Latest news with #RBI-regulated
Hindustan Times
20-05-2025
- Business
- Hindustan Times
Enhance your skills with IDRBT's PGDFT in financial technology
IDRBT - Institute for Development and Research in Banking Technology, an institution established by the Reserve Bank of India (RBI) in 1996, possesses a strong and inherent focus on the technological advancements within the banking and financial industry. IDRBT has incubated and nurtured to maturity the Digital Public Infrastructure (DPI) of the country such as RTGS, NEFT, SFMS, INFINET, ATM Network-NFS, etc. and continues to make significant contributions in creation of DPI. As professional development initiative, IDRBT is also running a oneyear full-time course namelyPGDFT commencing from 1st July course for those who are looking for a career where finance meets technology – a sector experiencing remarkable growth. This course has emerged as a focused program for graduates, augmenting their skills with the specialized skills and in-depth knowledge required to succeed not only in banking and financial sectors but also in core IT, ITES, Data Centre, etc. businesses. The PGDFT curriculum is thoughtfully designed to cover both current and emerging information and communication technologies (ICT) which are reengineering the banking and financial services. This program follows a 360-degree teaching pedagogy, and covers concepts related to project management, finance, human resources, soft skills, etc. The program bridges the gap between evolving industry demands and the skills needed to navigate the challenges of a technology-driven workplace. The Capstone Project featuring collaborative industry partnership allows students to tackle multifaceted challenges. Accommodation Facility is available for outstation candidates, only, at the Institute's Quarters at Begumpet on sharing basis for two candidates. The Institute's computerised library caters to the academic and research needs with full text access to more than 4 million research articles, journals, etc. The latest edition of the PGDFT programme will reward the top five performers after Term 2 by waiving up to 50% of their tuition fees. Their final two instalments will be considered a reward for academic excellence. This initiative reduces financial pressure on learners and reflects the institute's strong focus on career-oriented education. Additionally, employers may cover a portion of the course fees after the retention period, reinforcing the long-term value of the programme. Bachelor's degree holders with at least 60% marks and score from national-level entrance exams and sponsored professionals from RBI-regulated entities are eligible for PGDFT. PGDFT students will also have access to IDRBT's cutting-edge research centres in, Digital Payments System, Open Banking, Tokenisation, Digital Signatures & Cryptography, Data Science, Analytics, IS/Cyber Security, Network Architecture, Cloud Infrastructure, Quantum Safe Cryptography, Block chain, & other emerging areas in ICT. Students will also benefit from immersive experiences in live projects run by IDRBT, expert interactions, etc. in enabling them to become job-ready and play the role of thinker and problem solvers. With a track record of excellent placements —it offers strategic clarity and future readiness. Link for application and other details: Apply Now -
Mint
20-05-2025
- Business
- Mint
Bank, NBFC investments in AIFs may get smoother
Banks, non-bank lenders and financial institutions may get to invest up to 10% in the corpus of alternate investment fund (AIF) schemes, in a relief for the sector that faced a central bank clampdown in December, 2023. There will be no restriction on regulated entities (REs) such as banks for investing up to 5% in the AIF scheme's corpus, Reserve Bank of India (RBI) proposed on Monday. However, if the AIF scheme invests in a company that has borrowed from the bank, then the RE must make full provision to the extent of its proportionate exposure, the draft circular said. Again, total investments by all REs in any AIF scheme will be capped at 15% of the scheme corpus. 'Notwithstanding, if the RE's contribution is in the form of subordinated units under the priority distribution model (PDM), it shall deduct the entire investment from its capital funds— equally from both Tier-1 and Tier-2 capital (wherever applicable)," RBI said. Also read: Bank of Baroda's margin pressure to continue before easing in FY26 second half The new directions will apply only to future investments. Investments and commitments made already will continue to be governed by current norms. Further, RBI, in consultation with the government, may exempt certain AIFs that have been set up for strategic purposes. The central bank has sought comments and feedback on the new draft norms by 8 June. 'The RBI's updated guidelines on bank investments in AIFs reflect a mature policy shift. They balance prudential risk management with the broader developmental objective of banks," said Gopal Srinivasan, chairman and managing director of TVS Capital Funds, adding the move will help restore regulatory clarity for such investments. Need for revised norms RBI said the draft was issued following the guidelines issued by the Securities and Exchange Board of India on 8 October, 2024 requiring specific due diligence with respect to investors and AIF investments. RBI said the new norms will help 'prevent facilitation of circumvention of regulatory frameworks" by ensuring uniform guidelines across regulators. Also read: SBI shares fall as lender tempers loan growth target amid tariff uncertainty The Sebi circular, while highlighting concerns of RBI-regulated lenders using AIFs to evergreen stressed loans, introduced stricter due diligence requirements for AIFs, their managers and key management personnel. The objective was to prevent circumvention of regulations, tighten oversight over such funds and prevent ineligible investors from accessing benefits meant for qualified institutional buyers (QIBs) and qualified buyers (QBs). AIFs were also required to perform due diligence if 25% or more of the scheme's corpus was contributed by RBI-regulated investors or if they exerted significant influence over investment decisions. 'Taking into account the more robust and comprehensive structure provided under the Sebi guidelines, there was a scope and need for bringing in some relaxations," said Jyoti Prakash Gadia, managing director at Resurgent India, a category-1 merchant bank. 'Since an approach of discipline has been exhibited by the regulated entities subsequent to the previous guidelines, the partial relaxations are expected to bring in better utilization of the alternate investment funds," he added. Background On 19 December, 2023, RBI asked lenders not to invest in AIFs that have direct or indirect downstream investments in companies that were borrowers in the last 12 months. Further, such existing investments were required to be liquidated or fully provided for in 30 days. This prompted several large private banks to make significant provisions against these investments in their financials for the last two quarters of FY24. In March 2024, the regulator clarified that these investments would exclude equity shares, compulsorily convertible preference shares and compulsorily convertible debentures. It had then also said that the provisioning will be required only to the extent of investment by the RE in the AIF scheme which is further invested by the AIF in the debtor company, and not on the entire investment of the RE in the AIF scheme. These guidelines were stipulated with the objective of preventing instances of evergreening by utilization of the AIF route to repay existing potential distressed loans. In Monday's circular, RBI said that the regulatory measures have brought 'financial discipline among the REs regarding their investment in AIFs". Siddarth Pai, co-founder and managing partner, 3one4 Capital said the new guidelines are significant to rupee capital formation as banks and NBFCs are important institutional investors in AIFs, but were placed under restrictions due to certain regulatory findings. Also read: Microfinance stress, RBI embargo weighed on Kotak Bank's Q4 profitability 'The Indian AIF industry is around ₹13.5 trillion in capital commitments as of 31 March, 2025. The aim is to reach at least ₹30 trillion by 2030. For this, the simplification of regulation and the removal of artificial regulatory barriers to investing in alternatives is key," he said. (With inputs by Sneha Shah)
Hans India
15-05-2025
- Business
- Hans India
Post Graduate Diploma in Financial Technology (PGDFT) at IDRBT
IDRBT - Institute for Development and Research in Banking Technology , an institution established by the Reserve Bank of India (RBI) in 1996, possesses a strong and inherent focus on the technological advancements within the banking and financial industry. IDRBT's has incubated and nurtured to maturity the Digital Public Infrastructure (DPI) of the country such as RTGS, NEFT, SFMS, INFINET, ATM Network-NFS, etc. and continue to make significant contribution in creation of DPI. As professional development initiative, IDRBT is also running a one year full-time course namely PGDFT commencing from 1st July course for those who are looking for a career where finance meets technology – a sector experiencing remarkable growth. This course has emerged as a focused program for graduates, augmenting their skills for with the specialized skills and in-depth knowledge required to succeed not only in banking and financial sectors but also in core IT, ITES, Data Centre, etc. businesses. The PGDFT curriculum is thoughtfully designed to cover both current and emerging information and communication technologies (ICT) which are reengineering the banking and financial services. This program follows a 360-degree teaching pedagogy, and covers concepts related to project management, finance, human resources, soft skills, etc. The program bridges the gap between evolving industry demands and the skills needed to navigate the challenges of a technology-driven workplace. The Capstone Project featuring collaborative industry partnership allows students to tackle multifaceted challenges. Accommodation Facility is available for outstation candidates, only, at the Institute's Quarters at Begumpet on sharing basis for two candidates. The Institute's computerized library caters to the academic and research needs with full text access to more than 4 million research articles, journal, etc. The latest edition of the PGDFT programme will reward the top five performers after Term 2 by waiving up to 50% of their tuition fees. Their final two instalments will be considered a reward for academic excellence. This initiative reduces financial pressure on learners and reflects the institute's strong focus on career-oriented education. Additionally, employers may cover a portion of the course fees after the retention period, reinforcing the long-term value of the programme. Bachelor's degree holder with at least 60% marks and score from national-level entrance exams and sponsored professionals from RBI-regulated entities are eligible for PGDFT. PGDFT students will also have access to IDRBT's cutting-edge research centres in, Digital Payments System, Open Banking, Tokenisation, Digital Signatures & Cryptography, Data Science, Analytics, IS/Cyber Security, Network Architecture, Cloud Infrastructure, Quantum Safe Cryptography, Block chain, & other emerging areas in ICT. Students will also benefit from immersive experiences in live projects run by IDRBT, expert interactions, etc. in enable them to become job-ready and play the role of thinker and problem solvers. With a track record of excellent placements —it offers strategic clarity and future readiness.
Hans India
07-05-2025
- Business
- Hans India
Sebi tweaks rules on securitised debt instruments
Markets regulator Sebi has mandated a minimum ticket size or investment threshold of Rs1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities. Securitised Debt Instruments (SDIs) are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as securitisation, allows the originator (such as a bank) to convert illiquid assets into liquid ones, providing an alternative source of funding. Investors in these instruments receive returns based on the performance of the underlying debt pool, and the risk is spread across multiple assets, offering potentially attractive returns. 'The minimum ticket size for issuance of a securitised debt instrument shall be rupees one crore,' Sebi said in a gazette notification. Further, the minimum ticket size for subsequent transfers of a securitised debt instrument will be Rs1 crore for originators, which are not regulated by the Reserve Bank of India (RBI). For securitised debt instrument with listed securities as underlying, the minimum ticket size amount will be that of highest face value among such securities. The new rules stipulated that public offers for SDIs to remain open for a minimum of three days and a maximum of ten days, with advertisement requirements aligned with Sebi's regulations for non-convertible securities. Additionally, the regulator said that all securitised debt instruments should be issued and transferred exclusively in demat form.
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Business Standard
06-05-2025
- Business
- Business Standard
Sebi sets ₹1 crore minimum, mandates demat for securitised debt instruments
Markets regulator Sebi has mandated a minimum ticket size or investment threshold of Rs 1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities. Securitised Debt Instruments (SDIs) are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as securitisation, allows the originator (such as a bank) to convert illiquid assets into liquid ones, providing an alternative source of funding. Investors in these instruments receive returns based on the performance of the underlying debt pool, and the risk is spread across multiple assets, offering potentially attractive returns. "The minimum ticket size for issuance of a securitised debt instrument shall be rupees one crore," Sebi said in a gazette notification. Further, the minimum ticket size for subsequent transfers of a securitised debt instrument will be Rs 1 crore for originators, which are not regulated by the Reserve Bank of India (RBI). For securitised debt instrument with listed securities as underlying, the minimum ticket size amount will be that of highest face value among such securities. The new rules stipulated that public offers for SDIs to remain open for a minimum of three days and a maximum of ten days, with advertisement requirements aligned with Sebi's regulations for non-convertible securities. Additionally, the regulator said that all securitised debt instruments should be issued and transferred exclusively in demat form. Sebi has prescribed a minimum track record requirement for originators, requiring a minimum of three years of operating experience. Regarding risk management, Sebi said that originators will retain a minimum risk retention of 10 per cent of the securitised pool or 5 per cent for receivables with a maturity of up to 24 months. To ensure that originators maintain an interest in the underlying assets, Sebi has specified a minimum holding period requirement of three months in case of loans with tenor of up to two years; and six months in case of loans with tenor of more than two years. The market regulator included an optional clean-up call for originators, allowing them to repurchase up to 10 per cent of the original value of the assets. This call is optional and intended to help manage the pool's longevity without mandating additional commitments from the originator. The updated definition of "debt/receivables" limits permissible underlying assets to listed debt securities, accepted trade receivables, rental incomes and equipment leases while disallowing re-securitisation and synthetic securitisation. To give this effect, Sebi has amended the 'issue and listing of securities debt instruments and security receipts' rules.
