SEBI Clears Hike In Gift City Investments By NRIs, OCIs; Godrej Group Splits Among Cousins

SEBI Allows NRIs To Own Up To 100 PC Global Funds In Gift City

The Securities and Exchange Board of India has allowed non-resident Indians (NRIs) to own up to 100 per cent in global funds at the GIFT City and gave passive funds more exposure to group companies, the Business Standard reported.

Currently, NRIs and Overseas Citizens of India (OCIs) cannot own more than 50 per cent in a foreign portfolio investor (FPI). The move could pave the way for greater flows from the Indian diaspora into domestic stocks. Market experts believe a more liberalised regime for NRI/OCIs could boost the fund ecosystem at the GIFT City as well as attract genuine flows from overseas Indians. More here

RBI Warns Banks Of Gold Disbursal Through Fintech Startups

The Reserve Bank of India has cautioned banks about gold loan disbursals being made through fintech startups, the Economic Times reported. The central bank has flagged “concerns with the evaluation process” by these banks and fintechs, especially in cases where the gold is sourced through field agents of companies, the report said.

The RBI is said to have verbally expressed its concerns to a set of banks regarding this and asked them to take corrective actions immediately. Rupeek, IndiaGold and Oro Money are a few of the major players that source gold loans for banks. The banks are in talks with fintech startups and could pause the business temporarily. Read more

127-Year-Old Godrej Group Splits Into Industries, Enterprises

The Godrej family split is official after a shareholding realignment within the group, the Economic Times reported.

The split is between two sets of cousins, Adi Godrej, Nadir Godrej on one hand, and Jamshyd Godrej, Smita Godrej Crishna and their families on the other. The Godrej Enterprises Group, comprising Godrej & Boyce, will be overseen by Jamshyd Godrej, along with his niece Nyrika Holkar and their families. The Godrej Industries Group, comprising Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences, will be led by Nadir Godrej along with Adi Godrej and their immediate families. More here

Report In, Centre To Decide On Recall Of Everest, MDH Masalas

The Centre may soon take a call on the recall of Everest and MDH spices banned by Singapore and Hong Kong, the Business Standard reported. The committee comprising key government officials and scientists set up to ascertain the reason for the rejection of some of the spices exported by these companies has submitted its report on the issue.

The government is now launching an initiative to ensure that all of India’s export shipments comply with the tolerance limits set by importing countries. Earlier this month, products from India-based MDH and Everest were banned for allegedly containing the pesticide Ethylene Oxide beyond permissible limits. Read more

Prices Of Vegetables, Fruits Rise As Heatwave Impacts Farm Output

Vegetable prices are likely to keep inflation elevated till June, the Economic Times reported. The intensifying heatwave could impact farm output and push inflation up by 30-50 basis points until the monsoon arrives in June.

While consumer inflation declined to a 10-month low of 4.9 per cent in March, food inflation was a high 8.5 per cent. Vegetable inflation at 28 per cent was a primary contributor to higher food inflation. Not just vegetables, but fruits may also see an uptick in inflation, according to experts. The report said the impact on inflation could be 30-50 basis points (bps) if the sequential pace of increase is 50-100 per cent higher than the seasonal increase, which happens around this time. More here 

Don’t Seek Adjournments In Debt Recovery Tribunals: Centre To Banks

The Centre has directed state-owned banks and lenders to avoid seeking unnecessary adjournments before debt recovery tribunals, the Economic Times reported. Banks have been asked to conduct monthly reviews to expedite the debt recovery process and reconcile cases that have already been settled.

As per latest data from the finance ministry, around 215,000 cases are pending before debt recovery tribunals till January 2024, of which 162,000 are original applications filed under Section 19 of Recovery of Debts and Bankruptcy Act (RDB Act), 1993. RBI data showed in FY 2022-23, around 58,000 cases with amounts totalling about Rs 4.02 lakh crore were referred to the tribunals. More here