1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI includes NSDL Payments Bank Limited in Second Schedule of RBI Act, 1934
The Reserve Bank of India (“RBI”), through Notification dated July 17, 2025, has included NSDL Payments Bank Limited in the Second Schedule of the Reserve Bank of India Act, 1934 (“Act”). With this inclusion, NSDL Payments Bank Limited attains scheduled bank status, making it eligible for facilities and obligations under the Act, including access to RBI’s liquidity adjustment facility, deposit insurance, and participation in government and central bank auctions.
1.1.2. RBI announces redemption price for SGB 2019-20 Series II premature redemption due on July 16, 2025
RBI has announced that premature redemption of Sovereign Gold Bonds (“SGB”) issued under the 2019-20 Series II with issue date being July 16, 2019, will be permitted on July 16, 2025, in accordance with Government of India notification F. No. 4(7)-B(W&M)/2019 dated May 30, 2019. The redemption price has been fixed at INR 9,791 (Indian Rupees Nine Thousand Seven Hundred Ninety-One only) per unit, based on the simple average of closing gold prices of 999 (nine hundred ninety-nine) purity published by the India Bullion and Jewellers Association Ltd (“IBJA”) for July 11, July 14, and July 15, 2025.
1.1.3. RBI announces redemption price for SGB 2019-20 Series VIII premature redemption due on July 21, 2025
RBI has confirmed that premature redemption of SGB 2019-20 Series VIII, will be allowed on July 21, 2025, in accordance with the Government of India notification F.No. 4(7)-B(W&M)/2019 dated September 30, 2019. The redemption price is set at INR 9,773 (Indian Rupees Nine Thousand Seven Hundred Seventy-Three only) per unit, calculated based on the simple average of closing gold prices of 999 (nine hundred ninety-nine) purity for three business days, i.e., July 16, July 17, and July 18, 2025, as published by the IBJA.
Securities And Exchange Board of India (SEBI)
1.1.4. SEBI consolidates regulations in Master Circular for Portfolio Managers
The Securities and Exchange Board of India (“SEBI”) has issued an updated Master Circular for Portfolio Managers, effective from July 16, 2025. This master circular consolidates the regulatory framework for portfolio managers by incorporating all directions. The guidelines and clarifications issued up to March 31, 2025 are incorporated in the Master Circular and rescind the 39 (thirty-nine) earlier circulars. The streamlined document is designed to serve as a single reference point for compliance requirements, operational guidelines, disclosure norms, and governance standards applicable to portfolio managers, thereby reducing regulatory fragmentation and enhancing clarity for stakeholders. All prior circulars on the subject stand superseded by this comprehensive master circular.
1.1.5. SEBI launches VCF Settlement Scheme 2025
SEBI launched the VCF Settlement Scheme 2025 for Venture Capital Funds (“VCFs”) that have transitioned into Alternate Investment Fund (“AIF”) that are presumably complying with regulations by removing the unwanted regulatory breaches surrounding the delays of schemes winding up outside of their respective liquidation timeline. The scheme is effective from July 21, 2025, to January 19, 2026, it enables the settlement of regulatory actions. VCFs must pay INR 25,000 (Indian Rupees Twenty-Five Thousand only) plus GST, with costs borne by the investment manager or sponsor.
1.1.6. SEBI issues draft circular for public comments on Categorisation and Rationalisation of Mutual Fund Schemes
SEBI on July 18, 2025, released a draft circular inviting public comments on the proposed “Categorisation and Rationalisation of Mutual Fund Schemes.” The draft circular reviews the existing framework established by earlier circulars dated October 06, 2017, and November 06, 2020. It proposes enhancements to improve scheme clarity, allow product innovation, address portfolio overlaps, and incorporate new scheme types such as those linked to real estate investment trusts (“REITs”) and infrastructure investment trusts (“InvITs”). Public comments shall be submitted by August 08, 2025.
1.1.7. SEBI launches Securities Market Hackathon at Global Fintech Fest 2025
SEBI in collaboration with BSE, CDSL, NSDL, and KFintech, has launched a Securities Market Hackathon at the Global Fintech Fest 2025. Themed “Driving Innovation and tech-oriented solutions in the securities market,” the hackathon invites participants to develop digital-first solutions focused on empowering retail investors and improving transparency, efficiency, compliance, and accessibility in capital markets. Problem statements include fraud prevention, enhancing retail investor education and engagement, improving liquidity in bond markets, and member compliance monitoring. Winners will receive cash prizes, and selected teams may showcase their solutions at the event and gain mentorship through the SEBI Innovation Sandbox.
1.1.8. SEBI issues consultation paper on valuation of physical gold and silver held by ETFs
SEBI on July 18, 2025, has released a consultation paper proposing a review of the valuation methodology for physical gold and silver held by gold and silver Exchange Traded Funds (“ETFs”). The objective is to standardise and bring greater uniformity to the valuation process across the mutual fund industry, aligning ETF asset values more closely with Indian domestic prices. SEBI notes that current guidelines rely on the London Bullion Market Association (“LBMA”) fixing price, with subsequent adjustments for currency conversion, customs duties, and premium or discount based on domestic demand and supply. Public comments are to address valuation discrepancies and to ensure consistency in the mutual fund sector.
International Financial Services Centres Authority (IFSCA)
1.1.9. IFSCA issues draft guidelines for reporting and clearing of OTC derivatives in IFSC
The International Financial Services Centres Authority (“IFSCA”) has released a consultation paper proposing draft guidelines for the reporting and mandatory central clearing of Over-The-Counter (“OTC”) derivatives in International Financial Services Centres (“IFSC”). The draft framework restricts the issuance of OTC derivatives referencing equities and bonds listed either on IFSC stock exchanges or regulated foreign exchanges to IFSCA-registered IFSC Banking Units and Broker-Dealers. All such contracts are required to be reported to an authorised trade repository and cleared through recognised clearing corporations within 1 (one) business day of execution.
1.1.10. IFSCA releases consultation paper on Master Circulars for capital market intermediaries in IFSC
IFSCA has released a consultation paper on the introduction of Master Circulars for capital market intermediaries operating in IFSC. These Master Circulars are intended to consolidate and clarify requirements relating to registration, registration process, validity of registration, permissible activities, governance, code of conduct, outsourcing, complaint handling, change in control, and periodic reporting for intermediaries. Public comments and suggestions have been invited until July 21, 2025.
1.1.11. IFSCA initiates regulatory action against Fund Management Entities (FMEs) for non-compliance
IFSCA has taken regulatory action against 9 (nine) Fund Management Entities (“FMEs”) operating in GIFT IFSC for persistent non-compliance with the IFSCA (Fund Management) Regulations, 2025. Inspections in July 2025 found several FMEs with closed or unattended offices during operational hours and repeated absence of designated Key Management Personnel (“KMPs”). These actions contravene Regulation 7(5), which requires KMPs to be based in IFSC, and Regulation 10(1), which mandates adequate office infrastructure and staffing. FMEs are reminded to maintain functional offices and ensure presence of KMPs as per regulatory provisions.
Miscellaneous
1.1.12. MCA extends timeline for inviting suggestions on draft notification for amendment in Companies (Meeting of Board and its Powers) Rules, 2014
The Ministry of Corporate Affairs (“MCA”) has extended the timeline for inviting suggestions/comments on draft notification for amendment in Companies (Meeting of Board and its Powers) Rules, 2014 up to July 28, 2025.
Monetary Penalties
1.1.13. RBI imposes penalty on Thane District Central Co-operative Bank Ltd. Thane, Maharashtra
RBI by an order dated July 14, 2025 has imposed a monetary penalty of INR 2.10 Lakh (Indian Rupees Two Lakh Ten Thousand only) on Thane District Central Co-operative Bank Ltd., Thane, Maharashtra for non-compliance with RBI’s Know Your Customer (“KYC”) directions. Statutory inspection by National Bank for Agriculture and Rural Development (NABARD), revealed that the bank had not established a system for periodic KYC updates as prescribed. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
1.1.14. RBI imposes monetary penalty on Sarvodaya Nagrik Sahakari Bank Ltd, Himatnagar, District Sabarkantha, Gujarat
RBI by an order dated July 10, 2025, imposed a monetary penalty of INR 50,000 (Indian Rupees Fifty Thousand only) on Mahesh Urban Cooperative Bank Limited, Parli Vaijnath, Maharashtra, for non-compliance with its directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and directions under the SAF. Pursuant to inspection, RBI found that the bank had failed to reduce single borrower exposure limits and violated single counterparty exposure limits for non-SLR investments. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
1.1.15. RBI imposes monetary penalty on the Mandvi Nagrik Sahakari Bank Limited, Mandvi, District, Surat, Gujarat
RBI, by an order dated July 11, 2025, has imposed a monetary penalty of INR 2 Lakh (Indian Rupees Two Lakh only) on The Mandvi Nagrik Sahakari Bank Limited, Mandvi, District Surat, Gujarat. The action follows RBI’s findings of non-compliance with regulatory directions on Management of Advances – UCBs. Statutory inspection revealed the bank failed to ensure the end-use of funds for a sanctioned loan. The penalty was issued under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and is based on deficiencies in regulatory compliance.
1.1.16. RBI imposes penalty on The Laxmi Vishnu Sahakari Bank Ltd., Ichalkaranji, Maharashtra
The RBI by an order dated July 14, 2025 has imposed a monetary penalty of INR 20,000 (Indian Rupees Twenty Thousand only) on The Laxmi Vishnu Sahakari Bank Ltd., Ichalkaranji, Maharashtra. The action was taken following findings of non-compliance with RBI directions regarding loans and advances to directors, their relatives, and related entities. RBI’s statutory inspection revealed that the bank had sanctioned a loan to one of its directors, violating regulatory norms. The penalty has been imposed under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. This action is based on regulatory deficiencies and does not affect the validity of any customer transaction or agreement.
2. Key Asian Markets- Indonesia and Vietnam
2.1. Indonesia
2.1.1. Bank Indonesia cuts BI-Rate to 5.25 per cent to support stability and growth
Bank Indonesia announced on July 16, 2025, that it has lowered the BI-Rate by 25 (twenty-five) basis points to 5.25 per cent, (five point two five per cent) alongside reductions in the Deposit and Lending Facility rates. This move reflects the central bank’s confidence in stable inflation and aims to maintain rupiah stability while boosting economic growth. Bank Indonesia also continues its accommodative macroprudential policies and is expanding digital payment initiatives, such as QRIS cross-border cooperation.
2.1.2. Business activity increases in quarter two 2025 as per business survey
The latest Business Survey by Bank Indonesia shows a significant increase in business activity during quarter two of 2025, with the weighted net balance rising to 11.70 per cent (eleven point seven zero per cent) from 7.63 per cent (seven point six three per cent) in quarter one. Growth was driven by strong performance in sectors like Public Administration, Defence, Manufacturing, and Accommodation, boosted by government budget realisation and national holidays. Production capacity utilisation also rose to 73.58 per cent (seventy-three point five eight per cent), supported mainly by Mining, Quarrying, and Electricity Supply sectors. Corporate financial health remained stable with good liquidity and credit access. Business activity is projected to continue growing in quarter three of 2025, fuelled by advances in Construction and Mining sectors alongside ongoing infrastructure projects.
2.1.3. Indonesia’s external debt growth slows in May 2025
Bank Indonesia reports that external debt reached USD 435.6 Billion (United States Dollars Four Hundred Thirty-Five Billion Six Hundred Million only) in May 2025, with growth easing to 6.8 per cent (six point eight per cent) year-on-year. Government external debt was USD 209.6 Billion (United States Dollars Two Hundred Nine Billion Six Hundred Million only), mostly long-term term and still supports key sectors like health and education. Private sector external debt continued to contract. The debt-to-GDP ratio remained stable at 30.6 per cent (thirty point six per cent). Authorities continue to focus on prudent debt management to ensure stability and sustainable growth.
2.2. Vietnam
2.2.1. Vietnam’s Banks commit VND 1,365 Billion to eradicate temporary and dilapidated houses
The State Bank of Vietnam (“SBV”) and representatives of the banking sector participated in a ceremony to support the nationwide “Removing Temporary and Dilapidated Houses” program. Responding to a government call, the banking sector collectively committed VND 1,365 Billion (Vietnamese Dong One Thousand Three Hundred Sixty-Five Billion only) for this social initiative, with VND 82 Billion (Vietnamese Dong Eighty-Two Billion only) directly contributed by banking employees—sufficient to fund the construction of over 1,300 (one thousand three hundred) new homes.
2.2.2. Vietnamese banks disburse VND 5,200 Billion to support high-quality rice project
SBV announced that as of the end of June 2025, banks have disbursed approximately VND 5,200 Billion (Vietnamese Dong Five Thousand Two Hundred Billion only) in loans for the nation’s “1 (One) million Hectares of High-Quality, Low-Emission Specialised Rice” project. This marks rapid progress just one month after the Ministry of Agriculture and Environment designated participating enterprises. Eight commercial banks, led by Agribank, have committed credit lines totalling VND 17,000 Billion (Vietnamese Dong Seventeen Thousand Billion only) through the pilot phase ending 2025.
3. Trends
3.1. HDFC Bank to consider first-ever bonus shares and special dividend
HDFC Bank will consider its first-ever bonus issue and a special interim dividend on July 19, 2025. Loan growth was 6.7 per cent (six point seven per cent) quarter on quarter basis and deposits rose 16 per cent (sixteen per cent) on year-on-year basis in quarter one of financial year 2026. The bonus aims to boost liquidity.
4. Sector Overview
4.1. Delhi High Court holds cryptocurrency can make recognised money untraceable
The Delhi High Court highlighted cryptocurrency’s potential to turn recognised money into untraceable dark money, endangering the national economy. Denying bail to Pluto Exchange’s founder, accused of defrauding 61 (sixty-one) investors, the court stressed the gravity of economic offences involving deep conspiracies. It noted continued fraud despite derecognition of crypto in India and cited 13 (thirteen) similar cases pending against him.
4.2. RBI liquidity measures ease deposit pressures for Indian banks
Indian banks saw relief in 2025 as the RBI injected INR 5.6 Trillion (Indian Rupees Five Trillion Six Hundred Billion only), easing funding costs. A 100 (hundred) basis points cash reserve ratio cut reduced deposit pressures. Fitch expects a small margin dip in financial year 2026 with recovery by financial year 2027. Loan growth is projected at 11 per cent (eleven per cent).
4.3. Microfinance sector set for gradual recovery; credit costs seen normalising by financial year 2027
India’s microfinance sector is showing a gradual recovery marked by improved asset quality, declining delinquency, and stabilised collection efficiency since late 2024, despite regulatory and operational challenges in key states. Growth is expected to normalise by financial year 2027, supported by stronger underwriting, better funding, and more prudent lending, though sector consolidation will continue as weaker players exit or merge. Leading institutions like CREDAG, Ujjivan Small Finance Bank, and L&T Finance are regaining momentum, signalling a cautious but positive outlook for credit expansion and profitability.
4.4. Non-life insurance growth slows to 5.2 per cent in June amid health and motor weakness
India’s non-life insurance sector posted sluggish 5.2 per cent (five point two per cent) year-on-year premium growth in June 2025—down from 8.4 (eight point four per cent) in June 2024—primarily due to the new 1/n premium recognition rule, slower health insurance growth, and muted motor vehicle sales, with public sector general insurers outperforming private peers mainly through renewals in fire, engineering, and third-party motor segments; meanwhile, rising medical inflation dampened health insurance growth, retail and group health segments weakened, and the outlook for the sector remains cautiously optimistic amid regulatory shifts, pricing pressures, and expected market competition enhancements from proposed structural reforms.
4.5 India’s new age tech IPO landscape 2025
Over 40 (forty) tech startups are listed in India with over USD 101 Billion (United States Dollars One Hundred One Billion only) market cap. Financial year 2025 saw INR 7,542 Crore (Indian Rupees Seven Thousand Five Hundred Forty-Two Crore only) in losses versus INR 5,326 Crore (Indian Rupees Five Thousand Three Hundred Twenty-Six Crore only) profits. Fintech leads listings, Delhi NCR dominates with USD 67.5 Billion (United States Dollars Sixty-Seven Billion Five Hundred Million only) market cap.
5. Business Updates
5.1. Jio BlackRock receives approval from SEBI to launch four passive Index Funds
Jio BlackRock, the joint venture between Jio Financial Services and BlackRock, has secured regulatory approval to launch four passive index funds in India. The funds will track the Nifty Midcap 150, Nifty Smallcap 250, Nifty Next 50, and an Indian government bond index with 8 (eight) to 13 (thirteen) year maturities. Minimum investment starts at INR 500 (Indian Rupees Five Hundred only), with a fully digital distribution model. Jio BlackRock has already raised over USD 2.1 Billion (United States Dollar Two Billion and One Hundred Million only) through prior debt funds.
5.2 Smartworks shares make robust market debut
Smartworks listed at INR 436.10 (Indian Rupees Four Hundred Thirty-Six and Ten Paise only) on the Bombay Stock Exchange (BSE), at 7.14 per cent (seven point one four per cent) above the Initial Public Offering (“s”) price. The INR 445 Crore (Indian Rupees Four Hundred Forty-Five Crore only) issue saw 13.45 (thirteen point four five) times oversubscription. Funds will go towards debt, capex, and expansion. Despite a 26.5 per cent (twenty-six point five per cent) rise in net loss, revenue jumped 32 per cent (thirty-two per cent) to INR 1,374 Crore (Indian Rupees One Thousand Three Hundred Seventy-Four Crore only).
5.3 Axis Bank charts strategic recovery amid margin pressures for Financial Year 2026
Axis Bank targets earnings recovery from second half of the financial year 2026, with a shift to secured lending and small and midsize enterprise (SME) growth. Deposits rose 10 per cent (ten per cent) in the financial year 2025. Gross and net non-performing assets (NPAs) remain at 1.35 per cent (one point three five per cent) and 0.33 per cent (zero point three three per cent). Return on asset and return on equity are projected at 1.74 per cent (one point seven four per cent) and 15.3 per cent (fifteen point three per cent) by financial year 2027.
5.4 WeWork India receives SEBI approval for IPO comprising full Offer for Sale
WeWork India, has received approval from SEBI to launch its IPO. The proposed IPO will consist entirely of an Offer for Sale of up to 4.37 crore (four crore thirty-seven lakh) equity shares. Promoter Embassy Buildcon LLP is set to sell up to 3.34 crore (three crore thirty-four lakh) shares. No new shares will be issued in this IPO, and all proceeds will go to the existing shareholders.
Disclaimer
The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.
