Capital markets regulator Sebi on Friday said investment advisers operating in International Financial Services Centre (IFSC) are required to have a net worth of $7,00,000 (around Rs 5.05 crore). Earlier, the net worth requirement for investment adviser (IA) in IFSC was $1.5 million. … [Read more...] about SEBI asks investment advisers operating in IFSC to have $700,000 net worth
But no stimulus, whether monetary or fiscal, can work as long as entire cities are shut down when supply chains are disrupted, when ships aren’t allowed to enter ports and when airlines cancel flights. The stimulus can’t work if workers don’t turn up and factories and shops remain shut or are only partially open or if the supply of raw materials and the movement of finished goods is disrupted. You cannot address a supply-side shock by trying to stimulate demand. The stimulus will do nothing for the economy as long as the epidemic keeps spreading and governments impose restrictions and quarantines to try and prevent it going viral (an appalling pun, I agree). Moreover, a stimulus is already happening, as commodity prices have fallen and bond yields have come down. … [Read more...] about Moneycontrol Pro Weekender: Time to pay the bill?
The expenditure side numbers show a similar pattern. Gross fixed capital formation was supposed to have grown 4.5 percent in the first advance estimates — it’s now estimated to have grown by 7.6 percent. Exports of goods and services were estimated to have grown 4.5 percent initially -- they’re now estimated to have grown 5.6 percent. The estimate of growth in government fixed capital expenditure rose to 10.9 percent from 8.5 percent. Import growth is now estimated at 12.4 percent from 10 percent. … [Read more...] about Opinion | Take the first advance GDP growth estimates with a pinch of salt
But while they may recognise the need for a stimulus, China’s very high levels of corporate debt make a balancing act necessary. That is why reports indicate only a modest increase in the budget deficit from 2.6 to 2.8 percent this year. There’s also the risk that any excess stimulus will only lead to higher property prices. China’s recent efforts at boosting lending have been targeted at specific sectors. … [Read more...] about Opinion | China faces two options: Domestic stimulus or trade truce with US
That said, global growth fears are very strong, with a majority of investors expecting global growth to slow in the next 12 months, although most think a recession is unlikely. Investors are saying that a ‘secular stagnation’ environment is most likely in the next two-or-three quarters. With lower global growth, inflation expectations too have declined, allowing investors to discount a dovish Fed. That is why they now think the dollar is very overvalued, the most since June 2002, while they also think emerging market currencies are the cheapest since October 2004. … [Read more...] about Quick Take | Fund manager survey finds emerging markets favourites against backdrop of slowing growth