RBI’s refusal of a banking licence for Chaitanya India Fin Credit seems to be forcing him to either cut his stake in the business or cash out.
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The self-styled options queen pulled off a Rs 104 crore scam, masquerading as a trading expert to play on investor gullibility, with nary a peep out of SEBI for over 10 years. Will the scourge ever be eradicated?
The P2P lending platform is the only one that is still doing substantial business after the central bank tightened the rules last August, virtually shutting down the sector. It has carried on as though the new rules don’t exist.
Mounting concentration risk has forced the fund house to change tack yet again. While shifting focus to small-cap stocks from defensive ones could somewhat help, such frequent switches are less than ideal.