Entries by Staff

Ratification of RPTs:  a rescue ship or an alternative to compliance?

– SEBI brings ratification provisions for RPTs skipping prior AC approval – Jigisha Aggarwal, Executive and Sourish Kundu, Executive The laws governing related party transactions (RPTs) in India mandate seeking prior approvals for RPTs. The law has also provided for a rescue in the name of ‘ratification’ where prior approval could not be taken or […]

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 […]