Current Affairs - Finance

State Bank of India (SBI) has approved the divestment of a 6.3% stake, equivalent to 3.2 crore shares, in its subsidiary SBI Funds Management Ltd (SBIFML) via an Initial Public Offering (IPO). Additionally, its co-promoter, Amundi India Holding, will sell 3.7%, making the total IPO size 10% of equity. This move aims to unlock value and prepare SBIFML for its public listing in 2026, marking it as SBI’s third listed subsidiary after SBI Cards and SBI Life Insurance.

The Securities and Exchange Board of India (SEBI) has proposed an overhaul of the mutual fund fee framework to promote transparency, fairness, and investor protection. The consultation paper suggests that taxes and government levies such as STT, GST, and stamp duty be excluded from the Total Expense Ratio (TER) and charged separately to investors. It also proposes removing the additional 5 basis points expense for Asset Management Companies (AMCs) on Assets Under Management (AUM). These reforms aim to simplify cost structures, improve investor clarity, and ensure better governance in India’s mutual fund industry.

Japan has introduced the world’s first yen-pegged stablecoin, JPYC, on October 27, 2025, through Tokyo-based startup JPYC Inc. Fully backed by Japanese yen and government bonds, the stablecoin aims to enhance digital payments and global financial interoperability while maintaining a 1:1 value with the yen. This move positions Japan as a pioneer in digital currency innovation, breaking the dominance of U.S. dollar-backed stablecoins. By promoting low-cost, fast, and secure transactions, Japan’s initiative reflects its broader goal of integrating fintech advancements with monetary stability and economic modernization in the Asia-Pacific region.

The Employees’ Provident Fund Organisation (EPFO) has implemented a landmark reform allowing subscribers to withdraw 100% of their Provident Fund (PF) balance. This decision, approved under the leadership of Union Labour Minister Mansukh Mandaviya, benefits over 7 crore members across India. The reform enhances financial flexibility for workers, simplifies withdrawal procedures, and minimises bureaucratic hurdles. By enabling full access to PF savings, the initiative supports individuals in managing urgent financial needs, encourages transparency, and aligns with the government’s broader goal of improving ease of living for employees in both organised and unorganised sectors.

The 6th Global Fintech Fest (GFF) 2025 was inaugurated at the Jio World Centre in Mumbai, marking one of the largest gatherings of global financial innovators and leaders. The three-day event, themed “Empowering Finance for a Better World Powered by AI,” focuses on fostering collaboration among regulators, fintech companies, and investors. It aims to drive innovation, explore emerging technologies in finance, and discuss strategies for inclusive financial growth. Hosting the event in Mumbai, India’s financial capital, underscores the city’s strategic importance in fintech development and global financial connectivity.