High-street banks in India are leveraging fintech partnerships to dominate the growing consumption credit market, traditionally led by non-banking financial companies (NBFCs) and home financiers.
Data from Nomura Securities reveals that banks have increased their market share in home loans to 77% from 74%, while NBFCs have seen a decline to 17% from 22%, attributed to rising interest rates and stringent capital regulations affecting NBFC fund flows.
SEBI is adopting a new approach to tackle unregistered investment advisories by issuing warning letters through its regional offices.
Traditionally, SEBI investigates and issues orders based on complaints, but the recent tactic involves issuing warnings, a move not commonly observed under Investment Advisor (IA) Regulations.
Bansun Stocks Trading, an unregistered portfolio management service (PMS) entity operating in Punjab, is utilizing a pyramid scheme to attract clients and reward them with expensive gifts for bringing in more customers.
The company promises rapid multiplication of investments and employs multi-level marketing (MLM) tactics, encouraging clients to persuade others to subscribe to the service in exchange for a share of the profits made by the new clients.
Experts argue that Bansun’s operations violate PMS and Collective Investment Scheme (CIS) regulations, as it is not registered with the SEBI
SEBI Whole Time Member, Ananth Narayan, noted that the commitments for AIFs have reached ₹10.8 lakh crore, showing a 44% YoY increase. However, actual investments are around 60-65% of commitments.
He discussed SEBI’s plan to refine proposals for AIF regulations, addressing industry concerns about subjectivity. Also, emphasized a need for a collaborative approach and highlighted the importance of preventing the misuse of AIF structures to circumvent financial sector regulations while fostering trust in the ecosystem.