Finance Regulations and Mutual Funds Overview

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Questions and Answers

Which organization collaborated with Mastercard to enable 24/7 cross-border payments using debit cards?

Visa

SBI

NABARD

Citigroup (correct)

What type of assets will the new actively managed commodity fund introduced by SEBI invest in?

Exchange-traded commodity derivatives (correct)

Stocks and bonds

Cryptocurrency

Real estate properties

Which of the following options specifies the year when SEBI allowed mutual funds to invest in exchange-traded commodity derivatives (ETCDs)?

2020

2017

2019 (correct)

2021

Who is the CEO of Mastercard as of the provided content?

Michael Miebach Signup and view all the answers

Which regulatory body is responsible for considering the introduction of new commodity funds in India?

SEBI Signup and view all the answers

What is Citigroup known for in relation to Mastercard?

Launching the Mastercard Move service Signup and view all the answers

What major transaction types does the Mastercard Move service facilitate?

Insurance reimbursements and e-commerce payments Signup and view all the answers

Which payment option was involved in the collaboration for 24/7 cross-border transactions?

Mastercard Signup and view all the answers

What is the primary function of the Negotiated Dealing System-Order Matching (NDS-OM)?

Enabling trade in government securities Signup and view all the answers

Which of the following entities is NOT classified as a Primary Member in the Negotiated Dealing System-Order Matching (NDS-OM)?

Private equity firms Signup and view all the answers

What type of license has Jio Payments Bank Limited received from the Association of Mutual Funds in India (AMFI)?

Category 1 Execution-Only Platform Signup and view all the answers

Which organization imposed the penalties on SG Finserve and Arunachal Pradesh Rural Bank for regulatory non-compliance?

Reserve Bank of India (RBI) Signup and view all the answers

What is the maximum transaction fee that Category 1 Execution-Only Platforms can charge for mutual fund transactions?

Rs 2 per transaction Signup and view all the answers

Who is the CEO and Managing Director of Jio Payments Bank Limited?

Vinod Easwaran Signup and view all the answers

In which city is Jio Payments Bank Limited headquartered?

Mumbai Signup and view all the answers

A Category 1 Execution-Only Platform primarily enables transactions for which of the following?

Direct mutual fund plans Signup and view all the answers

What was the reason for the Rs 1 crore fine imposed on Jai Anmol Ambani?

For failing to conduct adequate due diligence before sanctioning corporate loans Signup and view all the answers

Who else was fined along with Jai Anmol Ambani in the Reliance Home Finance case?

Krishnan Gopalakrishnan, Chief Risk Officer Signup and view all the answers

Which Asset Management Company launched India's first NBFC sector-based Target Maturity Mutual Fund Scheme?

Axis Asset Management Company Limited Signup and view all the answers

What type of loans did Jai Anmol Ambani sanction despite opposition from other board members?

Corporate unsecured loans Signup and view all the answers

Within how many days must Jai Anmol Ambani and Krishnan Gopalakrishnan pay their fines?

45 days Signup and view all the answers

Which regulatory body imposed the fine on Jai Anmol Ambani?

Securities and Exchange Board of India (SEBI) Signup and view all the answers

What does NBFC stand for in financial terms?

Non-Banking Financial Company Signup and view all the answers

What was the amount of the loans sanctioned by Jai Anmol Ambani to each entity?

Rs 20 crore Signup and view all the answers

What did SEBI state about Jai Anmol's due diligence?

It was reasonable but not sufficient Signup and view all the answers

What is the nature of the AXIS CRISIL-IBX AAA NBFC Index fund launched by Axis AMC?

It is an open-ended Target Maturity Index Fund Signup and view all the answers

Study Notes

Reliance Home Finance Case

SEBI imposed a fine of 1 crore rupees on Jai Anmol Ambani for failing to conduct due diligence before approving corporate loans at Reliance Home Finance.
Reliance Home Finance's Chief Risk Officer, Krishnan Gopalakrishnan, was fined 15 lakh rupees for the same infraction.
The fines were levied because Jai Anmol Ambani, a non-executive director at Reliance Home Finance, approved unsecured loans of 20 crore rupees each to Visa Capital and Accura Productions despite opposition from other board members.
SEBI determined that Jai Anmol Ambani failed to conduct adequate due diligence on the GPCL (general purpose working capital lending) process.

India's First NBFC Sector-based Target Maturity Mutual Fund Scheme

Axis Asset Management Company Limited (Axis AMC) launched "AXIS CRISIL-IBX AAA NBFC Index- Jun 2027 Fund," a target maturity index fund that invests in the CRISIL-IBX AAA NBFC Index - Jun 2027.

Mastercard and Citigroup Collaboration for Cross-Border Payments

Mastercard and Citigroup partnered to enable 24/7 cross-border payments using debit cards, expanding payment options for consumers and businesses globally.
Citigroup became the first global bank to launch the Mastercard Move service, enabling various transactions like insurance reimbursements, airline refunds, and e-commerce payments.
The collaboration aims to provide a seamless payment experience, allowing customers to conduct cross-border transactions regardless of borders, currencies, or limitations.
Mastercard previously collaborated with Alipay in China to facilitate money transfers to digital wallets, while Visa partnered with Western Union to enable money transfers to eligible Visa cards and bank accounts in over 40 countries.
As of June 30, 2024, Mastercard issued over 4 billion debit, prepaid, and credit cards worldwide, highlighting its extensive presence in the payments industry.

SEBI Considering New Commodity Funds

SEBI is considering allowing mutual funds (MFs) to introduce a new type of actively managed commodity fund dedicated to investing in exchange-traded commodity derivatives (ETCDs).

Jio Payments Bank Limited

Jio Payments Bank Limited, a subsidiary of Jio Financial Services, received a Category 1 Execution-Only Platform (EOP) license from the Association of Mutual Funds in India (AMFI) for mutual fund distribution.
This license allows the bank to offer direct MF plans and charge transaction fees capped at Rs 2 per transaction.
There are currently 15 Category 1 EOPs registered with AMFI. EOPs are digital platforms enabling transactions for MF direct plans.

RBI Penalties for Regulatory Non-Compliance

The Reserve Bank of India (RBI) imposed a penalty of Rs 28.30 lakh on SG Finserve Limited (formerly Moongipa Securities) due to non-compliance with specified restrictions outlined in the RBI's Certificate of Registration (CoR) issued under Section 45IA(5) of the RBI Act of 1934.
The RBI also imposed a penalty of Rs 14 lakh on Arunachal Pradesh Rural Bank for regulatory non-compliance.

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Description

This quiz covers important recent developments in the finance sector, including SEBI's penalties related to Reliance Home Finance and the launch of India's first NBFC sector-based target maturity mutual fund by Axis AMC. Test your knowledge on corporate governance, investment strategies, and regulatory compliance in the finance industry.