BUSINESS
RBI relaxes rules for foreign branches of Indian banks to deal in financial products not permitted in India
The foreign branches/foreign subsidiaries of Indian banks/AIFIs can deal in financial products, including structured financial products, which are not available or are not permitted by the Reserve Bank in the domestic market without its prior approval
BUSINESS
India’s wholesale CBDC: How has it faring one month since launch?
The RBI introduced the pilot wholesale central bank digital currency (CBDC) on October 31, 2022. Insiders say, most traders are only testing this currency at this point in time and not taking positions. For taking positions, they are still going by the normal trading practices on the NDS-OM
BUSINESS
Robust benchmarks in financial markets a must, says RBI deputy governor T Rabi Sankar
Financial benchmarks, used as references for pricing, valuation and settlement of financial instruments, are a key driver of the price integrity of financial markets
BUSINESS
Banks to send invites to select customers for use of retail pilot CBDC: V Vaidyanathan, MD & CEO of IDFC First Bank
Under the first pilot project that starts on December 1, four banks have created a wallet in their mobile banking applications where these CBDCs will be available to select customers.
BUSINESS
Banks rush to raise funds via corporate bonds as credit demand picks up
In the past two weeks, some banks have raised more than Rs 5,000 crore through bonds of various tenures. Going forward, IDFC First Bank, Kotak Mahindra Bank, Bank of India and J&K Bank are expected to mop up funds from the market.
BUSINESS
Fundraising via unlisted bonds fell over 60% on-year in H1FY23 on low investors demand
The amount raised by way of unlisted bonds between April and September this year was Rs 20,413 crore, compared to Rs 53,176 crore over the same period last year.
BUSINESS
Rupee to trade in 79-82 range against US dollar in 2023, say experts
"(The rupee) will depreciate a bit to 83 per dollar or so in the first half of 2023, but should strengthen after that," noted Ashima Goyal, External member RBI MPC.
BUSINESS
Exclusive| CBDC settlements will ensure finality, reduce risk in the financial system, says JM Financial's Ajay Manglunia
In the long run, the use of CBDC will create an efficient and cheaper currency management system and would eventually enable real-time, cost-effective and seamless integration of cross-border payment systems, Manglunia said.
BUSINESS
India’s US Treasury Securities holding rose 4.3% on-month to $221.2 billion in August: SEBI Bulletin
Dealers expect that India will try to increase its US Treasury holdings as these notes will be attractive even after their yields ease.
BUSINESS
HDFC, IOC and four more to issue bonds today to raise Rs 9,200 crore
These firms includes Housing Development Finance Corp (HDFC), Indian Oil Corporation (IOC), Rural Electrification Corp (REC), among others.
BUSINESS
T-bill yields to remain range bound in near term: Dealers
In the previous week's auction, the cut-off yield on T-Bills eased after rising for consecutive weeks. The cut-off yield on the 91-day T-Bill fell by 4 bps, while on the 182-day and 364-day T-bills it fell by 8 and 10 bps, respectively.
BUSINESS
Spread between G-Secs and corporate bonds widens on resumption in issuance by companies
According to experts, with a few more rate hikes expected this fiscal, issuers are looking to shift some of their borrowings to NCDs to lock-in fixed coupon rates
BUSINESS
Benchmark bond yield to trade between 7.20% and 7.40% in near term: Dealers
Inflation is expected to cool as the effect of RBI’s rate increases since May, adding up to 190 basis points, begins to kick in. After the December monetary policy meeting, the bond yield direction will depend on central bank commentary .
BUSINESS
Rupee weakening may not be over yet, say experts
Respite from the US inflation print has driven gains for the rupee, but it is premature to conclude that depreciation risks have subsided, says Sakshi Gupta, economist at HDFC Bank. She noted that any unpleasant surprises on economic data could tip the scales in favour of the dollar again.
BUSINESS
Corporate bond issuances growth may slow as higher rates hurt: Dealers
Borrowers may prefer longer-tenure bonds with more stable interest rates.
BUSINESS
Drop in October inflation unlikely to deter RBI from hiking rates, say economists
Retail inflation measured by the Consumer Price Index declined to 6.77 percent in October, the lowest in three months, from 7.41 percent in September
BUSINESS
SEBI’s bond-platform regulations may help develop fixed-income market: Experts
Now on, no person shall act as an online bond platform provider without a certificate of registration under SEBI rules. The unregulated market was not having any entry barrier and this had led to confusion among investors, say dealers.
BUSINESS
Public issue of municipal bonds to help issuers increase investor base: Experts
This will also help the issuer achieve competitive pricing and even accommodate low-credit issuers.
BUSINESS
FPI investment in debt turns negative in October
So long as the US Fed continues with its rate hike trajectory, money market dealers expect FPI flows to remain negative.
BUSINESS
G-sec transactions using digital rupee recorded highest volume since inception on November 7
On November 7, G-Sec trades using the digital rupee were worth Rs 530 crore, of which trades worth Rs 500 crore were held in the 10-year benchmark 7.26 percent-2032 bonds, according to data compiled from NDS-OM CBDC trades
BUSINESS
Certificates of deposit issuances fall marginally in October, yield rises
Money-market dealers expect liquidity in the banking system to remain under stress for the rest of this financial year
BUSINESS
Union Bank executes over 25% secondary market G-sec trades using CBDC in three days: Official
The central bank identified State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC to participate in the pilot project
BUSINESS
RBI to chart own rate path despite 75-bps hike by US Fed
The Indian central bank may look at various domestic and global factors before deciding on a rate hike, founders and managing directors of some companies say
BUSINESS
ICICI Bank executes first secondary market transaction in G-Sec using CBDC: Source
According the NDS-OM CBDS trades on the CCIL website, bonds worth Rs 275 crore have been settled on the first day via wholesale CBDC.
