Entries by Staff Publication

MCA need not be mandatorily impleaded in applications: NCLAT sets-aside directions issued by of Principal Bench

–Megha Mittal (resolution@vinodkothari.com) The Hon’ble National Company Law Appellate Tribunal (‘NCLAT’), vide its order dated 22nd May, 2020[1] set aside the directions issued by the Hon’ble Principal Bench for impleadment of Ministry of Corporate Affairs (‘MCA’) as a respondent-party to all applications filed under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016. […]

IMPACT OF COVID-19 ON FINANCIAL CONTRACTS

-Richa Saraf [richa@vinodkothari.com] With the outbreak of COVID pandemic, there have been several instances wherein parties are running to court for various reliefs, whether to obtain injunction from invocation of bank guarantee or to seek extension of letter of credit, but mostly to seek declaration that COVID is a force majeure event and therefore, there […]

Primer on MSME Financing

Kanakprabha Jethani & Timothy Lopes finserv@vinodkothari.com Micro, Small and Medium Enterprises (MSMEs) have received a lot of attention from the government in recent times in terms of regulatory measures, reliefs and benefits. Consequently, the eligibility criteria and incentives offered to the MSME sector in terms of financing has been attracting the attention of businesses across […]

Guaranteed Emergency Line of Credit: Understanding and FAQs

-Financial Services Division (finserv@vinodkothari.com) The Finance Minister has, in the month of May, 2020, announced a slew of measures as a part of the economic stimulus package for self-reliant India. Among various schemes introduced in the package, one was the Emergency Credit Line Guarantee Scheme (ECLGS, ‘Scheme’), which intends to enable the flow of funds […]

PCG Scheme 2.0 for NBFC pooled assets, bonds and commercial paper

-Financial Service Division (finserv@vinodkothari.com) The write-up below covers version 2.0 of the Partial Credit Guarantee Scheme [PCG Scheme, or PCGS, or simply, the Scheme; version 2 is referred to herein as PCG 2.0 for the sake of distinction from its earlier version, which we refer to PCGS 1.0]. PCGS 1.0 was announced by the Finance […]

RBI grants additional 3 months to FPIs under Voluntary Retention Route

Shaifali Sharma | Vinod Kothari and Company corplaw@vinodkothari.com In March, 2019, the RBI with an objective to attract long-term and stable FPI investments into debt markets in India introduced a scheme called the ‘Voluntary Retention Route’ (VRR)[1]. Investments through this route are in addition to the FPI General Investment limits, provided FPIs voluntarily commit to […]

Moratorium 2.0 on term loans and working capital

-Team Financial Services, Vinod Kothari Consultants P Ltd. (finserv@vinodkothari.com) This version dated 22nd May, 2020. We shall continue to develop this further based on the text of notification and the clarifications, if any, issued by the RBI. On 22 May, 2020, as a part of the Statement on Development Regulatory Policies to the notification, the […]