# 1 Markets
Nifty 50 and Sensex closed the week near record highs with modest gains of roughly 0.5%, reflecting a constructive but not euphoric tone. The week saw a sharp selloff early on, followed by a strong mid-week rebound and a flat, consolidative finish on Friday as traders turned cautious ahead of Q2 FY26 GDP data. Foreign flows were choppy with heavy selling on two sessions offset by strong buying mid-week, but domestic sentiment remained inclined to buy on dips rather than chase new breakouts. Higher than GDP nos. released on Friday evening likely to buoy the markets in coming days.
Indian 10-year G-Sec yields edged up to 6.52% by Nov 28, surrendering early-week dovish gains amid fiscal concerns and pre-GDP caution. Market traded sideways near 7-month highs with modest steepening across the curve, RBI bond buying providing limited support.
US equities staged a sharp rebound, with S&P 500 up 3.7%, Dow Jones +3.2%, and Nasdaq +4.9% for the week, closing at all-time highs amid post-Thanksgiving buying. Monthly results mixed: S&P 500 and Dow eked out slim gains (0.1-0.3%) extending win streaks to seven months, while Nasdaq fell ~2% snapping its streak on AI valuation concerns.
US 10-year Treasury yields dipped to 4-week lows mid-week (~3.99%) on Fed cut bets before rebounding to 4.02% on Friday in thin post-Thanksgiving trade. Weekly net decline of ~8bps across the curve reflected dovish repricing (87% odds of Dec cut), though 30-year end edged higher.
# 2 RBI/Banking
2.1 RBI released seven new Master Directions on Digital Banking channels on Nov 28, 2025, applicable to all banks.
- The framework mandates institution-wide digital channel policies, full CBS integration, IPv6 readiness, strong liquidity and operational risk controls, and senior management accountability.
- Only entities meeting key prudential thresholds – such as minimum CRAR/net worth of at least ₹50 crore and two years of clean Information Security Audit reports – can offer or expand digital banking channels.
- On the customer side, RBI introduces explicit, granular consent for services; mandatory alerts for all transactions; strict transaction-level risk controls (limits, velocity checks, continuous fraud monitoring; behavioural surveillance; and availability of network-independent mobile banking options.
Implications for Customers
- Customers benefit—reducing unauthorised transactions and improving early detection of fraud.
- Explicit opt-in consent ensures customers know exactly which services they are using; no silent activations or bundled features. The lenders cannot make it mandatory for customers to opt for any digital banking channel in order to avail other facilities, such as debit cards.
- Mandatory CBS integration, stronger audits, and operational risk controls translate into fewer outages, faster transaction processing, and better uptime.
By consolidating and modernising earlier digital banking guidelines, the directions while resetting the rules by hard coding security, aim to strengthen trust, reduce fraud, and create a more consistent, innovation-friendly environment for banks and fintech partners.
2.2 RBI last week has unveiled a sweeping regulatory consolidation, marking one of its largest organisational reforms.
- Through the issuance of 244 Consolidated Master Directions (MDs), encompassing 238 function-wise categories, RBI has streamlined over 9,000 earlier circulars and merged approximately 3,500 into a simplified, modernised framework.
- The initiative enhances policy coherence, regulatory transparency, and ease of compliance for banks and financial institutions.
This overhaul addresses long-standing overlaps stemming from decades of incremental circulars issued under multiple Acts, positioning India’s regulatory architecture for greater efficiency, accessibility, and future digital integration.
2.3 As per Care Edge ratings sector outlook released last week
Banking Sector:
- Credit growth projected at 11.5–12.5%, led by retail and MSME; corporate credit gaining traction as borrowers shift from bonds to banks.
- Deposit growth continues to lag, keeping Credit–Deposit ratio elevated at ~80%.
- Asset quality to remain benign with lower slippages, higher recoveries and write-offs; profitability stable with no major capital needs.
NBFC Sector
- NBFC AUM up 1.7x since FY21; retail share rises to 56% in FY25 (from 49% in FY21).
- MFI segment remains most stressed; mild 4% growth expected in FY26 after FY25 contraction; credit costs to fall to 6.1% (from 9%).
- MSME lending seeing higher delinquencies in small-ticket loans; credit costs likely up to 1.7% in FY26.
- Affordable HFCs to sustain low credit costs (0.4%); AUM growth moderating to 20% on a larger base.
- Gold loan NBFCs to grow fastest: 35% AUM growth in FY26, aided by favourable prices and relaxed LTV norms.
The outlook signals a resilient credit ecosystem for FY26, with banks stabilising and NBFCs expanding, though small-ticket and unsecured segments remain pressure points to watch.
2.4 Crisil and AMFI are jointly crafting a market-making framework for AA to BBB corporate bonds
- Finance Ministry’s DEA explores government-backed and private-capital models to revive liquidity in sub-AAA debt.
- By ensuring continuous quotes, better spread management, and regulatory safeguards, the initiative aims to unlock trading in high-yield papers
- It is likely to expand funding access for MSMEs, NBFCs, HFCs and startups, and bring long-missing transparency and depth to India’s corporate bond market—potentially transforming a segment long constrained by thin liquidity and limited investor confidence.
If executed well, this framework could be the long-awaited catalyst that pulls India’s corporate bond market beyond its AAA comfort zone and into true depth and dynamism.
2.5 Key highlights from RBI’s State of Economy report in its monthly bulletin
- Resilient domestic cycle amid external risks; global equity valuations stretched, export demand weak, making India vulnerable to external risk-off shocks.
- Broad-based recovery across rural, urban, goods, and services; festive spending and GST cuts amplify cyclical momentum.
- Early-stage private capex upturn; strong industrial activity, infrastructure, MSME, and engineering credit growth signalling capacity creation.
- Structural growth supported by policy; triple-digit bank credit expansion, record renewable capacity additions, EV registrations hitting new highs.
- Record trade deficit but strong FX reserves (~US$693bn) and low rupee volatility; external risk manageable for now.
India’s domestic economy is firing on all cylinders, supported by policy and investment momentum, while external vulnerabilities, selective demand patterns, and evolving capital dynamics warrant careful monitoring.
2.6 Contentious but pragmatic decision by Supreme Court last week
On 19 November 2025, the Supreme Court agreed to quash all such criminal and civil actions once the promoters deposit a ₹5,100-crore full-and-final settlement with lenders by 17 December, to be placed in short-term interest-bearing deposits and distributed to banks.
The Sandesara group is accused of a multi-bank fraud and laundering over ₹5,300 crore borrowed from a consortium of Indian banks, leading to parallel actions by CBI, ED, SFIO, Income Tax, and proceedings under PMLA, Companies Act, Black Money and Fugitive Economic Offenders laws.
Key Implications
- Signals a judicial preference for swift recovery of public money over extended prosecution in cross-border frauds, especially where foreign asset recovery is uncertain and the government and lenders back a substantial settlement.
- Likely to encourage court-supervised, large-value settlements in other major defaults where insolvency or overseas enforcement is slow or ineffective.
- Despite being labelled fact-specific and non-precedential, it risks creating a perceived “pay-and-walk” pathway for fugitives and serious economic offenders, weakening deterrence and raising moral-hazard concerns around PMLA/FEO regimes.
Overall, the ruling underscores a growing shift toward pragmatic recoveries but risks diluting deterrence by signalling that large settlements may increasingly substitute for accountability.
# 3 SEBI
3.1 SEBI last week
- proposed a strict disclosure rule requiring all regulated financial entities to display their name and registration number on their social media homepages and every post
- aimed to curb the surge of misleading online investment content.
- The framework bans regulated players from making deceptive claims, assuring returns, citing past performance without approval, or associating with unregistered advisors—intended to boost transparency amid rising finfluencer influence, where 62% of retail investors now rely on them.
The proposal signals Sebi’s intent to restore trust and accountability in an ecosystem increasingly shaped—and distorted—by unregulated digital influence.
3.2 SEBI’ Primary Market Advisory Committee (PMAC) is considering revision in identification of promoters for IPO-bound companies, shifting focus from shareholding to actual control and influence.
- Companies will need to clearly justify the basis for identifying promoters in draft offer documents, addressing rising cases where individuals are labelled promoters despite lacking control—especially in PE-controlled, new-age firms.
- PMAC proposes that reclassification rules for promoters should not apply to companies preparing for listing, closing loopholes used for cosmetic promoter disclosures.
- IPO-bound firms must disclose significant beneficial owners (true ultimate controllers) and explain why they are not classified as promoters, including attestation that no indirect or side-agreement control exists.
- Investment bankers’ current discretion in identifying promoters would be reduced through a clarified framework.
- The committee recommends scrapping the current 15% voting-right threshold for determining control; instead, “control” should be aligned with Sebi’s takeover regulations, emphasizing real decision-making power.
The proposed reforms aim to restore authenticity in IPO disclosures by aligning promoter identification with true control, strengthening investor trust.
3.3 SEBI issued a circular last week introducing additional incentives to mutual fund distributors for onboarding new investors.
- Additional commission is allowed for:
- New individual investors from B‑30 cities (beyond top 30 cities).
- New women investors from both top 30 cities and B‑30 cities.
- ETFs, domestic FoFs with >80% AUM in Indian funds, and short-duration schemes (overnight, liquid, ultra-short, low-duration) are exempted from additional commission.
Encourages distributors to expand outreach to smaller towns and women investors, supporting financial inclusion.Reduces misuse risk compared to the earlier B‑30 framework, as incentives are now more structured and capped.
3.4 SEBI last week amended MF regulations, to treat investments in REITs by mutual funds and Specialised Investment Funds (SIFs) as equity-related instruments from 1 January 2026.
- Any new investment by MFs and SIFs in REITs will be treated as an investment in equity-related instruments.
- InvITs continue to be treated as hybrid instruments for MFs and SIFs.
Encourages long-term institutional participation in REITs, potentially improving liquidity and pricing. Debt schemes are expected to gradually divest REIT holdings over time, which may lead to some near-term selling pressure in REIT units
3.5 SEBI plans to overhaul Basic Securities Demat Account [BSDA] norms to make them more inclusive and reflective of true realizable portfolio value for small and first-time investors.
- Over 13 million BSDA accounts exist with holdings under ₹4 lakh (NSDL, Feb 2025) which has zero AMC. Conversion to full service demat is required above ₹10 lakh.
What Sebi Has Proposed
- Exclude Zero Coupon Zero Principal bonds entirely from BSDA valuation—treated as social contributions, not investments.
- Exclude delisted securities from valuation (like currently suspended ones).
- Illiquid securities to continue being valued at their last closing price.
- Automatic conversion to BSDA when investors qualify; default BSDA opening unless investor explicitly chooses a regular account.
A sharper, more practical BSDA framework aligns costs with true investor portfolios—removing friction and nudging India’s equity market participation deeper into the mass retail segment. Help avoid unnecessary upgrade to higher cost accounts.
# 4 Economy
4.1 Govt. released India Q2 FY26 GDP data on Friday
- Real GDP grew 8.2% in Q2 FY26 (vs 5.6% last year, 7.8% in Q1), beating RBI’s 7% estimate and economists’ 7.2% median forecast.
- Nominal GDP rose 8.7%, mirroring real growth due to record-low inflation.
- Real GVA grew 8.1%, led by manufacturing (9.1%), construction (7.2%), and services (9.2%).
- Financial, real estate & professional services posted a robust 10.2%.
- Agriculture (3.5%) lagged, keeping the Primary sector subdued.
- Consumption Up – PFCE up 7.9%, aided by low inflation and festive demand.
- Capex up – GFCF up 7.3%, supported by public capex (Centre +31% in Q2).
- Overall, demand shows broad-based consumption, resilient investment, and supportive government spending.
- Near-zero inflation means nominal ≈ real growth, amplifying headline numbers.
- Minimal GDP–GVA divergence indicates limited tax/subsidy distortions this quarter.
Q2’s 8.2% print reinforces that India has entered a high-growth, low-inflation phase powered by manufacturing and services—even if this strength pushes out expectations of early rate cuts.
4.2 CRISIL in its report released on Saturday
- Revised India’s FY26 GDP growth forecast upward to 7% from 6.5%, driven by a stronger-than-expected 8% expansion in the first half, including 8.2% in Q2.
- Real growth outpaced nominal GDP, which moderated to 8.7% due to easing inflation.
- CRISIL expects growth to soften to 6.1% in the second half as higher US tariffs begin to weigh on activity.
- Private consumption remains the key engine, supported by lower food inflation, GST rate rationalisation, reduced income tax, and RBI’s repo-linked interest rate cuts.
- Manufacturing and services have also seen robust supply-side expansion.
Overall, CRISIL sees India’s growth momentum remaining resilient, with consumption strength and easing inflation offsetting emerging external headwinds.
# 5 PE/VC
5.1 As per data released last week,
- India’s PE/VC ecosystem saw about USD 5.3 billion of investments across ~100 deals in October 2025.
- Financial services dominated with ~USD 2.9 billion of investments; e‑commerce and technology ~USD 0.7 billion and a smaller share respectively,
- PIPE deals were the largest at about USD 2.1 billion (roughly a tenfold, ~981% YoY jump), followed by start‑up investments of about USD 2.0 billion (up about 175% YoY).
- PE/VC exits in October 2025 were around USD 640 million across 14 deals, down about 43% YoY and significantly lower than the recent run‑rate, indicating a weak exit environment for the month.
- Calendar‑year 2025 PE‑VC investment value (ex‑real estate) is likely to hover around the prior year’s USD 32–33 billion, with global investors selective and focused on follow‑ons into existing portfolios.