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RBI Working With Regulators For Better Security Lending Products, Says DG

The Reserve Bank of India (RBI) is currently working with other financial sector regulators like Sebi, PFRDA and Irda to develop an interest rate market

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RBI, security, finance, market
This is broken as Rs 1,23,414 crore as surplus for year 2018-19 and another Rs 52,637 crore of excess provisions identified by the committee as per the revised Economic Capital Framework. Pixabay

The Reserve Bank of India (RBI) is currently working with other financial sector regulators like Sebi, PFRDA and Irda to develop an interest rate market where mutual funds, pension and insurance funds could participate in securities lending to deepen market based finance and develop an alternate to bank finance.

“IRDA, SEBI and PFRDA too could help development of interest rate markets. For instance, short selling activity could benefit if a wider pool of securities lenders can be developed.

“Insurance and pension funds, mutual funds have significant holdings of Government securities that could be used to lent to short sellers. This would avoid short-squeeze incident we saw a couple of years back, apart from generating income for these entities.

“We are working with regulators to develop a securities lending product that could enable these entities to participate in securities lending,” B.P. Kanungo, Deputy Governor, Reserve Bank of India recently said at FIMMDA meeting in Moscow.

RBI, finance, security, market
Reserve Bank of India’s regional office at South Gandhi Maidan Marg, Patna. Wikimedia Commons

FIMMDA is a representative body of participants in the fixed income market in India.

He said the Indian financial sector which mostly has been a bank-based one needs to develop a robust fixed income market to bring in market discipline, to augment bank finance and indeed free up bank finance for uses that cannot access the market directly.

Development of the fixed income market has been an important objective of the Reserve Bank, the Government, the SEBI and other regulators these many years. Significant progress has been made, yet a lot remains to be achieved.

The Banking regulator is also currently looking at refurbishing some regulations on treatment of cash margins as deposits, payment of interest on such margins, posting of collateral abroad to enable participants to move to global margining standards.

“The risk management at market level is pretty robust, with central counterparty settlement, exchange traded products, trade repositories, legal entity identifier.

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But there is scope of improvement at entity-level as far as financial institutions are concerned, which will be tested with introduction of new accounting standards. Some other aspects of regulation – treatment of cash margins as deposits, payment of interest on such margins, posting of collateral abroad – are all under examination to enable participants to move to global margining standards.

Kanungo further said in the next five years the demand for bonds will significantly outstrip the supply.

“It is estimated that five years down the line, the demand for bonds will significantly outstrip the supply,” he said. (IANS)

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Vivo Creates History By Grabbing Second Spot in Indian Smartphone Market

Over the past four years, Vivo has grown 24 times in the Indian market. Vivo has presence in over 70,000 retail outlets across the country

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Vivo
Vivo grew 76 per cent (year-on-year) in the full year 2019Aand 134 per cent YoY in Q4 2019, driven by good performance of its budget segment series. IANS

Chinese smartphone maker Vivo created history by grabbing the second spot in the Indian smartphone market for the first time in the fourth quarter of the calendar year 2019.

Vivo captured 21 per cent market share to reach the second spot as Samsung slipped to third place with 19 per cent market share. Xiaomi was at No 1 position with 27 per cent share in Q4 2019, according to Counterpoint Research.

OPPO and Realme were other players in the top 5 list, with 12 per cent and 8 per cent market share, respectively Vivo grew 76 per cent (year-on-year) in the full year 2019Aand 134 per cent YoY in Q4 2019, driven by good performance of its budget segment series.

“Also, by successfully pivoting to online and aggressively positioning the S series in the offline segment with new features, it managed to make a dent in the Rs 15,000 Rs 20,000 segment,” said Tarun Pathak, Associate Director, Counterpoint.

Vivo
Chinese smartphone maker Vivo created history by grabbing the second spot in the Indian smartphone market for the first time in the fourth quarter of the calendar year 2019. Pixabay

Due to this, Vivo captured the second spot for the first time in India’s smartphone market According to Nipun Marya, Director-Brand Strategy, Vivo India, the goal of the company is not only to launch new devices, but also provide customers better after-sales service experience, which is the key motto of the company.

“We are deeply focused on bringing new innovations to stay ahead in the smartphone segment,” Marya told IANS “My aim is to give world-class after sales service to my consumers. I also thank them for maintaining their trust in the brand,” he added.

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Over the past four years, Vivo has grown 24 times in the Indian market. Vivo has presence in over 70,000 retail outlets across the country. (IANS)