AKP Banking & Finance Digest January 12, 2026

We are delighted to share this week's AKP Banking & Finance Weekly Digest. Please feel free to write to us with your feedback at info@akandpartners.in.

1. Regulatory Updates

1.1.  India

Reserve Bank of India (RBI)

1.1.1.    RBI issues Amendment Directions on lending to related parties by Regulated Entities

Reserve Bank of India (“RBI”) issued multiple “Amendment Directions, 2026” to update existing credit risk management and financial statements (presentation and disclosures) frameworks across regulated entities (REs), following its earlier release of eight draft directions on “Lending to Related Parties” on October 3, 2025, and the examination of stakeholder feedback. The RBI stated that the draft directions were intended to provide a harmonised, principle-based framework for REs when lending to related parties and to rationalise existing provisions, and that modifications based on feedback have been incorporated into the final directions, with updates to take effect as and when applicable.

1.1.2.    16 NBFCs surrender their Certificate of Registration to RBI

The following 16 Non-Banking Financial Companies (“NBFC”) have surrendered the Certificate of Registration (“CoR”) granted to them by the RBI. The RBI has therefore cancelled their CoR.

S. No.	State	Number of NBFCs
1	Maharashtra	3
2	West Bengal	7
3	Tamil Nadu	1
4	Delhi	2
5	Rajasthan	1
6	Uttar Pradesh	1
7	Chhattisgarh	1

1.1.3.    RBI cancels Certificate of Registration of 35 NBFCs

The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the CoR of the following companies.

S. No.	State	Number of NBFCs
1	Uttar Pradesh	1
2	Delhi	33
3	Maharashtra	1

1.1.4.    RBI restores Certificate of Registration of Social Leasing India Limited as NBFC

RBI announced that it has restored the CoR of NBFC, Social Leasing India Limited after considering orders passed by the Appellate Authority and/or Courts. The RBI advised the NBFC to adhere to the applicable provisions of the Reserve Bank of India Act, 1934 and the relevant guidelines and directions issued by the RBI, including reporting requirements. The RBI noted that the CoR (No. B-14.01465) was restored on December 22, 2025.

1.1.5.    RBI seeks feedback on draft governance amendments for UCBs and RCBs

RBI placed on its website draft amendments to its governance directions for Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs) for public consultation, inviting comments from stakeholders until January 30, 2026, through the “Connect2Regulate” link (or by post/email to the Department of Regulation). The RBI stated that Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949 caps a director’s maximum continuous tenure at 10 (ten) years, but it has observed attempts to bypass this through brief resignations or interruptions followed by re-election or co-option. To ensure compliance with the statutory intent, the draft proposes introducing a minimum cooling-off period for directors of co-operative banks.

1.1.6.    RBI invites comments on draft Prudential Norms on Dividend and Remittance of Profit Directions, 2026

RBI invited public comments on a set of draft directions proposing a new methodology to compute the maximum eligible dividend payout for banks, following its review of existing prudential norms on declaration of dividend and remittance of profits by foreign banks operating in branch mode in India. The RBI noted that a draft revised framework had earlier been issued for public comments on January 2, 2024, and that the present draft directions reflect stakeholder feedback and consultations. The draft directions cover commercial banks (including remittances of profit), small finance banks, payment banks, regional rural banks and local area banks, and comments are invited until February 5, 2026, through the “Connect2Regulate” link on the RBI website or via submission to the RBI’s Department of Regulation.

Securities and Exchange Board of India (SEBI)

1.1.7.     SEBI issues corrigendum to Gazette notification to rectify numbering errors

Securities and Exchange Board of India (“SEBI”) issued a corrigendum to the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 2025, as published in the Gazette of India to correct drafting and numbering inconsistencies. In the English version, SEBI corrected the numbering so that Regulation 6 sub-regulation (3) is to be read as sub-regulation (2), and Regulation 10 sub-regulation (5) is to be read as sub-regulation (4). It also renumbered Schedule I, Form A, Part I, Item 5 so that sub-items 5.8, 5.9 and 5.10 are to be read as 5.5, 5.6 and 5.7 respectively, and clarified that in Schedule III, clause 31, sub-clauses d, e and f are to be read as a, b and c respectively.

1.1.8.     SEBI extends timeline for additional distributor incentives for B-30 and women investors

SEBI extended the implementation timeline for the additional incentives framework for mutual fund distributors for onboarding (i) new individual investors (new Permanent Account Number) from B-30 cities and (ii) new women individual investors (new Permanent Account Number) from both T-30 and B-30 cities. SEBI stated that the framework was earlier prescribed by its circular dated November 27, 2025, and was to take effect from February 1, 2026, but the industry cited operational difficulties in setting up systems and processes for smooth implementation. Accordingly, SEBI clarified that the provisions of the earlier circular will now come into effect from March 1, 2026, while all other provisions remain unchanged.

1.1.9.     SEBI notifies Stock Brokers Regulations, 2026

SEBI notified the Securities and Exchange Board of India (Stock Brokers) Regulations, 2026, which come into force on the date of publication in the Official Gazette. The regulations consolidate the framework for registration of stock brokers and clearing members and set out eligibility conditions, including certifications, minimum net worth and deposit requirements, and governance requirements such as having at least 1 (one) designated director who stays in India for at least 182 (one hundred and eighty-two) days in a financial year, with existing stock brokers required to comply within 6 (six) months. They also prescribe ongoing obligations and responsibilities, require institutional mechanisms for prevention and detection of fraud and market abuse, and lay down procedures for inspection and regulatory action in case of default, alongside a code of conduct and fee-related provisions. The Securities and Exchange Board of India (Stock Brokers) Regulations, 1992 have been repealed, with savings provisions to preserve prior actions and ongoing proceedings under the earlier framework.

1.1.10.  SEBI prescribes standard compliance reporting formats for SIFs

SEBI has issued a circular to ensure uniform and clear compliance reporting for Specialized Investment Funds (“SIFs”) that were earlier introduced under the SEBI circular dated February 27, 2025. It clarifies that all reporting requirements applicable to mutual funds under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the Master Circular for Mutual Funds dated June 27, 2024, and related SEBI directions will also apply to SIFs. It also modifies the Compliance Test Report format (by adding an SIF-specific Part IV) and the Half-Yearly Trustee Report format (by inserting a new SIF compliance clause) to cover key areas such as minimum investment thresholds, fees and expenses, product differentiation, disclosures, branding and advertising, investment restrictions, distribution requirements, risk band and scenario analysis. These requirements apply to Asset Management Companies (AMCs) and trustees managing SIFs and take effect from January 8, 2026.

1.1.11.  SEBI forms Working Group to set 5 (five)-year and 10 (ten)-year technology roadmap for MIIs

SEBI has constituted a Working Group to formulate a short-term 5 (five)-year and long-term 10 (ten)-year Technology Roadmap for Market Infrastructure Institutions (“MIIs”), citing rapid technology evolution and the increasing role of digital systems in market operations, surveillance, risk management, investor protection, and regulatory oversight. The Working Group will take a holistic, forward-looking view on adoption of emerging technologies by MIIs, including artificial intelligence and machine learning (AI/ML), distributed ledger technology, cloud computing, Supervisory Technology (SupTech) and Regulatory Technology (RegTech) solutions, tokenisation, and quantum-safe systems. The group is chaired by Dr. D.B. Phatak, Professor Emeritus, Indian Institute of Technology Bombay, and includes the Chairpersons of the Standing Committee on Technology (SCOT) of MIIs, senior officials from stock brokers and Registrars and Transfer Agents (RTAs), and technology and securities market experts, with the objective of keeping India’s securities markets future-ready, resilient, globally competitive, and aligned with India’s long-term digital economy vision.

1.1.12.  SEBI enables integrated Digital Signature Certificate functionality for FPI onboarding

SEBI has introduced a new Digital Signature Certificate (“DSC”) functionality from Indian DSC issuers within the Common Application Form (“CAF”) portal to further digitise and streamline the Foreign Portfolio Investor (“FPI”) onboarding and registration process. This enhancement combines the FPI registration application and the DSC application into a single unified workflow, allowing applicants to apply for a DSC while submitting the CAF on the portal, thereby reducing friction and improving processing efficiency. SEBI also noted that it had earlier permitted FPIs to use digital signatures for execution of the CAF and other registration-related documents via its circular dated March 27, 2023, and has now provided process flows and frequently asked questions on the India Market Access Portal for obtaining a DSC through this integrated feature.

1.1.13.  SEBI simplifies investor accreditation process for AIF participation

SEBI has simplified requirements for grant of accreditation to investors under the accredited investor framework for Alternative Investment Funds. It has permitted investment managers to finalise or execute contribution agreements and initiate related operational steps even before the accreditation certificate is received, based on the manager’s assessment of eligibility, subject to two safeguards: the investor’s commitment will not be counted in the scheme corpus until the certificate is obtained, and funds can be accepted only after the certificate is issued. SEBI has also relaxed documentation for accreditation based on net worth by removing the requirement to submit a detailed net worth break-up as an annexure to the net worth certificate and clarified that it is optional for the chartered accountant to state the actual net worth while certifying whether the threshold is met. The trustee, sponsor or manager must ensure the Compliance Test Report includes compliance with this circular, and the changes take effect immediately.

1.1.14.  SEBI revises framework for handling technical glitches in stock brokers’ electronic trading systems

SEBI has revised its framework to address “technical glitches” in stock brokers’ electronic trading systems, updating the regime first set out on November 25, 2022. SEBI has streamlined applicability to stock brokers offering internet-based trading or security trading using wireless technology platforms and having more than 10,000 (ten thousand) registered clients (excluding closed accounts) as on March 31 of the previous financial year, and has exempted specified issues that are outside a broker’s trading architecture or have negligible impact (including certain disruptions at global technology providers, Market Infrastructure Institutions, back-office functions not impacting trading/settlement, and payment gateway failures at banks or service providers). A “technical glitch” is defined as a malfunction affecting trading and risk management functions for a contiguous period of 5 (five) minutes or more, and brokers must inform stock exchanges and clients within 2 (two) hours, file a preliminary incident report by T+1 (one) day (with trading-holiday adjustments), and submit a root cause analysis report within 14 (fourteen) working days through the common reporting portal, “Samuhik Prativedan Manch”. Stock exchanges will continue proactive monitoring (including through an API-based Logging and Monitoring Mechanism) and will rationalise requirements on capacity planning, software testing, business continuity planning and disaster recovery, and the financial disincentive structure based on broker size, technology dependency, glitch type and frequency. The circular supersedes the earlier SEBI circular dated November 25, 2022.

1.1.15.  SEBI simplifies investor accreditation requirements for AIFs

SEBI has simplified the requirements for grant of accreditation to investors based on industry feedback. To improve ease of doing business, SEBI has permitted investment managers of Alternative Investment Funds (AIFs) to raise investor commitments pending receipt of the accreditation certificate from an accreditation agency, based on the manager’s assessment of the investor’s eligibility. SEBI has also removed the requirement to provide a detailed break-up of net worth and made it optional for the certifying chartered accountant to specify the actual net worth in the net worth certificate.

1.1.16.  SEBI consults on ease-of-doing-business changes to stock exchange trading master circulars

SEBI has issued a consultation paper proposing modifications to the trading framework for stock exchanges, including the Commodity Derivatives segment, by revising Chapter 1 (Trading) of the Master Circular for Stock Exchanges and Clearing Corporations dated December 30, 2024 and relevant parts of the Master Circular for Commodity Derivatives dated August 4, 2023, with the objective of simplifying requirements, removing duplications, and separating provisions that should sit with exchanges versus clearing corporations. Key proposals include merging bulk and block deal disclosure provisions and having exchanges disseminate bulk deal information at Permanent Account Number level, tabulating market-wide circuit breaker triggers and price-band flexing conditions for clarity, rationalising margin trading facility requirements (including increasing the minimum broker net worth threshold from INR 3,00,00,000 (Indian Rupees Three Crores only) to INR 5,00,00,000 (Indian Rupees Five Crores only) or higher as specified by stock exchanges), consolidating market making under a principle-based liquidity enhancement framework across segments (including incentive caps such as up to 25 per cent (twenty-five per cent) of net worth for exchanges commencing business in a new segment for the first 5 (five) years, and up to 10 per cent (ten per cent) of audited net worth for up to 5 (five) years for exchanges without profits or free reserves), and easing certain reporting and monitoring obligations while retaining market integrity safeguards. SEBI has invited public comments to be submitted by January 30, 2026, and the consultation paper was issued on January 9, 2026.

1.1.17.  SEBI proposes 30-day lag for sharing and using price data for educational content

SEBI issued a consultation paper proposing a uniform time lag of 30 (thirty) days for both sharing and usage of exchange price data solely for investor education and awareness, to curb misuse of market data while keeping educational content relevant. SEBI noted that its circular dated May 24, 2024 restricted sharing of live data and permitted educational use only with a 1 (one) day lag, while its circular dated January 29, 2025 further stipulated that entities solely engaged in education may use price data only with a 3 (three) months lag, and it now proposes harmonisation by moving to a single 30 (thirty) day standard. SEBI also emphasised that use of live or near-live data for “education” can amount to Investment Adviser (IA) or Research Analyst (RA) activity and clarified that the existing prohibited-activity conditions for educators will continue to apply. Public comments are invited until January 27, 2026.

International Financial Services Centres Authority (IFSCA)

1.1.18.  IFSCA modifies AML/CFT and KYC Guidelines, 2022 for IFSC Regulated Entities

International Financial Services Centres Authority (“IFSCA”) issued a circular modifying and clarifying the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer (“KYC”)) Guidelines, 2022, with immediate effect, including by refining applicability (and enabling exemptions) and introducing express exemptions for specified entities and activities (subject to business risk assessment). The changes also add a definition for KYC Registration Agency (“KRA”) under the International Financial Services Centres Authority (KYC Registration Agency) Regulations, 2025, clarify acceptance of equivalent e-documents for officially valid documents, and require confidentiality of customer risk categorisation to avoid tipping off. Further, the circular introduces enhanced due diligence expectations where an entity’s beneficial owner is an Indian national, adds safeguards for persons with disabilities when onboarding or updating KYC, prescribes periodic KYC updation frequency for resident Indian customers with an existing relationship in an Indian financial group as once in every 2 (two) years for high-risk, 8 (eight) years for medium-risk and 10 (ten) years for low-risk customers (with the stricter periodicity applying where risk ratings differ), and clarifies that regulated entities should not restrict transactions merely because a suspicious transaction report has been filed. It also updates governance and reporting expectations (including communication of designated director and principal officer details to the Financial Intelligence Unit-India (“FIU-IND”) and IFSCA), expands guidance on biometric e-KYC (including Aadhaar face authentication), tightens certain conditions for video-based customer identification for non-resident Indian customers, and incorporates earlier circular-based requirements such as DARPAN portal registration for non-profit organisation clients and routing monetary consideration for financial institutions through an account with a banking unit.

1.1.19. IFSCA issues FAQs on AML/CFT and KYC Guidelines, 2022

IFSCA has published Frequently Asked Questions (“FAQs”) to clarify key compliance expectations under the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 for regulated entities (“REs”) licensed, recognised, registered or authorised by the IFSCA (and, to the specified extent, their financial groups). The FAQs reiterate that the Designated Director and Principal Officer must be different natural persons, explain who may be appointed in an IFSC unit (including that the head of the IFSC unit may be the Designated Director), and clarify that onshore India officials of a parent entity are not eligible to be appointed for the IFSC RE. The FAQs also state that an existing policy may be continued if it already incorporates the Guidelines’ key elements, otherwise it should be updated and re-approved by the governing body. For reporting, the FAQs set out FIU-IND FINGate 2.0 registration expectations (including a 2 (two) step registration process) and summarise reportable transactions, including receipts by non-profit organisations above INR 10,00,000 (Indian Rupees Ten Lakhs only), cross-border wire transfers above INR 5,00,000 (Indian Rupees Five Lakhs only), and immovable property transactions valued at INR 50,00,000 (Indian Rupees Fifty Lakhs only) or more, while clarifying that a “cross-border wire transfer” includes transactions where either the ordering or beneficiary institution is located in the IFSC. The FAQs further outline permissible customer due diligence methods (including offline verification and video-based customer identification process (“V-CIP”)), specify conditions for on) and low-risk non-resident Indian customers via V-CIP (including “debit freeze/inactive” mode where address cannot be independently verified until the first overseas credit is received and verified), and reiterate that sanctions list matches must be communicated “without delay”, clarified as the same business day but not later than 24 (twenty-four) hours.

Insurance Regulatory and Development Authority of India (IRDAI)

1.1.20.  IRDAI mandates 1600-series numbers for insurers’ service and transactional calls

Insurance Regulatory and Development Authority of India (“IRDAI”) directed all insurers and insurance intermediaries to implement the Telecom Regulatory Authority of India (“TRAI”) Direction dated December 16, 2025 issued under the Telecom Regulatory Authority of India Act, 1997 to curb Unsolicited Commercial Communication (“UCC”), prevent impersonation-based frauds and enhance consumer trust by mandating the use of the 1600-series (one thousand six hundred-series) for all service and transactional voice calls to consumers. IRDAI requires adoption to be completed on or before February 15, 2026, and states that after this date no such calls may be initiated from any number other than those allocated under the 1600-series, irrespective of explicit or inferred customer consent. It further notes that complaints of UCC against non-compliant entities will attract action under TRAI’s regulatory provisions applicable to unregistered telemarketers, in addition to any action IRDAI may consider appropriate, and requires timely submission of status reports specified by TRAI (with a copy to IRDAI), with insurers and intermediaries advised to coordinate with their telecom service providers for allocation, activation and operationalisation of the 1600-series numbers.

Miscellaneous

National Payments Corporation of India (NPCI)

1.1.21.  NPCI enables daily switching fee rebate processing for UPI URCS back-office system

National Payments Corporation of India (“NPCI”) issued a circular to all members of Unified Payment Interface (“UPI”) on the implementation of switching fee rebate processing in the UPI URCS back-office system. NPCI stated that it had earlier notified a 50 (fifty) per cent switching fee rebate (as net switching fee) for UPI person-to-merchant (P2M) transactions effective from January 1, 2020, and that the rebate was being offered as an annual scheme with monthly reversals. Under the revised process, the rebate rules remain unchanged, but the rebate will be effected daily by enabling daily reversal of the switching fee during every settlement cycle, with reporting and invoicing reflecting a distinct rebate line item (including Goods and Services Tax). NPCI stated that this functionality will be implemented with effect from February 1, 2026, and will continue until the rebate is withdrawn or further notice.

Unique Identification Authority of India (UIDAI)

1.1.22.  UIDAI directs Aadhaar address updates for Ladakh residents

Unique Identification Authority of India (“UIDAI”) has issued a public notice requiring Aadhaar Number Holders (“ANHs”) residing in the Union Territory (“UT”) of Ladakh to update the State/UT name in their Aadhaar address records from “Jammu and Kashmir” to “Ladakh”, pursuant to the Jammu & Kashmir Reorganisation Act, 2019 under which the erstwhile State of Jammu & Kashmir was reorganised into 2 (two) UTs with effect from October 31, 2019. UIDAI stated that, in line with Sections 6, 23 and 31 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the Aadhaar (Enrolment and Update) Regulations, 2016, affected ANHs (including those whose Aadhaar records show district as Leh or Kargil but State/UT as Jammu and Kashmir) should submit a voluntary update request within 60 (sixty) days from January 6, 2026 through the UIDAI website, mAadhaar app, or an Aadhaar centre. If no voluntary update is received within this period, UIDAI will carry out a limited suo motu update to reflect “Ladakh” in the State/UT field and, where applicable, map specified obsolete PIN codes to the correct PIN codes, without changing house number, building name, locality, or other personal data. UIDAI will notify ANHs after the update via SMS or email, the updated Aadhaar will be available for download on the UIDAI portal, and the updated Aadhaar letter will be dispatched by post; queries may be raised through the UIDAI helpline 1947 (one thousand nine hundred and forty-seven) or at the nearest Aadhaar centre.

Monetary Penalties

1.1.23.  RBI imposes penalties on Four banks for regulatory non-compliance

RBI has imposed monetary penalties on the following institutions:

Sr. No.	Name of Bank	Amount of Penalty	Grounds for Penalty
1.	Jila Sahakari Bank Limited, Mau, Uttar Pradesh	INR 2,00,000 (Indian Rupees Two Lakh only)	Non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of Banking Regulation Act, 1949.
2.	Shaha Finlease Private Limited, Mumbai	INR 10,000 (Indian Rupees Ten Thousand only)	Non-compliance with certain directions issued by RBI on ‘Fair Practices Code’. This penalty has been imposed in exercise of powers conferred on RBI under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
3.	Sankhya Financial Services Private Limited, Mumbai	INR 40,000 (Indian Rupees Forty Thousand only)	Non-compliance with certain directions issued by RBI on ‘Guidelines on purchase/sale of non-performing assets’. This penalty has been imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of lndia Act, 1934.
4.	Pinnacle Capital Solutions Private Limited, Jharkhand	INR 1,00,000 (Indian Rupees One Lakh only)	Non-compliance with certain directions issued by RBI on 'Default Loss Guarantee (DLG) in Digital Lending'. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

2.            Key Asian Markets - Philippines and Vietnam and Indonesia

2.1.         Philippines

2.2.1.     BSP reports December inflation at 1.8 per cent and 2025 average at 1.7 per cent

Bangko Sentral ng Pilipinas (“BSP”) reported that year-on-year headline inflation increased to 1.8 per cent (one point eight per cent) in December from 1.5 per cent (one point five per cent) in November, within the BSP’s forecast range of 1.2 to 2.0 per cent (one point two to two point zero per cent). For the bottom 30 per cent (thirty per cent) income households, inflation was 1.1 per cent (one point one per cent) in December and 0.3 per cent (zero point three per cent) for 2025. Average headline inflation for 2025 was 1.7 per cent (one point seven per cent), below the government’s target of 3.0 per cent (three point zero per cent) plus or minus 1.0 (one point zero) percentage point, reflecting lower prices of key commodities such as rice and petroleum products and easing demand-side pressures as core inflation moderated. On a seasonally adjusted month-on-month basis, headline inflation rose to 0.7 per cent (zero point seven per cent) in December from nil in November, while core inflation was unchanged at 2.4 per cent (two point four per cent). BSP stated that the inflation outlook remains benign, with inflation expected to return towards the target range in 2026 and 2027, and that it will continue monitoring domestic and external developments under its data-dependent approach to monetary policy.

2.2.2.     BSP reports gross international reserves at USD 110.9 billion

BSP announced that the Philippines’ Gross International Reserves (“GIR”) stood at USD 110.9 billion (United States Dollar One Hundred Ten Billion Nine Hundred Million only) as of end-December 2025, providing an external liquidity buffer equivalent to 7.4 (seven point four) months’ worth of imports of goods and payments of services and primary income, and covering about 4.0 (four point zero) times the country’s short-term external debt based on residual maturity. BSP stated that the GIR comprises foreign-denominated securities, foreign exchange and other assets (including gold), and helps finance imports and foreign debt obligations, stabilise the currency, and buffer against external shocks. BSP also reiterated that, by convention, reserves are viewed as adequate if they can finance at least 3 (three) months’ worth of imports and related payments and added that GIR is considered adequate if it provides at least 100 per cent (one hundred per cent) cover for foreign liabilities (public and private) falling due within the immediate 12 (twelve) months.

2.3.         Indonesia

2.3.1.     Indonesia’s trade surplus widens on stronger non-oil and gas exports

Bank Indonesia (“BI”) reported that Indonesia recorded a trade surplus of USD 2.66 billion (United States Dollar Two Billion Six Hundred Sixty Million only) in November 2025, up from USD 2.39 billion (United States Dollar Two Billion Three Hundred Ninety Million only) in October 2025. It said the surplus was driven by a larger non-oil and gas surplus of USD 4.64 billion (United States Dollar Four Billion Six Hundred Forty Million only), supported by non-oil and gas exports of USD 21.64 billion (United States Dollar Twenty-One Billion Six Hundred Forty Million only). It noted that exports were led by natural resource-based commodities such as precious metals and jewellery/gems, nickel and related products, and mineral fuels, with China, the United States and India remaining the main destinations. It added that the oil and gas trade deficit widened to USD 1.98 billion (United States Dollar One Billion Nine Hundred Eighty Million only) due to higher oil and gas imports alongside lower oil and gas exports.

2.3.2.     Bank Indonesia reports increase in official reserve assets

BI announced that Indonesia’s official reserve assets stood at USD 156.5 billion (United States Dollar One Hundred Fifty-Six Billion Five Hundred Million only) at end-December 2025, up from USD 150.1 billion (United States Dollar One Hundred Fifty Billion One Hundred Million only) at end-November 2025. BI attributed the increase mainly to tax and services receipts, the Government’s global sukuk issuance, and withdrawals under the Government’s foreign loans. It said the reserve position was equivalent to 6.4 (six point four) months of imports or 6.3 (six point three) months of imports and servicing the Government’s external debt, above the international adequacy benchmark of around 3 (three) months of imports. Bank Indonesia added that reserves remain adequate to support external sector resilience and financial system stability and expects resilience to be supported by continued foreign capital inflows and coordination with the Government.

3.             Trends

3.1.         TPG explores minority investment in IIFL Capital Services

TPG Capital is in talks to acquire up to 20 per cent (twenty per cent) stake in IIFL Capital Services as a strategic investment, with the potential transaction value estimated at about INR 3,636 crore (Indian Rupees Three Thousand Six Hundred and Thirty-Six Crore only) to INR 4,848 crore (Indian Rupees Four Thousand Eight Hundred and Forty-Eight Crore only), depending on the final structure and pricing. The reported talks indicate continued private equity interest in India’s wealth and capital markets businesses, but the transaction remains subject to regulatory approvals and deal finalisation.

3.2.         Reliance Jio’s proposed IPO hinges on possible public float rule relaxation

Reliance Jio Platforms is considering an initial public offering (“IPO”) in 2026 that could involve selling 2.5 per cent (two point five per cent) of the company and potentially raising more than USD 4 billion (United States Dollar Four Billion only), subject to India’s finance ministry approving a reduction in the minimum public float requirement for very large companies from 5 per cent (five per cent) to 2.5 per cent (two point five per cent). The report suggests that if such a relaxation proceeds, it could reshape how mega-IPOs are structured and underwritten in India, with knock-on effects for investment banks, institutional allocations and primary market liquidity.

4.             Sector Overview

4.1.         National Statistics Office projects FY26 growth at 7.4 per cent

National Statistics Office estimated India’s gross domestic product growth at 7.4 per cent (seven point four per cent) for the fiscal year ending March 2026, above the government’s earlier projection range of 6.3 per cent (six point three per cent) to 6.8 per cent (six point eight per cent). In nominal terms, growth was projected at 8 per cent (eight per cent), with private consumption (about 60 per cent (sixty per cent) of gross domestic product) seen expanding by 7 per cent (seven per cent), government spending by 5.2 per cent (five point two per cent), and private investment by 7.8 per cent (seven point eight per cent).

4.2.       India’s forex reserves drop USD 9.809 billion, tightening external buffer at the margin

India’s foreign exchange reserves fell by USD 9.809 billion (United States Dollar Nine Billion Eight Hundred and Nine Million only) to USD 686.801 billion (United States Dollar Six Hundred and Eighty-Six Billion Eight Hundred and One Million only) for the week ended January 2, 2026, after rising by USD 3.293 billion (United States Dollar Three Billion Two Hundred and Ninety-Three Million only) to USD 696.61 billion (United States Dollar Six Hundred and Ninety-Six Billion Six Hundred and Ten Million only) in the prior week.

5.             Business Updates

5.1.     Bajaj Finserv completes purchase of Allianz stake in Bajaj Allianz insurance companies

Bajaj Finserv Limited said it completed the acquisition of Allianz SE’s 23 per cent (twenty-three per cent) stake in its two insurance joint ventures for INR 21,390 crore (Indian Rupees Twenty-One Thousand Three Hundred and Ninety Crore only), taking Bajaj Finserv’s holding in each of Bajaj Allianz General Insurance Company Limited and Bajaj Allianz Life Insurance Company Limited to 75.01 per cent (seventy-five point zero one per cent) and raising the Bajaj Group’s overall holding in the two companies to 97 per cent (ninety-seven per cent).

5.2.         Export-Import Bank of India raises USD 1 billion through dual-tranche bond issue

Export-Import Bank of India accepted bids worth USD 1 billion (United States Dollar One Billion only) for a dual-tranche U.S. dollar bond issue, raising USD 500 million (United States Dollar Five Hundred Million only) through 10 (ten) year bonds at 5.00 per cent (five point zero zero per cent) and USD 500 million (United States Dollar Five Hundred Million only) through 30 (thirty) year bonds at 5.75 per cent (five point seven five per cent). Reuters reported that the proceeds are intended to support funding needs, including financing for overseas investment and the import of capital goods, making the transaction a notable early-2026 international market funding deal for an Indian policy lender.

Disclaimer

The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.

For further queries or details, you may contact:

Mr Anuroop Omkar

Partner, AK & Partners

info@akandpartners.in