Financial Sector

India does not currently have a defined roadmap for further mergers among public sector banks, Finance Minister Nirmala Sitharaman said, signaling a pause in consolidation efforts that reshaped the banking landscape in recent years. The government’s focus, she emphasized, is now on strengthening existing institutions through improved governance, credit growth, and financial inclusion rather than structural amalgamations.

Bharti Airtel is planning a capital infusion of around Rs. 20,000 crore into its proposed non-banking financial company (NBFC), underscoring a strategic expansion beyond telecom into financial services. The move reflects Airtel’s intent to leverage its vast digital ecosystem, customer reach, and data capabilities to build a scalable lending and financial solutions platform.

Securities and Exchange Board of India is preparing to reassess regulations governing Portfolio Management Services (PMS), reflecting heightened regulatory focus on investor protection and market integrity. The review comes as PMS offerings expand rapidly among high-net-worth investors, accompanied by increasingly complex strategies and fee structures. The regulator’s leadership has indicated that existing norms will be examined to ensure they remain fit for purpose in a maturing market.

India’s Finance Minister Nirmala Sitharaman has issued a pointed warning to banks and financial institutions over the growing incidence of mis-selling, calling for a renewed focus on their core banking responsibilities. Emphasizing trust, transparency, and customer protection, she said aggressive cross-selling of third-party products risks undermining confidence in the financial system. The remarks come amid heightened regulatory scrutiny and rising customer complaints.

The Reserve Bank of India has unveiled plans for a state-of-the-art, high-security data center in Odisha, reflecting its strategic push toward digital resilience and operational continuity. The facility is designed to support the central bank’s critical IT infrastructure, safeguard sensitive financial data, and ensure uninterrupted services across regulatory, payment, and banking oversight functions. Analysts emphasize that the move signals India’s commitment to robust cybersecurity frameworks in the financial sector, mitigating risks from cyber threats and data breaches.

India’s market regulator has called on financial institutions and intermediaries to prioritize genuine innovation over replication, as Securities and Exchange Board of India underscored the need for originality in a rapidly evolving capital market landscape. Speaking on emerging trends, a senior SEBI executive director cautioned that merely copying global products or business models may limit long-term value creation and increase systemic risk. The message comes as India’s markets deepen, technology reshapes finance, and investors demand more sophisticated solutions.

India’s market regulator is re-evaluating the regulatory framework governing environmental, social and governance ratings amid rising concerns over consistency, credibility and investor reliance. Securities and Exchange Board of India has initiated a review of existing ESG rating norms to address gaps in methodology, disclosure standards and oversight. The move reflects the growing influence of ESG metrics in investment decisions and the need for a robust, transparent system that aligns with global best practices.

XED has announced a USD 12 million initial public offering from India’s GIFT City International Financial Services Centre, marking another milestone in the evolution of India’s offshore capital markets. The issue highlights the growing role of GIFT City as a gateway for Indian and global companies seeking dollar-denominated funding under a globally competitive regulatory framework. Market participants see the IPO as a signal of rising investor confidence in IFSC structures, driven by tax efficiency, regulatory clarity, and access to international capital pools.

The Competition Commission of India has approved a proposed transaction involving Axis Asset Management Company and Axis Securities, removing a key regulatory hurdle and paving the way for closer integration within the Axis financial services ecosystem. The clearance reflects the regulator’s assessment that the deal is unlikely to distort competition in India’s investment management and broking markets. Industry observers view the approval as a strategic milestone that could enhance distribution efficiency, deepen customer engagement, and unlock cross-platform synergies.

ASK Group has received regulatory approval from the Securities and Exchange Board of India to launch its mutual fund business, marking a strategic expansion into one of the country’s fastest-growing investment segments. The move positions the wealth management-focused group to tap rising household participation in capital markets and the long-term shift toward professionally managed investment products. Industry participants view the approval as a validation of ASK Group’s governance standards and market credibility.