-Vinod Kothari and Timothy Lopes finserv@vinodkothari.com It all started after Silicon Valley Bank (‘SVB’) announced its Q1’23 Mid quarter update[1], revealing that it intended to raise about USD 2.25 billion of capital owing to the fact that it had sold its USD 21 billion ‘Available for Sale’ (‘AFS’) securities portfolio, which consisted of US treasuries […]
–Vinod Kothari | finserv@vinodkothari.com The RBI has launched a major base-layer study of “base-layer NBFCs”, whereby audit firms will be surveying these NBFCs. Apparently, the audit firms will visit their offices to see if there is a physical office (which means a name plate outside the office), whether that physical office houses other offices too […]
– Vinod Kothari finserv@vinodkothari.com Stress testing is a part of risk management process. Stress testing envisages those plausible, however, low frequency events, which may occur and disrupt the operations. In the context of a financial intermediary – stress may be seen either in the solvency (that is, capital is not sufficient to absorb the risks […]
– Vinod Kothari and Payal Agarwal | corplaw@vinodkothari.com Readers of financial statements get to know the performance of the company in terms of its financial accomplishments, asset values, etc. However, in a world where sustainability of business models in not very long run will be impacted by environment, climate change, social factors, etc., readers of […]
– Vinod Kothari and Payal Agarwal | corplaw@vinodkothari.com The topic of sustainable finance has become as critical as sustainable development, since finance is the prerequisite for sustainable development. “Finance can play a leading role in allocating investment to sustainable corporates and projects and thus accelerate the transition to a low carbon and more circular economy. […]
– Vinod Kothari | vinod@vinodkothari.com This version: 31st January, 2023 Following the Sovereign Green Bond framework issued by the Govt of India, and in accordance with the calendar of events issued by RBI, the first tranche of the sovereign green bonds has been successfully issued by the Govt of India. Remarkably, the bonds achieved a […]
– Vinod Kothari | finserv@vinodkothari.com It has been a brisk year in terms of activity – a busy regulator kept all regulated entities busier. This year marked the initiation of a new SBR framework for NBFCs – hence there was a lot of buzz in terms of understanding the new regulatory framework. The names of […]
Loans with less than 1 year to go cannot be securitised; Minimum holding period norms tweaked, may impact home loan securitisation – Vinod Kothari | finserv@vinodkothari.com On December 5, 2022, the RBI silently made some significant changes and updated the RBI (Securitisation of Standard Assets) Directions, 2021 (‘SSA Directions’). It is difficult to understand if […]
– Vinod Kothari | corplaw@vinodkothari.com The requirement of maintaining a structured digital database (SDD) arises from Reg 3 (5) of the PIT Regulations, 2015. The PIT Regulations itself does not talk about any compliance certificate as to maintenance of the SDD. However, the requirement of such a certificate emanates from the mails sent by national […]