Register to our premium section to access the full Report
Updated: Q3, 2022-23
Report Sample
Loading…
– Team Finserv | finserv@vinodkothari.com
Our previous instalment of the report – https://vinodkothari.com/wp-content/uploads/2020/01/India-P2P-report-2019-2020-1.pdf
Our earlier write-up on the topic – https://vinodkothari.com/2021/12/p2p-lending-fintech-disruption-in-financial-intermediation/
– Vinita Nair, Senior Parnter | corplaw@vinodkothari.com
Loading…
Loading…
RBI to release guidelines on penal charges
– Tejasvi Thakkar, Executive | finserv@vinodkothari.com
The Reserve Bank of India (‘RBI’) announced various policy measures in its Statement on Developmental and Regulatory Policies dated February 08, 2023, which includes introduction of guidelines for regulating the penal charges levied by financial institutions in case of delay or default in repayment of loans or where there is a non-compliance of ‘material’ terms and conditions. RBI observed that some of the financial institutions were levying unreasonable penal charges. It has time and again been RBI’s concern that financial institutions levy excessive charges under the garb of different names such as penal charges, penal interests, legal charges, notice charges, levy charges etc. A large number of customer grievances with respect to excessive penal charges and divergent practices have influenced the regulator to think on these lines.
Read more →– Anirudh Grover, Executive | finserv@vinodkothari.com
Receivables or debtors though from the face of it is considered as a positive thing for businesses, however when you lift the tag of positivity one can assess the true color of trade receivables. This essentially means that despite it being classified as an asset it may not be helping the business when required. For instance, ABC Ltd has 1 lakh recorded as debtors in its financials however these debtors are of no substantial use unless it is converted into liquid forms of funds. This in essence is the reason why TReDS was introduced, RBI vide Guidelines for the Trade Discounting System (TReDS) opined that the scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from Corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers is known as TReDS.
Read more →– Sharon Pinto & Ajay Ramanathan | corplaw@vinodkothari.com
Loading…
– Alignment with international standards and avoidance of greenwashing
– Payal Agarwal and Shreya Salampuria | corplaw@vinodkothari.com
Sustainability labeled bonds, more popularly known as GSS+ bonds, are looked upon as one of the primary means of raising funds towards sustainable development. The same has been discussed in Sustainable finance and GSS+ bonds: State of the Market and Developments. India is also not oblivious to the concept of GSS+ bonds, and companies in India have also been issuing such bonds, in one or more forms.
The issuance of green debt securities (“GDS”) in India was initially formalized through a circular issued by SEBI in 2017 in this regard, later absorbed under the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“ILNCS Regulations”) read with Chapter IX of the Operational Circular on the same. The regulatory framework for GDS in India has since been reviewed, and following a Consultation Paper on Green and Blue Bonds as a mode of Sustainable Finance (“Consultation Paper”) dated 4th August, 2022, SEBI, in its meeting dated 20th December, 2022 (“Board Meeting”) has approved amendments to the existing regulatory framework for GDS issuance. The press release of the Board Meeting reads as “in the backdrop of increasing interest in sustainable finance in India as well as around the globe, and with a view to align the extant framework for green debt securities with the updated Green Bond Principles (GBP) recognised by IOSCO, SEBI undertook a review of the regulatory framework for green debt securities.”
Pursuant to the review of the regulatory framework for GDS, the following has been notified –
In this write-up, we intend to discuss the revised regulatory framework for GDS issuance in India.
Read more →| Register here – https://forms.gle/bcRnzVN92CouE7F49 |
Loading…
– Sanya Agrawal, Executive | executive@vinodkothari.com
Loading…
– Shreya Salampuria, Executive | corplaw@vinodkothari.com
Loading…
Read our comments to SEBI on the said consultation paper:
Reload document 
Open in new tab