Timothy Lopes, Executive, Vinod Kothari Consultants finserv@vinodkothari.com Standard asset securitisation in India is governed by the RBI securitisation guidelines of 2006[1] and 2012[2]. As one of the essential pre-requisites of a securitisation transaction, the underlying assets should represent the debt obligations of a ‘homogeneous pool’ of obligors. Subject to this condition of homogeneity, all on-balance […]
Timothy Lopes, Executive, Vinod Kothari & Company finserv@vinodkothari.com, corplaw@vinodkothari.com Almost a year after the Banning of Unregulated Deposits Schemes Act, 2019[1] (BUDS Act/ Act) came into force, the Ministry of Finance has, vide notification dated 12th February, 2020, notified The Banning of Unregulated Deposits Schemes Rules, 2020[2] (BUDS Rules/ Rules). The BUDS Act, was enacted […]
Richa Saraf (richa@vinodkothari.com) It is common business practice for group entities to regularly engage in related party transactions such as cross collateralisation, guarantee comforts, tunnelling or significant influence arrangements. While such structures largely respect the separate legal status of the group companies, practice suggests such inter-linkages in business, operations and management often raise significant challenges […]
-Sikha Bansal (resolution@vinodkothari.com) The Hon’ble Supreme Court’s ruling in Jaypee [Civil Appeal Nos. 8512-8527 of 2019] stands as a landmark for two reasons – first, it deals with an otherwise unexplored periphery of vulnerable transactions in the context of insolvency, and secondly, it will have far-reaching impacts on how secured transactions are structured and the […]
– Ministry of Finance relaxes the criteria for NBFCs to be eligible for enforcing security interest under SARFAESI -Richa Saraf (richa@vinodkothari.com) The Ministry of Finance has, vide notification[1] dated 24.02.2020 (“Notification”), specified that non- banking financial companies (NBFCs), having assets worth Rs. 100 crore and above, shall be entitled for enforcement of security interest […]
Timothy Lopes, Executive, Vinod Kothari Consultants Pvt. Ltd. finserv@vinodkothari.com SEBI has vide circular dated 5th February, 2020[1] introduced a standard Private Placement Memorandum (PPM) and mandatory performance bench-marking for Alternative Investment Funds (AIF). The move is part of SEBI’s initiative to streamline disclosure standards in the growing AIF space. The changes are made based on […]
– Harshil Matalia, Executive, Vinod Kothari Consultants Pvt Ltd finserv@vinodkothari.com Introduction Non-Banking Financial Companies (NBFCs) are companies that are principally engaged in financial activities. Financial activities include the activities that result into creation of financial assets in the books of the company or generation of financial income for the company undertaking such activity. NBFCs can […]
Timothy Lopes, Senior Executive Harshil Matalia, Assistant Manager finserv@vinodkothari.com corplaw@vinodkothari.com Updated as on 27th August, 2020 The securities market regulator has recently introduced the new SEBI (Portfolio Managers) Regulations, 2020 (PMS Regulations), bringing in several changes to the Portfolio Management industry, including doubling the ticket size for investments and increasing the net-worth requirement of Portfolio […]