India Roundup


RBI releases the Financial Stability Report, December 2022


Date : Dec 29, 2022



Today, the Reserve Bank released the 26th issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system.

Highlights:




RBI releases Discussion Paper on Securitisation of Stressed Assets Framework (SSAF)


Date : Jan 25, 2023


As part of the Statement on Developmental and Regulatory Policies released on September 30, 2022, RBI had proposed to introduce a framework for securitisation of stressed assets, in addition to the ARC route. It was announced that a discussion paper detailing relevant contours of the proposed framework would be issued shortly. Accordingly, RBI has today released the Discussion Paper on SSAF inviting comments from stakeholders.

The Discussion paper broadly covers nine relevant areas of the framework including asset universe, asset eligibility, minimum risk retention, regulatory framework for special purpose entity and resolution manager, access to finance for resolution manager, capital treatment, due diligence, credit enhancement, and valuation. It draws upon similar frameworks introduced in other jurisdictions, while trying to keep it structurally aligned with the framework for securitisation of standard assets.


State of the Economy


Date : Jan 19, 2023


A slowdown in growth with possibilities of recession in large swathes of the global economy has become the baseline assessment even as inflation may average well above targets. Emerging markets are appearing more resilient than in the year gone by, but their biggest risks in 2023 stem from US monetary policy and the US dollar. In India, the softening of commodity prices and other costs amidst strong revenues appears to have boosted corporate performance. Macroeconomic stability is getting bolstered with inflation being brought into the tolerance band and lead indicators suggesting that the current account deficit is on course to narrow through the rest of 2022 and 2023. For more details read latest RBI report on State of the Economy









Households’ Inflation Expectations Survey

Date : Dec 07, 2022


Today, the Reserve Bank released the results of the November 2022 round of the Inflation Expectations Survey of Households (IESH)1 2. The survey was conducted during November 2 to 11, 2022 in 19 major cities. The results are based on responses from 6,066 urban households.

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 LIC  with its further decision with the Adani group 

                                                                                                                                                                                                                                                                                                                   Date:  Jan 10, 2023

As we all are aware Hindenburg's report which was recently released reports claims that the Adani group is engaged in stock manipulation and accounting fraud after this news the stocks plunged sharply where the group had to face loss over $ 100 billion,  Adani also canceled its 20000Cr FPO which was the biggest FPO ever,  LIC which has invested total rs 30,127 cr in last several years, M R Kumar, Chairman said it's not thinking for further investment in Adani group as of now. LIC had also subscribed to Adani enterprises Follow on public offer (FPO), at the upper band, The stock is almost trading at a discount rate,  

Chairman also clarified with regards to its holdings in the group that the stock has taken a hit in the very short time that they are not able to take a call that they shares should be disburdened or any other action to be taken.  Its investment in stock and bonds was around 28000cr still gaining 100 % which is around 56000 cr  However, He also assured poor market performance and volatility in Adani stocks will not lead to a decrease in the value of LIC negatively.