Entries by Vinod Kothari Consultants

Easing Delisting of Equity Shares

-Shreya Masalia and Anushka Vohra corplaw@vinodkothari.com In order to make the existing delisting Regulations robust, efficient, transparent and investorfriendly, the Securities Exchange Board of India (‘SEBI’) has issued the SEBI (Delisting of Equity Shares) Regulations, 2021[1] (‘Delisting Regulations, 2021’) on June 11, 2021, thereby superseding the erstwhile SEBI (Delisting of Equity Shares) Regulations, 2009[2] (‘Erstwhile […]

Various forms of Secured Lending

-Anita Baid, anita@vinodkothari.com In this era of ever-increasing demand and continuous urge for developments, limitation of financial resources come as the biggest constraint in overall satisfaction of an individual or entity’s needs. Financial or funding options provided by various financial institutions such as banks and NBFCs come as a solution to such financial constraints. Loans […]

Restructuring of restructuring: Post 1st April NPAs may be upgraded as Standard under ResFra 2.0

– Anita Baid (anita@vinodktohari.com) Source: FIDC’s letter to RBI dated June 3, 2021 seeking clarification on clause of Resolution framework – 2.0 relating to Individuals and Small Businesses and disclosures in the balance sheet read along with the RBI response via email dated June 7, 2021. Though called a clarification it actually makes a substantive […]

List of Disclosures Requirements Applicable to NBFCs

  Srl No Particular Clause Reference Remarks List of Disclosure in Annual Report – As per RBI Direction 1 NBFCs shall disclose in their annual reports the details of the auctions conducted during the financial year including the number of loan accounts, outstanding amounts, value fetched and whether any of its sister concerns participated in […]

Rationalisation of KYC- Measures for relief or technical advancement?

-Kanakprabha Jethani and Anita Baid (finserv@vinodkothari.com) Background Considering the resurgence of the Covid-19 pandemic on the economy, the RBI Governor, on May 5, 2021, announced several measures with a view to infuse liquidity in the economy, avoid another wave of borrower defaults[1] as well as aid in ease of business during the lockdown. Out of […]

RBI means to halt second wave of borrower defaults: Announces ResFra 2.0

The RBI Governor on May 05, 2021[1] announced a series of measures for improving credit delivery, ensuring that there is sufficient liquidity with the masses, and State Governments have sufficient resources in their effort to deal with the pandemic. The measures include an upto Rs 50000 crore “Covid Loan Book” which qualifies for repo at […]

Acknowledgement in Balance Sheet – A Fresh Limitation: The Final Word of Law

-Prachi Bhatia  Legal Intern at Vinod Kothari & Company  (resolution@vinodkothari.com) The three-judge bench of the Hon’ble Supreme Court vide its order dated 14th April, 2021, in Asset Reconstruction Limited v. Bishal Jaiswal & Anr[1] (‘ARCIL v. Bishal’) has settled the dust around acknowledgment of liability in books of corporate debtor for the purpose of section […]

Prepack for MSMEs – A Vaccine that doesn’t Work?

– Megha Mittal (resolution@vinodkothari.com) The Insolvency and Bankruptcy (Amendment) Ordinance, 2021 (‘Ordinance’)[1] was promulgated on 5th April, 2021 to bring into force the prepackaged insolvency resolution framework for Micro, Small, Medium Enterprises (MSMEs). While the Ordinance put forth the structure of the prepack regime, a great deal was dependent upon the relevant rules and regulations. […]

SUPREME COURT RULING IN THE TATA-MISTRY CASE

-A LIMPID VIEW ON MINORITY PROTECTION RIGHTS UNDER INDIAN CORPORATE LAW Sharon Pinto, Manager, corplaw@vinodkothari.com Background The Ruling of the Supreme Court (SC) in this case has shed light on several important aspects related to majority versus the minority rule, oppression and mismanagement, role of Non-Executive Directors (NEDs), scope and powers of the Tribunal in […]