Page 5 - Financial Markets
Disconnect between financial markets and real sector growing: RBI report
Report says despite broad stability in financial markets, pandemic could amplify financial vulnerabilities, including corporate and household debt burden in the case of severe economic contraction
 "Disconnect between financial markets and real sector growing: RBI report")
Debt funds turn to safe havens for investors as defaults sting, shows data
Since the IL&FS crisis, allocation to govt papers more than doubles, exposure to NBFCs drops
 "Debt funds turn to safe havens for investors as defaults sting, shows data")
The retail rush
Regulators, markets must brace for online trading apps
 "The retail rush")
Bond market warms up to NBFCs, but India's top-rated companies benefit
The liquidity situation for non-banking financial companies (NBFCs), which had been facing a crunch on this front for some time now, is improving.
 "Bond market warms up to NBFCs, but India's top-rated companies benefit")
Majority of Indian investors trust domestic financial markets: Survey
The fourth edition of trust report by CFA Institute revealed that 87 per cent of Indian investors trust domestic financial markets, up from 71 per cent in 2018
 "Majority of Indian investors trust domestic financial markets: Survey")
The return of risk capital
Capital will always be available if returns are high enough to justify the risk
RBI steps up monitoring of retail payment modes, modifies framework
The RBI has classified the National Payments Corporation of India (NPCI) as FMI, thereby increasing the regulatory oversight on the entity
 "RBI steps up monitoring of retail payment modes, modifies framework")
RBI modifies framework for financial market infra, retail payment system
The RBI, as per the document, will carry out the oversight activity through monitoring existing and planned systems
Economic freedom in agriculture
The boom and bust of agriculture will be solved when we shift from state domination to individual freedom
HNIs steer clear of illiquid investments after Covid-19 outbreak
Market-linked debentures and credit risk funds - two products to have grown popular in the past two years - have fallen out of favour since the outbreak
 "HNIs steer clear of illiquid investments after Covid-19 outbreak")
Sitharaman launches two exchanges to take on offshore currency market
The launch comes amid the world's most expansive coronavirus lockdown, which has crippled businesses and hurt trading volumes in the country's financial markets.
 "Sitharaman launches two exchanges to take on offshore currency market")
Debt investors feel the pinch after Franklin fiasco highlights risks
Existing investors need to scrutinise portfolios carefully, new ones should take expert help
Equal treatment
Govt should not tax two forms of debt differently
 "Equal treatment")
The logjam of risk aversion
Banks need sovereign support to lend to non-AAA borrowers in the wake of the Franklin crisis
 "The logjam of risk aversion")
Trouble for NBFCs
Repayment moratorium should be extended to NBFCs
 "Trouble for NBFCs")
With accounts in good order, Germany will be a post-coronavirus winner
Fiscally sound governments will be able to pump money into their companies unhindered by state-aid rules
 "With accounts in good order, Germany will be a post-coronavirus winner")
Sebi relaxes guidelines for investment through non-FATF countries
Move to benefit investors from countries and regions like Mauritius, Cayman Islands who are eyeing Category-I licence
 "Sebi relaxes guidelines for investment through non-FATF countries")
Covid haze in an Indian maze
India's unique characteristics may add a layer of uncertainty to its Covid outcome; policymakers should be prepared
 "Covid haze in an Indian maze")
The fiscal gridlock
Budget constraints of states need immediate attention
 "The fiscal gridlock")
Can we stop the clock?
To minimise economic damage during the lockdown, focus on cash flows, promise of growth
 "Can we stop the clock?")
