Finance Minister Nirmala Sitharaman, during her visit to Mexico, called for responsible capitalism to support equitable growth and emphasized collaboration between India and Mexico in areas like AI, healthcare, and sustainable cities.
She will also meet business leaders to boost investment and engage with the Indian diaspora. After Mexico, she will attend IMF and World Bank meetings in the USA and participate in various discussions, including at the New York Stock Exchange and Columbia University.
Over a year since SEBI allowed private equity (PE) firms to sponsor mutual funds, no PE firms have entered due to regulatory hurdles and volatile market conditions. Experts suggest PE firms prefer acquiring existing asset management companies over starting new ones. Compliance issues, like conflict of interest safeguards, are seen as key barriers. However, there is potential for PE involvement in the future if mutual fund strategies align with PE approaches.
Peer-to-peer (P2P) lending startups are overhauling their systems to comply with RBI’s August 16 directives, impacting withdrawals and business operations. Platforms like Mobikwik Xtra and Faircent are adjusting to new rules, while some, like BharatPe, have halted P2P products.
RBI has penalized firms like Liquiloans and Lendenclub for violations, and more companies have received show-cause notices. The industry, previously growing through partnerships, is now facing a downturn.
Fintechs relying on co-lending with NBFCs face increased pressure after the RBI’s action against Navi and DMI Finance, citing high interest rates and regulatory non-compliance. With interest rates reaching 35-40%, fintechs may need to adjust their models. The RBI’s move could lead NBFCs to reassess co-lending partnerships, impacting growth in the unsecured lending market.
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