IFSCA issues 60 warnings in FY26 as capital market intermediaries breach compliance norms

by Hansraj Agrawal | Mar 20, 2026 | Business

IFSCA has initiated regulatory action against the non-compliant intermediaries and issued a broader advisory to all market participants to ensure strict adherence to regulatory requirements
| Photo Credit:
cueapi

The International Financial Services Centres Authority (IFSCA) has issued 60 warnings to capital market intermediaries (CMIs) operating in GIFT City this fiscal year for lapses including unattended offices during business hours, absence of key personnel, weak operational infrastructure and use of remote access software for trading.

The unified regulator, which has been conducting a series of market intelligence visits to assess operational “substance” among registered entities, found that several intermediaries were either non-functional during business hours or lacked key managerial personnel at their registered offices. In multiple instances, neither the Principal Officer nor the Compliance Officer was present, raising concerns over governance and accountability standards.

IFSCA also pointed out structural weaknesses, including inadequate infrastructure to support core business activities and instances where the same individual was handling both compliance and trading roles — highlighting potential conflicts of interest. The regulator further noted the use of remote access tools such as AnyDesk and UltraViewer for trading activities, practices that are inconsistent with the regulatory framework governing operations within the IFSC.

Action initiated

IFSCA officials told the businessline that in FY 26 (till date), warnings have been issued in 60 cases and 10 cases have been referred to enforcement. In 51 cases, IFSCA has also issued advisories. “In some CMIs, one common person was appointed both as Principal Officer and Compliance Officer. In a few cases, these instances were repeated despite the issuance of Warnings/Advisories by the Authority to the CMIs…. In some cases, IFSCA officials also observed that the compliance officer was also handling the trading desk, which is a conflict of interest,” IFSCA stated.

“In some CMIs, the designated Principal Officers and Compliance Officers lack adequate awareness of the regulatory framework applicable to Capital Market Intermediaries. Additionally, it was observed that in some cases, only back-office staff were present during inspections,” it added. There are over 175 capital market intermediaries functioning out of GIFT IFSC which includes broker dealers (92) and clearing members (24). There are also smaller number of credit rating agencies, custodians, debenture trustees, depositary participants, distributors of capital market products and services, Global Access Providers, Investment Advisors, Investment Bankers and Research Entities who fall in this category.

These findings by IFSCA point to breaches of key provisions under the IFSCA Capital Market Intermediaries Regulations, 2025, particularly those relating to the physical presence of key management personnel and maintenance of operational infrastructure. Despite prior warnings and advisories in some cases, certain entities were found to be repeat offenders.

Following the inspections, IFSCA has initiated regulatory action against the non-compliant intermediaries and issued a broader advisory to all market participants to ensure strict adherence to regulatory requirements.

Published on March 20, 2026

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From IPO frenzy to freeze: Will retail demand rebound soon?

by Hansraj Agrawal | Mar 20, 2026 | Business

While IPOs once were long-term investments, they are increasingly seen as speculative, short-term plays. Analysts caution that retail investors must evaluate valuations, governance, and business fundamentals, while companies must price offerings carefully to attract long-term investor confidence.

Of late, initial public offerings (IPOs), once seen as a hotspot for retail investors chasing quick gains, have lost much of their earlier appeal.

Of the 14 mainboard IPOs, every second one failed to secure full retail subscription — only Shree Ram Twistex and Bharat Coking Coal Ltd (BCCL) drew strong interest.

IPOs of companies such as Clean Max Enviro Energy Solutions, Sedemac Mechatronics, Omnitech Engineering, Rajputana Stainless and GSP Crop Science had seen subscription of less than 0.5 times (or 50 per cent) of the quota.

Slide in GMP

One key reason for the waning retail interest in IPOs is the sharp decline in grey-market premiums (GMPs). Earlier, GMP was the primary reason luring retail investors into IPOs. As the name implies, the grey market is an unregulated, unofficial market where shares are traded before their formal listing on stock exchanges.

Of the 12 companies listed so far, seven are currently trading below their issue price, with losses going up to around 53 per cent in the case of Shree Ram Twistex. Ironically, Shree Ram Twistex had witnessed the highest retail participation at 76.63 times. On the other hand, BCCL —another IPO with strong retail subscription (79.37 times) — continues to trade at a premium of 47.72 per cent.

As the market experienced turbulence due to the Iran-Israel-US war, retail investors became largely cautious across both primary and secondary markets.

SEBI study

In 2024, in light of the increasing participation of retail investors and the heightened oversubscription, SEBI launched an in-depth study to analyse investor behaviour in main board IPOs, based on April 2021 and December 2023 data.

The study had revealed a “flipping” behaviour among Individual Investors. Individual investors sold 50 per cent of the shares allotted to them by value within a week of listing, and 70 per cent of shares by value within a year.

The study also found a “strong disposition effect”, with investors showing a greater propensity to sell IPO shares that posted positive listing gains, compared to those that listed at a loss. Another interesting revelation was the influence of returns. “When IPO returns exceeded 20 per cent, individual investors sold 67.6 per cent of the shares by value within a week. In contrast, only 23.3 per cent of shares by value were sold when returns were negative.

IPOs, once viewed as long-term investments, have increasingly turned into speculative plays aimed at making quick gains on listing day. The shortened listing cycle of just three days has further boosted investor interest, as funds are returned quickly, reducing the opportunity cost of idle capital. With this faster turnaround, the trend is likely to accelerate, as many investors continue to chase quick, easy profits.

However, with several big-ticket IPOs—such as those from SBI Mutual Fund, National Stock Exchange of India, Reliance Jio, PhonePe, Flipkart, OYO, and Zepto—expected to tap the capital markets, the current weakening sentiment in the primary market is a concern. One hopes that investor confidence revives soon so that large and fundamentally strong companies can attract robust interest.

Before committing funds, retail investors should carefully assess an IPO’s valuation, corporate governance standards, cash flows, and the business’s scalability. Taking a long-term view can benefit both investors and companies. At the same time, companies must price their offerings appropriately—leaving room for investor gains—while upholding high standards of corporate governance.

Published on March 20, 2026

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RBI injects ₹25,101 crore in banking system via 3-day VRR auction

by Hansraj Agrawal | Mar 20, 2026 | Business

The Reserve Bank of India (RBI) on Friday injected ₹25,101 crore transient liquidity in the banking system through a three-day variable rate repo (VRR) auction.

The RBI injected the funds at cut-off and weighted average rates of 5.26 per cent, the central bank said in a release.

The liquidity injected was much lower than the notified amount of ₹75,000 crore, despite a sharp drop in surplus liquidity in the banking system due to advance tax payments.

Despite tight liquidity conditions in the banking system, the lower subscription in the VRR auction suggests an uneven distribution of liquidity, with banks parking a larger share of funds in the Standing Deposit Facility.

Currently, liquidity in the banking system is estimated to be in surplus of around ₹16,875.36 crore as of March 19.

On March 17, the central bank injected ₹48,014 crore liquidity into the banking system via a seven-day VRR.

Prior to this, the RBI has infused ₹3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.

Published on March 20, 2026

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SEA says edible oil sector at crucial juncture, urges balanced approach to navigate it

by Hansraj Agrawal | Mar 20, 2026 | Business

Globally, the impact on oil sector may be mixed, with possible production risks in Asia but relatively favourable conditions in parts of South America.
| Photo Credit:
Rajmohan S

The Solvent Extractors’ Association of India (SEA) has said that vegetable oil and oil seed sector stands at a crucial juncture shaped by global disruptions, weather uncertainties and domestic fundamentals.

In his monthly letter to SEA members on Friday, Sanjeev Asthana, SEA President, said that a balanced approach combining policy support, market intelligence and stakeholder collaboration will be essential to navigate the evolving landscape effectively.

Referring to the prevailing global geopolitical situation, he said India, which is heavily dependent on imports for crude oil and LPG, faces increased procurement costs and logistical uncertainties under such circumstances.

“Elevated crude oil prices directly impact the cost of production and transportation of edible oils, thereby exerting inflationary pressure on the domestic market. Additionally, volatility in freight and insurance premiums further compounds the landed cost of imported edible oils, necessitating strict monitoring, cautious procurement strategies and policy support to maintain price stability,” he said.

Easing trade’s burden

Mentioning that the closure of the Strait of Hormuz and the resulting disruption in shipping routes have prompted timely interventions by government authorities, he said the coordinated efforts across the export-import ecosystem will significantly ease the operational burden on exporters and ensure continuity of trade during this challenging period.

Recent global weather assessments indicate a shift away from earlier La Nina expectations, with emerging signals now pointing towards a strong El Nino, potentially a ‘Super El Nino’ phase, as indicated by the Australian Bureau of Meteorology and supported by the US NOAA.

Globally, the impact may be mixed, with possible production risks in Asia but relatively favourable conditions in parts of South America.

“However, for India, this raises concerns of below-normal monsoon rainfall, which could adversely affect kharif oilseed sowing, particularly soybean and groundnut, leading to lower acreage and tighter domestic supplies,” Asthana said, adding, this internal and external divergence could increase volatility in global edible oil markets. In this backdrop, proactive measures in domestic production and calibrated import planning will be crucial to ensure supply stability and price balance.

Mustard crop normal

He said the Second Advance Estimates for kharif and rabi crops for 2025-26 indicated a robust production outlook. The eight Mustard Crop Health and Area Summary – Rabi 2025-26, prepared by Agriwatch, engaged by SEA, indicates an increase in mustard acreage to 89.36 lakh hectares (lh) compared to 86.29 lh last year, supported by favourable weather conditions. The overall crop conditions remain largely normal across major states, with harvesting underway in several regions, which may lead to higher production during current year compared to last year.

Published on March 20, 2026

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State Bank of India faces ₹6,338 crore tax demand

by Hansraj Agrawal | Mar 20, 2026 | Business

State Bank of India (SBI), the country’s largest public sector lender, has informed the stock exchanges about a significant income tax demand order received from the Income Tax department.

The Income tax department has raised a demand of ₹6,338 crore for AY 2023-24.

(This is a developing story. Stay tuned for more updates.)

Published on March 20, 2026

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अब ऑनलाइन खाने का ऑर्डर पड़ेगा महंगा! जोमैटो ने 2.40 रुपये बढ़ाई डिलीवरी प्लेटफॉर्म फीस

by Hansraj Agrawal | Mar 20, 2026 | Business

Zomato Hike Platform Fees: पश्चिम एशिया में बढ़ते तनाव का असर अब भारत पर भी दिखने लगा है. एक ओर जहां तेल कंपनियों ने देश में बिकने वाले प्रीमियम पेट्रोल की कीमतों में करीब 2 रुपये तक की बढ़ोतरी की है, वहीं दूसरी ओर ऑनलाइन फूड डिलीवरी भी महंगी हो गई है. जोमैटो ने हर ऑर्डर पर प्लेटफॉर्म फीस में 2.40 रुपये की बढ़ोतरी कर दी है, जिससे ग्राहकों पर अतिरिक्त बोझ पड़ेगा.

जोमैटो ने दिया झटका

इस बढ़ोतरी के बाद जोमैटो की प्लेटफॉर्म फीस 12.50 रुपये से बढ़कर 14.90 रुपये प्रति ऑर्डर हो गई है. इससे पहले इसमें आखिरी बार बढ़ोतरी सितंबर 2025 में की गई थी. वहीं, उसकी प्रतिद्वंद्वी कंपनी स्विगी पहले से ही प्रति ऑर्डर टैक्स सहित 14.99 रुपये चार्ज कर रही है. ऐसे में जोमैटो के नए शुल्क के बाद दोनों फूड डिलीवरी प्लेटफॉर्म के चार्ज लगभग समान हो गए हैं.

प्लेटफॉर्म फीस में यह बढ़ोतरी कच्चे तेल की कीमतों में उछाल के बीच आई है. ईंधन महंगा होने से डिलीवरी ऑपरेशंस की लागत बढ़ती है, जिसका असर रेस्टोरेंट्स और डिलीवरी पार्टनर्स दोनों पर पड़ता है. ऐसे में कंपनियां अपने खर्च को संतुलित करने के लिए फीस बढ़ा रही हैं. इसका सीधा असर ग्राहकों पर पड़ता है, क्योंकि अब हर ऑर्डर पर कुल बिल पहले से ज्यादा हो जाएगा, भले ही सेक्टर में प्रतिस्पर्धा लगातार बढ़ रही हो.

मिडिल ईस्ट टेंशन का असर

गौरतलब है कि फूड डिलीवरी सेक्टर में ये नई बढ़ोतरी ऐसे वक्त पर देखी जा रही है जब कंपीटीशन तेजी से बदल रही है. अर्बन मोबिलिटी स्टार्टअप रैपिडो ने हाल ही में बेंगलुरु में अपनी फूड डिलीवरी सेवा ‘ओनली’ शुरू की है.

कंपनी का कहना है कि वह ग्राहकों या रेस्टोरेंट्स से डिलीवरी चार्ज के अलावा कोई अतिरिक्त फीस नहीं लेगी. रैपिडो का ये कदम मौजूदा कंपनियों पर दबाव बना सकता है, खासकर ऐसे समय में जब ग्राहक फूड डिलीवरी ऑर्डर पर लगने वाले कई तरह के अतिरिक्त शुल्कों को लेकर पहले से ही चिंता जता रहे हैं.

ये भी पढ़ें: ईरान वॉर के बीच लोगों को बड़ा झटका, बढ़ गए पेट्रोल के दाम, जानें कितनी बढ़ी कीमत

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