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India's Supreme Court has rejected a plea to conduct a paper audit of votes in the country's ongoing national elections. Petitioners had requested that the Election Commission of India verify each electronic vote with a paper slip generated at the time of voting. Currently, the verification process involves tallying votes with voter-verified paper audit trails (VVPATs) from five randomly selected voting machines in each constituency. The court affirmed the reliability of the electronic voting machine (EVM) system but emphasized the importance of maintaining harmony and trust in democracy. Prime Minister Narendra Modi's party is seeking to extend its power, with the elections set to conclude on June 1. [Extracted from the article]

(Bloomberg) -- India's national emissions trading system should begin operating within two years and could cover about 15% of the country's emissions by 2030, according to an official involved in the preparations. Emissions trading will build on an existing system run by the bureau, where companies can trade energy savings beyond a prescribed mark, Bakre said. [Extracted from the article]

SBI Pension Funds Pvt., which manages $50 billion in assets, is considering investing in corporate and state debt due to the narrowing spreads on longer-maturity Indian government bonds. The fund's chief investment officer, Sandeep Pandey, expressed concern that the lack of term premium for longer-dated securities could impact returns for subscribers. Demand for longer-tenor papers has increased, leading to a compression in the spread between 10-year and 30-year bonds. The fund currently holds a portfolio of about one trillion rupees in corporate paper and 2.5 trillion rupees in sovereign and state debt. [Extracted from the article]

India's yield curve has been nearly flat even amid record borrowing by the government as insurers stepped up purchases of long-term bonds. (Bloomberg) -- India's auction of the debut 50-year bond met with strong demand Friday, underscoring growing interest from insurance and pension funds for ultra-long papers. [Extracted from the article]

India's government has launched a criminal investigation into allegations of cheating and corruption in national entrance exams for medical colleges. The Central Bureau of Investigation will probe alleged irregularities, including conspiracy, cheating, impersonation, breach of trust, and destruction of evidence. The director general of the National Testing Agency has been replaced, and there have been protests by students demanding the cancellation of the exams. The scandal has raised questions about the entire testing system in India. [Extracted from the article]

(Bloomberg) -- India's economy is likely moving into a low inflation regime as supply shocks fade and demand cools, according to a paper co-authored by Reserve Bank of India Deputy Governor Michael Patra. RBI's nowcast model suggested economic activities gathered momentum in February, and real gross domestic product growth for the January-March quarter could be around 5.4%, on track to recover from a surprising dip of 4.4% in the October-December quarter. [Extracted from the article]

The Reserve Bank of India in September said it plans to add the 50-year bond in response to market demand for ultra-long papers, extending the nation's yield curve. The nation's burgeoning life insurance and pension fund industries, driven by an expanding middle class, are changing the landscape for India's $1 trillion sovereign debt market. [Extracted from the article]

India is reportedly in discussions with Norway's Equinor ASA for its involvement in India's strategic petroleum reserves and for long-term liquefied natural gas (LNG) agreements. This potential partnership with Equinor would be India's second such deal, following a similar contract with Abu Dhabi National Oil Co. India is also seeking Equinor's participation in its exploration and production program. The country is actively engaging with multiple LNG suppliers, including Equinor, to secure long-term supply contracts and strengthen its future gas imports. The article did not provide any responses from India's energy ministry or Equinor. [Extracted from the article]

India's central bank, the Reserve Bank of India (RBI), has stated that it is more important to focus on reducing inflation to the target of 4% rather than easing monetary policy to stimulate short-term economic growth. The RBI warns that deviating from its commitment to fight inflation could lead to a loss of credibility, increased inflation, and a negative impact on sustainable growth. Inflation in June reached a four-month high of 5.08%, above the RBI's target. The RBI attributes high inflation to persistent increases in food prices, particularly vegetable prices. However, the central bank notes that economic momentum is improving, with good monsoon rains boosting agricultural activity and rural spending. A separate study by RBI staff found that India's natural rate of interest, the rate at which the economy can grow without fueling inflation, has increased to 1.4%-1.9% from 0.8%-1.0% during the pandemic period. The study suggests that the current policy rate is neutral, but some policymakers argue that a high real interest rate is not conducive to growth. [Extracted from the article]

India's capital market regulator, the Securities and Exchange Board of India (SEBI), is proposing the introduction of hedge fund-like products for retail investors. This move aims to address the proliferation of unauthorized investment products and provide a middle ground between traditional mutual funds and discretionary portfolio management services. The proposed products, which include long-short strategies and inverse exchange-traded funds, would allow asset managers to pool investments from retail investors. SEBI is seeking public comments on the proposal until August 6th and is considering a minimum investment of 1 million rupees ($11,964) for these products. [Extracted from the article]

(Bloomberg) -- Insurers in India are lining up to grab a share of the nation's debut 50-year bond offering, highlighting the growing heft of long-term investors in the nation's $1 trillion debt market. Even as the government is borrowing a record 15.43 trillion rupees of bonds in the current fiscal year, bonds in India have been relatively less volatile compared to their US counterparts, partly due to higher demand from insurers and pension companies. [Extracted from the article]

India is experiencing a surge in initial public offerings (IPOs), with smaller deals dominating the market at the beginning of the year. However, larger IPOs are expected to follow, providing more options for global investors. Citigroup predicts that there will be four to five IPOs worth at least $1 billion each in the next year, while at least 10 companies are considering offerings of over $100 million. Factors contributing to this trend include the strong performance of Indian stocks, solid economic growth, and better-than-expected earnings. The upcoming election results in June will also provide clarity and stability for companies considering going public. Some potential issuers include e-commerce startup BrainBees Solutions Ltd., hypermarket operator Vishal Mega Mart, and ride-hailing app Ola Cabs. Mutual funds have emerged as key investors in IPOs, with the growing size of their investments supporting the appetite for larger IPOs. Despite recent volatility due to election jitters, Indian stocks have outperformed emerging market peers, and with Prime Minister Narendra Modi expected to secure a third term, optimism remains high. [Extracted from the article]

(Bloomberg) -- The Indian central bank's decision in March to slash interest rates in an unscheduled meeting was the biggest surprise since a Monetary Policy Committee was set up four years ago, according to a new research paper. India's rate-setting panel is due to meet in the first week of August, having already cut the repo rate by 115 basis points so far this year as the economy heads toward its first annual contraction in more than four decades. [Extracted from the article]

(Bloomberg) -- India's record more than $600 billion of foreign exchange reserves might not be good enough, as it falls short on some measures including import cover and liability outflows, according to a new research from the central bank. "While foreign exchange reserves provide cushions against unforeseen external shocks, levels are often deceptive", Reserve Bank of India researchers, led by Deputy Governor Michael Debabrata Patra, wrote in the latest monthly bulletin. [Extracted from the article]

(Bloomberg) -- India's capital markets regulator proposes to seek more disclosures from foreign funds with large holdings in local stocks or companies, following criticism about lack of oversight over inflows into sprawling conglomerates such as the Adani Group. The Securities and Exchange Board of India in a consultation paper Wednesday defined "high-risk" foreign portfolio investors and said these funds must comply with additional disclosure requirements within six months after the norms are implemented. [Extracted from the article]

The Securities and Exchange Board of India in a consultation paper Wednesday defined "high-risk" foreign portfolio investors and said these funds must comply with additional disclosure requirements within six months after the norms are implemented. (Bloomberg) -- India's capital markets regulator proposes to seek more disclosures from foreign funds with large holdings in local stocks or companies, following criticism about lack of oversight over inflows into sprawling conglomerates such as the Adani Group. [Extracted from the article]

The Securities and Exchange Board of India in a consultation paper Wednesday defined "high-risk" foreign portfolio investors and said these funds must comply with additional disclosure requirements within six months after the norms are implemented. (Bloomberg) -- India's capital markets regulator proposes to seek more disclosures from foreign funds with large holdings in local stocks or companies, amid criticism about lack of oversight over inflows into sprawling conglomerates such as the Adani Group. India Proposes More Disclosures from "High-Risk" Foreign Funds. [Extracted from the article]

(Bloomberg) -- A hawkish pivot by the Indian central bank has money managers scurrying to find safer bets while bracing for potentially the steepest rate hikes in Asia. The yield spread between three-year government papers and similar top-rated company bonds had turned negative in April from around 87 basis points in August, according to Bloomberg data. Yields have risen, and stocks pared gains since the Reserve Bank of India shifted focus to inflation from growth in April and indirectly tightened policy by introducing a higher floor interest rate. [Extracted from the article]

JPMorgan Chase & Co. is set to add India's government bonds to its emerging markets index, which is expected to attract billions of dollars in investments. Global funds have already invested close to $11 billion in index-eligible bonds, and JPMorgan predicts that $20 billion to $25 billion will come in over the next 10 months. India's debt has become popular among emerging market investors due to its strong economic growth and stable currency. Indian bonds offer access to a high-growth, high-yield market, and the country's sovereign debt has outperformed its index counterparts over the past decade. [Extracted from the article]

India is expected to attract billions of dollars in investments as JPMorgan Chase & Co. adds the country's government bonds to its emerging markets index. Global funds have already invested close to $11 billion in index-eligible bonds since the announcement, and JPMorgan predicts that $20 billion to $25 billion will come in over the next 10 months. India's debt has become popular among emerging market investors due to its strong economic growth and stable currency. The inclusion of Indian bonds in the index offers global investors access to a high-growth, high-yield market. [Extracted from the article]

India's capital market regulator, the Securities and Exchange Board of India (SEBI), has approved new rules that make it easier for companies to delist. The new fixed-price model allows founders to offer to buy back shares from the public at a minimum 15% premium to the fair price, providing an alternative to the reverse book building process. This change comes after recent failed attempts by some founders to take their companies private due to surging share prices. The introduction of the fixed price delisting regime is expected to boost public M&A deal activity. Additionally, SEBI has formed a panel to examine risk management and investor protection in the equity derivatives market, which has seen a significant increase in participation by retail investors. [Extracted from the article]

India's securities market regulator, the Securities and Exchange Board of India (SEBI), has approved new rules aimed at reducing manipulation in the country's options market. The new criteria will raise the bar for launching derivative contracts on individual stocks and will be implemented gradually. SEBI will also examine risk management and investor protection in the futures and options market and propose any necessary changes. Additionally, SEBI has approved new rules that make it easier for companies to delist from stock exchanges, introducing a fixed-price process as an alternative to the reverse book-building process. [Extracted from the article]

India is expected to attract billions of dollars in investments as JPMorgan Chase & Co. includes the country's government bonds in its emerging markets index. Global funds have already invested close to $11 billion in index-eligible bonds, and JPMorgan predicts that an additional $20 billion to $25 billion will be invested over the next 10 months. India's debt has become popular among emerging market investors due to its strong economic growth and stable currency. The inclusion of Indian bonds in the index will provide global investors with access to a high-growth, high-yield market. [Extracted from the article]

This article from Bloomberg.com provides a summary of key news and events in the Indian markets. It mentions that Nifty futures are signaling a firm start after a surge in private banks lifted the frontline indexes to new highs. The article also highlights the increasing demand for new listings in India, with several IPOs seeing demand exceed 90 times the shares offered. Additionally, it mentions that water infrastructure investment is expected to gain momentum due to rising water stress in the country. The article concludes by noting that big banks are back in the driver's seat, with the NSE's banking sector gauge rising above its pre-election peak. [Extracted from the article]

Foreign bond investors in India are increasingly investing in long-dated bonds as the country's central bank maintains high interest rates. Global funds have been increasing their holdings of bonds due in 10 years or more, attracted by India's stable currency and solid finances. Foreign investors have already invested around $10 billion in securities eligible to join JPMorgan's index, with Goldman Sachs predicting an additional $30 billion in the coming months. However, there are concerns that the popularity of Indian bonds could lead to a bubble, particularly if the government loosens fiscal policy in response to recent political developments. [Extracted from the article]

India has reportedly denied the renewal of a French correspondent's permit, resulting in his forced departure from the country. This is seen as another blow to press freedom in India under Prime Minister Narendra Modi's government. The journalist, Sébastien Farcis, expressed shock at the work ban, which was communicated to him on the eve of the Indian general elections. Farcis is the third journalist to leave India this year, and his departure follows the barring of another French journalist and an Australian journalist from working in the country. Journalists and media houses in India have faced increasing pressure from the government for coverage that may be critical of Modi's administration. India currently ranks 159 out of 180 countries in terms of press freedom. [Extracted from the article]

The yield spread between three-year government papers and similar top-rated company bonds had turned negative in April from around 87 basis points in August, according to Bloomberg data. (Bloomberg) -- A hawkish pivot by the Indian central bank has money managers scurrying to find safer bets while bracing for potentially the steepest rate hikes in Asia. Yields have risen, and stocks pared gains since the Reserve Bank of India shifted focus to inflation from growth in April and indirectly tightened policy by introducing a higher floor interest rate. [Extracted from the article]

(Bloomberg) -- India's central bank has suggestedfinancial institutions scale up green lending andvoluntarily set up green finance targets to mitigaterisks arising out of climate change. Banks need to put in place a mechanism at the board levelfor overseeing climate-risk initiatives, the discussionpaper said, adding that targets must be set forinvestment for sustainable finance. [Extracted from the article]

"Most of the banking system is replacing sovereign debt with state-development loans or credit", said Srinivas Varadarajan, treasury head at the Indian unit of Deutsche Bank. "It makes sense to sell a government bond at 7.5 percent and buy a state development loan at 8.2-8.3 percent, or give the money out as a loan", Mumbai-based Varadarajan said. [Extracted from the article]

(Bloomberg) -- India's central bank has suggested changes to the valuation of bank investments, including relaxing rules on a key class of long-term investments that are shielded from frequent valuation changes, but tightening those on shifting securities between classes. A Reserve Bank of India discussion paper released late Friday suggests removing caps on the Held-To-Maturity (HTM) class of securities, and allowing more types of instruments to be held within them. [Extracted from the article]

(Bloomberg) -- India's market regulator proposed new rules that put the burden of proof on the accused in some cases of insider trading, front running and similar violations, as use of encrypted or disappearing communication and untraceable funding arrangements impede the watchdog's ability to make and win cases. Globalized money trails and tech innovations have prompted more lawmakers and regulators to make such moves, said Amit Desai, a criminal defense lawyer. [Extracted from the article]

The weighted average call rate, which the Reserve Bank of India closely monitors, has held above the policy rate for most of the past month and even breached the emergency funding rate of 6.75% on some days. Yields on shorter commercial paper declined between five and 10 basis points while rates on treasury bills also retreated in secondary trading, traders said. (Bloomberg) -- India's shorter bonds rallied and money market rates eased on bets that a withdrawal of the nation's highest value currency note would leave banks with surplus cash to invest. [Extracted from the article]

Yields on shorter commercial paper declined between five and 10 basis points while rates on treasury bills also retreated in secondary trading, traders said. The weighted average call rate, which the Reserve Bank of India closely monitors, has held above the policy rate for most of the past month and even breached the emergency funding rate of 6.75% on some days. (Bloomberg) -- India's shorter bonds rallied and money market rates eased on bets that a withdrawal of the nation's highest value currency note would leave banks with surplus cash to invest. [Extracted from the article]

(Bloomberg) -- India may sell as much as 250 billion rupees ($3 billion) of green bonds in the next fiscal year and plans to include longer maturity debt to the offering, according to people familiar with the matter. While the finance ministry has assumed green issuances at 1.6% of the overall borrowing of 15.43 trillion rupees next year, the officials said that the actual offering would depend on demand. [Extracted from the article]

(Bloomberg) -- India's central bank is working toward a phased introduction of a digital currency and will put forth a final design after it has conducted large scale pilot projects. The Reserve Bank of India is exploring the option of implementation of an account-based central bank digital currency or CBDC for the wholesale segment and token-based currency for the retail sector, it said in a paper released on Friday. [Extracted from the article]

(Bloomberg) -- India's central bank is working towards a phased introduction of a digital currency and will put forth a final design after it has conducted large scale pilot projects. The Reserve Bank of India is exploring the option of implementation of an account-based central bank digital currency or CBDC for the wholesale segment and token-based currency for the retail sector, it said in a paper released on Friday. [Extracted from the article]

The Reserve Bank of India uses retail inflation as a benchmark to set borrowing costs and targets inflation between 2%-6%. (Bloomberg) -- India's retail inflation basket needs to be revised to improve the efficacy of monetary policy, according to a paper by a New Delhi-based economic policy think-tank. [Extracted from the article]

(Bloomberg) -- Rushing to sell Indian state-run lenders to private investors may hinder the government's financial inclusion efforts and monetary policy transmission, staff at the country's central bank warned. "A big bang approach of privatization of these banks may do more harm than good", wrote staff including, Snehal Herwadkar, in a research paper published Thursday. [Extracted from the article]

India is experiencing robust economic growth rates and has the potential to become the new engine of global economic growth as China slows down. Prime Minister Narendra Modi aims to turn India into a manufacturing powerhouse and expand its manufacturing capacity to a quarter of the country's GDP. However, India faces challenges such as the need for strategic investments, improved infrastructure, increased labor force participation, and urban development. Despite these challenges, India's economic ambitions have attracted foreign investment and positioned it as a potential partner for the US in countering China's influence. [Extracted from the article]

India plans to sell fewer bonds than initially estimated as the government reins in spending ahead of elections and the inclusion of the nation's debt in global indexes. The finance ministry announced that bonds worth 7.5 trillion rupees ($90 billion) will be sold in the first half of the fiscal year, lower than the 8.5 trillion rupees estimated in a Bloomberg survey. The decision to reduce borrowing is due to the government's desire to avoid sitting on unused cash, according to Finance Secretary TV Somanathan. The sale comes as foreign funds have shown interest in Indian debt ahead of their inclusion in JPMorgan Chase & Co.'s global indexes in June. [Extracted from the article]

India plans to sell fewer bonds than initially estimated as the government reins in spending ahead of elections and the inclusion of the nation's debt in global indexes. The finance ministry announced that bonds worth 7.5 trillion rupees ($90 billion) will be sold in the first half of the fiscal year, lower than the 8.5 trillion rupees estimated in a Bloomberg survey. The reduced borrowing comes as foreign funds have been investing in Indian debt in anticipation of their inclusion in JPMorgan Chase & Co.'s global indexes in June. The government's borrowing plan accounts for 53% of its full-year target, lower than the usual 55%-60% borrowed in the first half. [Extracted from the article]

While recent financial incentives under Modi offered Apple a cost-efficient path to set up shop in India, the California-based company is still making a fraction of its iPhones in the nation. (Bloomberg) -- On paper, India's chances of attracting global manufacturers look rosy. [Extracted from the article]

To contact the reporters on this story: Kartikay Mehrotra in New Delhi at kmehrotra2@bloomberg.net; Debjit Chakraborty in New Delhi at dchakrabor10@bloomberg.net The men were detained in New Delhi after a night-time police sting operation at the Oil Ministry on Feb. 17 detected the theft. [Extracted from the article]

Foreign investors can buy India's green bonds through the Fully Accessible Route, one of the people said. A Federal Reserve paper this year found green bonds have a yield spread that is eight basis points lower on average relative to conventional bonds. (Bloomberg) -- Reserve Bank of India, the nation's debt manager, is preparing to sell its first ever batch of sovereign green bonds as early as next month, according to people with knowledge of the matter. [Extracted from the article]

Warren Buffett, Berkshire's chairman and chief executive officer, wasn't directly involved in the investment in One97 Communications Ltd., his assistant, Debbie Bosanek, said Monday in an email. One97, founded by billionaire Vijay Shekhar Sharma, runs the Paytm brand and is the leading player in India's booming digital-payments market. [Extracted from the article]

Historically, India's problem was considered to be the opposite - companies were too small and couldn't emulate the productivity gains of big firms. (Bloomberg) -- India's biggest conglomerates, which wield immense pricing power in the retail, resources and telecommunication sectors, are contributing to elevated inflation and should be broken up, a former central banker said. [Extracted from the article]

Historically, India's problem was considered to be the opposite - companies were too small and couldn't emulate the productivity gains of big firms. (Bloomberg) -- India's biggest conglomerates, which wield immense pricing power in the retail, resources and telecommunication sectors, are contributing to elevated inflation and should be broken up, a former central banker said. [Extracted from the article]

(Bloomberg) -- The massive gyrations in the global bond markets and the ongoing credit crisis in India are forcing money managers to seek liquidity in government bonds even as they eye top-rated corporate paper trading at high spreads to the sovereigns. The spread of three-year AAA-corporate paper over a similar tenor government bond stood at 106 basis points on Thursday after widening to 109 basis points a day earlier, the highest since October, Bloomberg data showed. Following are recommendations from some key asset managers: Tata Asset Management Bullish on the 6- and 13-year segment of the sovereign yield curve due to the spread available over respective benchmarks AAA state-companies' bonds are giving a spread of 70 to 100 basis points over govt bonds of different maturities. [Extracted from the article]

India and Mauritius have opened a new airstrip and jetty on the islands of Agalega, which will enhance military infrastructure in the region. The facilities will help strengthen maritime security and combat terrorism, piracy, and the illegal narcotics trade. The move is significant as countries like the US, France, the UK, India, and China are increasing their presence in the Indian Ocean. India, in particular, will benefit from the new facilities as its warships can refuel there and its surveillance aircraft can land on the airstrip. India has also provided financial aid to Mauritius in recent years. [Extracted from the article]