BlackRock, BofA seek netting, SLB reforms

THE WORLD'S LARGEST asset manager, BlackRock, with $12.5 trillion in assets, has sought financial netting in Indian equity markets, while the top India executive of Bank of America said there is a need for reforms in securities lending and borrowing (SLB).

- NESIL STANEY

Securities and Exchange Board of India (Sebi) executives said they will consider both the issues.

Aparna Thyagarajan, chief general manager at Sebi, in a public discussion last week, sought opinions on global best practices to be introduced to onboard more foreign portfolio investors (FPIs).

Simon Williams, MD at BlackRock Asset Management North Asia, said: “FPIs and their custodians need fair, flexible tules and efficiencies.”

Financial netting is one of the most efficient methods available in developed markets. If introduced to FPIs, it will make Indian markets more attractive to foreign funds, he said.