Financial Sector

Three former officials of Brightcom Group Ltd (BGL), including two ex-compliance officers and an independent director, have collectively paid Rs. 35.4 lakh to settle a case with the Securities and Exchange Board of India (SEBI) concerning alleged financial reporting irregularities spanning six financial years from 2014–15 to 2019–20. The individuals submitted settlement applications without admitting or denying guilt. As part of the agreement, all three are barred from engaging with BGL or its affiliates for periods ranging from one to two years.

Jio BlackRock Investment Advisers Pvt Ltd—a 50:50 joint venture between Jio Financial Services Ltd (JFSL) and global asset management giant BlackRock Inc—has received formal approval from both the Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE) to commence operations as an investment adviser. This milestone follows prior regulatory clearance for its mutual fund business.

CreditAccess Grameen Ltd, a prominent non-bank microfinance institution, has secured a pioneering USD 100 million multi-currency syndicated social loan facility. This marks the first External Commercial Borrowing (ECB) of its kind in India’s microfinance sector, with funds raised in Japanese Yen (JPY) and US Dollars (USD). The facility, facilitated by Standard Chartered Bank, underscores CreditAccess Grameen's strong track record in international borrowings. The loan will support the company’s commitment to social development goals, adhering to global social loan principles.

The Securities and Exchange Board of India (Sebi) has levied a Rs. 3 lakh penalty on Motilal Oswal Financial Services Ltd for breaching stock brokers' norms related to trading terminals and oversight of authorized persons. The violations were uncovered during a thematic inspection focused on the broker's control over authorized persons for the period spanning April 2022 to January 2024. Sebi found multiple instances of trading from unapproved locations and terminals, along with fund-based relationships between authorized persons and clients, contravening established regulations.

In a candid address at HSBC's financial inclusion event, RBI Deputy Governor M Rajeshwar Rao highlighted persistent issues in India’s microfinance sector, including over-indebtedness, exorbitant interest rates, and harsh recovery practices. Despite the sector’s pivotal role in advancing financial inclusion, pockets of high margins and exploitative lending continue to exist, raising concerns about borrower well-being and sectoral stability. Rao underscored the need for regulated entities to adopt responsible lending practices, enhance credit assessments, and avoid coercive recovery methods.

In a series of significant block deals on the National Stock Exchange (NSE) on Friday, institutional investors, including SBI Mutual Fund, Morgan Stanley, and Goldman Sachs, collectively acquired a 1.8% stake in Bajaj Finserv for Rs. 5,506 crore from the promoter group. Simultaneously, Wabco Asia Pvt Ltd offloaded a 3.16% stake in ZF Commercial Vehicle Control Systems India for Rs. 792 crore.

In a move to streamline communication between issuers of listed non-convertible debt securities and their investors, India's securities regulator, SEBI, has announced a limited relaxation of regulations regarding the physical distribution of financial documents. The new directive, effective from October 2024, exempts issuers from sending hard copies of financial statements to investors who have not registered their email addresses. This change aligns with the Ministry of Corporate Affairs' decision to extend similar relaxations until September 2025.

Almondz Global Securities reported a steady rise in its consolidated net profit for the fourth quarter of FY2024–25, buoyed by solid performances across its infrastructure consulting, green energy, and financial services segments. The company posted a net profit of Rs. 6.15 crore, reflecting a 2.5 percent increase over the same period last year. Operating income surged 14.85 percent year-on-year for the March quarter and nearly 26 percent for the full fiscal year, reaching Rs. 151.36 crore.

Hero FinCorp, the non-banking financial arm of two-wheeler giant Hero MotoCorp, has received regulatory clearance from the Securities and Exchange Board of India (SEBI) to proceed with its Rs. 3,668 crore Initial Public Offering. The public issue includes a Rs. 2,100 crore fresh equity raise and a Rs. 1,568 crore Offer For Sale by existing investors. The proceeds from the fresh issue will be allocated toward expanding the company’s capital base and strengthening its lending operations.

China is transitioning from the world’s foremost capital provider to the largest bilateral debt collector, as 75 of the globe’s most financially vulnerable nations are set to repay a record USD 22 billion in loans in 2025. This shift, revealed by new research from the Lowy Institute, underscores the maturing debt obligations from China’s massive Belt and Road Initiative (BRI).