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SIDDHARTH MEHTA,
FOUNDER, AND CIO OF BAY
CAPITAL
“GIVES HIS OPINION ON RBI'S STATEMENT 'DOING WHATEVER IT TAKES”
• The announcementsbythe FinanceMinister yesterdaycoupled withthe announcementsfromthe RBItoday
shouldprovidealot ofrelief in the faceofthe unprecedentedsituationthatthe economyandfinancialmarkets
facetoday.
• The specific announcementsareextremelypositiveandaddressabroadrange ofissues.TheCRR,Reporate,and
otheradjustmentsaddresstheliquidityside oftheequation.
BAYCAPITAL FOUNDER& CIO,SIDDHARTHMEHTA
saidthatthe moratoriumonall term loansandrelief oninterest onworkingcapitaladdressestheliquiditychallenges andthenew TLTROprovides for
aRs1 lakhcrorefacilitywherebybanksavailing ofthis havetoin turnusethattoinvestin CP'sandotherinstruments(and will beclassified asHTM),
the liquidityforwhich hascompletely driedup.
N
D
F
M
A
R
K
E
T
All in all,theseare extremely positivemeasuresand together withrecent
announcementsadd up toaninjection of approximately $50 billion of
liquidity. More thananythingelse, thecommentary fromthe Governor
about 'doing whatittakes' echoes thecommentsfrom thepolicymakers
globally. Otherregulatory adjustmentsand participation of select banksin
theoffshore NDFmarketare alsoextremely positive, Siddharthadded
further.
Speakingonthe Government ofIndia'smeasures,SidMehta,BayCapitalemphasizedthatalthoughthehealthsideof theepidemic relating tothe
containmentofthe virus will be extremelyimportant,in theseuncertainandchallenging times, thesemeasuresareextremely welcome and
shouldbeviewed extremelypositively. Moreover, peopleshouldhavecompleteconfidencethatpolicymakersin India standreadyto act
proactively,asrequired,to mitigateanyadverseeffectsthatmayemerge over time.
Bay Capital Partners is a leading independent India-focused investment manager
established in 2006.Bay Capital invests in publicly tradedsecurities in India and
aims todeliver consistent compounding risk-adjusted returns by investing in a
concentrated portfolio of businesses that are market leaders with moats incredibly
difficult tobreach. Bay Capital believes in an ‘equityyield curve’ where returns
increase with time. Bay Capital investors include large global endowments,
foundations, family offices, and pension funds.

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Siddharth Mehta Bay Capital Founder And CIO Gives his Opinion on RBI's Statement 'Doing Whatever it Takes'.

  • 1. SIDDHARTH MEHTA, FOUNDER, AND CIO OF BAY CAPITAL “GIVES HIS OPINION ON RBI'S STATEMENT 'DOING WHATEVER IT TAKES”
  • 2. • The announcementsbythe FinanceMinister yesterdaycoupled withthe announcementsfromthe RBItoday shouldprovidealot ofrelief in the faceofthe unprecedentedsituationthatthe economyandfinancialmarkets facetoday. • The specific announcementsareextremelypositiveandaddressabroadrange ofissues.TheCRR,Reporate,and otheradjustmentsaddresstheliquidityside oftheequation.
  • 3. BAYCAPITAL FOUNDER& CIO,SIDDHARTHMEHTA saidthatthe moratoriumonall term loansandrelief oninterest onworkingcapitaladdressestheliquiditychallenges andthenew TLTROprovides for aRs1 lakhcrorefacilitywherebybanksavailing ofthis havetoin turnusethattoinvestin CP'sandotherinstruments(and will beclassified asHTM), the liquidityforwhich hascompletely driedup.
  • 4. N D F M A R K E T All in all,theseare extremely positivemeasuresand together withrecent announcementsadd up toaninjection of approximately $50 billion of liquidity. More thananythingelse, thecommentary fromthe Governor about 'doing whatittakes' echoes thecommentsfrom thepolicymakers globally. Otherregulatory adjustmentsand participation of select banksin theoffshore NDFmarketare alsoextremely positive, Siddharthadded further.
  • 5. Speakingonthe Government ofIndia'smeasures,SidMehta,BayCapitalemphasizedthatalthoughthehealthsideof theepidemic relating tothe containmentofthe virus will be extremelyimportant,in theseuncertainandchallenging times, thesemeasuresareextremely welcome and shouldbeviewed extremelypositively. Moreover, peopleshouldhavecompleteconfidencethatpolicymakersin India standreadyto act proactively,asrequired,to mitigateanyadverseeffectsthatmayemerge over time.
  • 6. Bay Capital Partners is a leading independent India-focused investment manager established in 2006.Bay Capital invests in publicly tradedsecurities in India and aims todeliver consistent compounding risk-adjusted returns by investing in a concentrated portfolio of businesses that are market leaders with moats incredibly difficult tobreach. Bay Capital believes in an ‘equityyield curve’ where returns increase with time. Bay Capital investors include large global endowments, foundations, family offices, and pension funds.