Elaborate reporting norms likely under PMLA
Financial Intelligence Unit
(FIU) is eyeing a fresh framework for reporting entities under the Prevention of Money Laundering (PML) Rules and will approach the Reserve Bank to enhance
reporting requirements
, people familiar with the development said.
Changes could include enhanced user details, immediate alert for any change in 'know your customer' (KYC) for accounts red-flagged for
suspicious transactions
and a fresh set of 'alert indicators' for capital market, money exchanges and bulk property or gems and jewellery purchases.
The move aims to make disclosures more robust in the fintech and cryptocurrency space to prevent suspicious transactions before it is too late to track.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Monatelang ausverkauft – Ohrenreiniger Nummer 1 endlich wieder verfügbar! (70% Rabatt!)
Apotheke Regional
Undo
"There is a need for enhancing the reporting requirement especially in fintech space and crypto currency, where enforcing agencies face maximum challenges. We are discussing it with RBI and other regulators and will formally approach them with a framework for detailed discussions," a senior official told ET.
Live Events
In April, both FIU-IND and RBI signed a memorandum of understanding (MoU) for better information exchange and effective implementation of requirements of the
Prevention of Money Laundering Act
and Rules.
While most of these reporting agencies send their reports to the FIU on quarterly basis with suspicious transaction reports, officials said that by the time the report reaches, money crosses several borders making it difficult to get the trail.
"The idea is that when a big bulk transfer or purchase happens, it will immediately send an alert to the internal system so that FIU can be immediately alerted, which makes it easier to track the transaction.
This will also help FIU to generate meaningful intelligence for law enforcement agencies like the income tax department, ED and CBI, the official said.
FIU had introduced the 'alert indicators' in 2022 for the capital market, but it is felt that these need to be revamped in view of technological changes over time.
"The idea is to track order spoofing, misutilisation of client funds by stock brokers and suspicious off-market transactions by brokers and users," the official added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
26 minutes ago
- Time of India
Go for IT companies with unique business model; not largecap and me-too midcap IT stocks: Dipan Mehta
Dipan Mehta , Director, Elixir Equities , suggests that the IT sector's future lies in companies with unique business models. He highlights smallcap firms like Newgen and Aurionpro as potential winners. GIS companies and Genesys are also mentioned as interesting prospects. Persistent Systems and Coforge are noted for their aggressive strategies. Mehta believes largecap and me-too midcap IT stocks may not offer significant returns, going forward. We all know that this earning season will not come out with a good set of numbers. But if Accenture numbers are anything to go by, is there light at the end of the tunnel because it is not like this is going to be a dark tunnel for the rest of our life? Dipan Mehta: I think that what has happened is that basically there is a secular slowdown in the entire IT industry. The business model is such that they are going to be just about providing application, development, management, and the entire industry has moved to products and platforms. So, again, there is a structural issue in the Indian IT industry and I was quite hopeful that AI would be a trigger for higher growth but certainly that does not appear to be so. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Lana Green Is Retiring - Her Final Jewelry Pieces Are 80% Off Design Craft Weekly Read More Undo In fact, they may get disrupted because of artificial intelligence. And if you look at the 5-10-year track records, these companies at the end of the day have had high single-digit growth despite rupee depreciation. So, what is going to change it? I really do not know. The way the spend is happening in the tech industry, more and more is towards hardware, especially servers of the type that Nvidia makes or chips that Nvidia makes; more investment into data centres, storage capacity; and more investment into platforms and products. Software as a service is the new buzz word. It is a way to decrease cost and none of the traditional Indian IT companies are in that particular space. So, they are going to get disrupted and we are going to see further slowdown there. So, my view remains extremely negative. Sure, there could be rallies. A surprising quarter with 15-20% growth is possible, but the long-term trajectory is very slow. Even though you are largely negative when it comes to this sector, over the last couple of weeks, during sector churn, it has emerged positive for a couple of days. We have seen that the midcap end has done much better than the largecaps. If at all you had to play IT and if you are seeing any hope in this sector, do you believe it could come from the midcap end? Dipan Mehta: No. In fact, it has to come from companies which have a differentiated business model and which are more into products and platforms. Traditionally we had companies like Oracle and Ramco which were into products. There was Nucleus Software also but those have not done as well. Live Events You Might Also Like: FII selloff in IT stocks tops Rs 16,500 cr in Q1. Time to buy or bail? There's a new set of companies and they are really smallcap companies. Companies like Newgen, Aurionpro, merit a mention over here, usually disclosure, we and our clients may be invested in them, and then there are GIS companies which are also there, as is Genesys, which is quite interesting, at the right place at the right time. Beyond that, there could be a few IT companies like Persistent Systems, or a Coforge, which are aggressive and which are in the right space. They may do well, but at the end of the day, the largecap IT stocks and a whole host of midcap IT stocks, which are doing a me-too type of a business, are not going to give great returns going forward. You Might Also Like: Traditional IT in a spot; betting on 4 midcap platform companies: Dipan Mehta IT stocks hit decade-high 3.2% dividend yield as FIIs flee. Should you buy TCS, Infosys, Wipro before Q1 results?
Economic Times
27 minutes ago
- Economic Times
ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh
In a market environment where equities often steal the spotlight, fixed income continues to quietly play its crucial role in portfolio construction—especially for risk-averse investors and retirees. In this edition of ETMarkets Smart Talk, we speak with Aamar Deo Singh, Sr. VP – Research at Angel One Ltd, who shares why fixed income still deserves a place in every investor's portfolio. Singh suggests a 15–20% allocation for the average investor to hedge against volatility and as much as 70% for senior citizens, underlining the importance of stability and capital preservation in uncertain times. From sectoral outlooks to asset allocation strategies for FY26, Singh breaks down what smart investing looks like in the months ahead. Edited Excerpts – ADVERTISEMENT Q) Thanks for taking the time out. Nifty closed with marginal gains in June, but for the first six months of 2025 – it is up over 7%. How do you see markets for the rest of FY26? Any big events to watch out for?A) Overall, markets have witnessed a sharp pullback from the lows of April, to rally by almost 18% from the low, to trade as high as 25,669 in June, clearly indicating the inherent strength of the market. Given the geo-political tensions between Iran & Isreal, spike in Crude Oil prices, Trump Tariffs threats, markets have displayed an unusual level of resilience, which bodes well for the rest of FY26. Given that domestic macros are positive, with CPI well below RBI's target rate of 4%, a declining trend in the interest rates, expected pick up in credit offtake in coming quarters, are expected to infuse bullish momentum in the we see any major global meltdown, Nifty does hold the potential to hit record highs in the coming quarters. ADVERTISEMENT Q) How are you managing the volatility in your portfolio? Any key learnings which you would like to share from 1H2025?A) One needs to bear this in mind that there is getting away from volatility and one will need to learn to live with volatility, sometimes less, sometimes going forward, fresh triggers, both negatives and positives, both domestic and global, will continue to drive the markets. ADVERTISEMENT So, it becomes a prudent approach to have a mix of stocks in one's portfolio, across multicaps, with a significant weightage to largecaps, in case one's risk appetite remains on the lower one also needs to ensure that one does not stay concentrated in any one particular sector, no matter, how much promising it might appear to be. ADVERTISEMENT Q) One of the reports suggested that India Inc.'s profits have grown nearly 3x faster than GDP since FY20. What structural factors are driving this divergence?A) India's GDP growth continues to remain amongst the fastest in the world, and it is expected that over the next couple of decades, it will continue to maintain its momentum with 6% plus annual growth rate. ADVERTISEMENT The changing demographics, government's impetus on scaling up the manufacturing base, assisting businesses in building infrastructure, focus on leveraging latest technologies, greater emphasis on growing exports at a faster pace, all these factors have aided the country's growth and led to multifold growth in profitability of India Inc. Q) With the China+1 theme gaining traction, which Indian sectors are best placed to attract global capital and scale? A) Post Covid and post Trump's tariff threats, India continues to remain in a sweet spot as the world, particularly the US & Europe, are looking at building alternate sources for their requirements, and with India's technological capabilities, cost competitive manpower advantage, and the necessary infrastructure along with incentives, have helped India scale up its production and manufacturing capabilities, over the past few sectors such as defence, capital goods, consumer durables and infrastructure, are few sectors which are likely to attract global capital and scale in coming years. Q) How is fixed income as an asset class looking for long term investment. How much money should one allocate as a hedge to combat volatility? A) Fixed income as an asset class generates a significant amount of interest in investors, as this is an asset class, which generally helps in protection of capital, during volatile the investors who invest in this asset class, are more of the risk-averse type, looking at steady income flows rather than focussed too much on capital one should definitely look at investing 15%-20% of one's capital in Fixed Income assets, and higher proportion, in excess of 70%, is recommended for senior citizens. Q) Which sectors are likely to remain in the spotlight in 2H2025? A) Sectors that are likely to remain in focus in 2H2025, include the likes of financials, defence, capital goods, pharma, energy, to make a few. Auto ancillaries are also expected to do well, in the coming quarters, once we see an upick in credit offtake, post the 100 basis CRR cut by the RBI in its last MPC meeting, the effects of which are expected to be felt from September onwards, wherein expectation of over 2.5 trillion rupees are expected to additionally flow in the financial system. Q) Can we say that we are in a "stock picker's market" ahead. If yes, what are the key traits investors should look for in FY26 picks? A) It is true that money isn't going to come easy in the current market scenario, and it is a stock picker's market because given the sharp run-up across the board, across sectors, valuations in many cases don't come it is always prudent to remember the fact that the company might be a good investment from a long-term perspective, the million-dollar question is at what it makes sense to do a stock SIP in companies from a long-term perspective. Else one can also look at ETFs as an option as well. Q) Gold has also seen a tremendous run in 2025 – how do you see the yellow metal shining in 2H2025? Time to book profits or add on dips? A) Gold has outperformed all asset classes this year, so far in 2025, with domestic gold prices up by almost 25% YTD, clearly indicating the love for the yellow metal, amongst the investor class. Further, with the significant weakness seen in the US Dollar, and with the Trump Tariffs jitters initially, gold, also considered a safe haven asset, witnessed sharp untick in buying from central banks who are even more keen in diversifying their foreign exchange reserves, apart from ETFs which too witnessed significant inflows, with global holdings rising by 397 tonnes in first half of 2025, the largest increase in the past five years. Gold should be part of everyone's portfolio and holding it from a long-term perspective definitely merits attention. Q) How should one play the small & midcap theme? Has the profitability improved compared to largecaps – what does the data suggest? A) As far as the small & midcap are concerned, investors need to adopt a cautious approach because history has shown us that the fall is faster than the rise, and the fall is extremely steep, many times in excess of 50% erosion in caps on the other hand, are more of the 'slow & steady' category, so ideally having a mix of all, would be a more appropriate approach, depending on one's risk appetite. Q) Any sector which is running out of steam and investors should carefully pare their positions? A) Defence stocks have witnessed a spectacular rally, and post the India-Pakistan conflict, this sector has once again taken off, with prices of some of the stocks hitting record highs and expensive it would be wise to not invest all at one go in this sector, rather adopting an SIP mode over the long-term, would deliver better results. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Mint
28 minutes ago
- Mint
Parliamentary Standing Committee on Finance to meet today: From IBC to RBI, here is what's on the agenda…
The Parliamentary Standing Committee on Finance is scheduled to meet at 11 am in Parliament House Annexe today to discuss issues with the Insolvency and Banking Code (IBC), and the Reserve Bank of India's role in the Indian economy, according to an ANI report. Chaired by BJP MP Bhartruhari Mahtab, on the agenda for this Committee meet is: Record oral evidence of the representatives of State Bank of India, Bank of Baroda, Indian Bank and Indian Overseas Bank on the subject 'Review of working of Insolvency and Bankruptcy Code and Emerging Issues'. Also, Reserve Bank of India (RBI) Governor, Sanjay Malhotra to brief the committee on the subject 'RBI's Evolving Role in India's Dynamic Economy'. Meanwhile, the Parliamentary Standing Committee on Home Affairs is also set to meet at 11 am in Parliament House Annexe today and tommorow to discuss cyber crime and computing related issues, according to an ANI report. Chaired by BJP MP Dr Radha Mohan Das Agrawal, the Parliamentary Standing Committee on Home Affairs comprises participants from various ministries and government organisations. Topics of discussion on the agenda for this Committee meet, include: Cyber Crime – Ramifications, Protection and Prevention'. i. Reserve Bank of India (RBI); and Ministry of Education and Centre for Development of Advanced Computing (C-DAC). The Committee will again meet at 11 am in Parliament House Annexe Extension Building on July 11. Topic of discussion on the agenda for tomorrow's Committee meet, include: 'Cyber Crime – Ramifications, Protection and Prevention'. (This is a developing story, more updates coming…)
