SEBI revisits EBP mechanism for issuance of debt securities

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By Vinita Nair and Chahat Jain (corplaw@vinodkothari.com)

SEBI vide circular SEBI/HO/DDHS/CIR/P/2018/05 dated January 05, 2018 issued Electronic book mechanism for issuance of debt securities on private placement basis, 2018 (‘Circular, 2018’)[1] has repealed circular No. CIR/IMD/DF1/48/2016 dated April 21, 2016 (‘Circular, 2016’)[2] which mandated usage of electronic book mechanism for issuance of debt securities on private placement basis.

Circular, 2018 shall come into force from April 01, 2018. Circular, 2018 makes suitable revisions in existing framework to streamline the procedures, allowing private placement of other classes of securities, enhancing transparency in the issuance for better discovery of price & stiff norms for issuer, arranger as well for bidders in line with the consultation paper for review of circular on Electronic book mechanism for issuance of debt securities on private placement basis issued in May, 2017[3].

This article analyses significant amendments made in the EBP mechanism. Read more →

Performance of NBFCs in 2016-17

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By Mayank Agarwal (finserv@vinodkothari.com)

2016-17 could be summed up as a year of ‘Coming of age’ for Non-Banking Financial Institutions(NBFIs) as they finally fulfilled their potential by displaying a resilient performance against the backdrop of revised regulatory frameworks, widened credit gap due to sluggish performance by banking institutions and providing specialized services to the sector to which they cater. As per the recently released ‘Trend and Progress of Banking in India’ report by RBI,[1] NBFCs have given a stiff competition to established banks in the country, having finally edged ahead in the financial credit race in the country as their portfolio of loans grew at 14.9% during the first half of 2017-18, compared to 6.2% in the case of banks. The share of NBFCs in the total credit granted by NBFCs as well as Banks rose from 9.5% in 2008 to 15.5% as of March 2017, thus showing the increasing popularity of NBFCs as a source of finance. The credit granted by NBFCs as a percentage of GDP rose to 8%, displaying their significance in the country’s financial ecosystem. While the bank credit reached a historical low during 2016-17, NBFCs recorded an increased credit performance during the same year, highlighting the growing popularity in the country.

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Stricter guidelines for IPs’ conduct: IBBI releases Circulars

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Vallari Dubey

resolution@vinodkothari.com

In order to ensure that IPs stick to their professional conduct in a fair and justifiable manner and to curb activities such as outsourcing of IPs’ responsibilities, the Insolvency and Bankruptcy Board (‘IBBI’) has issued three circulars, addressed towards the Insolvency Professionals fraternity, dated 3rd January, 2018. We’ve discussed each of them at length below.

These circulars shall be in addition to obligations of IPs under Section 208 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) and the Code of Conduct for Insolvency Professionals (‘IPs’), as provided under First Schedule to the IBBI (Insolvency Professional) Regulations, 2016. Read more →

Consultative meeting with stakeholders (Minutes of the meetings have been shared with the respective stakeholders)

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