The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence RBI Policy Decoded The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason The RBI raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. With the rupee at ₹96.78 to the dollar, the Fed at 3.75–4.00 percent and bank credit growing near 18 percent, the fuller story is bigger than August CPI of 4.8 percent. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. It is the first hike since February 2023, and the stance has moved from neutral to calibrated tightening. The rate decision was unanimous. The Governor cited inflation. The Monetary Policy Committee said the inflation outlook is no longer as comfortable as it was last year, and near-term rate cuts were taken off the table. That is the official story, and it is not wrong. But it is incomplete. Look at what surrounds the decision: a rupee near its record...
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Sebi pitches for tax benefits on REITs, infrastructure bonds
New Delhi, Saturday, June 21, 2014: To give a boost to capital markets, regulator Sebi has asked the government to provide clarity on tax benefits for new products like REITs (Real Estate Investment Trusts), as also for Infrastructure Investment Trusts and for debt securities.

"Sebi will soon finalise norms for REITs, but is awaiting clarity on taxation issues," the Securities and Exchange Board of India (Sebi) Chairman U K Sinha said here today, while adding that the regulator wants such trusts to get tax pass- through status.

Besides, Sebi is also close to framing new rules for Infrastructure Investment Trusts but there needs to be clarity on withholding taxation issues for such products, Sinha said.

These new products would allow investors to invest in specific products linked to real estate projects and infrastructure projects, while providing necessary safeguards. Besides, these products would also help the corporates raise significant amounts of capital for their projects.

Speaking at a conference here, Sinha said that there are "certain anomalies in withholding tax on debt securities" and he hopes that the government would soon provide a clarity and also provide the tax pass-through status to REITs.

He said that REITs have been a significant vehicle for global investors and Indian markets can also soon tap this opportunity, as Sebi was ready with guidelines that would be announced immediately after tax clarity from the government.

About the need to expand corporate bond markets, Sinha said that necessary infrastructure for this was already in place and the related regulations have been simplified.

"I believe that an emerging market like India must focus on development of the market. The Sebi Act mandate is to work for growth of the market," Sinha said.

The Sebi Chairman further said that there was a need to work on increasing the base of corporate bonds.

Sinha also stressed on the need to encourage SMEs (Small and Medium Enterprises) to get listed and get benefited from the capital markets. Currently, the listed SME market capitalisation in India stands at over Rs 7,500 crore, while 65 companies have got listed on SME Platform of exchanges.

"We have identified certain SME clusters to encourage listing. The government and Sebi are trying to help SMEs raise capital from the markets," he said.

About the new regulations, Sinha said that Sebi would soon put in place norms for crowdfunding, which would allow start- ups to tap new platforms to raise funds.

Besides, there are already norms in place for Alternative Investment Funds (AIFs), such as venture capital and angel investors. 

Courtesy: Zee News India

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