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Budget blesses BFSI

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Business Standard New Delhi
Last Updated : Mar 02 2015 | 10:10 PM IST
The proposal to bring large non-banking financial companies with assets of Rs 500 crore and above under the purview of the Sarfaesi Act for managing non-performing assets highlights the emphasis on diligence in lending operations. The penalty of 300 per cent on tax on concealed income and assets indicates the emphasis on ethics. Thus, corporate governance roles have a higher scope.

The merger of the Forward Markets Commission and the Securities and Exchange Board of India gives scope for nurturing the offsprings. This move was brought in place to reduce wild speculation, and leaves from the corporate governance tree will definitely come in handy. The proper monitoring of futures trading will reduce the risk involved for investors. Hence, students considering capital markets can party.

Keeping in mind the Indian market sentiment for gold, the proposed gold monetisation scheme will provide more funding and income earning options, thus empowering the lakshmis (women) of the nation. Banks being at the fulcrum of this scheme would undoubtedly benefit. Introducing schemes for pension, insurance and financial inclusion can make financial institutions increase the number of items on their menu.

The positive impact of these policy measures are reflected in the green smiles of the bank and insurance stocks. The Budget has blessed the banking, financial services and insurance (BFSI) segment.

Nandita Shyam, Manipal

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First Published: Mar 02 2015 | 10:10 PM IST

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