Context: The Securities and Exchange Board of India (SEBI) has recently announced important updates aimed at enhancing compliance and resolving disputes efficiently in the securities market. These reforms focus on expanding automated trading restrictions and proposing a direct arbitration mechanism for specific types of complaints. Extension of Automated Trading Window to Immediate Relatives SEBI has extended the closure of the automated trading window to include immediate relatives of designated persons (DPs) in listed companies. This reform aims to prevent insider trading by expanding the scope of individuals who are prohibited from trading during specific periods when unpublished price-sensitive information (UPSI) is accessible. Key Features: Impact: This extension ensures comprehensive protection against insider trading risks, especially for high-value transactions involving immediate family members of designated persons.

Overview: Purpose and Current Framework Key Issues and Gaps in the Deposit Insurance Framework Reactive vs. Proactive Shifts Risks of Raising the Cap Rethinking the Deposit Insurance Philosophy Mint

This initiative is a step towards enhancing the security and trustworthiness of the digital banking ecosystem in India. BL

Context: Net foreign direct investment (FDI) into India fell sharply to $1.5 billion during April 2024–February 2025, compared to $11.5 billion in the same period the previous year. The decline is attributed to higher repatriation by foreign investors and increased outward FDI by Indian firms. Gross FDI Remains Strong Country-wise and Sector-wise FDI Breakdown Increase in Repatriation and Outward FDI Global Investment Shift BS

Context: The REER of the Indian rupee dropped to 101.49 in March 2025, down from 102.37 in February, as per RBI’s monthly bulletin. The REER had peaked at 108.14 in November 2024, before steadily falling through December (107.2) and January (103.66). Market Commentary and Economic Insights Inflation Differential Impact RBI’s Forex Market Operations Yearly Intervention Summary Breakdown of RBI’s Forward Dollar Positions BS

Context: Banks’ average SDF placements rose to ₹2.13 trillion in March 2025, up from ₹1.12 trillion in February. SDF accounted for 82.6% of the total liquidity absorbed under RBI’s Liquidity Adjustment Facility (LAF) during H2FY25. Key Drivers Behind Higher SDF Reliance Shift from Longer-Tenor Instruments RBI’s Operational Framework Enhancements Strategic Impact and Liquidity Implications BS

Context: The Reserve Bank of India (RBI) has revised its Liquidity Coverage Ratio (LCR) norms, easing the regulatory burden on banks and freeing up substantial capital. These changes are especially relevant in light of increased digital banking activity and the need for robust liquidity management. Key Highlights: Reduced Run-Off Factors for Digital Deposits Lower Run-Off Rate for Non-Financial Entities Effective Date and Implementation Estimated Impact on Banking Sector: Contextual Reference Industry Reaction TET & Mint

Context: India’s top private banks, HDFC Bank and ICICI Bank, significantly slowed down hiring in FY25, even as they expanded branch networks, reflecting a shift toward productivity enhancement and tech-driven efficiency. Key Reasons for Hiring Slowdown According to Suresh Ganapathy, Head of Financial Services Research, Macquarie Capital: State-Owned Banks: Similar or Different? Outlook BS