In the dynamic realm of finance, adaptability reigns supreme. Shyam Maheshwari, an esteemed financial expert at SSG Capital, sheds light on the intriguing interplay between regulated financial players and their leveraged counterparts, unveiling the crucial concept of flexibility in the market. Drawing distinctions between banks and non-banking entities, Maheshwari unveils how these players impact the financial landscape.

Regulation vs. Leverage: A Delicate Balance

Mr.Shyam Maheshwari underscores the regulatory might of established players who have long dominated the market. Banks, as regulated entities, play a pivotal role in maintaining stability. On the other side of the spectrum, non-banking institutions operate with leverage, which presents unique challenges. Shyam Maheshwari SSG, observes that these leveraged platforms encounter limitations, a reality that surfaced during events like the Infrastructure Leasing & Financial Services (IL&FS) crisis, revealing vulnerabilities in areas such as Liquidity and Liability Management (LLM) and provisioning norms.

The Dual Facets of Flexibility

Flexibility, as Shyam Maheshwari articulates, unfolds in two dimensions - speed and tailored solutions. He accentuates that these dimensions are particularly pertinent for borrowers seeking diverse financial needs, such as capital formation. Maheshwari points out that traditional financing avenues in India often struggle to accommodate such requirements, creating a gap that demands attention.

Unraveling the Sectoral Landscape

Maheshwari’s insights traverse across various sectors, spotlighting the often-overlooked realms. He spotlights real estate and intangibles as crucial building blocks for the country's progress. With a discerning eye, he highlights that real estate, despite its significance, remains inadequately addressed by the banking sector.

The Burgeoning Need and Its Constraints

In an era marked by rapid growth and innovation, certain sectors experience escalated demand. Maheshwari notes that this demand has surged beyond sectoral expectations, a phenomenon attributed to existing constraints. The banking sector’s challenge lies in maintaining healthy double-digit Marginal Propensity to Lend (MPL) ratios while catering to these mounting needs.

Empowering Creditor Protection and Market Access

Maheshwari discerns positive shifts in the global investment perspective. He acknowledges the Insolvency and Bankruptcy Code (IBC) process, which enhances creditor protection. He notes that the market's access has improved and remains open. Yet, Maheshwari asserts that further strides can be taken to enhance market conditions.

Pathways to Progress: Access and Expansion

Shyam Maheshwari SSG, proposes avenues to advance market dynamics. One such path involves expanding access, which currently mainly benefits foreign participants through External Commercial Borrowings (ECB) in dollar or rupee terms. The bond market, while promising, grapples with its own intricacies. However, Maheshwari is optimistic about recent signs indicating its gradual opening over the last decade.

In summary, Shyam Maheshwari's expert perspectives offer a captivating glimpse into the intricate dance between regulated and leveraged financial players. The concept of flexibility emerges as a pivotal force, shaping solutions tailored to borrowers' unique needs. As India's financial landscape evolves, Maheshwari's insights serve as a compass, guiding us toward a more adaptive and robust future.