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The country's <keyword id="20344433" type="General" weightage="100" keywordseo="forex-reserves" source="keywords">forex reserves</keyword> touched a <keyword id="19953076" type="General" weightage="20" keywordseo="record-high" source="keywords">record high</keyword> of <keyword id="22711333" type="General" weightage="20" keywordseo="USD-675-billion" source="keywords">USD 675 billion</keyword> on August 2, <keyword id="22204269" type="General" weightage="20" keywordseo="Reserve-Bank-Governor" source="keywords">Reserve Bank Governor</keyword> <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword> said on Thursday. The previous all-time high for the kitty was USD 670.857 billion on July 19 this year, and the last reported reserve was USD 667.386 billion as on July 26. Das said overall, the country's <keyword id="20811151" type="General" weightage="20" keywordseo="external-sector" source="keywords">external sector</keyword> "remains resilient" as indicated by an improvement in key indicators. "We remain confident of meeting our <keyword id="22711421" type="General" weightage="20" keywordseo="external-financing-requirements" source="keywords">external financing requirements</keyword> comfortably," he said in his statement after the review of the <keyword id="20104157" type="General" weightage="20" keywordseo="monetary-policy" source="keywords">monetary policy</keyword>. Das said <keyword id="20015748" type="General" weightage="20" keywordseo="foreign-portfolio-investors" source="keywords">foreign portfolio investors</keyword> turned net buyers in the domestic market from June 2024 with net inflows of USD 9.7 billion during June- to August 6, after witnessing outflows of USD 4.2 billion in April and May. Gross foreign direct investment (FDI) rose by more than 20 per cent in April-May 2024, while net FDI flows doubled during this period compared to the corresponding period of the previous year, the Governor said. External commercial borrowings by Indian entities moderated, but non-resident deposits were higher in April-May, he said.

India's forex reserves at record high of USD 675 billion, external sector resilient: RBI Governor Shaktikanta Das

US short-seller <keyword id="20016892" type="General" weightage="20" keywordseo="Hindenburg-Research" source="keywords" meta.keywordsubtype="org" meta.entityname="Hindenburg Research" meta.hostid="153" meta.entityid="Hindenburg Research">Hindenburg Research</keyword> alleged that it suspects <keyword id="19901201" type="General" weightage="20" keywordseo="Sebi" source="keywords" meta.keywordsubtype="org" meta.entityname="Sebi" meta.hostid="153" meta.entityid="Sebi">SEBI</keyword>'s unwillingness to act against <keyword id="19955648" type="General" weightage="20" keywordseo="Adani-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Adani Group" meta.hostid="153" meta.entityid="Adani Group">Adani group</keyword> may be because its head Madhabi Puri Buch had stakes in <keyword id="20311680" type="General" weightage="20" keywordseo="offshore-funds" source="keywords">offshore funds</keyword> linked to the conglomerate - an allegation slammed by the SEBI head as "baseless" while Adani group said it never had any commercial relations with Buch. Hindenburg alleged that Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by <keyword id="20283220" type="General" weightage="20" keywordseo="Vinod-Adani" source="keywords">Vinod Adani</keyword> - the elder brother of group chairman Gautam Adani - to round-trip funds and inflate stock prices. SEBI, in October 2020, began a probe into the shareholding structure of Adani group companies after red flags were raised over the high concentration of foreign holdings in the conglomerate's listed companies. An investigation was launched to determine if the foreign investors were genuine public shareholders or acting as fronts for the promoters. SEBI, last year had told a Supreme Court-appointed panel that it was investigating 13 opaque offshore entities that held between 14-20% across five publicly traded stocks of the conglomerate. It hasn't stated if the two probes have since been completed, something which Hindenburg used to attack the market regulator. Madhabi Puri Buch and her husband Dhaval Buch in a joint statement strongly denied the "baseless allegations and insinuations made in the report". The same, they said, "are devoid of any truth". "Our life and finances are an open book," they said. "It is unfortunate that Hindenburg Research against whom SEBI has taken an enforcement action and issued a show cause notice, has chosen to attempt character assassination in response to the same." Buchs further said they have no hesitation in disclosing any financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. While the statement did not talk about the questions Hindenburg raised over SEBI probe, the duo promised to come out with a detailed response. Separately, Adani group in a regulatory filing called the allegations by Hindenburg as "malicious, mischievous and manipulative selections of publicly available information to arrive at predetermined conclusions for personal profiteering with wanton disregard for facts and the law." "The Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing," it said. "We remain steadfastly committed to transparency and compliance with all legal and regulatory requirements". Rejecting the allegations, it said they were nothing but a "recycling of discredited claims that have been thoroughly investigated, proven to be baseless, and already dismissed by the Supreme Court in March 2023." "It is reiterated that our overseas holding structure is fully transparent, with all relevant details disclosed regularly in numerous public documents," Adani group said, adding Anil Ahuja was a nominee director of 3i investment fund in Adani Power (2007-2008) and, later, a director of Adani Enterprises until 2017. "For a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg's allegations are no more than red herrings thrown by a desperate entity with total contempt for Indian laws," it added. Hindenburg on Saturday stated that the SEBI chairperson and her husband invested in offshore entities that were allegedly part of a fund structure managed by India Infoline, and in which Vinod Adani also had investments. These investments reportedly date back to 2015, well before her appointment as a full-time member of SEBI in 2017 and the subsequent elevation as chairperson in March 2022. It said the Bermuda-based Global Opportunities Fund, which allegedly was used by entities connected to Adani Group to trade in shares of group companies, had sub-funds. Buch and her husband were investors in one of these sub-funds in 2015. Citing "whistleblower documents", Hindenburg said, "<keyword id="22743118" type="General" weightage="20" keywordseo="Madhabi-Buch" source="keywords">Madhabi Buch</keyword>, the current chairperson of SEBI, and her husband had stakes in both obscure offshore funds used in the Adani <keyword id="22743230" type="General" weightage="20" keywordseo="money-siphoning" source="keywords">money siphoning</keyword> scandal." SEBI, it claimed, has "shown a surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities." Buch and her husband may have first opened their account with IPE Plus Fund 1 on June 5, 2015, in Singapore. IPE fund is a small offshore Mauritius fund set up by Vinod Adani director through India Infoline (IIFL), a wealth management firm with ties to the Wirecard embezzlement scandal. "Vinod Adani, brother of Gautam Adani, used this structure to invest in Indian markets with funds allegedly siphoned from over-invoicing of power equipment to Adani Group," claimed Hindenburg. Latching on to the Hindenburg allegations, Congress said the revelations only reinforced its demand for setting up a "joint parliamentary committee to investigate the full scope of the Adani mega scam" while the Trinamool Congress said the SEBI chairperson must resign. "This raises fresh questions about Gautam Adani's two 2022 meetings in quick succession with Ms Buch shortly after she became SEBI chairperson. Recall that SEBI was supposedly investigating Adani transactions at the time," Congress leader Jairam Ramesh said. In January last year, Hindenburg Research, which in the past has shorted - or bet against - companies like electric truck maker Nikola Corp and Twitter, accused Adani Group of pulling "the largest con in corporate history" by using a web of companies in tax havens to inflate its revenue and manipulate stock prices, even as debt piled up. Though the conglomerate vehemently denied all allegations, the damning report sent the group's shares into a free fall, wiping out over USD 150 billion in market value of the 10 listed entities at their lowest point. Most of the 10 listed companies have since recouped the losses. After the Hindenburg report, the Supreme Court asked market regulator SEBI to complete its investigation and set up a separate expert panel to look into regulatory lapses. The panel did not give any adverse report on Adani and the apex court too stated that no other probe other than one being done by SEBI was required. On June 26 this year, SEBI in a show cause notice charged Hindenburg of "deliberately sensationalizing and distorting certain facts" as well as working with a New York hedge fund to make its bet. Hindenburg had responded to that saying it made just USD 4.1 million from its declared positions on Adani stocks and criticized the regulator for not focusing its investigation into the January 2023 report "providing evidence" of the conglomerate creating "a vast network of offshore shell entities" and moving billions of dollars "surreptitiously" into and out of Adani public and private entities. The group led by billionaire Gautam Adani, who was the world's third-richest man before Hindenburg, in an epic comeback strategy raised USD 15 billion in equity and debt, sold some assets, repaid loans that were raised pledging shares, reined in expenses, repaid some debt and refocused energies on core business. Adani is now ranked 12th richest in the world, one notch and USD 6 billion shy of rival billionaire Mukesh Ambani. The group has also made some acquisitions, buying cement company Sanghi Industries and the news agency IANS. Adani has insisted the Hindenburg report has not changed operations at his companies, which include ports, airports, renewable parks generating electricity from sunlight and wind energy, gas distribution, cement processors, data centers, and even apple farms. 360 One Wam Ltd, formerly known as IIFL Wealth Management Ltd, separately said IPE-Plus Fund 1, a fully compliant and regulated fund, was launched in October 2013 and operated until October 2019. "Throughout the fund's tenure, IPE-Plus Fund 1 made zero investments in any shares of the Adani Group either directly or indirectly through any fund," it said. "At its peak, the fund's Assets Under Management (AUM) reached approximately USD 48 million, with over 90% of the fund consistently invested in bonds." The fund, it said, was managed as a discretionary fund by the Investment Manager. "No investor had any involvement in the fund's operations or investment decisions. Mrs. Madhabi Buch &amp; Mr. Dhaval Buch's holdings in the fund were less than 1.5% of the total inflow into the fund." Hindenburg on Saturday alleged that just weeks before Buch's appointment to SEBI, her husband requested the transfer of their investments into his sole control, potentially to avoid any scrutiny related to her new regulatory role. The couple's investments were reportedly funneled through a complex, multi-layered offshore structure, raising questions about their legitimacy and purpose. On March 22, 2017, just weeks ahead of Buch's appointment as SEBI Wholetime Member, her husband, Dhaval Buch, wrote to Mauritius fund administrator Trident Trust. That communication was regarding his and his wife's investment in the Global Dynamic Opportunities Fund (GDOF), the US firm alleged. "In the letter, Dhaval Buch requested to"be the sole person authorized to operate the accounts", seemingly moving the assets out of his wife's name ahead of the politically sensitive appointment," Hindenburg alleged. Dhaval Buch is currently a senior advisor at Blackstone and at Alvarez &amp; Marsal. He also serves as a non-executive director on the Board of Gildan. "In a later account statement dated February 26, 2018, addressed to Madhabi Buch's private email, the full details of the structure are revealed: "GDOF Cell 90 (IPEplus Fund 1)". Again, this is the same Mauritius-registered "cell" of the fund, found several layers deep in a convoluted structure, reportedly used by Vinod Adani," Hindenburg alleged. From April 2017 to March 2022, while Buch was a Wholetime member and Chairperson at SEBI, she had a 100 % interest in an offshore Singaporean consulting firm, called Agora Partners, it alleged adding On March 16, 2022, two weeks after she was appointed SEBI Chairperson, she quietly transferred the shares to her husband. To date, SEBI has taken no action against these funds, it claimed. "If SEBI wanted to find the offshore fund holders, perhaps the SEBI Chairperson could have started by looking in the mirror," Hindenburg said. In response to requests from the Supreme Court to investigate the Adani matter, SEBI is said to have hit a wall unveiling the holders of the offshore funds. The Supreme Court said that while SEBI seemingly agreed with its concerns over who funded Adani's offshore shareholders, "it is evident that SEBI has drawn a blank in this investigation", the firm alleged.

Hindenburg target SEBI chief, she calls charges baseless, Adani says no commercial relationship with SEBI head

<ul><li>In order to meet the objectives, the <keyword id="6364876" type="General" weightage="50" keywordseo="bar-council-of-india" source="Orion">Bar Council of India</keyword> Rules for registration of foreign lawyers and foreign Law Firms in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> has been framed.</li><li>The Bar Council of India stated that the standards of Indian lawyers in proficiency in law are comparable with international standards.</li><li>Hence, the legal fraternity in India is not likely to suffer any disadvantage in case law practice in India is opened up to foreign lawyers.</li></ul> The Bar Council of India(BCI) has allowed foreign lawyers and law firms to practice foreign law and diverse international law and international arbitration matters in India. The council said, "Taking an all-inclusive view, the Bar Council of India resolves to implement rules enabling the foreign lawyers and Foreign Law Firms to practice foreign law and diverse international law and international arbitration matters in India on the principle of reciprocity in a well defined, regulated and controlled manner." In order to meet the objectives, the Bar Council of India has framed the Bar Council of India Rules for registration of foreign lawyers and foreign Law Firms in India, 2021 under its rule-making powers under clauses (d), (e), (ic), (1) and (m) of sub-section (1) of section 7 and clauses (ah), (ag), (c), (e) and (h) of sub-section (1) of section 49 read with sections 24, 29 and 47 of the Advocates Act, 1961 and under all other enabling provisions. Bar Council of India is of the view that opening up a law practice in India to foreign lawyers in the field of practice of foreign law; diverse international legal issues in non-litigious matters and in international arbitration cases would go a long way in helping the legal profession/ domain grow in India to the benefit of lawyers in India too, the council said. Bar Council of India stated that the standards of Indian lawyers in proficiency in law are comparable with the international standards and the legal fraternity in India is not likely to suffer any disadvantage in case law practice in India is opened up to foreign lawyers in a restricted and well-controlled and regulated manner on the principle of reciprocity as it would be mutually beneficial for lawyers from India and abroad and these Rules are an attempt by the Bar Council of India in this direction. These rules will also help to address the concerns expressed about the flow of Foreign Direct Investment in the country and making India a hub of <keyword id="4446295" type="General" weightage="50" keywordseo="international-commercial-arbitration" source="Orion">International Commercial Arbitration</keyword>. In case, we sleep over the matter, the legal fraternity of India may be left behind in providing legal/professional expertise in accordance with the rule of law in a manner consistent with the best interests of this fast-growing class of clients in India, it said. Let us ensure that an opportunity for creating development and growth for the legal profession and in the legal sphere in India is not lost, stated BCI. Many countries have already allowed foreign lawyers to practice foreign law and diverse international legal issues and arbitration matters in their countries in restricted fields with specific and prescribed conditions, BCI notification said. Further, the notification stated, "It is also to be noted that the Bar Council of India is keen to progress on the idea of an MoU between the Bar Council of India, the Government of India (through Ministry of Law and Justice ) on one part and the Law Society of England and Wales, Government of U.K., Bar Council of England and Wales, on the other." "The U.K. Delegates have also assured the Bar Council of India that the Authorities in the U.K. are also keen and interested in the means of collaboration, cooperation and joint practice between Indian advocates and UK lawyers," added the notification. Moreover, having regard to the aim and object of the International Commercial Arbitration introduced in the Arbitration and Conciliation Act, 1996, foreign lawyers cannot be debarred to come to India and conduct arbitration proceedings in respect of disputes arising out of a contract relating to international commercial arbitration, stated BCI. The opinion of the Bar Council of India the legal profession in India has to rise to the occasion to meet the global changes in the Legal Arena caused by the migration of people from one country to another on such a large scale that had not been witnessed in earlier days. The world is becoming a global village. International trade and commerce are advancing at a great pace. The demand for an open, responsive and receptive legal professional dispensation mechanism in India from clients/public who operate in international and cross-country business is becoming severe day by day. Growth in the international legal work sphere and globalization of legal practice and internationalization of the law is increasingly becoming relevant to the growth of the legal profession and practices in India. On this development, <keyword id="254179" type="General" weightage="50" keywordseo="rajesh-narain-gupta" source="Orion">Rajesh Narain Gupta</keyword>, Managing Partner of SNG and Partners, said "Entry of foreign law firms will change the landscape for law firms in India. This would overall support in a big way the ambition of India to be more visible and valuable in a global context, especially in international trade and commerce." "This will be a game changer for mid-size firms and will also help the law firm in India to achieve more efficiency in talent management, International Arbitration technology, domain knowledge in a global context, and management," <keyword id="6356160" type="General" weightage="50" keywordseo="gupta" source="Orion">Gupta</keyword> added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/garment-producers-demand-200-crore-dues-from-kishore-biyanis-future-group/articleshow/98658896.cms">Garment producers demand ₹200 crore dues from Kishore Biyani's Future Group</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/delhi-govt-extends-ongoing-excise-policy-by-6-months/articleshow/98658915.cms">Delhi govt extends ongoing excise policy by 6 months</a>

Bar Council allows foreign law firms, lawyers to practice in India

<ul class="summary-list"><li>Elon Musk reeled off a raft of challenges facing automakers and the wider US economy.</li><li>The Tesla CEO warned about consumer debt, a credit crunch, and commercial real-estate woes.</li></ul>Like a car mechanic inspecting a banger, Elon Musk ticked off a <a href="https://markets.businessinsider.com/news/stocks/elon-musk-tesla-quotes-cybertruck-optimus-banks-debt-real-estate-2023-10">long list of concerns</a> about the US economy during Tesla's <a href="https://www.businessinsider.com/tesla-earnings-q3-report-live-updates-guidance-analyst-call-stock-reaction-2023-10">third-quarter earnings call</a> on Wednesday.The EV maker's CEO noted that many American households are <a href="https://markets.businessinsider.com/news/stocks/big-short-michael-burry-jpmorgan-consumer-inflation-rates-banking-crisis-2023-4">just scraping by</a>, as higher prices and steeper interest rates on credit cards, mortgages, and car loans squeeze their monthly budgets."A large number of people are living paycheck to paycheck and with a lot of debt," Musk said, adding that credit-card costs have surged to "extremely punishing" levels. "If you cannot pay them off and you're still accruing interest at 20%, you're at best headed to a bad place."Musk pointed out that it's become tougher to borrow money, as the <a href="https://www.businessinsider.com/silicon-valley-bank-failure-what-happened-bank-run-explained-2023-3">collapse of Silicon Valley Bank</a> and other regional banks this spring has sparked a <a href="https://markets.businessinsider.com/news/stocks/credit-crunch-us-bank-crisis-stock-corporate-earnings-recession-svb-2023-4">pullback in lending</a>."There are a number of people who simply cannot get credit, period," he said. "Even if they've got a job and everything is solid, the banks are a little gun-shy on handing out credit, given that a bunch of them kicked the bucket earlier this year."The world's richest man cautioned there's <a href="https://www.businessinsider.com/oleary-regional-banks-commercial-real-estate-small-business-rates-lending-2023-9">likely to be more fallout</a> as higher rates, tighter lending, and declining asset values hit vulnerable sectors of the economy."I think there's still quite a few shoes to drop on the bad credit situation," he said. "Commercial real estate obviously is in <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-crash-prices-credit-crunch-office-demand-economy-2023-7">terrible shape</a>."Musk flagged the anxiety caused by the <a href="https://www.businessinsider.com/ray-dalio-israel-hamas-world-war-middle-east-politics-linkedin-2023-10">Russia-Ukraine and Israel-Hamas conflicts</a> as a headwind too."People are reading about wars all over the world," he said. "Buying a new car tends to not be front of mind."The auto executive also drilled down on how the economic situation is hurting his industry specifically. Consumers have less disposable income to spend on a car, and buying one is more expensive and arduous today than it was two years ago, thanks to higher rates and tighter lending. People also tend to hold off on buying a new car during periods of economic uncertainty, he said.The car industry's cyclical nature was one reason why two of America's largest automakers went bust during the financial crisis. Musk said the failures were looming large at the moment."I am still somewhat scarred by 2009 when General Motors and Chrysler went bankrupt," he said. "That is seared into my mind with a branding iron because Tesla was just hanging on by a thread during that entire time."As a result, Musk said he was wary of blindly charging ahead with his expansion plans."I don't want to be going at top speed into uncertainty," he said. "We want to just get a sense for the global economy before we go full tilt on the <a href="https://www.businessinsider.com/tesla-mexico-factory-genius-move-for-cheap-car-expert-says-2023-3">Mexico factory</a>."Most strikingly, Musk warned the current economic backdrop could worsen, causing headaches for Tesla regardless of its strength as a business."I'm not saying things will be bad, I'm just saying they might be," he said. "If the macroeconomic conditions are stormy, even the best ship is still going to have tough times."

Elon Musk just warned about credit-card debt, commercial real estate, and foreign conflicts. Here's why the Tesla chief is so worried.

<ul class="summary-list"><li>Problems for the US commercial real estate sector seem to be getting worse — and spreading.</li><li>Steeper interest payments, tighter bank lending, and declining asset values have slammed the sector.</li></ul>The tremors rattling US commercial real estate are spreading to other countries and sectors, and threaten to escalate into a financial earthquake as refinancing deadlines loom.Some investors aren't worried about falling through the cracks, though. They think the climate of fear and confusion is serving up prime properties at bargain prices.<h2>What's going on?</h2>There are growing signs that commercial real estate is in serious trouble.Barry Sternlicht, a billionaire real estate investor and <a target="_blank" href="https://www.businessinsider.com/office-crash-property-values-commercial-real-estate-barry-sternlicht-economy-2024-1">Starwood Capital's CEO</a>, recently predicted $1 trillion of losses on office properties alone.More than $900 billion, or 20%-plus of the total debt owed on US commercial and multi-family real estate, will mature this year, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-02-12/commercial-property-loans-coming-due-in-us-jump-to-929-billion?srnd=premium&amp;embedded-checkout=true">Bloomberg reported</a> this week. Borrowers may have no choice but to refinance at much higher interest rates, or sell their properties at a big discount.Property jitters are being felt in Europe too. The value of bonds for Germany's Pfandbriefbank tumbled this month as investors fretted about its exposure to the embattled industry.Moreover, the European Central Bank has threatened to impose steeper capital requirements on lenders unless they take commercial real estate risks seriously, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-02-09/ecb-warns-banks-to-grasp-real-estate-risks-or-face-capital-hits?embedded-checkout=true ">sources told Bloomberg</a>.At the same time, some Chinese investors are rushing to sell foreign real estate at discounts of 45% or more, in an effort to free up cash as they weather a worsening property crisis at home.Prospective losses, refinancing woes, international contagion, and panic selling combine to create a bleak outlook for the commercial property sector.<h2>Why's everyone so worried?</h2>Fears were reignited this month after <a target="_blank" href="https://www.businessinsider.com/nycb-regional-bank-fears-commercial-real-estate-turmoil-fears-2024-2">New York Community Bancorp</a> abruptly cut its dividend, set aside some $500 million to cover bad debts, and revealed a surprise quarterly loss that it blamed on just two troubled loans.Investors promptly sent NYCB stock down 60% in five days, and it's still trading at two-decade lows. The lender's scramble to clean up its finances triggered bad memories of last spring's <a target="_blank" href="https://www.businessinsider.com/a-banking-crisis-is-unfolding-worldwide-how-bad-is-it-2023-3">regional-banking fiasco</a> that saw Silicon Valley Bank and two other lenders hit by tidal waves of deposit withdrawals, then seized by the federal government before they collapsed entirely.The catalyst for both the banking and commercial real estate drama is deceptively dry: rising interest rates.But the simple act of making borrowing more expensive can discourage spending, hiring, and investing; drag down the prices of risky assets like stocks by boosting yields from bonds and savings accounts; turn the screw on debt-reliant industries; and slow the <a target="_blank" href="https://www.businessinsider.com/recession-outlook-financial-crisis-economy-federal-reserve-yield-curve-rosenberg-2024-2">economy into recession</a>.In response to surging inflation, the Federal Reserve hiked its benchmark interest rate from virtually zero in early 2022 to more than 5% by the following summer. It <a target="_blank" href="https://www.businessinsider.com/federal-reserve-first-interest-rate-cuts-summer-raphael-bostic-inflation-2024-2">hasn't lowered</a> it since, and other countries' central banks have followed its lead.The combination of higher borrowing costs and the shift to remote working has sapped demand for offices and other commercial property, driving down asset values.Some regional lenders such as <a target="_blank" href="https://www.businessinsider.com/silicon-valley-bank-failure-what-happened-bank-run-explained-2023-3">Silicon Valley Bank</a> weren't sufficiently hedged against rate hikes last year, and saw their portfolios of bonds and mortgages slump in value as a result.Stung by those paper losses, fearful of a surge in late payments and loan defaults, and wary of further bank runs, lenders have pulled back from lending for commercial property.The upshot is the sector not only much higher interest payments on its massive debts, but also a credit crunch and declining asset values. Small businesses are also <a target="_blank" href="https://www.businessinsider.com/oleary-regional-banks-commercial-real-estate-small-business-rates-lending-2023-9">feeling the squeeze</a> from steeper borrowing costs and stricter lending standards.On the bright side, <a target="_blank" href="https://www.businessinsider.com/personal-finance/what-is-inflation">inflation</a> has dropped from a 40-year high of 9.1% in the summer of 2022 to below 4% in recent months, leading the Fed to pencil in a number of rate cuts this year.But many property loans are falling due in the next year or two, raising the question of whether rates will come down fast enough to prevent a disaster.Indeed, some $2.2 trillion in commercial mortgages are set to mature by the end of 2027, data firm Trepp estimates."At some point, that avalanche is going to hit," the firm's chief product officer told The Wall Street Journal.<h2>Wait, some buyers are wading into this market?</h2>Yes they are. <a target="_blank" href="https://www.businessinsider.com/category/warren-buffett">Warren Buffett</a> famously preaches "be greedy when others are fearful" — and some brave souls are taking that advice to heart.Ian Jacobs, a former assistant to the Berkshire Hathaway CEO, plans to buy 3 million square feet of office space in San Francisco and pay about 70% below building costs, <a target="_blank" href="https://www.wsj.com/real-estate/commercial/a-buffett-protege-makes-an-offbeat-bet-buy-san-francisco-real-estate-15dde4ba">The Journal reported</a> this week.He's already lined up $750 million from investors, despite warning them it could take a decade for prices to bounce back, the report said.Jacobs is a member of the Reichmann family, meaning bargain hunting is pretty much a family business. His relatives built a real estate empire by scooping up cheap properties in New York City when it nearly went bankrupt in the 1970s.<div type="image" title="Manhattan skyline in the 1970s" height="2303" width="3418" msid="107753983" hostid="261" sizebytes="378074"></div>Other examples include Ares Management and RXR, two investment firms that are purchasing interests in 3 million square feet of office space, sources told The Journal.In December the Aon Center in downtown Los Angeles sold for about $148 million — considerably less than the $268 million it fetched in 2014, <a target="_blank" href="https://www.bloomberg.com/news/articles/2023-12-23/la-s-third-tallest-tower-sells-for-45-below-2014-price">Bloomberg reported</a>.Moreover, "Undercover Billionaire" star and real estate tycoon <a target="_blank" href="https://www.businessinsider.com/cardone-real-estate-market-outlook-office-apartments-house-prices-mortgages-2023-12">Grant Cardone</a> has hailed the ongoing correction as a rare chance for everyday people to buy "trophy real estate" from institutional owners.Of course, commercial property players have a vested interest in trumpeting the industry's troubles as a buying opportunity, given that could revive investor interest and reverse the plunge in their property values.Yet it's likely that some high-quality assets will be caught up in the selloff. Those who buy them when fear is spreading far and wide and indebted developers are in a race against time will ultimately be rewarded for their courage.

Commercial real estate is in big trouble — and the problems may have major financial fallout

India's corporate credit landscape is showing positive trends that are expected to persist, according to a recent report by <keyword id="19990557" type="General" weightage="20" keywordseo="SP-Global" source="keywords" meta.keywordsubtype="org" meta.entityname="S&amp;P Global" meta.hostid="261" meta.entityid="S&amp;P Global">S&amp;P Global</keyword>. The report highlights strengthening credit quality across various sectors, driven by enhanced <keyword id="20994126" type="General" weightage="20" keywordseo="financial-discipline" source="keywords">financial discipline</keyword>, broad-based <keyword id="19899597" type="General" weightage="20" keywordseo="earnings-growth" source="keywords">earnings growth</keyword>, and robust liquidity profiles. S&amp;P Global's analysis reveals that one in three ratings within India now shows a positive outlook, marking a significant shift after three years of net positive rating actions. The report indicates that corporate India has built greater resilience against downside risks, reflecting a more stable and robust credit environment. However, corporate leverage in India is expected to decline marginally, even as capital expenditure (capex) rises by 30% compared to pre-pandemic levels. This improvement is attributed to more entrenched financial discipline among companies, which have managed to balance rising capex with prudent financial management. The report forecasts a 10% growth in aggregate EBITDA in 2024, driven by strong performance in sectors such as telecommunications, airports, commodities, and chemicals. This broad-based earnings growth underscores the resilience of corporate India and its ability to generate substantial cash flows despite a challenging global environment. Indian companies are benefiting from strong onshore liquidity and the absence of large debt maturities, which support their liquidity profiles. The resilience of these companies to foreign exchange and interest rate volatility further strengthens their liquidity positions. Corporate India's positive credit trends are closely linked to broader economic drivers such as GDP growth. Increased consumer spending is bolstering sectors like airports, automobiles, and telecommunications. Meanwhile, infrastructure investment is significantly boosting the commodities, utilities, and commercial automotive sectors. S&amp;P Global notes that both infrastructure and non-infrastructure sectors are experiencing reductions in leverage, with absolute debt reduction more pronounced in non-infrastructure sectors. However, infrastructure entities are slower in reducing debt due to higher capex, particularly in energy transition initiatives. Operating cash flows across sectors are outpacing capex, supporting further deleveraging. While capex intensity remains higher in infrastructure sectors, the neutral free operating cash flow is seen as a positive trend, indicating that companies are managing their capital expenditures efficiently while maintaining cash flows. The transportation infrastructure sector is benefiting from traffic growth and tariff increases, with rising cargo volumes supporting port revenues and improved operating efficiencies boosting margins. Airports are also experiencing higher traffic levels and tariff increases, contributing to better operating cash flows and overall credit quality. In the utilities sector, rising demand and new capacity are driving earnings growth, though capex remains high, particularly for energy transition projects. The steel sector is expected to see increased operating cash flow due to falling input prices and new capacity additions. Earnings in the oil and gas sector are expected to remain stable, supported by a favorable price outlook and consistent production levels. The telecom sector is also on a path to significant deleveraging, with capex expected to moderate following the 5G auctions in 2023. The auto sector is witnessing sustained operating performance as volumes stabilize after the supply chain disruptions of 2022. S&amp;P Global notes that debt levels in the auto sector are expected to remain low following sharp deleveraging, while normalized growth in auto sales and stable margins support the sector's positive outlook. In the chemicals sector, falling input costs and stabilized product prices are expected to drive earnings recovery following a downturn in 2023. Improved signals show a broader trend of recovery across various industrial sectors in India. S&amp;P Global concludes that with the highest proportion of positive credit outlooks in the region, India's corporate sector is well-positioned for continued <keyword id="22758432" type="General" weightage="20" keywordseo="credit-quality-improvement" source="keywords">credit quality improvement</keyword>. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/saraswati-saree-depot-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112457330.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/saraswati-saree-depot-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112457330.cms" target="_blank">Saraswati Saree Depot IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/news/indias-wearables-market-decline-for-the-first-time-as-smartwatch-shipments-fall/articleshow/112397246.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/indias-wearables-market-decline-for-the-first-time-as-smartwatch-shipments-fall/articleshow/112397246.cms" target="_blank">India’s wearables market decline for the first time as smartwatch shipments fall</a><a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank">Ola wants to re-enter the quick commerce business to take on Blinkit and Swiggy Instamart</a>

India's corporate credit quality is getting stronger: S&P Global

New Delhi, <keyword id="175577" type="General" weightage="20" keywordseo="commercial-pilot-license" source="Orion">Commercial pilot license</keyword>s will now be valid for ten years, with the government amending rules as part of efforts to further improve ease of doing business in the aviation sector. Till now, the validity of Commercial Pilot License (CPL) was for five years and after completion of that period, it had to be renewed. The civil aviation ministry amended the Aircraft Rules, 1937. Among various changes made, the validity of licenses in relation to Airline Transport Pilot License (ATPL) and CPL holders has been increased from five years to ten years. "This change is expected to reduce administrative burden on pilots and aviation authorities like DGCA, promoting a more streamlined and efficient licensing process," the ministry said in a statement on Monday. Besides, rules have been amended to address concerns related to the display of lights in the vicinity of an aerodrome. It has also been clarified that the term 'light' encompasses lantern lights, wish kites, and laser lights. Also, the government's jurisdiction over those exhibiting such lights has been extended from 5 kilometres to 5 nautical miles around an aerodrome. "It is made explicit that the government possesses the authority to take action against individuals displaying lights that disrupt the safe operation of aircraft or pose hazards to the operating crew. "Should such lights remain unattended for 24 hours, the government is empowered to enter the location and extinguish them," the ministry said. Simultaneously, the matter should be reported to the relevant police station for legal action under the Indian Penal Code (IPC). When the source of the observed light is unidentifiable or if it shifts locations, the airport or airline operator is obligated to promptly report the incident to the local police station, initiating potential criminal proceedings. Another amendment is that the requirement for validation of foreign licenses has been removed. "This change signifies aligning the regulations with the evolving needs of the aviation sector," the ministry said. Further, the requirements related to continued competence for <keyword id="6414849" type="General" weightage="80" keywordseo="air-traffic-controller" source="Orion">Air Traffic Controller</keyword> (ATC) license holders have been liberalised. According to the ministry, this change offers increased flexibility to accommodate situations with limited movements or watch hours. ATC license holders must complete a minimum of ten hours of simulated exercises, including emergencies. Subsequently, they must undergo a skill assessment for their respective rating within ten consecutive days of commencing these exercises, it said. The ministry said the amendments to the Aircraft Rules, 1937, notified on October 10, mark a crucial shift in promoting ease of doing business and ensuring safety and security within the aviation sector. India is one of the fastest growing aviation markets in the world. Airlines are expanding their aircraft fleet and will be hiring more pilots to cater to rising air traffic demand.

Govt amends aircraft rules; commercial pilot licenses to be valid for 10 years

<ul><li>Proprietary analysis done by <keyword id="6365707" type="General" weightage="20" keywordseo="ubs" source="Orion">UBS</keyword> shows that borrowers with more than five personal loans rose from 1% in 2018 to 7.7% in March 2023.</li><li>New disbursement of personal loans to borrowers with weaker credit profiles accounts for 22% of disbursements, which exposes this segment to a potential downcycle.</li><li>State-owned <keyword id="6368751" type="General" weightage="60" keywordseo="banks" source="Orion">banks</keyword> and non banking financial companies have a much higher share of weak borrowers compared to private banks. </li></ul> There’s a reason why lenders are luring consumers with multiple personal loans. In a bid to shore up loan books, lenders are indiscriminately lending to even those who cannot repay these loans. Raging <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword> is not just burning a hole in the pockets of consumers. It is also impairing the ability of retail borrowers to repay their personal loans. In the aftermath of the pandemic, banks are in a better place when it comes to the headline figure on bad loans, but the defaults are rising sharply when it comes to personal loans that now account for more than 10% of outstanding loans for most banks. This is not good news for stock pickers or investors as profitability of lenders – public and some private – will come under pressure because many of these retail borrowers will default. This would lead to higher credit costs and higher provisions. Bank stocks have been rallying this year as at an aggregate level, the gross non performing assets of banks have hit decadal lows. Bank Nifty is now trading at 1.9x its price to book value, which is lower than its 10-year average of 2.2x. Pressure on net interest margins and higher credit costs to impact earnings of banks and shadow banks over FY24 and FY25. Shares of State Bank of India are down 4.4% in the last one month, while that of other private banks is down between 2-4%. While the Reserve Bank of India has been flagging off build up of stress in the retail loans segment, a deep dive into numbers is rather scary. According to analysis done by UBS, a global investment bank, shows that borrowers with more than five personal loans rose from 1% in 2018 to 7.7% in March 2023. Shockingly, new disbursement of personal loans to borrowers with weaker credit profiles accounts for 22% of disbursements, which exposes this segment to a potential downcycle. This is perhaps the reason why RBI is worried over rising stress in the retail loan portfolio of banks. Stress is clearly building up in the retail loan portfolio of leaders, which can be unsecured or secured. Secured loans are typically backed by some form of collateral like gold or property, while unsecured loans are backed by nothing. In June, RBI’s financial stability report said that one in every ten such retail borrowers is missing on making payments for such unsecured loans. The reason it is worrying is that these retail loans have doubled in value between 2021 and 2023 compared to total advances. In their bid to grow loan books, lenders are lending to consumers who are exhibiting their inability to repay such loans. Increasingly a lot of banks are now looking to issue unsecured loans to borrowers as they come with a higher interest rate. With corporates going easy on their borrowings, the retail credit boom has been the growth driver for most banks and non banks in India. According to analysts, state owned banks and non banking financial companies have a much higher share of weak borrowers compared to private banks. However, the stress in retail loans has been building since 2021. HDFC in January 2022 sold stressed retail loans worth Rs 2188 crore to asset reconstruction companies. Proprietary research done by UBS shows that unsecured loans as a percentage of total loans rose to 11.1% for State Bank of India, 12.8% for ICICI Bank and 10.7% for Axis Bank, but fell to 11.9% HDFC Bank (which merged with HDFC Limited) in June 2023. Says UBS in its report, “We believe the probability of regulators increasing the risk weight for personal loans is rising, and a 25% hike could lead to a 7- 40 bps drop in CET-1 ratios of banks we cover (SBI has a low buffer, in our view).” The financial stability report by RBI says "Although the gross non-performing ratio of retail loans at the system level was low at 1.4% as of March 2023, the share of 'special mention accounts' was relatively high at 7.4% for scheduled commercial banks (SCBs) and it accounted for a tenth of their retail assets portfolio," RBI said in the report.

Borrowers with multiple personal loans a big risk to profitability of banks and NBFCs

The Reserve Bank of <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) on Thursday allowed the opening of rupee accounts outside India as part of its strategic action plan to internationalise the domestic <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword>. With emphasis on continuous synchronisation of the <keyword id="19940710" type="General" weightage="20" keywordseo="FEMA" source="keywords">FEMA</keyword> operating framework with the evolving macroeconomic environment, rationalisation of various guidelines will be of primary focus, the central bank said in its annual report. The RBI said it has finalised a strategic action plan for 2024-25 and envisaged liberalisation of external commercial borrowing (ECB) framework and 'Go-live' for phase I of software platform for ECBs and trade credits reporting and approval (SPECTRA) project. The RBI will permit opening of rupee (INR) accounts outside India by persons resident outside India (PROIs) as part of the 2024-25 agenda for internationalisation of the domestic currency. "INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," the report said. Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year. The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies. Going forward, it said the liquidity operations would continue to be in sync with the stance of the monetary policy, while the foreign exchange operations would be guided by the objective of ensuring orderly movements in the exchange rate of the rupee. SEE ALSO:<a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank">Lok Sabha Exit Poll 2024 – what are they, when will they be announced and all you need to know</a><a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank">Truecaller can now detect if the caller is using AI – How to use it to prevent AI call scams</a><a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank">India’s T20 World Cup team, matches and everything you need to know</a>

RBI to allow opening of rupee account outside India

<ul><li><keyword id="1673591" type="General" weightage="20" keywordseo="indian-residents" source="Orion">Indian residents</keyword> are required to report their foreign investments, which may include holdings in foreign <keyword id="6354298" type="General" weightage="20" keywordseo="stocks" source="Orion">stocks</keyword>, bonds, or other financial instruments. </li><li>Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. </li><li>If you possess ESOPs from a foreign company, you are required to disclose these foreign holdings when filing your <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword> return. </li></ul>Recently, the IT Appellate Tribunal of Mumbai imposed a penalty of ₹10 lakh per year on <keyword id="59866" type="General" weightage="20" keywordseo="taxpayers" source="Orion">taxpayers</keyword> who failed to report <keyword id="466213" type="General" weightage="20" keywordseo="foreign-assets" source="Orion">foreign assets</keyword> under schedule FA of the income tax return (ITR) form. The penalty was levied under black money Act. Compared to the Income Tax Act, the penalty under the black money act is enormous. "The ITAT decision is a wake-up call for many working professionals and NRIs regarding the complexity of tax compliance in India; even if the taxpayer has paid their taxes, mere non-disclosure results in hefty penalties,” says Suneel Dasari, CEO and founder, EZtax.in. Here's a breakdown of the key foreign assets and income that must be disclosed in the income tax returns. <cmsannotation type="cmsannotation" annotationid="Foreign investments" comment="Subhead" text="Foreign investments">Foreign investments</cmsannotation>: Indian residents are required to report their foreign investments, which may include holdings in foreign stocks, bonds, mutual funds, or other financial instruments. This reporting extends to income generated from these investments, such as dividends, interest, or capital gains. Individuals need to disclose the nature and value of these investments in their tax returns. For example, if you have invested in shares of Microsoft or Apple, the investments and any income from them, need to be disclosed when filing your tax returns. <cmsannotation type="cmsannotation" annotationid="ESOPs" comment="subhead" text="ESOPs">ESOPs</cmsannotation>: If you possess employee stock ownership plans (ESOPs) from a foreign company, you are required to disclose these foreign holdings when filing your income tax return, typically under schedule FA. “In India, when an Indian employee is allotted shares of a foreign parent company as a part of their compensation or as an employee stock option plan (ESOP), it is considered an investment in foreign assets,” says Abhishek Soni, CEO, Tax2Win.in, a tax filing platform. Foreign bank accounts: Any foreign bank accounts, whether savings, current, or fixed deposit accounts, must be reported. This includes accounts held individually or jointly, along with details such as the name of the bank, account numbers, and the highest balance maintained during the financial year. <cmsannotation type="cmsannotation" annotationid="Foreign real estate" comment="Subhead" text="Foreign real estate">Foreign real estate</cmsannotation>: Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. This includes details about the property's location, current market value, and any income generated from it, such as rental income. “Any rental income or capital gains from selling these assets may be subject to taxation,” says Soni. <cmsannotation type="cmsannotation" annotationid="Financial or beneficial interest in overseas entities" comment="Subhead" text="Financial or beneficial interest in overseas entities">Financial or beneficial interest in overseas entities</cmsannotation>: In case an individual possesses a financial or beneficial stake in any overseas entity, such as serving as a partner in an overseas limited liability partnership (LLP) or firm, or receiving benefits from a foreign private trust, it is imperative to disclose this interest in accordance with tax regulations. “Residents in India with foreign income from ESOPs, or the voluntary purchase of foreign stock or other non-tangible instruments are at risk due to country or central bank level reciprocity agreements that would allow the Indian government access to information that would otherwise be unavailable,” says Dasari. Non-declaration also revokes your right to claim relief under the double taxation avoidance agreement for your foreign income. Hence it is critical to disclose such foreign assets in the schedule FA of ITR.

Have foreign assets or income? Not disclosing it may lead to heavy penalties

<ul><li>All companies that are eligible for <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> can now raise funds from overseas creditors under the automatic route. </li><li>More importantly, all sector-wise limits have been scrapped, with a blanket overseas borrowing cap of $750 million on an annual basis for all companies. </li><li>The move is expected to alleviate a domestic <keyword id="6355375" type="DEFINITION" weightage="20" keywordseo="Liquidity">liquidity</keyword> crisis, and prop up the rupee by attracting more foreign funds to Indian markets. </li></ul>Following pressure from the central government, the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) has further eased norms that govern the borrowing of overseas funds by domestic entities. The move is expected to alleviate a domestic liquidity crisis, and prop up the rupee by attracting more foreign funds to Indian markets. This, in turn, will allow companies to support their expansion plans and also sustain <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> growth as the government moves into election season. India’s central bank outlined the changes in <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46031">a circular </a>on January 16th, explaining that they would improve the “ease of doing business” in the country. In addition to banks and financial institutions, all companies that are eligible for foreign direct investment can now raise funds from overseas creditors under the automatic route. Even NGOs, port trusts and cooperatives have been allowed to take advantage of this fundraising mechanism. The RBI has also done away with the original four-tiered system of borrowing, which categorises bonds based on maturity time, and divided the scheme into two segments- one for rupee-denominated bonds and one for bonds in all other currencies. More importantly, all sector-wise limits have been scrapped, with a blanket overseas borrowing cap of $750 million on an annual basis for all companies. In addition, the minimum term limit for all instruments has been set at three years. Quite simply, India’s commercial banks don’t have the cash-on-hand to boost credit growth to the corporate sector. Burdened with non-performing loans, their medium-term financial strength hinges on a few large resolutions under the Insolvency and Bankruptcy Code. In an interview with ET, Rashesh Shah, the former president of FICCI, said that India would have to record a credit growth of <a href="https://economictimes.indiatimes.com/markets/expert-view/at-least-15-16-credit-growth-needed-to-maintain-investment-demand-rashesh-shah/articleshow/67089690.cms">at least 15%</a> to sustain economic growth. Credit growth came in at a <a href="https://www.business-standard.com/article/economy-policy/india-facing-a-cash-crunch-as-bank-credit-growth-slows-down-in-sept-y-o-y-118102600135_1.html">12.5% </a>on a year-on-year basis as of September 2018. To make matters worse, India’s shadow banks, which have stepped in to fill the funding gap in the last few years, have been facing a cash crunch of their own following a series of defaults by IL&amp;FS, India’s largest infrastructure lender. Not will the easier overseas borrowing norms allow India’s commercial banks to raise funds from abroad to support their domestic lending operations, but it will also enable companies to raise their own debt from overseas investors without having to turn to domestic banks. The RBI has, however, decided to retain some curbs on the overseas borrowing programme. Companies cannot raise debt from overseas through this route for the purpose of real estate purchases, investment in domestic equity markets and the repayment of rupee-loans. In addition, the cap on all <keyword id="6495102" type="UNKNOWN" weightage="20" keywordseo="external-commercial-borrowing">external commercial borrowing</keyword> will continue <a href="https://www.livemint.com/Money/JqMJEdBmtursAu7O8jTgoL/RBI-limits-total-outstanding-ECBs-to-65-of-GDP.html">to be 6.5% of GDP</a> . SEE ALSO: <a href="https://www.businessinsider.in/after-weeks-of-tension-the-reserve-bank-of-india-gives-in-to-some-of-the-central-governments-demands-while-retaining-its-independence/articleshow/66705908.cms">After weeks of tension, the Reserve Bank of India gives in to some of the central government's demands while retaining its independence</a> A<a href="https://www.businessinsider.in/as-indias-shadow-banks-brace-for-a-tough-2019-the-central-bank-and-government-will-try-and-prevent-a-repeat-of-the-ilfs-crisis-by-solving-the-data-problem/articleshow/67419846.cms">s India’s shadow banks brace for a tough 2019, the central bank and government will try and prevent a repeat of the IL&amp;FS crisis by solving the data problem</a>

You Searched For "India foreign commercial borrowings" and got 11 results

India's forex reserves at record high of USD 675 billion, external sector resilient: RBI Governor Shaktikanta Das

PTI

Hindenburg target SEBI chief, she calls charges baseless, Adani says no commercial relationship with SEBI head

PTI

Bar Council allows foreign law firms, lawyers to practice in India

ANI

Elon Musk just warned about credit-card debt, commercial real estate, and foreign conflicts. Here's why the Tesla chief is so worried.

Theron Mohamed

Commercial real estate is in big trouble — and the problems may have major financial fallout

Theron Mohamed

India's corporate credit quality is getting stronger: S&P Global

ANI

Govt amends aircraft rules; commercial pilot licenses to be valid for 10 years

PTI

Borrowers with multiple personal loans a big risk to profitability of banks and NBFCs

Malini Bhupta

RBI to allow opening of rupee account outside India

PTI

Have foreign assets or income? Not disclosing it may lead to heavy penalties

Anagh Pal

India just made it easier for companies to borrow money from overseas

Dilsher Dhillon

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