The Reserve Bank of India (RBI) is extending its regulatory reach to offshore rupee derivative markets. Authorized dealers, banks permitted to handle foreign exchange, must now report over-the-counter (OTC) FX contracts to the RBI. This covers both deliverable contracts, where actual currency changes hands, and non-deliverable forwards (NDFs), which are settled in dollars without physical rupee exchange. NDFs are widely used offshore to bet on or hedge the rupee's direction. The RBI's core concern is price discovery, how the rupee's exchange rate gets set. Offshore NDF markets have long influenced onshore rupee rates, sometimes amplifying swings that Indian regulators cannot directly control. Bringing these trades into a reporting framework gives the RBI visibility into positions and flows it previously could not see. Implementation will roll out in phases starting July 2027, giving banks time to build the necessary reporting infrastructure. The immediate compliance burden falls on authorized dealer banks active in FX markets. Watch for whether greater transparency in offshore positioning reduces sharp rupee moves during periods of global stress.
India's Expenditure Finance Committee has cleared a Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0, up 64 percent from ISM 1.0's Rs 76,000 crore. The proposal now goes to the Cabinet, as two chip plants begin commercial output and a third, CG Semi, is set to open July 4, 2026.
The Supreme Court blocked Trump from firing Federal Reserve board member Lisa Cook, preserving the Fed's independence from presidential removal power. A separate ruling the same day gave Trump broader authority to dismiss leaders of other independent federal agencies.
The US Supreme Court has blocked President Trump's attempt to fire Federal Reserve governor Lisa Cook, who faced unproven mortgage fraud allegations. The ruling preserves Fed independence for now and keeps a politically charged removal case alive in the courts.
The US Supreme Court, splitting along ideological lines, has allowed the Trump administration to end Temporary Protected Status for Haitian and Syrian immigrants.
