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Informist, Monday, Dec. 22, 2025

 

--Shriram Fin source: Arm plans to re-apply to RBI for PD licence by mid-Jan 

--CONTEXT: RBI rejected Shriram Finance arm's PD licence application in Aug

--Shriram Fin source:Arm to begin PD ops Apr-Jun if RBI approves application

 

By Aaryan Khanna and Sagar Sen

 

NEW DELHI – A wholly owned subsidiary of Shriram Finance Ltd. plans to reapply for a primary dealer licence by mid-January after its initial application was rejected by the Reserve Bank of India, according to a company official aware of the matter. Once the approvals are in place, the subsidiary aims to begin primary dealer operations in the June quarter, the official said.

 

The non-banking finance company's wholly owned subsidiary Shriram Overseas Investments Pvt. Ltd. had applied to be a primary dealer in May, but the RBI rejected the application in August. Shriram Finance had bought Shriram Overseas earlier in the year to apply for the primary dealer licence. The company had said in its annual report that it had a "significant opportunity" to access the fixed income market with the licence.  More

 

A primary dealership's business is to be a market maker in the fixed income market. Its revenue primarily comes from gains or losses in securities as well as fees for providing access to the fixed income and foreign exchange markets.

 

The central bank has been selective in allowing new primary dealers who underwrite the government's borrowing programme. Only seven standalone primary dealerships are recognised by the RBI. The other 14 primary dealers are integrated into the treasuries of commercial banks. There has been no addition to the list since April 2020.

 

Shriram Finance had reported a net profit of INR 23.07 billion for the September quarter on a total income of INR 119.17 billion. Monday, its shares ended 3.7% higher at INR 934.85 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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