Entries by Staff Publication

Torrid time for NBFCs as FIU-IND lays down ‘High Risk’ classification

– By Saloni Mathur (finserv@vinodkothari.com) Introduction Just when the NBFCs were grappling with the outburst of RBI’s Ombudsman Scheme which was proposed to come into effect from 23rd February, 2018, FIU-IND released the list of ‘High risk NBFCs’[1] (‘List’) on account of non-compliance with the Prevention of Money Laundering Act, 2002 (‘PMLA Act’)[2] and the […]

Revised Section 42: What’s in the name!

By CS Vinita Nair (corplaw@vinodkothari.com) Section 42 has been substituted by way of section 10 of Companies (Amendment) Act, 2017[1]. Draft rules amending Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014 have been issued for public comments[2]. Erstwhile section 42 dealt with ‘Offer or invitation for subscription of securities on private placement’. […]

RBI’s Ombudsman storm- Tough road ahead for NBFCs

By Saloni Mathur & Mayank Agarwal (finserv@vinodkothari.com)   Introduction In the wake of rising discrepancies and deficiencies witnessed in the implementation of NBFCs general services, the Reserve Bank of India(“RBI”) came up with The Ombudsman Scheme for Non-Banking Financial Companies, 2018 (hereinafter referred to as the “Scheme”)[1] to address and target any complaint by any […]

Ministry of Finance approves amendment in Chit Funds’ law

By Mayank Agarwal (finserv@vinodkothari.com) The Ministry of Finance (“MoF”) has introduced The Chit Funds (Amendment) Bill, 2018 (“Bill”) on 20th February, 2018,[1] bringing in some noteworthy changes to the Chit Funds Act, 1982 (“Act”). The Rs. 500 billion Chit Fund industry has had its fair share of ups & downs in the country.[2] While the sector […]