Entries by Staff

Revising minimum public holding requirements for large issuers and companies under CIRP

Securities Contract (Regulations) Amendment Rules, 2021 notified Payal Agarwal, Executive ( corplaw@vinodkothari.com ) Background SEBI had released a consultation paper on 20th November, 2020 order to review the requirements of minimum public offer for large issuers. The Consultation Paper proposed to reduce the requirements of minimum public offer for large issuers while also reducing the […]

CEOs as deemed Managers: Ascertaining their true role and liability

Sharon Pinto, Manager, corplaw@vinodkothari.com  Introduction The Board of directors of a Company typically comprises of executive and non-executive directors. The Board is supported by the Key Managerial Personnel (‘KMP’) and senior management i.e. personnel of the company who are members of its core management team excluding Board of Directors comprising all members of management one […]

Retrospective Operation of S. 29A & OTS under IBC – Analysing Prospects

– Megha Mittal [resolution@vinodkothari.com] The Hon’ble NCLAT vide its order Martin SK Golla v. Wig Associates, 2019[1] has set aside the order of the Adjudicating Authority which had accepted a one-time settlement-cum-resolution plan submitted by a connected person of Corporate Debtor, who later on, after the implementation of section 29A became ineligible to submit a […]

Leveling the playing field for all Microfinance Lenders

RBI proposes uniform regulatory framework for the Microfinance Sector ( finserv@vinodkothari.com ) The microfinance sector, in India, has proved to be fundamental for promoting financial inclusion by extending credit to low-income groups that are traditionally not catered to by lending institutions. The essential features of microfinance loans are that they are of small amounts, with short […]

RBI Guidelines at odds with the Companies Act on appointment of Auditor

A comparative analysis between the Companies Act, SEBI Guidelines and SEBI Circular dated 18th Oct. 2019 – Ajay Kumar K V | Manager (corplaw@vinodkothari.com) Introduction The Reserve Bank of India has issued Guidelines[1] for Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs) under Section 30(1A) […]

BRSR Reporting: Actions and disclosures required for business sustainability

Abhishek Saraf, Manager and Payal Agarwal, Executive (corplaw@vinodkothari.com) Background The Business Responsibility and Sustainability Reporting (“BRSR”), originating from the MCA report on Business Responsibility Reporting, has found its way into the regulatory provisions by way of an amendment to the Regulation 34(2)(f) of the Listing Regulations[1], notified on 5th May, 2021. Further, SEBI vide circular dated […]

Basics of Factoring in India

– Megha Mittal, Associate ( mittal@vinodkothari.com ) Factoring as an age-old concept has stood the test of time as it enabled businesses to resolve the cash flow issues, rendered liquidity, facilitated uninterrupted services and cushioned businesses against the lag in the billing cycles. Also the merit of the product lies in the simplicity of the […]

Centralised database for Corporate Bonds & Debentures

-SEBI’s new circular provides further ease of access of information Payal Agarwal, Executive | Vinod Kothari and Company ( corplaw@vinodkothari.com ) Introduction SEBI, the capital market regulator in India, has brought a series of amendments in the month of May, 2021 amending all the major regulations applicable to the entities under its regulatory ambit. The […]