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FAQs on Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans

– Team Finserv | finserv@vinodkothari.com

On August 18, 2023, the RBI came up with a circular on Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans (‘Circular) casting certain obligations and disclosure requirements on Regulated Entities (REs) at the time of reset of floating interest rate on EMI based Personal loans. Accordingly, this Circular shall be adhered to by all applicable entities at the time of reset of floating interest rate on such loans.

We have developed a set of FAQs on the Circular, where we intend to answer some of the critical questions relating to the actionables by the REs at the time of reset of floating rate. 

Further, our detailed article on this topic can be read here – RBI streamlines floating rate reset for EMI-based personal loans

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FAQs on Insider Trading Framework for Mutual Funds

– Team Corplaw | corplaw@vinodkothari.com

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Also read our article on “Mutual Fund units now under the net of insider trading regulations

Our PIT Resource Centre can be accessed here

FAQs on preferential issue of equity shares and convertible securities under SEBI ICDR

Anushka Vohra, Manager | corplaw@vinodkothari.com

Table of Contents
Governing provisionsAllotment
Issuer and Allottee – eligibilityBoard’s approval
Conditions precedentShareholders’ approval
Relevant Date for determining the priceIn-principle approval
PricingListing approval
Lock-in requirementAnnexure-I
Consideration
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FAQs on Structured Digital Database

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Our other materials on the topic:

  1. Discussion on Structured Digital Database
  2. SEBI prescribes norms for structured digital database, system-driven disclosures & CoC violations
  3. Amendment in SEBI (PIT) Regulations, 2015
  4. FAQs on SEBI (PIT) Regulations
  5. Discontinuation of manual disclosures under PIT Regulations

FAQs on Large Exposures Framework (‘LEF’) for NBFCs under Scale Based Regulatory Framework

Financial Services Division | (finserv@vinodkothari.com)

1. Applicability –

1.1. What is the intent behind the LEF?

Response: Regulation and control of “large exposures” is a part of financial sector regulations globally to control concentration of exposures (thus, risks) to a few individuals/entities/groups. The Basel Committee of Banking Standards has been having recommendatory pieces on this topic since 1991, if not earlier.  The Basel standard subsequently became a part of the Basel capital adequacy framework. 

There is a large exposures framework in case of banks as well. 

The intent behind the large exposure framework, which essentially limits the exposures to a single entity or group or group of economically interdependent entities is to strengthen the capital regulations. Capital regulations prescribe minimum capital in case of financial entities. The adequacy of capital is obviously connected with the risks on the asset side – hence, if the assets represent exposure in a single borrower or economically connected group of borrowers, a credit event with respect to such borrower may deplete the adequacy of capital very quickly.  Hence, regulators limit the exposure to a single entity or a group.

There might be other forms of credit concentrations – for example, sectoral or geographical concentrations – these are not captured by the Framework.

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FAQs on CSR 2021 Amendments

FAQs on CSR 2021 Amendments

[These FAQs pertain to the amendments made vide the Companies (Amendment) Act, 2020 and the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021. These FAQs need to be read with our FAQs on CSR]

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Faqs on recent amendments in Indian Stamp Act, 1899

corplaw@vinodkothari.com

Updated as on 1st July, 2020