Entries by Staff Publication

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 […]

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 […]