…it has been decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification and revocation, as also for the first transaction, and simple/automatic subsequent successive transactions,” RBI said in a circular. Read the rest of this entry »

PE-VC investment in India zooms to all-time high of $8.3 bn in July

Source: The Hindu Business Line, Aug 19, 2019

New Delhi: Private equity and venture capital investments in India crossed USD 8 billion in July – the highest fund infusion in a month by PE/VC funds – amid strong investment activity in infrastructure and real estate asset classes, a report said on Monday.

According to EY’s private equity deal tracker, July 2019 recorded investments worth USD 8.3 billion across 106 deals against USD 1.8 billion in July 2018 through 70 deals. “The USD 8.3 billion worth of PE/VC investments in India in July 2019 is the highest value of monthly investments by PE/VC funds ever recorded, eclipsing the previous historical monthly high of USD 7.1 billion invested in March 2019,” said Vivek Soni, Partner and National Leader Private Equity Services, EY. Read the rest of this entry »

India’s exposure to US govt securities up by nearly $6 billion at June-end

Source: Financial Express, Aug 18, 2019

Washington: India’s exposure to the US government securities rose by nearly USD 6 billion to USD 162.7 billion at the end of June, the highest level in at least one year.

Latest data from the US Treasury Department showed that Japan was the largest holder, with holdings of American government securities worth USD 1.122 trillion, followed by Mainland China whose exposure stood at USD 1.112 trillion.

These are figures at the end of June 2019. Read the rest of this entry »

RBI allows fintech companies, financial institutions to set up regulatory sandbox

Source: The Economic Times, Aug 13, 2019

MUMBAI: The RBI on Tuesday permitted startups, banks and financial institutions to set up regulatory sandbox (RS) for live testing of innovative products in areas like retail payments, digital KYC and wealth management.

RS usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing. The RS allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks.

Releasing the ‘enabling framework for regulatory sandbox’, the RBI said the RS fosters ‘learning by doing’ on all sides and regulators obtain first-hand empirical evidence on the benefits and risks of emerging technologies and their implications. Read the rest of this entry »

Why India’s $10 billion foreign bond sale plan may never take off

Source: Business Standard, Aug 13, 2019

India’s foray into international debt markets may consist of little more than sound and fury, as the nation struggles to shed decades of trepidation about borrowing in foreign currencies.

A fanfare announcement in the July budget has been followed by the removal of the official driving the sale, objections from the prime minister’s office, and finally an admission from Finance Minister Nirmala Sitharaman that no work has been done on the mooted $10 billion offering.

India’s first venture into the overseas bond market would shift part of its 7-trillion-rupee ($100 billion) borrowing abroad, and enable it tap a wider pool of funds. But fears that it may increase the nation’s reliance on foreign borrowing has brought together an array of opponents arguing that currency volatility and elevated debt costs would ruin the country. Read the rest of this entry »