Latest news with #ISID
Time of India
4 days ago
- Business
- Time of India
RBI MPC decision August 6: What Sanjay Malhotra might say on growth, inflation and tariffs
Led by Governor Sanjay Malhotra, the RBI's MPC convened to decide on the bi-monthly policy rate amidst expectations of a pause in rate easing. While inflation remains low, concerns over US tariffs and incomplete transmission of previous cuts may prompt the RBI to maintain the status quo. Tired of too many ads? Remove Ads Pause Likely Amid Global Uncertainty Tired of too many ads? Remove Ads Inflation Is Low, But Transmission Still Incomplete Industry Still Hopes for a Modest Rate Cut Tired of too many ads? Remove Ads Who's on the MPC? Sanjay Malhotra, RBI Governor Poonam Gupta, Deputy Governor Rajiv Ranjan, Executive Director Nagesh Kumar, Director, ISID Saugata Bhattacharya, Economist Ram Singh, Director, Delhi School of Economics The Reserve Bank of India (RBI) began its three-day monetary policy meeting on Monday, led by Governor Sanjay Malhotra, to decide on the next bi-monthly policy rate. The Monetary Policy Committee (MPC) is expected to announce its decision today on Wednesday, 6 August, with many experts predicting a pause in the ongoing rate easing RBI started cutting rates in February and has already reduced the repo rate by 100 basis points in three steps. However, with new economic uncertainties, particularly the 25% tariff the US is set to impose on Indian imports from 7 August, some experts believe the central bank may now hold off on further rate say that while the current data shows low inflation , the RBI might choose to maintain the status quo to monitor how the US tariffs impact the Indian Economist at Bank of Baroda Madan Sabnavis said the policy decision will not be based on the recent drop in inflation or the US tariff announcement. He noted that the RBI likely factored in tariff-related risks earlier, and a minor revision in inflation projection, from 3.7% to around 3.5–3.6%, could be added, 'The cost of oil for the economy will also play a role. We expect no change in stance or policy rate this time. The RBI's tone is likely to be cautious but optimistic due to resilient growth indicators.'Retail inflation, measured by the Consumer Price Index (CPI), has stayed below 4% since February, standing at 2.1% in June. The government has tasked the RBI with keeping inflation at 4%, allowing a 2% margin on either Ratings pointed out that not all benefits of the previous rate cuts have reached the market yet. So, holding rates steady may give time for these changes to take effect Economist at ICRA Aditi Nayar said that with inflation easing, the MPC might revise its full-year forecast from 3.7% to a lower average. However, she warned that the US tariffs could weaken GDP growth and create instability in the Indian rupee (INR).While many expect the RBI to pause, some industry leaders are still hoping for a 25 basis point cut, especially given the pressure on small businesses and Pitale from SBM Bank India said that tariffs could create uncertainty and affect market sentiment. He believes the current situation makes a good case for the RBI to stay & Co-Founder of Biz2X Rohit Arora said that MSMEs are already struggling with reduced liquidity and could suffer further from the US tariffs. A rate cut, he said, could help them stay afloat and keep creating jobs during the upcoming festive Panchamia from Jaypee Infratech also called for a cut, pointing out that inflation is at a six-year low. He said the real estate sector would benefit from another cut, boosting demand and buyer of Andromeda Sales and Distribution Raoul Kapoor feels that while an aggressive cut is unlikely, a moderate 25 bps reduction is still possible given low inflation and easing global six-member Monetary Policy Committee includes:All eyes are now on Wednesday's announcement to see whether the RBI continues with its cautious approach or delivers a final cut in this cycle.
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Business Standard
02-05-2025
- Business
- Business Standard
India's first SIFs: What's special about the funds, who should invest
India's market regulator has received the first two applications for Specialized Investment Fund (SIF) and is likely to approve them in 10 days. This will introduce India's first SIFs under a mutual??'fund framework, offering investors a new way to pursue sophisticated strategies. 'SIFs offer sophisticated investors the freedom to pursue strategies across equities, debt, derivatives, and even private assets, all within a regulated fund structure,' says Swapnil Aggarwal, director, VSRK Capital. What is a SIF? Flexible asset universe 'They can invest in private equity, real estate and derivatives — capabilities beyond traditional mutual funds,' says Aggarwal. 'Long??'short equity, leverage, hedging and sector rotation are all on the table,' notes Nandini Pathak, partner, Bombay Law Chambers. Regulatory framework 'SIFs must publish an Investment Strategy Information Document (ISID), detailing their strategy, risk limits and concentration norms under SEBI's mutual??'fund rules,' says Kunal Sharma, partner at Singhania & Co. Who should invest in SIFs Aggarwal, Pathak and Sharma say SIFs cater to well??'capitalised, experienced investors: High??'net??'worth & accredited investors 'They can meet the capital threshold and withstand higher volatility,' says Aggarwal. Sophisticated retail via intermediaries 'Once feeder or fund??'of??'fund structures launch, retail investors gain indirect access,' says Pathak. Institutions & Family Offices 'These groups will use SIFs for tailored mandates and diversified streams,' adds Sharma. Key considerations for investors Risk??'return profile 'SIFs aim to generate alpha in both rising and falling markets, but leverage and derivatives amplify both gains and losses,' warns Aggarwal. Fee structure As Sharma outlines, expect a 1-2 per cent annual management fee plus a 10-20 per cent performance fee — higher than most mutual funds but aligned with PMS and AIF costs. Transparency & disclosures 'Review the ISID carefully for details on holdings, concentration caps and liquidity terms,' advises Pathak. Access Routes Track AMC announcements for feeder??'fund or fund??'of??'fund launches to participate indirectly. With approvals imminent, SIFs herald a new chapter in India's investment landscape. Investors should now study product structures, weigh costs against expected returns, and plan how these sophisticated strategies can complement their existing portfolios
Irish Times
28-04-2025
- Politics
- Irish Times
War fears rise between India and Pakistan
War clouds are looming over nuclear-armed neighbours India and Pakistan , following last week's terror attack in the disputed Jammu and Kashmir region, in which 26 tourists were killed. The countries' armies have continued to exchange small-arms fire along their de facto border in Kashmir, ending a ceasefire that had prevailed there since 2021. The development comes amid escalating military tensions after the terror attack in Pahalgam on April 22nd that India claimed was backed by Pakistan's Inter-Services Intelligence Directorate (ISID). A militant group called the Resistance Front initially claimed responsibility for the attack but later retracted the claim, saying it had been the victim of a 'cyber intrusion'. READ MORE After the attack, India commenced mobilising its military and conducted several long-range precision missile firings over the weekend, describing the actions as military exercises. Indian Air Force fighter squadrons rehearsed high-intensity strike operations across diverse landscapes, including Kashmir's Himalayan terrain, while the Indian Navy began deploying several of its frontline assets, including its aircraft carrier, to the Arabian Sea near southern Pakistan's Sindh province coastline. The Indian Army also conducted joint heliborne manoeuvres with the air force in mountainous territory. News agencies reported corresponding deployments by Pakistan, which has denied any role in the Pahalgam terror attack. Its government has called for a 'neutral, transparent and credible' investigation into the Pahalgam killings, a call India has rejected. Simultaneously, India's defence ministry has issued a fiat barring social and other media organisations from effecting live coverage of military operations and troop movements, claiming it could aid 'hostile elements and compromise national security'. Indian leaders, including prime minister Narendra Modi and senior security officials, say they are convinced of Islamabad's complicity in the attack, based on 'irrefutable' but undisclosed information. Security officials said the Resistance Front was an offshoot of the UN-proscribed Lashkar-e-Taiba (Army of God) Islamist militant organisation, which has headquarters near the Pakistani city of Lahore, and whose ISID-backed cadres were responsible for the 2008 Mumbai terror attacks on two hotels, a cafe and a Jewish seminary in which 166 people died. Unreservedly backed by MPs from his ruling Hindu nationalist Bhartiya Janata Party (BJP) and those from the opposition, Modi declared that India was determined to 'identify, track and punish each of the culpable terrorists and their backers' - a euphemism for Pakistan's military and political establishment. 'We will pursue them to the ends of the earth and India's spirit will never be broken by terrorism,' Modi declared at a public rally in eastern Bihar state last week, speaking uncharacteristically in English in a bid − said commentators − to convey India's aggressive intent to the world. In his monthly nationwide radio broadcast to the country, Modi further declared on Sunday that the 'perpetrators and conspirators of this attack [in Kashmir]' would be served 'the harshest response'. The prime minister also received strong support for his stance on social media, as well as from television news channels, newspapers and military veterans, including former service chiefs of staff, all of whom have advocated rooting out the 'terrorists' sponsors' in Islamabad. On the day after the Pahalgam attack, India retaliated by placing 'in abeyance' the bilateral Indus Waters Treaty, a river water-sharing pact between the neighbours, brokered by the World Bank in 1960 after negotiations lasting a decade. Pakistan has described this move as an 'act of war'. India also called for a sharp reduction of staff at the respective high commissions in Delhi and Islamabad, withdrawal of defence attaches, closure of the only land border between the neighbours and expulsion of all Pakistani nationals. Pakistan responded by threatening to suspend the Simla Agreement of 1972, signed after its third war with India since independence, closed its airspace to Indian flights and cut off all bilateral trade.
