Subject: Economics Context: Centre, acting on the recommendation of the Reserve Bank of India (RBI), imposed a moratorium on Lakshmi Vilas Bank (LVB) for a period of 30 days. Concept : As its financial position deteriorated, the regulator placed it under the Prompt Corrective Action (PCA) framework, which restricts certain operations depending on the severity of financial […]

Subject : Economics Context : SEBI moots easier dilution norms for large IPO issues. Concept : Markets regulator SEBI on Friday proposed to reduce the minimum offer size in an initial share sale, whereby companies with a post-issue capital of above ₹10,000 crore would be required to offer at least 5% stake in IPO. At […]

Subject : Economics Context : RBI panel moots allowing large corporates to start private banks after amending bank regulation law. Concept : An Internal Working Group (IWG) of the Reserve Bank of India (RBI) has recommended raising the cap on promoters’ stake in private sector banks to 26% in the long run (15 years). The […]

Subject: Economics Concept: A QIP is a capital raising tool In a QIP a listed company can issue equity shares, fully and partly convertible debentures, or any security (other than warrants) that is convertible to equity shares. Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company […]

Subject : Economics Context : Latest RBI bulletin projects contraction for a second consecutive quarter, which means the economy is in a ‘technical recession’. Concept : In its latest monthly bulletin, the Reserve Bank of India has dedicated a chapter on the “State of the economy”. The idea is to provide a monthly snapshot of […]

Subject : Economics Context : July-Sept GDP to contract 8.6%, estimates RBI. However, RBI said the economy will break out of contraction of the six months gone by and return to positive growth in the October-December quarter of 2020-21. Concept : Recession refers to a phase of the downturn in the economic cycle when there […]

Subject: Economics Context : The Centre must mount an aggressive programme of capital expenditure to the tune of about 2 per cent of GDP to pull the economy, top economist and public policy thinker C. Rangarajan, said. Concept : Capital expenditures Capital expenditures are the ones that create some liability/asset for the government. These include […]

Subject : Economics Context : The Reserve Bank of India has said that it will continue to conduct Open Market Operation purchase of 20,000 cr rupees as well as OMO’s in State Development Loans. Concept : Open Market Operations (OMOs) are market operations conducted by RBI by way of sale/purchase of government securities to/from the […]

Subject : Economics Context : The scheduled initial public offering (IPO) of Ant Group has been delayed for now, after its plans of listing on the Shanghai and Hong Kong’s stock exchanges were thwarted by authorities. Concept : Ant Group is the world’s highest-valued FinTech company, and most valuable unicorn company. It had hoped to […]

Subject: Economics Context : Both Indian Oil Corporation Ltd. (IOCL) and Bharat Petroleum Corporation Ltd. (BPCL) have reported strong financial results in the second quarter of this fiscal despite lower operating revenues. Concept: The key item driving profits for both companies in the quarter were “inventory gains”. Inventory gains are registered from an appreciation in […]