Entries by Staff

NBFC Regulatory Refresher

RBI Updates for NBFCs- A rerun of the regulatory changes introduced during FY 24-25 – Team Finserv (finserv@vinodkothari.com) Watch our youtube video: https://youtu.be/Vg4vFrWfzsw Read more: Bond Credit Enhancement Framework: Competitive, rational, reasonable Balancing between Bling & Business: RBI proposes new Gold Lending rules Unified framework for Non-fund based facilities, by banks and NBFCs SOSTRA: The […]

Bond Credit Enhancement Framework: Competitive, rational, reasonable

-Vinod Kothari (vinod@vinodkothari.com) The RBI’s proposed framework for partial credit enhancement for bonds has significant improvements over the last 2015 version The RBI released the draft of a new comprehensive framework for non-fund based support, including guarantees, co-acceptances, as well as partial credit enhancement (PCE) for bonds. The PCE framework is proposed to be significantly […]

Balancing between Bling & Business: RBI proposes new Gold Lending rules

– Team Finserv | finserv@vinodkothari.com Genesis of the change The RBI on September 30, 2024, flagged several concerns in gold lending practices of financial entities. Further, there were separate guidelines for banks and NBFCs leading to regulatory arbitrage and operational ambiguity. On April 09, 2025, the RBI introduced the Reserve Bank of India (Lending Against […]

Unified framework for Non-fund based facilities, by banks and NBFCs

– Team Finserv (finserv@vinodkothari.com) RBI has consolidated the regulatory framework for non-fund based facilities offered by various REs. The draft guidelines provide prudential requirements for non-fund based products being offered by Banks, NBFCs and AIFIs. This would also cover under its ambit guarantees extended by NBFCs, however restricting the exposure to just 5% of the […]

SOSTRA: The New shastra of liquidating Non-performing loans

-Team Finserv (finserv@vinodkothari.com) “Only the few know the sweetness of the twisted apples” – Sherwood Anderson If securitisation of stressed assets abbreviates as SOSTRA, here is the new shastra (tool) for NPA clean-up from the financial system. On January 11, 2024, while speaking at the Centre for Advanced Financial Learning (CAFRAL)[1], then RBI Governor Shaktikanta […]

Banks drive Securitisation volumes to all-time high

– Vinod Kothari, vinod@vinodkothari.com  The release of securitisation data by the rating agencies shows that securitisation volumes in FY 25 saw a 30% increase, taking the volumes to a new watermark of volumes reaching ₹ 2,68,000 crores. Inherent in this growth a completely new feature – banks entering as securitisation issuers. Our analysis shows that […]

Guide to Valuation

This page serves as a quick reference to the chapters covered in our comprehensive guide on valuation. It outlines key topics such as Valuation Fundamentals, various valuation methods like Net Asset Value, Discounted Cashflow, and Comparable Companies Method, along with specialized areas such as Option Pricing and Milestone Valuation. This guide is designed to help […]