Advertisement

Business

Updated on: Wednesday, August 11, 2021, 05:18 PM IST

NSE's new service, retro tax abolishment, and accelerating credit growth for NBFCs-MFIs: Three things Teji Mandi investors should know on August 11, 2021

Advertisement

NSE's New Service

The National Stock Exchange is going to make it easy for Indian investors to buy and sell stocks in the US. It means you will soon be able to invest directly in companies like Apple, Google, Microsoft, and other prominent names. NSE is preparing to launch this new facility under the name of the NSE International Exchange through its GIFT City arm in Gujarat.

This service will be particularly helpful to retail investors. They will be able to take direct exposure in the US market. It is an additional investment avenue for them. So far, they were able to invest in the US only through mutual funds.

The Cost of Abolishing Retro Tax

Now that the Retro Tax has become a thing of the past, the government is expected to pay out over Rs 8,000 crore in the form of refunds to four different companies. Apart from Cairn Energy and Vodafone, two other companies are likely to get their refunds once the new law comes into effect.

While it is certain that the government is going to refund these companies, it is yet not clear whether any interest will be paid or not. The situation is still under development. And more clarity will emerge once the new taxation law comes into effect.

Credit Growth Set To Accelerate for NBFCs-MFIs

The credit growth of NBFC-MFIs is expected to return to the growth path in FY22. A report from domestic rating agency Brickwork suggests that economic activities are picking up. It could lead NBFCs and MFIs to register around 10-15% loan growth in the current financial year.

The RBI has been particular about diverting the flow of credit towards MSME borrowers. NBFCs are the major players in this segment. RBI has also ensured ample liquidity routing to NBFCs and MFIs through banks. It could help them to pick up disbursements as economic activities continue to recover.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Wednesday, August 11, 2021, 05:56 PM IST
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement