Entries by Staff Publication

Crucial Step taken by MCA to remove the curtain on SBOs

By Pammy Jaiswal & Richa Gupta (corplaw@vinodkothari.com)   Introduction Over the past few years, regulatory changes have conspired to re-define and re-examine the corporate structures in order to have an efficient and transparent environment to work in. A very recent and crucial step taken by MCA is with regard to revamping the provisions of section […]

How PNB Rs 11,300 crore scam exposes the biggest flaws in the Indian banking system

When frauds with a similar design happen on a repetitive basis, it becomes a matter of concern. It is regrettable that frauds based on letters of credit, supporting fake transactions of purchases, have happened in the past in the jewellery sector. Banks’ internal controls need to be strengthened. Fraud protection is essentially a duty of […]

PAS-3 for privately placed issuance: “Unless” v/s “until”

CS Vinita Nair, Partner, Vinod Kothari & Company corplaw@vinodkothari.com One of the major concerns arising from enforcement of Companies (Amendment) Act, 2017 is ensuring compliance of provisions of substituted Section 42. One of the provisions of Section 42 restricts utilization of monies received from subscribers of the privately placed issue unless allotment is made and […]

Latecomers in Liquidation – Entitlements and Penalties  

  — Sikha Bansal (sikha@vinodkothari.com) (resolution@vinodkothari.com) The Insolvency and Bankruptcy Code (“the Code”) provides for resolution of corporate debtors and then liquidation, where the insolvency proceedings fail. Liquidation of a company entails settlement of claims of creditors in the staking order of their priorities. Hence, the task of collection, collation, verification, admission and rejection of […]

MCA gears up for curtain raiser of SBO

Issues draft rules on Section 89 and 90 CS Vinita Nair, corplaw@vinodkothari.com Amendment to Section 89 and 90 is one of the key amendments proposed in Companies (Amendment) Act, 2017 (Amendment Act). While, the Amendment Act is being enforced in phases, stakeholders have been awaiting the draft rules in relation to Significant Beneficial Ownership (SBO). […]

Ineligibility criteria u/s 29A of IBC: A net too wide!

-By Richa Saraf & Sikha Bansal (resolution@vinodkothari.com)   Resolution plan is designated to be the “way-out” for insolvent entities coming under the Insolvency and Bankruptcy Code, 2016. The resolution professional appointed by the adjudicating authority constitutes a committee of creditors, invites resolution plans from prospective resolution applicants, and places the resolution plans before the committee […]