Effective November 1, 2024; numerous actionable for Asset Management Companies
Vinita Nair | Senior Partner, Vinod Kothari & Company
Updated as on October 23, 2024
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Refer to our related resources below:
– Team Finserv, Vinod Kothari Consultants | finserv@vinodkothari.com
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Our recent write-ups on financial services: https://vinodkothari.com/category/financial-services/
– Parth Ved, Executive | parth@vinodkothari.com
Flow of funds, just like a river, not only enriches its destination but also benefits all the stops it passes through. Having a financial hub, a stopover which enables routing billions and billions of global funds on a daily basis can definitely prove resourceful. London, New York, Singapore are some of the globally recognised financial centres, and needless to say these locations are at the forefront of financial development. India too has tried to tap into this with the setting up of GIFT-IFSC in Gujarat, and has tried to position itself as the next big global hub for financial transactions.
Through this write-up, the author tries to explain the concept of International Financial Services Centre and the applicability of domestic regulatory framework on entities set up therein.
Read more →Recent Events in the Crypto-world and a Need for Regulatory Oversight
– Subhojit Shome (subhojit@vinodkothari.com)
There are two recent events in the world of crypto that warranted this article – the first one, in order of chronology, fundamentally altered the way that a blockchain (the underlying ledger) for cryptocurrency validates transactions while the second exposed how a cryptocurrency, without underlying value, can be used to window dress a balance sheet and lure in investors.
The second incident, of course, refers to the FTX debacle that has received global media coverage and continues to grab headlines. The first event, Ethereum moving to ‘proof of stake’ consensus mechanism, however, may be a more obscure event to the public eye and likely to have caught the attention of only the hardcore crypto enthusiast, fintech departments of financial institutions and the financial stability divisions of financial market regulators and ministries.
This article, to all intents and purposes, is a ‘cautionary tale’ where we use these two events to explore how cryptocurrency, whether deliberately or inadvertently, may build a house of cards and there is an urgent imperative that regulators look beyond PML/ CFT issues, the ‘usual suspects’ when it comes to crypto, and delve into issues surrounding investor protection and market surveillance.
Read more →– Anushka Vohra, Manager | corplaw@vinodkothari.com
SEBI vide its notification dated November 21, 2022 has come up with SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2022 (“Amendment”), effective immediately, making changes in the existing SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR”) w.r.t. Initial Public Offer (“IPO”). The Amendment has introduced an alternate method for filing the draft IPO document, known as draft Red Herring Prospectus (DRHP).
Pursuant to this alternate method, the issuer will have the option to keep the information-rich DRHP confidential from the public at large until the issuer is sure to proceed with IPO i.e after receiving observation from SEBI on the draft RHP (“DRHP”) filed. Until such time, the issuer can interact with the QIBs only to gauge the market. Any kind of marketing of IPO apart from interacting with the QIBs is prohibited during this period.
Read more →Timothy Lopes | Manager
Vinod Kothari Consultants Pvt. Ltd.
The precious metal, gold, has for the longest time been seen as a form of investment that provides adequate returns, diversification and also possess hedging properties. Especially in a country like India, which is one of the largest markets for gold according to the World Gold Council[1], the yellow metal plays an important role. A report by ICRA forecasts that gold jewellery demand would grow by 11% YoY in FY 2023[2].
In the era of digitisation, nearly every form of investment, traditional or otherwise, is available at our fingertips. Electronic media has brought with it ease of access, speed, convenience, as well as, new avenues for innovation.
Out of the digitisation era, the concept of digital gold has emerged as an avenue for investors and consumers alike to purchase gold through digital means. Although an innovative concept, there seems to be a gap in the regulatory framework surrounding digital gold, which is still evolving.
This article aims to highlight the concept of digital gold and the regulatory regime (or lack thereof) surrounding it.
Read more →– Team Finserv | finserv@vinodkothari.com
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