Revised Guidelines on KYC & Anti-Money Laundering Measures for HFCs

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Aadhaar Ordinance – Paving way for use of voluntary Aadhaar by Private Companies

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By Simran Jalan (simran@vinodkothari.com)

Introduction

Supreme Court in the case of Justice K.S. Puttaswamy (Retd.) & Anr. V. Union of India, W.P. (Civil) 494/2012 dated September 26, 2018[1] (‘Aadhaar Verdict’) partially quashed section 57 of the Aadhaar Act, which dealt with use of Aadhaar by private companies or bodies corporate. Pursuant to the Aadhaar verdict, the private entities were not allowed to demand Aadhaar for establishing identity unless the same is pursuant to any law.

Consequently, it was proposed to amend the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (‘Aadhaar Act’), Indian Telegraph Act, 1885 and the Prevention of Money Laundering Act, 2002 (‘PML Act’) in line with the Supreme Court directives. In order to ensure that personal data of Aadhaar holder remains protected against any misuse and Aadhaar scheme remains in conformity with the Constitution, the Aadhaar and Other Laws (Amendment) Ordinance, 2019[2] (Ordinance) was passed.

In this write-up we intend to discuss the outcome of the Ordinance.

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Simultaneous Claim by a Beneficiary of Guarantee

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By Richa Saraf (resolution@vinodkothari.com)

Introduction

In a recent case of Dr. Vishnu Kumar Agarwal v. M/s. Piramal Enterprises Ltd.[1] Company Appeal (AT) (Insolvency) No. 346 of 2018, the NCLAT has held that an application for initiation of corporate insolvency resolution process for same very claim/debt is not permissible. Now, consider a situation where Company A (guarantor) has guaranteed the loans given to Company B (principal debtor). When Company B defaulted in payment, the creditor issued a notice to Company A invoking the corporate guarantee, however, even Company A failed to make the payment. If Company A and Company B both are undergoing insolvency proceedings (whether corporate insolvency resolution process or liquidation), can the creditor who has already filed its claim for the entire debt due with the IRP/ Liquidator of Company A, also file its claim with the IRP/ Liquidator of the Company B for the entire debt due? Read more →

Press Release: Central Bank of Nigeria appoints Vinod Kothari Consultants for review and drafting of law on securitisation

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The Central Bank of Nigeria (CBN), apex banking authority of the Nigeria, has appointed Vinod Kothari Consultants Pvt. Ltd. (VKC) for review and drafting their domestic law to govern securitisation transactions. The initiative by the apex authority is a part of their Financial System Strategy 2020.

VKC is expected to facilitate enactment of the legislation and regulatory framework for deployment of Asset Backed Securities in banking and capital markets in Nigeria.

VKC has more than two decades of experience in structured finance in and outside India. Vinod Kothari, Director of the firm, is internationally recognised as a trainer, consultant and author on structured finance. In the past, VKC was appointed by the regulatory authorities of Sri Lanka and South Africa to assist them in drafting their law on securitisation.

Vinod Kothari quoted:

Nigeria is rich in natural resources, and is, therefore, a potential issue of future flows based securities. Additionally, the country is an emerging economic force, and therefore, needs to have world-class infrastructure of financial laws in place. In light of this, it is so heartening to get a chance to contribute to the development of securitisation in Nigeria.