Leasing sector growth may get affected due to high GST: FIDC
The Dollar Business Bureau Due to higher rates of Goods and Services Tax (GST) along with some other issues, the growth of capital good leasing sector, which is growing at 15-20% may get tapered, said the representative body-cum-self regulatory organisation for NBFCs, theFinance Industry Development Council (FIDC). The capital good leasing sector in India is estimated to be worth Rs.5500 crore. “The GST rate of 28% is high for the leasing industry when compared to the earlier 5-15% tax burden. Higher GST rates lead to requirement of higher working capital at any point of time. This results in increasing the cost of leasing an equipment,” Mahesh Thakkar, Director General, FIDC told PTI. He urged the Government to actively consider not putting the capital goods ...
Note ban to affect NBFC collections in short term: Moodys
PTI Moody’s Investors Service on Tuesday said non-banking financial companies (NBFCs) will demonstrate broadly stable asset quality, but delinquencies could rise over the next 1-2 quarters as demonetisation adversely affects collections across asset classes. It said the growth in loans against property has outpaced overall retail credit growth in recent years, but relatively loose underwriting practices, combined with intensifying competition, will translate into higher asset quality risk for this segment. “NBFCs in India will demonstrate broadly stable asset quality, but delinquencies will likely rise over the next 1-2 quarters, as demonetisation adversely affects collections across asset classes,” Moody’s said in a statement. Over the past three years, NBFCs have gained some market share in the origination of retail lending on the back of faster ...
THE CHANGING LANDSCAPE OF NBFCS
Sairaj Iyer A discussion on the changing landscape of non-banking financial corporations by Assocham saw participation from leading financial strategists. Sunil Kanoria, President of Assocham and Raman Aggarwal, Chairman of the Finance Industry Development Council (FIDC) inaugurated the summit while V. Vaidyanathan, Founder & Chairman, Capital First Limited delivered the introductory address. In his brief address, Vaidyanathan summarized the innovation quotient in the sector and the role of the Indian regulators in the growth of NBFCs. NBFCs- HUB OF INNOVATION According to Vaidyanathan, the NBFCs have succeeded in penetrating the bottom of the pyramid by using innovative schemes and low-cost structures. This enabled NBFCs to reach the last mile financing, as well as sectors such as student loans, farm loans, mortgages and business loans. ...
RBI relaxes norms to raise funds for infrastructure
The Dollar Business Bureau To aid the overseas companies in raising money for infrastructure projects within the country, the Reserve Bank of India has relaxed the norms for borrowing these funds.The bank after consulting the government and keeping in mind the existing overseas funding sources, has reassessed the guidelines of the ECB (External Commercial Borrowing). This has been done keeping in mind the need for long term lending for infrastructure projects in the country.Firms in the infrastructure sector that qualify for ECB are, NBFCs-Asset Finance Companies (NBFC-AFCs), Core Investment, Non-Banking Financial Companies -Infrastructure Finance Companies (NBFC-IFCs), Companies (CICs) and Holding Companies. These firms qualify to the ECB having a maturity period of 5 years. However, these would be subjected to 100% ...
Foreign Exchange Management (Tenth Amendment) Regulations, 2015
Dated October 30th, 2015 | Copy of | Notification No.FEMA.354/2015-RB | Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2015 G.S.R. 823(E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA. 20/2000-RB dated 3rd May 2000) namely:- 1. Short Title & Commencement (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) ...
