The National Common Mobility Card (NCMC), aimed at streamlining digital payments across India’s public transport systems, has seen limited adoption. However, recent regulatory changes by the RBI, allowing issuance of NCMC cards with a ₹3,000 limit without KYC, could boost usage.
Despite initial slow adoption due to India’s fragmented transport system, the potential for broader utility and the exit of major player Paytm Payments Bank from basic banking services could reshape the landscape, potentially accelerating NCMC usage.
Sebi has exempted FPIs from additional disclosure requirements, easing their compliance burden, particularly for those with a majority of assets in India. This exemption applies to overseas funds with over 50% of their Indian equity assets managed within a single corporate group, provided the concentrated holdings are in a listed company without an identified promoter.
While some securities lawyers suggest broader exemptions, Sebi’s relaxation also extends to disclosure timelines and flexibility in dealing with securities post-registration expiry, aiming to facilitate FPI operations and enhance access to the primary market.
SEBI’s board approved several key measures including the launch of a beta version of optional T+0 settlement for 25 scrips with select brokers. Additionally, exemptions were granted for FPIs meeting specific criteria regarding concentrated holdings in listed companies without identified promoters, with relaxed timelines for disclosure of material changes and reactivation of expired registrations.
Norms for IPOs were eased, permitting certain entities to contribute to minimum promoters’ contribution without being identified as promoters, and changes were made to offer for sale filing requirements.
Market capitalization compliance for listed entities will now be determined based on six-month average market capitalization. SEBI will establish uniform criteria for rumor verification, and AIFs will be allowed to create encumbrances on equity of investee companies and deal with unliquidated investments during winding up processes.
Additionally, a framework for issuance of subordinate units by privately placed InvITs has been provided.
RBI reportedly directed certain banks to halt onboarding new customers onto the OneCard platform due to concerns over the fintech firm’s access to credit card customer data.
OneCard, which has co-branded card partnerships with several banks, allegedly obtained indirect access to customer data through the credit card software stack provided by OneCard.
This violates RBI regulations, which restrict access to customer data to credit card issuers only. While the pause is likely temporary, pending resolution of data access concerns, OneCard’s unique technology stack and features are noted as its selling points.
In February 2024, Bengaluru-based startups dominated funding, securing 53% of the total funding raised, amounting to ₹2,661 crore out of ₹5,039 crore. Mumbai and Delhi NCR followed with ₹922 crore and ₹829 crore, respectively. Tier 1 city startups amassed 99% of the total funding, with an average deal size of ₹33 crore, while Tier 2 and 3 city startups secured only 1% of the funding, with an average deal size of ₹4 crore.