Entries by Staff

Draft RBI Directions: Banks may finance Acquisitions 

November 28, 2025 /0 Comments/in , , /by

– Conditions for acquisition finance, prudential limits and new LTV requirements for various capital market exposures – Payal Agarwal, Partner | payal@vinodkothari.com The Amendment Directions have been issued by RBI effecting changes as per the draft norms. See an article on the same here – https://vinodkothari.com/2026/02/rbi-permits-leveraged-buy-outs-through-bank-finance/ Capital markets are subject to higher fluctuations and volatility, […]

A voice without a vote: IBBI proposes OCs as observers amongst unrelated FCs in CoC

November 26, 2025 /0 Comments/in , /by

Team Resolution | resolution@vinodkothari.com Where the CoC has no regulated financial entity and a single unregulated financial creditor holds over 66% of the voting share, effectively dominating all decisions, IBBI in its Discussion Paper dated 17th November, 2025 proposed that the five largest operational creditors will also be brought into the CoC meeting, giving them […]

The Hidden Hand: Understanding Beneficial Ownership in case of Trusts

November 23, 2025 /1 Comment/in , , /by

Saket Kejriwal, Assistant Manager | corplaw@vinodkothari.com, finserv@vinodkothari.com Background The structure of a trust inherently creates a separation of roles, typically involving three distinct parties viz. the author/settlor, trustee, and beneficiaries. While the control/operations rests with the trustee, economic benefit lies with the beneficiaries, and the settlor may continue to exert influence through the trust deed […]

SEBI approves relaxed norms on RPTs 

November 20, 2025 /0 Comments/in , , /by

Highlights: Following a 32-pager consultation paper proposing significant amendments to RPT provisions, towards ease of doing business, rolled out by SEBI on August 4, 2025, several amendments were approved by SEBI in its Board Meeting on 12th September, 2025. The SEBI (Listing Obligation and Disclosure Requirements) (Fifth Amendment) Regulations, 2025 have been notified on 19th […]

Downstreamed through intermediaries: Deemed public issue concerns for privately placed debt

November 19, 2025 /0 Comments/in , /by

– Vinod Kothari and Payal Agarwal | corplaw@vinodkothari.com While equity is the “flavour of the season”, companies can produce efficient returns on equity only if they leverage it; therefore, companies are also reaching out to investors through debt issuance. Most of the bond issuance in India is privately placed; however, it is increasingly common for […]

Going Concern Sales in Liquidation – Ghosted or Alive?

November 19, 2025 /0 Comments/in , /by

– Sikha Bansal, Resolution Division, Vinod Kothari & Company | resolution@vinodkothari.com About the Amendment The edifice of IBC is premised on value-maximisation, and thus, resolution has always been preferred over liquidation[1]. Even in liquidation, the regulations and Courts have stressed and preferred on selling the entity/business as going concern (referred to as GCS)[2]. However, IBBI, […]

Operational Risk Assessment for NBFCs : Understanding The Basics

November 18, 2025 /0 Comments/in , , , /by

Simrat Singh | finserv@vinodkothari.com  Operational risk, as defined by the Basel framework, refers to the possibility that a financial institution’s routine operations may be disrupted due to failures in processes, systems, people, or external events. While historically treated as secondary to credit and market risk, it has increasingly become a central focus of risk management, […]

Tracking Your Material Risks – Importance of Risk Register for NBFCs

November 18, 2025 /0 Comments/in , , , /by

– Subhojit Shome | finserv@vinodkothari.com Introduction A Non-Banking Financial Company (NBFC), like other financial intermediaries,  operates in a risk-intensive environment where credit, operational, technology, liquidity and regulatory exposures evolve continuously. To manage these effectively, regulators and international standard-setters increasingly expect institutions to maintain a clear, documented, and continuously updated risk inventory. This document—commonly called a […]