Page 19 - Banking Finance February 2026

ROUNDUP

the investor remains invested for at
least one year. China posts world-record $1.2 trillion trade surplus
in 2025
The additional incentive will be funded
from the 2 basis points already ear- China ended 2025 with a trade surplus of about $1.2 trillion, the largest
marked for investor education and will ever recorded by any country, underscoring the resilience of its export-led
be paid over and above existing trail growth despite higher US tariffs. Customs data showed exports rose 6.6 per
commissions. However, Sebi has clari- cent year-on-year in December, the fastest pace in three months and well
fied that dual incentives will not be above market expectations of around 3 per cent. Imports also exceeded
permitted for the same woman inves- forecasts, increasing 5.7 per cent during the month.
tor from B-30 cities. As a result, China posted a December trade surplus of $114 billion, the high-

The incentive will not apply to ETFs, est in six months and among the strongest monthly readings on record. For
certain fund-of-funds, or very short- the full year, the surplus expanded nearly 20 per cent over 2024 levels, cross-
duration schemes. The extension is ing the trillion-dollar mark even before December.
expected to give AMCs and distributors The data highlights the speed with which Chinese exporters have adjusted
more time to align systems and pro- to external pressures. Monthly trade surpluses exceeded $100 billion on
cesses for smooth implementation. seven occasions in 2025, compared with just once in the previous year. Ex-
port growth remained robust even as shipments to the US weakened, re-
Export incentives ex- flecting China's success in diversifying markets across Asia, the Middle East
tended to postal ship- and emerging economies, helping sustain trade dominance despite a chal-
lenging global environment.
ments from January 15
Export incentive schemes such as duty
drawback, Remission of Duties and merce sellers due to their wide reach Applicants seeking registration after
Taxes on Exported Products (RoDTEP) and relatively lower logistics costs. the effective date must meet en-
and Rebate of State and Central Taxes By enabling incentives for postal ship- hanced requirements upfront, while
and Levies (RoSCTL) will now be avail- ments, the government hopes to un- existing entities have been given tran-
able for postal shipments from January lock new export opportunities, expand sition time until January 2028. For Cat-
15, the Central Board of Indirect Taxes formal participation in international egory I merchant bankers, minimum
and Customs (CBIC) said. The move is trade and strengthen India's position in net worth will increase to Rs. 25 crore
expected to significantly benefit micro, the global e-commerce ecosystem, by January 2027 and further to Rs. 50
small and medium enterprises while leveraging the extensive network crore by January 2028, with propor-
(MSMEs), particularly those based in of the postal system. tionate liquid net worth thresholds.
smaller towns and remote regions. Category II merchant bankers will face
lower, but progressively rising, capital
According to the finance ministry, ex- SEBI sets phased compli-
tending export incentives to postal ex- requirements over the same period.
ports will create a level-playing field for ance timeline for tighter SEBI has also capped underwriting ex-
exporters using the postal channel and merchant banker norms posure at 20 times a merchant
support the growth of cross-border e- The Securities and Exchange Board of banker's liquid net worth and clearly
commerce. Until now, exporters using India has laid out phased timelines for defined liquid assets eligible for com-
courier or cargo channels had greater compliance with its revised merchant putation. Governance norms have
access to incentive schemes, while banker regulations, which introduce been tightened, including mandatory
postal exporters faced limitations. higher capital adequacy, liquid net appointment of an independent com-
The measure is aimed at improving worth, underwriting limits and stricter pliance officer by April 2026.
competitiveness of small exporters by governance standards. The new frame- In addition, merchant bankers must
lowering costs and simplifying access to work comes into effect from January 3, generate minimum cumulative rev-
incentives. Postal exports are increas- 2026, and applies to both new and enue from permitted activities over
ingly being used by MSMEs and e-com- existing merchant bankers. three years, failing which registration

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