Context: The Securities and Exchange Board of India (SEBI) has announced a partnership with the government’s DigiLocker platform. Unclaimed financial assets Unclaimed financial assets are funds or financial instruments that remain inactive, dormant, or unclaimed by their rightful owners for a legally defined period, such as bank deposits, shares, insurance policies, or dividends.  New Features for Investors Impact of SEBI-DigiLocker Collaboration Digital Push for Better Asset Tracking

Key Highlights India’s External Sector Strengths Monetary Policy Outlook Global Economic Concerns Risks for India Indian Rupee and Capital Flows Inflation Control Key to Navigating Global Headwinds The Economic Times

Context: The Securities and Exchange Board of India (SEBI) is planning to tighten and standardise internal audit processes at market infrastructure institutions (MIIs). This move follows findings that significant audit observations were missed by internal auditors during SEBI inspections. Key Proposed Changes by SEBI Strengthened Internal Audit Mechanism Mandating Audit Committee Independence Exclusive Submission of Internal Audit Reports Standardising Internal Audit Framework Comprehensive Coverage Required Industry-Wide Standardisation Final Reporting Process Objective BL

Context: The SEBI $7 billion overseas investment limit for mutual funds has been reached, limiting direct mutual fund-based global diversification for Indian investors. An alternative option is investing abroad via Portfolio Management Services (PMS), allowing professionally managed global investments through the Liberalised Remittance Scheme (LRS). PMS Investment Route: Key Features Geographic & Sector Allocation (Marcellus Global Compounders Portfolio) Why Emerging Markets Are Avoided Investment Process in Marcellus PMS Tax Considerations for Indian Investors Despite the SEBI overseas mutual fund cap, PMS investments via LRS offer a viable global diversification route. Investors must consider taxation, reporting obligations, and the higher entry barrier of $75,000. Developed markets like the US and Europe remain the top choices for consistent returns, regulatory stability, and industry leadership.

Context: Since February 24, 2025, the SEBI consultation paper has affected OI calculations, limits on positions, and new trading sessions before and after continued derivatives trading. The delta calculation has been staunchly opposed by the Futures Industry Association, or FIA, a global body representing foreign portfolio investors. What Is Open Interest? Open interest is the total number of outstanding derivative contracts for an asset—such as options or futures—that have not been settled. Open interest keeps track of every open position in a particular contract rather than tracking the total volume traded. SEBI”s Key Proposals FIA Has Conclusively Identified Concerns as Debate over Proposed Limits Market Perspective While SEBI’s intent to strengthen risk monitoring is laudable, the FIA’s indorsement throws a huge trellised shadow around “practical and operational risks” capable of disrupting liquidity and market efficacy. A balanced, globally benchmarked approach adapted to best practices in standard risk management should therefore be developed to address all concerns around this proposal.

Context: The Reserve Bank of India (RBI), in its monthly bulletin’s State of the Economy article, has warned that escalating trade wars and tariff tensions, particularly after Donald Trump’s return as US President, could adversely impact global growth and fuel inflation. Global Financial Impact and Market Reactions Impact on India’s Economy Key Domestic Economic Indicators Monetary Policy and Liquidity Management Rising Bank Dependence on Certificates of Deposit (CDs) Strong Domestic Fundamentals Amid Global Challenges Source: BS & IE

Context: The Union cabinet announced an incentive scheme for Unified Payments Interface (UPI) payments of less than ₹2,000 for 2024–25 with an outlay of around ₹1,500 crore. Banks will get a 0.15% incentive, one fifth of which will be incumbent on adequate performance of their infrastructure over the year. The incentive will be paid out in the case of payments to small merchants.  Features of UPI Incentive Scheme 2024-25 Importance of This UPI Incentive Scheme Government Digital Payments Strategy Other Cabinet Decisions Greenfield National Highway in Maharashtra Brownfield Ammonia-Urea Plant in Assam Revised Rashtriya Gokul Mission Revised National Program for Dairy Development The UPI incentive scheme for FY 2024 25 reflects the ongoing governmental initiative toward a cashless economy while yet maintaining fiscal prudence in the growth of digital payments. Special attention to small merchants and banks is intended to further deepen digital penetration in India’s economy. Source: TH