RBI Grade B Current Affairs — 10 November 2026

Veritas Finance, a Chennai-based NBFC backed by Norwest Venture Partners and Kedaara Capital, has received SEBI's observation letter — effectively its approval — to proceed with an initial public offering. The company focuses on micro and small enterprise lending. SEBI's nod follows its standard review of the draft red herring prospectus. The IPO will include both a fresh issue and an offer for sale by existing shareholders, allowing venture capital backers to partially exit their holdings.

When a company wishes to list its shares on a stock exchange through an IPO, it must file a Draft Red Herring Prospectus (DRHP) with SEBI. SEBI then reviews the document for disclosures, compliance, and investor protection norms under the ICDR (Issue of Capital and Disclosure Requirements) Regulations, 2018. SEBI's 'observation letter' — issued typically within 30 days of a valid DRHP filing — is colloquially called 'SEBI approval' but is more precisely an observation that the company may proceed. It is not an endorsement of the company's fundamentals.

For an NBFC like Veritas Finance, the IPO structure typically includes a fresh issue component (which raises new capital for the company) and an offer for sale (OFS) component (where existing investors sell their shares). The OFS allows PE/VC backers like Norwest Venture Partners and Kedaara Capital to liquidate part of their stake.

SEBI's ICDR Regulations govern the entire IPO process — eligibility norms, lock-in periods, pricing, allotment, and listing timelines. NBFCs going public also need to comply with RBI's regulations on public shareholding and must maintain minimum net worth requirements. The intersection of SEBI's capital market jurisdiction and RBI's NBFC supervision makes such listings particularly exam-relevant for both SEBI Grade A and RBI Grade B aspirants.

SEBI has approved the draft red herring prospectus for MakeMyTrip India, the domestic arm of the Nasdaq-listed MakeMyTrip group, clearing the way for its Indian stock market debut. The proposed IPO involves listing the India-incorporated entity separately from its Mauritius-based parent, which trades on Nasdaq. The structure allows Indian retail investors to participate in the travel platform's growth, while the parent retains its US listing. SEBI's observation letter grants regulatory clearance for the offer to proceed.

This event sits at the intersection of two important capital market concepts: the IPO approval process and the structural complexity of dual-listed corporate groups.

SEBI's Role in IPO Approval: Under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), any company seeking a public issue of securities in India must file a Draft Red Herring Prospectus (DRHP) with SEBI. SEBI reviews the document for disclosures, pricing justification, use of proceeds, and related-party risks. SEBI issues an 'observation letter' — not an 'approval' in the strict sense — meaning it has no objections to the offer proceeding. This distinction is exam-relevant: SEBI does not guarantee the financial soundness of the issue.

The Structural Angle: MakeMyTrip Ltd (the parent) is incorporated in Mauritius and listed on Nasdaq. MakeMyTrip India Pvt. Ltd is the operational subsidiary domiciled in India. By listing the India arm separately via an IPO, the group creates a domestically listed entity that complies with Indian disclosure norms and allows FPIs, domestic institutions, and retail investors to hold Indian-domiciled shares. This is a common structure for tech companies that originally listed abroad to access global capital but now seek Indian capital market depth.

For SEBI aspirants, the key regulatory framework is the ICDR Regulations, 2018. For RBI Grade B aspirants, the significance lies in capital market regulation, investor protection norms, and the role of SEBI as the primary market regulator. UPSC aspirants should note SEBI's quasi-judicial, quasi-legislative, and executive functions.

The Union Cabinet approved Pradhan Mantri Viksit Gram Swaraj Yojana as a Centrally Sponsored Scheme covering the period 2026-27 to 2030-31. Announced on 28 October 2026, the scheme targets strengthening rural governance and village-level development aligned with the Viksit Bharat vision. It represents a structured five-year commitment to gram panchayat empowerment, extending the Centre's focus on decentralised rural planning, infrastructure, and service delivery across India's villages.

Pradhan Mantri Viksit Gram Swaraj Yojana (PM-VGSY) is a Centrally Sponsored Scheme (CSS), meaning costs are shared between the Centre and states in a defined ratio, unlike Central Sector Schemes funded entirely by the Centre. This distinction is a frequent examiner test point.

The scheme fits within India's broader Viksit Bharat 2047 framework, which aims at transforming India into a developed nation by its centenary of independence. At the village level, this connects to Constitutional provisions under Part IX (Panchayati Raj, Articles 243–243O), particularly the 73rd Amendment's mandate for gram panchayats to plan and implement schemes for economic development.

For NABARD and RBI aspirants, the rural finance angle is critical: strengthened gram panchayats improve last-mile credit delivery, priority sector lending outcomes, and self-help group linkages. NABARD's Rural Infrastructure Development Fund (RIDF) and its gram panchayat credit linkage programmes operate more effectively when local governance is robust.

For UPSC aspirants, the scheme tests understanding of Centre-state fiscal federalism, the role of the Finance Commission in devolution, and the difference between tied and untied grants to panchayats. The five-year tenure (2026-27 to 2030-31) aligns with post-16th Finance Commission planning horizons, making it a live governance case study in decentralisation.

Environmental Finance's Sustainable Bonds Insight 2026 report maps global trends in green, social, sustainability, and sustainability-linked (GSSS) bonds. The free report uses infographics and data to track issuance patterns, sectoral shifts, and regulatory developments across the GSSS market. For Indian aspirants, it anchors concepts directly tested in exams: how labelled bonds are classified, who issues them, and how frameworks like SEBI's green bond guidelines and RBI's green finance circulars interact with international standards set by ICMA.

GSSS bonds are debt instruments whose proceeds or structural features are tied to environmental or social objectives. Each category has a distinct definition under the International Capital Market Association (ICMA) framework:

• Green bonds: proceeds exclusively for climate or environmental projects (renewable energy, clean transport, water management).
• Social bonds: proceeds for projects with positive social outcomes (affordable housing, healthcare, food security).
• Sustainability bonds: proceeds split between green and social projects.
• Sustainability-linked bonds (SLBs): structurally linked to the issuer's ESG performance targets (KPIs); proceeds are general-purpose but the coupon adjusts if targets are missed.

The critical distinction examiners exploit: green/social/sustainability bonds are use-of-proceeds instruments, while SLBs are KPI-linked instruments — a frequent statement-based trap.

In India, SEBI issued a framework for green bonds in 2023, aligning with ICMA principles and requiring listing on recognised exchanges. RBI has encouraged banks to issue green bonds and integrate climate risk into their supervisory frameworks. NABARD operates the National Adaptation Fund for Climate Change (NAFCC) and issues green bonds to fund rural climate-resilient infrastructure.

The global GSSS market has grown to exceed $5 trillion in cumulative issuance. Sovereign green bonds have become a key instrument — India issued its first Sovereign Green Bond in January 2023, raising ₹8,000 crore, with proceeds earmarked for the Green Finance Framework sectors.

For exam purposes: know the ICMA taxonomy, the difference between use-of-proceeds vs KPI-linked structures, India's sovereign green bond timeline, and SEBI/RBI roles.