Entries by Staff

Interest Imbalance: Will the disproportionate interest Split in Loan Transfers be liable to withholding tax?

ITAT Ruling Clarifies Taxation on Disproportionate Interest share in Loan Transfers – Dayita Kanodia | Finserv@vinodkothari.com Direct Assignment of a loan or transfer of loan exposures refers to the process where financial institutions, such as banks, purchase a pool of loans or assets from other entities, typically NBFCs, without the involvement of a third-party intermediary. […]

Capital Treatment, Loan Loss Provisioning and Accounting for Default Loss Guarantees

Vinod Kothari (finserv@vinodkothari.com) The FinTech sector is booming and is a market disruptor as well as facilitator, based on the report published by Inc42, the estimated market opportunity in India fintech is around $2.1 Tn+ and currently there are 23 FinTech “unicorns” with combined valuation of $74 Bn+ and 34 FinTech “soonicorns” with combined valuation […]

Risk Management Function of NBFCs – A Need to Integrate Operational Risk Management & Resilience 

An examination of the RBI Guidance Note on Operational Risk Management and Resilience Subhojit Shome & Archisman Bhattacharjee | finserv@vinodkothari.com Related articles – 12th Securitisation Summit The who’s who of structured finance is joining the 12th edition of our flagship event, the Securitisation Summit on May 15, 2024, in Mumbai. Be shoulder-to-shoulder with leading originators, investors, lawyers, […]

The Promise of Predictability: Regulation and Taxation of Future Flow Securitization

Dayita Kanodia | Executive | finserv@vinodkothari.com The most reliable way to predict the future is to create it – Abraham Lincoln Surely, Lincoln did not have either  securitisation  or predictability in mind when he wrote this motivational piece; however, there is an interesting and creative use of securitisation methodology, to raise funding based on cashflows […]

ARC rights to use SARFAESI for debts assigned by non-SARFAESI entities

– Archana Kejriwal Asset reconstruction companies, formed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’/‘the Act’) are an important part of the country’s ecosystem to tackle non-performing loans. ARCs buy and resolve non-performing loans by acquiring them from the financial system. ARCs were traditionally focusing on […]