Context: The Securities and Exchange Board of India (SEBI) has introduced a new set of regulations for securitised debt instruments (SDIs), focusing on enhancing transparency, risk management, and investor confidence. The regulations, announced through a gazette notification, mandate key changes in the issuance, transfer, and management of SDIs. What are SDIs? Key Highlights of SEBI’s New Rules on Securitisation Minimum Investment Threshold (Ticket Size) Issue Process and Form Originator Eligibility & Track Record Risk Retention and Holding Period Asset Eligibility & Definitions

Overview of SEBI’s New Disclosure Norms Key Changes in Offer Document Disclosures TET

Context: The Reserve Bank of India (RBI) has proposed a new co-lending model requiring simultaneous loan disbursal by both banks and non-bank financial companies (NBFCs). The existing model, which allows NBFCs to originate and assign loans to banks, may be phased out. The Finance Industry Development Council (FIDC) is preparing to represent NBFC concerns formally to the RBI. RBI to Expand Co-Lending Framework Beyond NBFCs and PSL The Reserve Bank of India (RBI) is set to roll out a new, more inclusive co-lending framework, expanding the scope beyond existing arrangements between banks and NBFCs and beyond Priority Sector Lending (PSL). Current Co-Lending Framework (Status Quo) Why Change is Needed Related Developments Implications of Expanded Co-Lending Framework The RBI’s Co-lending Framework The RBI’s Co-lending Framework allows two financial institutions, like a bank and a non-banking financial company (NBFC), to jointly fund a loan portfolio in a pre-agreed proportion, with both sharing revenue and risk. This framework aims to improve credit flow to underserved sectors by combining the low-cost funding of banks with the reach of NBFCs and other financial entities.  Key Aspects: Benefits of the Co-lending Framework RBI’s Role: TET

Context: The Reserve Bank of India (RBI) is likely to transfer a record ₹3 lakh crore surplus to the central government for FY25. This is 50% higher than FY24’s ₹2.1 lakh crore transfer and well above the budget estimate of ₹2.3 lakh crore. What is RBI Surplus? Key Expenditure Items of RBI Provisions & Legal Basis Economic Capital Framework (ECF) – Key Metrics Why Was the Surplus So High? Historical RBI Surplus Payouts (₹ Cr) Fiscal Year Surplus Transferred FY16 65,876 FY17 30,659 FY18 50,000 FY19 1,75,987 FY20 57,128 FY21 99,122 FY22 30,307 FY23 87,416 FY24 2,10,874 Benefits to the Government TET

Context: The overall spread between the weighted average lending rate (WALR) and weighted average domestic term deposit rate fell to 2.71% in March 2025, a 10-year low, down 5 bps month-on-month (M-o-M). Spread on fresh loans fell sharply by 22 bps to 2.7% during the same period. Weighted Average Lending Rate (WALR) The Weighted Average Lending Rate (WALR) is a key financial metric that reflects the average interest rate at which a bank lends to its borrowers, adjusted for the size of each loan. Key Features of WALR Definition and Purpose Calculation Characteristics Applications Regulatory Relevance Implications The weighted average domestic term deposit rate (WADTDR) The weighted average domestic term deposit rate (WADTDR) is a metric that reflects the average interest rate paid on term deposits by commercial banks, adjusted for the size of the deposits. It essentially provides a weighted average of the interest rates on different deposit maturities and amounts, considering the relative importance of each deposit in the bank’s overall deposit portfolio.  BS

Context: The Reserve Bank of India (RBI) has introduced a new framework aimed at standardizing the process of regulation-making to ensure greater transparency, accountability, and stakeholder participation. The framework will involve publishing draft regulations on the RBI’s website along with a statement of particulars, inviting public comments before finalizing any new regulations. Key Highlights of the Framework Scope of Regulations Draft Publication Requirements Objective To create a consistent, participatory, and evidence-based regulatory process, improving the quality and legitimacy of RBI’s regulatory instruments. BS

Context: The National Stock Exchange (NSE) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch electricity derivatives. The announcement was made during the NSE’s fourth-quarter earnings analyst call. Key Features of Electricity Markets and Derivatives This chapter outlines the unique characteristics of electricity, the structure of electricity markets, and introduces market-specific derivatives, focusing on features that directly affect pricing and trading. Key Properties of Electricity Affecting Markets Electricity Market Microstructure Electricity Derivatives How Derivatives Exchanges Work Trading Electricity vs. Financial Markets Understanding the electricity wholesale market requires recognizing how electricity trading differs from traditional financial asset trading. Key Differences Between Electricity and Financial Market Trading BS

Context: Bank bonds are a type of debt security issued by banks and financial institutions to raise funds, manage risk, and offer investment opportunities to individuals and institutions. They offer structured returns and are considered relatively safe financial instruments. What Are Bank Bonds? Typical Features of Bank Bonds Bank Bonds vs. Other Instruments For Consumers Investment Value and Benefits Key Difference: Bank Bonds vs. Stocks Feature Bank Bonds Stocks Ownership No ownership rights Ownership stake in a company Risk Lower, fixed return Higher, variable return Return Interest payments Dividends + potential capital gains Maturity Fixed-term No maturity; held as long as desired Control/Influence No voting rights Shareholders may vote on corporate matters Bank bond

Context: Exim Bank withdrew its planned ₹2,500 crore 10-year bond issuance after investors demanded higher-than-expected yields, according to multiple market sources. Bonds in Corporate Financing Bonds serve as a form of loan between an investor and a corporation. When a company issues bonds, it borrows a specific amount of money from investors, agreeing to pay back the principal amount along with periodic interest payments until the bond matures. Once the bond matures, the company repays the principal, concluding the bond agreement. Bonds vs. Other Methods of Raising Capital Bonds vs. Bank Loans Key Features of Bonds Why Companies Issue Callable Bonds Corporate Bonds vs. Government Bonds