RBI Governor Shaktikanta Das is likely to secure a third term, with an expected extension of up to two years. A recommendation has been sent to the Appointments Committee of the Cabinet (ACC), and an official announcement is awaited. Das has been praised for his leadership, including navigating economic challenges, and has previously been reappointed in 2021.
SEBI has mandated mark-to-market valuation for mutual fund investments in repo transactions, excluding overnight repos, to eliminate regulatory arbitrage. Previously, repo investments were valued on a cost-plus-accrual basis, creating inconsistencies with other securities. The new rule ensures uniformity and faster reflection of market events in valuations. Bank deposits will continue to follow the cost-plus-accrual method.
India’s T+0 settlement cycle, which allows same-day settlement of trades, has seen limited adoption after eight months. Market participants cite operational issues, lack of incentives, and reduced flexibility compared to the T+1 cycle.
Foreign investors face additional challenges due to cross-border fund transfers. Until T+0 becomes mandatory and operational hurdles are resolved, it is unlikely to gain traction.
India’s consumption growth remains uneven, with rural recovery gaining momentum due to a strong kharif output and positive rabi prospects, which may boost overall demand and ease food inflation.
Urban consumption faces challenges from elevated food prices and tighter RBI loan norms, impacting discretionary spending. A healthier rural economy could drive broader economic recovery and encourage private sector investments.