SEBI working to make bonds more accessible to retail investors, Indian job market showing mixed signals, credit-to-deposit ratio in India, VCs investing in India startup market
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Quick takeaways
SEBI aims to make corporate bonds more accessible to retail investors by reducing face values.
Indian job market shows a shift towards increased opportunities in emerging cities and focus on upskilling employees.
Deep dives
SEBI Making Bonds More Accessible to Retail Investors
SEBI issued a new circular allowing bond issuers to offer bonds with a face value of Rs 10,000, a significant reduction from the previous 10 lakh rupees. The move aims to increase retail investor participation in corporate bonds as the market is currently dominated by banks, institutional investors, and mutual funds. Retail investors previously faced challenges due to the complexity of bond investments, private placements limited to large investors, and high face values. SEBI's efforts include reducing face values to 1 lakh rupees in 2022 and further to 10,000 rupees in 2023 to attract retail investors.
Indian Job Market Trends and Changes
India saw an unexpected 8% decline in white-collar jobs in June compared to May, indicating a shift in the job market dynamics. While metro cities experienced reduced hiring, emerging cities showed increased job opportunities, indicating a more evenly distributed workforce across the country. The IT sector slowdown may have contributed to job reductions in major cities and a focus on upskilling existing employees for redeployment. Employees with over 16 years of experience witnessed a 13% increase in hiring, while those with 4-7 years saw a decrease, reflecting industry preferences for experienced professionals.
Challenges in India's Credit and Deposit Growth
India's credit to deposit growth is impacted by increasing capital market investments at the expense of bank deposits. Banks are struggling with reduced margins due to high repo rates and competition from capital markets. Offering higher fixed deposit interest rates and maintaining loan interest rates have squeezed bank profits. The loan deposit ratio is rising, raising concerns for the RBI about addressing the growing gap in the banking industry. Despite challenges, the private markets have seen improvements with Indian startups raising funds mainly from foreign investors and a renewed focus on profitability.