– Team Finserv | finserv@vinodkothari.com In order to regulate mis-selling concerns for both products/ services of regulated entities and third-parties by a regulated entity, amendments have been issued ‘Advertising, Marketing and Sale of Financial Products and Services by Regulated Entities’, via two sets of amendment directions for NBFCs: (Refer to our detailed write up on […]
– Vinita Nair and Saloni Khant | corplaw@vinodkothari.com With the backdrop of the outflow of billions of foreign funds and the RBI’s multipronged approach to draw foreign funds (Read our article: RBI attempts to woo fleeing foreign investors), RBI notified the FEM (Non-debt Instruments) (Third Amendment) Rules, 2026 effective from June 12, 2026. All foreign […]
– Barsha Dikshit, Partner, and Srihari GS, Executive [resolution@vinodkothari.com ] The interplay between the insolvency proceedings under Insolvency and Bankruptcy Code, 2016 (‘IBC’) and cheque dishonour proceedings under Section 138 of the Negotiable Instruments Act, 1881 (‘NI Act’) has been one of the most debated areas. While the IBC seeks to provide a financially distressed […]
Understanding Compensation Framework for NBFCs On 9 March 2026, the Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on a financial institution for violations regarding the payment of the entire variable remuneration to certain KMPs upfront, without deferring any portion, in breach of applicable compensation guidelines. While the quantum of the penalty […]
RBI issues Directions on Advertising, Marketing and Sales of Financial Products and Services by Regulated Entities
– Team Finserv | finserv@vinodkothari.com RBI has issued Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Second Amendment Directions, 2026 (‘UFS Amendment Directions’) on June 15, 2026. The RBI also issued the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Second Amendment Directions, 2026 (‘RBC Amendment Directions’) under […]
– Yuttika Dalmia | finserv@vinodkothari.com Section 56(2)(viib) of the Income-tax Act, 1961, popularly known as the “Angel Tax” provision, was introduced to prevent the routing of unaccounted money through the issue of shares at a high premium. In an important ruling discussed below, the Delhi ITAT held that this anti-abuse provision should be applied only […]
June 26, 2025 | Physical – Bengaluru Register: https://docs.google.com/forms/d/e/1FAIpQLSd60tQLR3MTqRfSnst5fvNYTqNvxhrMaLatLe7DSGULP-ASlw/viewform Our resources on Digital Lending:
See our resources on insider trading here: https://vinodkothari.com/prohibition-of-insider-trading-resource-centre/
– Sikha Bansal, Senior Partner | corplaw@vinodkothari.com Related party includes certain relationships solely on account of marriage Practical considerations involved in applying RPT controls to “in-laws” Accounting standards rely on the element of “influence” “10.9 Relative – in relation to an individual, means the spouse, son, daughter, brother, sister, father and mother who may be […]
