Brookfield & Blackstone India Investments Reach $20 Bn
<span style="font-weight: 400;">Canada’s Brookfield Asset Management Inc. and New York-based Blackstone Group LP have both reached the $20-billion investment milestone in India, as they continue to take long-term bets on real estate and other sectors. Of the $20 billion that Brookfield has invested
Published -
Jan 7, 2021 4:09 AM
Canada’s Brookfield Asset Management Inc. and New York-based Blackstone Group LP have both reached the $20-billion investment milestone in India, as they continue to take long-term bets on real estate and other sectors. Of the $20 billion that Brookfield has invested in India over the past decade, around $7 billion went into real estate, as the firm placed large bets on acquiring assets of property developers. There are rapid developments in the last few years, which have led to significant increase in size and interconnectedness of the NBFC sector. There is, therefore, a need to review the regulatory framework in line with the changing risk profile of NBFCs, the RBI said. A discussion paper on the framework, which will use NBFC size as the primary filter, will be out by January 15 for comments. Also on the anvil is strengthening of audit systems for urban co-operative banks (UCBs) and NBFCs with risk-based internal audit systems. RBI also plans to harmonize guidelines on appointment of statutory auditors and standardize supervision of UCBs and NBFCs on par with commercial banks. While external statutory auditors remain outside the internal mechanisms of a supervised entity, they are often termed as the fourth line of defense given the vital role they play…it has been decided to harmonize guidelines on appointment of statutory auditors for commercial banks, UCBs and NBFCs. The new guidelines will enable supervised entities (SEs) to appoint audit firms as per their needs in a timely and transparent manner. RBI will also formulate guidelines on dividend distribution by NBFCs. Different categories of NBFCs would be allowed to declare dividends as per a matrix of parameters, subject to a set of generic conditions.