Archive for month: April, 2017
Overview of Regulatory Framework of Payment and Settlement Systems in India by Anita Baid
/0 Comments/in Payment and Settlement Systems /by adminIntroduction
It has been a while that there has been a buzz around the emerging concept of financial technology (fintech), which seems to be evolving at an unimaginable speed. The technological development taking place globally, have compelled the traditionally cash-driven Indian economy to respond promptly to the fintech opportunities. The modern payment systems have overcome the shortcoming of the traditional mode of cash based payments where handing of cash was the most cumbersome part of all transaction. It is a known fact that the overall economic efficiency and stability of any country is dependent on the payment and settlement system in that country. As a result, the regulators in our country, including the central bank, have also been revisiting their operating model and policies regularly, to ensure and carry out the development of national payment systems. The regulators have to closely safeguard the sanctity of payment systems, primarily from the viewpoint of systemic risk, risk of fraud, etc. Specifically, it is the responsibility of the central bank of any country, that is to say the Reserve Bank of India (RBI) for our country, to ensure and carry out the development of national payment systems.
This article is intended to provide a panoramic view of the schematics of regulation over Indian payment and settlement systems.
Specified Bank Notes: Disclosure as part of Financial Statements by Vallari Dubey
/1 Comment/in Companies Act 2013, Corporate Laws /by adminWhat are Specified Bank Notes (‘SBN’)?
The Central Government on recommendation of the Central Board of Directors of the Reserve Bank of India (‘the Board’) decided to cease bank notes of denomination of value of five hundred rupees and one thousand rupees as legal tender, vide notification S.O. 3407(E)[1] dated Nov 8, 2016, a scheme which is commonly connoted as the ‘the Demonetization Scheme’. As per the notification, such bank notes shall be termed as ‘Specified Bank Notes’.
Increased Capital Requirements for Asset Reconstruction Companies (ARCs) by Kirti Sharma, April 8, 2017
/0 Comments/in SARFAESI /by adminRBI Announcement
With a view to increase more cash based sales of Non-Performing Assets (NPAs), the Reserve Bank of India (RBI) has amended the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 increasing the capital requirement for Asset Reconstruction Companies (ARCs) to 100 crores from 2 crores in the Statement on Developmental and Regulatory Policies issued on 6th April 2017.
Implications
This move of the regulator would raise concern for the smaller ARCs operating in the country to comply with the steep rise in the capital requirement norms.
The final guidelines in this regard shall be issued by the end of April 2017.
Voluntary Liquidation Regulations: Last, but not the Least, by Sikha Bansal
/0 Comments/in Companies Act 2013, Insolvency and Bankruptcy /by adminThe Insolvency and Bankruptcy Board of India, vide Notification No. IBBI/2016-17/GN/REG010 dated March 31, 2017 has issued the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (“the VL Regulations”) pursuant to section 59 of the Insolvency and Bankruptcy Code, 2016 (“the Code”) and has appointed April 1, 2017 as the date on which the VL Regulations shall come into force.
The Ministry of Corporate Affairs vide Notification No. S.O. 1005(E) dated March 30, 2017[1] has notified April 1, 2017 as the date on which the following sections of the Code came into force: Read more →
Checklist on voluntary liquidation of corporate person as per Bankruptcy Code, 2016, by Barsha Dikshit and Deepa Devi
/0 Comments/in Insolvency and Bankruptcy /by adminSteps of Voluntary liquidation of Corporate Person as per Insolvency and Bankruptcy Code, 2016(‘Code’) and Insolvency and Bankruptcy Board of India ( Voluntary Liquidation) Regulations, 2017 (‘liquidation Regulation’)
Consolidation of accounts of Section 8 companies- whether a correct practice?
/3 Comments/in Accounting and Taxation, Companies Act 2013, Corporate Laws /by admin– Vallari Dubey | corplaw@vinodkothari.com
Intent of Consolidation
Consolidation is a combined representation of financials of a company and its subsidiaries, joint ventures and associates. Consolidated Financial Statements (‘CFS’) reflect the aggregate wealth of the holding company. Section 129(3) of the Act, 2013 mandates the preparation of CFS in addition to Standalone Financial Statements (‘SFS’), in case where the company has one or more subsidiaries.
In case of a not-for-profit organization, the need for consolidation does not arise. However, when such organization is registered under Section 8 of the Companies Act, 2013 (‘Act’), and by virtue of an interest in it by some company, the organization becomes a subsidiary of the other company, the question of consolidation arises. With the help of this article, we try and analyze the matter in question.