Source: Mint Context: The Securities and Exchange Board of India (Sebi) has revised the cost structure for the ₹80 trillion mutual fund industry, effective 1 April 2026, to enhance transparency and ease investor understanding. Key Highlights: 1. Introduction of Base Expense Ratio (BER) 2. Brokerage Fee Reduction Brokerage is paid to stockbrokers for executing buy/sell transactions on behalf of mutual funds. Lower brokerage reduces total fund costs and may improve investor returns. 3. Exit-Load Brokerage Removed 4. Shift from TER to BER Structure Under the new system, TER = BER + brokerage + regulatory levies + statutory taxes Market Impact 5. Stockbroker Regulations Overhauled SEBI has modernised stockbroker rules for the first time since 1992. Key features: Meaning: Instead of SEBI handling routine violations, stock exchanges will directly monitor stockbrokers for compliance, reporting, and misconduct. Qualified Stockbroker (QSB) rules refined Eligibility criteria updated to ensure firms with large scale operations are subject to tighter supervision. Pledged Share Lock-in Clarity Pledged shares will now remain locked in for the required period even after pledge invocation. Why important?During IPOs, promoters must lock in shares for a fixed period. But pledged shares couldn’t technically be locked earlier, creating compliance hurdles. The change fixes this gap. 6. Debt Market Reforms Retail Participation Incentives Aim: encourage wider retail investment in bonds. HVDLE Threshold Raised High Value Debt Listed Entities (HVDLE):Classification limit increased from ₹1,000 crore to ₹5,000 crore. This eases bond issuance requirements for NBFCs, HFCs, ARCs, and others. 7. Credit Rating Expansion Credit rating agencies may now rate instruments regulated by other financial sector authorities, increasing coverage for unlisted and non-traditional debt products. 8. Unclaimed Funds Transfer Rule Revised Unclaimed amounts from non-convertible securities must now be moved to the Investor Education and Protection Fund after seven years from maturity, instead of multiple staggered transfers earlier. 9. Conflict-of-Interest Norms Deferred SEBI has postponed decisions on new rules

Source: TH Objective The Lok Sabha passed an amendment bill to raise foreign direct investment (FDI) limit in India’s insurance sector to 100% from 74% earlier, in a move that is likely to boost competition and spur capital inflows. Key Provisions Foreign Direct Investment (FDI) Foreign Direct Investment is a long-term investment made by a foreign entity (company or individual) in the equity capital or business operations of a company in another country, with the intent to have significant control or influence over its management. Key Features of FDI: Key Differences Between FDI and FPI Feature FDI (Foreign Direct Investment) FPI (Foreign Portfolio Investment) Ownership & Control Significant (≥10% stake, management control) Minimal (<10% stake, no control) Investment Horizon Long-term Short-term Forms Equity in business, M&A, joint ventures Stocks, bonds, mutual funds Influence on Management Yes No Impact on Economy Jobs, technology transfer, infrastructure Liquidity, capital inflow, market depth Risk & Stability Lower volatility, more stable Higher volatility, market-sensitive

Source: TH Context: The Indian rupee depreciated beyond the 91 mark against the U.S. dollar during intraday trade, touching 91.14, before closing at 90.93. This marks a fresh all-time low, making the rupee the weakest Asian currency in 2025 and among the weakest globally this year. Factors Driving Rupee Weakness Factor Details / Impact Trade & Geopolitical Uncertainty – Uncertainty over India–U.S. trade deal affecting investor sentiment.– Global trade tensions increasing risk aversion in financial markets. Capital Outflows – FPIs withdrew ~$2.7 billion in first two weeks of December.– One of the largest monthly outflows of 2025, pressuring the rupee. Global Macro Pressures – Rising U.S. bond yields and expected Bank of Japan rate hike triggering yen carry trade unwinding.– Leads to sell-off in emerging-market assets, including the rupee. RBI’s Stance and Policy Interpretation Limited Intervention Strategic Considerations Past Policy Legacy

Source: BS Context: The Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2025, introducing significant reforms to enhance flexibility for National Pension System (NPS) subscribers, especially in withdrawals, exits, and retirement options. Major Reform: Loan Against NPS Corpus Financial Assistance Against Pension Savings Safeguards Rationalisation of Partial Withdrawal Rules Housing Medical Needs Removed Eligible Purposes New Eligible Purpose Changes in Exit and Withdrawal Structure (Non-Government Sector) Lock-in and Vesting Lump Sum vs Annuity at Retirement Special Provisions for Smaller Pension Corpus Corpus up to ₹8 lakh Corpus between ₹8 lakh and ₹12 lakh

Source: BS Context: India’s unclaimed bank deposits have risen sharply, highlighting growing challenges in financial awareness, account dormancy, and beneficiary identification, even as the government has launched targeted recovery initiatives. What are Unclaimed Bank Deposits? An unclaimed bank deposit refers to money that has been deposited in a bank account but has not been accessed, withdrawn, or claimed by the account holder for a specified period. These can be in the form of savings accounts, fixed deposits (FDs), recurring deposits, or other bank instruments. Key Features of Unclaimed Bank Deposits Recovery Efforts by the Government ‘Your Money, Your Right’ Initiative Special Recovery Campaign Why Unclaimed Deposits Are Rising

Source: BS Context: The Reserve Bank of India’s (RBI) approach to bank ownership and promoter control has evolved significantly over the past two decades. Recent approvals allowing foreign regulated institutions to take large stakes in Indian private banks indicate a renewed regulatory preference that raises important questions about India’s long-term banking capacity and financial sovereignty. Evolution of RBI’s Bank Ownership Policy Phase 1: Emphasis on “Skin in the Game” (Early 2000s) Phase 2: Shift Towards Diversified Ownership (2005–2016) Core Concern: Over-Reliance on Foreign Capital Policy Recommendations