The biggest risk in the financial services business today is the Regulatory risk. The more the regulators think that they can prevent frauds and cheating the more they will move into the controls of a business. Sebi has been making a lot of changes in the mutual fund business – there is a good chance [...]
RBI is the banking regulator and obviously it has a role in development of the banking industry, right? Well, over the last so many years what is the penetration of banking in India? Well about 6-8% of the country’s population has some access to banking. Why we do not have banks with EXCLUSIVE mandate to [...]
Who should decide on whether self regulation works? The other regulators? The MCA? The RBI? SEBI? …hmmm tough choice! The ICAI of course a well run body representing the interest of the C As. Well if this is what you think, you think wrong. Once you get in you realize that many of the regulators [...]
Where exactly are we headed? – A government which has no clue what is happening. The Finance Minister talks about a 8% growth. The reality is more like a 6.5% growth (well the government says 7.1 with a downward bias) -The Rupee headed towards 55 if not worse. -The RBI wondering what to do. It [...]
Well let us look at the Indian market from a foreign investor’s point of view: Indian markets (as also China) is down by 18% over the past one year. If you are a foreign investor add another 14% of currency depreciation. It is not a pretty picture, correct? It must have been quite a [...]
Well frankly, I do not have an answer… – Domestic growth has slowed in recent months to pretty low levels, and a senior banker saying be happy with 6% growth next year – A fallen and further falling Rupee? -Inflation stuck at double digits – latest is 10%! – RBI’s constant raising of interest rates [...]