vinod1 Posted February 27 Posted February 27 39 minutes ago, gfp said: I wonder what is holding it up behind the scenes. Somebody in the chain did not get paid.
Dipesh Patel Posted March 4 Posted March 4 Sebi Clears Rs 3,500-Crore IPO for Prem Watsa's Go Digit General Insurance https://bnnbreaking.com/finance-nav/sebi-clears-rs-3500-crore-ipo-for-prem-watsas-go-digit-general-insurance
hardcorevalue Posted March 4 Posted March 4 Fairfax India would be ripping on this but Digit is held at Fairfax Financial!
ICUMD Posted March 4 Posted March 4 Hopefully Anchorage gets the same approval. Now Fairfax has a track record of obtaining IPO clearance in the local market.
valueinvesting101 Posted March 4 Posted March 4 RBI bans IIFL finance from gold loan business due to regulatory violations https://www.vccircle.com/rbibars-fairfax-backed-iifl-finance-from-sanctioning-disbursing-gold-loans
gfp Posted March 4 Posted March 4 9 minutes ago, valueinvesting101 said: RBI bans IIFL finance from gold loan business due to regulatory violations https://www.vccircle.com/rbibars-fairfax-backed-iifl-finance-from-sanctioning-disbursing-gold-loans Like Deja Vu with IIFL securities getting in trouble last year. Glad FIH has sold some IIFL finance shares. We'll see if this one works out like the IIFL securities issues with a slap on the wrist.
valueinvesting101 Posted March 4 Posted March 4 (edited) This one seems more serious than IIFL securities. That one was imposed by SEBI which was related to past misconduct which was overturned on an appeal. RBI action letter is flagging deficiencies about the entire gold loan business workflow. Gold loan is nearly 30% of the loan book. ”Certain material supervisory concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default; breaches in Loan-to-Value ratio; significant disbursal and collection of loan amount in cash far in excess of the statutory limit; non-adherence to the standard auction process; and lack of transparency in charges being levied to customer accounts, etc. These practices, apart from being regulatory violations, also significantly and adversely impact the interest of the customers. Over the last few months, the RBI has been engaging with the senior management and the statutory auditors of the company on these deficiencies; however, no meaningful corrective action has been evidenced so far. This has necessitated the imposition of business restrictions with immediate effect, in the overall interest of customers.” https://m.rbi.org.in//scripts/BS_PressReleaseDisplay.aspx?prid=57444 Edited March 4 by valueinvesting101
Haryana Posted March 6 Posted March 6 IIFL Fin to bring in external gold assayers NBFC searching for a new compliance officer https://www.pressreader.com/india/businessline-delhi-9WVW/20240306/page/1/textview In a call with investors, Nirmal Jain, MD, IIFL Finance, said, “While the direction of the RBI appears to be a bit hard, I take a moment to express our profound gratitude and admiration for the RBI. I want to make it unequivocally clear that there are no governance or ethical issues at play. These are operational and procedural issues which we will address.”
nwoodman Posted March 6 Posted March 6 Not sure what to make of this but the market has whacked them again today. Sounds like it has been ongoing and the RBI has had enough.
glider3834 Posted March 6 Posted March 6 https://www.livemint.com/companies/news/fairfax-india-to-invest-up-to-200-million-liquidity-support-to-iifl-finance-11709705405055.html
valueinvesting101 Posted March 6 Posted March 6 https://www.bseindia.com/xml-data/corpfiling/AttachLive/1d915198-cd20-434b-a2f5-360169c0b09e.pdf Fairfax India Agrees to Invest up to US$200 Million Liquidity Support to IIFL Finance Not much details about the possible investment. It seems IIFL Finance is in damage control mode right now. May need bigger liquidity support than $200 Million
Haryana Posted March 6 Posted March 6 Indian government is rooting out corruption with a vengeance. Overall a positive for the investment environment in India even if IIFL goes to bankruptcy. Not even a dent made in Fairfax India (FIH/FFXDF) as if they had already been priced at zero.
ICUMD Posted March 6 Posted March 6 Interesting that Fairfax India is potentially becoming a lender to a lender, IIFL. Hopefully they manage the risk appropriately.
Haryana Posted March 6 Posted March 6 41 minutes ago, ICUMD said: Interesting that Fairfax India is potentially becoming a lender to a lender, IIFL. Hopefully they manage the risk appropriately. They seem to just provide an assurance of liquidity for now instead of actual cash transfer.
giulio Posted March 6 Posted March 6 3 hours ago, Haryana said: IIFL goes to bankruptcy Do you think that's a risk? Could you explain why? Also, why are you mentioning corruption? I thought this was a lack of control problem. A couple of years ago rbi banned hdfc bank from issuing credit cards. The issue was resolved in 9 months. I am trying to understand the extent of the issue here. Worst case scenario, fih completely misjudged the founder profile which would be bad. Thanks G
nwoodman Posted March 6 Posted March 6 No particular insight but this looks like a “public hanging” to me. Not good, but I can’t see Fairfax stepping with a line of credit if this is more than regulatory violations.
Viking Posted March 6 Posted March 6 (edited) 1 hour ago, nwoodman said: No particular insight but this looks like a “public hanging” to me. Not good, but I can’t see Fairfax stepping with a line of credit if this is more than regulatory violations. I would expect any help that comes from Fairfax India will be structured in a way that is very beneficial to Fairfax India. Perhaps a similar playbook to how Fairfax helped out Thomas Cook India during Covid and John Keells during Sri Lanka’s economic crisis. A couple of years later, both of those incremental investments have worked out very well for Fairfax shareholders. It’s almost like a kind of vulture investing… except in a situation you understand exceptionally well. Fairfax’s ownership in IIFL Finance has come down quite a bit over the past couple of years. Fairfax sold all of their direct ownership position. And in Q4 2023, Fairfax India sold a big chunk of their stake (i think it raised around $150 million). Fairfax also exited their direct holding in sister company IIFL Wealth. And i think Fairfax India has sold down their position quite a bit as well. Edited March 6 by Viking
Haryana Posted March 7 Posted March 7 7 hours ago, giulio said: Do you think that's a risk? Could you explain why? Also, why are you mentioning corruption? I thought this was a lack of control problem. A couple of years ago rbi banned hdfc bank from issuing credit cards. The issue was resolved in 9 months. I am trying to understand the extent of the issue here. Worst case scenario, fih completely misjudged the founder profile which would be bad. Thanks G Forum writings often tend to be easily misunderstood. When it comes to negative news about India, colonial media brainwashed folks are expected to immediately get images of scams and corruption, therefore, I raise the spectre of bankruptcy to ease the concerns in wholesale by asserting that even if the worst of unlikely worst happens, there is nothing to worry about. Actually, the Fairfax India stock is showing a fat sign of a large bottom without any down move on such a negative news.
gfp Posted March 8 Posted March 8 (edited) Who's got the Fairfax India 2023 letter to upload? I can't seem to access it Edited March 8 by gfp
Luke Posted March 8 Posted March 8 3 minutes ago, gfp said: Who's got the Fairfax India 2023 letter to upload? I can't seem to access it Its uploaded in the Fairfax Letter 2023 thread!
gfp Posted March 8 Posted March 8 9 minutes ago, Luca said: Its uploaded in the Fairfax Letter 2023 thread! I'm looking for India, not FFH
gfp Posted March 8 Posted March 8 I finally got it. Fairfax India is having some website issues. This is the full AR not just the letter FIH_-_Annual_Report_2023.pdf
gfp Posted March 13 Posted March 13 https://www.reuters.com/business/finance/indias-iifl-finance-raise-242-mln-via-rights-basis-non-convertible-debentures-2024-03-13/
valueinvesting101 Posted March 14 Posted March 14 I was looking at management of IIFL Finance as listed here: https://www.iifl.com/finance/about-us/leaders. Rupal Jain who is leaving IIFL had 10 years of experience total professional experience after finishing her bachelor's education in 2013-2014. Upcoming Chief compliance officer Mauli Agarwal also has less than 10 years of professional experience as she has finished her education in 2015. It might incorrect equate experience with capability but definitely make me circumspect about their ability to monitor complex operation effectively. I wouldn't be surprised if RBI's regulatory personnel looking down upon younger compliance manager in IIFL purely due to age or may be due to communication gaps. Definitely seems to have less experience than I would have expected for someone as head of compliance. Bio of some of the other leaders in the Gold loan business also seems like they have recently assumed responsibilities for larger operation.
Haryana Posted March 15 Posted March 15 RBI is on a fiery crusade against retail lending exuberance - https://www.businesstoday.in/industry/banks/story/not-waiting-for-house-to-catch-fire-banks-doling-out-home-loan-top-ups-on-rbi-radar-421685-2024-03-15 "The RBI is also setting out regulatory expectations from the industry through its recent supervisory actions, which can act as a guidance for the entire sector," said Anil Gupta, senior vice president and co-group head of financial-sector ratings at ICRA. The RBI has taken a string of measures over the past six months to rein in some retail lending by banks and non-bank financial firms, and publicly warned them against "all forms of exuberance".
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