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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
SEBI’s imposition of a measly fine on the veteran banker raises questions on how regulators let companies and their promoters get away with serious violations.
Editor's note: This story is about an extremely well-known and respected figure in financial circles, the head of a systemically important non-banking financial company, who by virtue of his position also happens to be a part of the NBFC’s investment committee, where all the big lending decisions are taken. In 2012, this NBFC advanced an inter-corporate deposit, the technical term for an unsecured short-term borrowing arrangement between companies, to a real estate company to the tune of Rs 750 crore. An additional Rs 875 crore was extended as a term loan to the same company in 2014. In December 2014, the outstanding ICD was converted to a Rs 750 crore loan. A simple restructuring was all it took. Now this is where it gets interesting and one begins to pick up the stench of conflict of interest. The head of the NBFC was an advisor to the group (as part of its advisory board) that controls the real estate company. Does this sound unethical? It does because it is. What makes all this even more problematic are the players involved. The NBFC …
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
While the regulator’s interim order alleges massive irregularities, the long arc of unfinished probes, hearings and appeals makes closure distant.
