Entries by Vinod Kothari Consultants

One stop RBI norms on transfer of loan exposures

– Financial Services Division (finserv@vinodkothari.com) [This version dated 24th September, 2021. We are continuing to develop the write-up further – please do come back] We invite you all to join us at the Indian Securitisation Summit, 2021. The details can be accessed here The RBI has consolidated the guidelines with respect to transfer of standard […]

NBFCs licensed for KYC authentication: Guide to the new RBI privilege for Aadhaar e-KYC Authentication

-Kanakprabha Jethani (kanak@vinodkothari.com) Background On September 13, 2021, the RBI issued a notification[1] (‘RBI Notification’) permitting all NBFCs, Payment System Providers and Payment System Participants to carry out authentication of client’s Aadhaar number using e-KYC facility provided by the Unique Identification Authority of India (UIDAI), subject, of course, to license being granted by MoF. The […]

XaaSing of assets: Understanding essential differences between subscription and lease

-Vinod Kothari and Sikha Bansal (finserv@vinodkothari.com) Just as you may subscribe to digital content, cellphone services, or software-as-a-service, you may subscribe to a car, or home durables. The business of availing equipment as a subscription is growing monotonic and steep, and currently, in the realm of passenger vehicles, it is already a rage. A report […]

Use of dual recourse instruments for SME finance: The Making of European Secured Notes

– Vinod Kothari and Abhirup Ghosh (finserv@vinodkothari.com) The European financial regulators are working on a new funding instrument whereby banks and primary lenders can raise refinance against their portfolio of SME loans, by issuing a bond which is directly linked with such portfolios, called European Secured Notes (ESNs). ESNs are a dual recourse instrument, following […]

Complete Guide to Sale and Leaseback Transactions

A guide to concepts, taxation, and accounting aspects of sale and leaseback transactions.   – Qasim Saif (finserv@vinodkothari.com)   Contents Sale and Leaseback transaction. 2 Advantages to the Lessee. 2 Unlocking value, the hidden value of asset 2 Tax Benefits. 2 Legal issues in SLB: 3 Taxation of SLB transactions. 3 Direct Tax Aspect 3 […]

Dividend restrictions on NBFCs

– Financial Services Division (finserv@vinodkothari.com) Background The Reserve Bank of India (RBI) vide a notification dated 24th June, 2021[1] imposed restrictions on distribution of dividends by non-banking financial companies (‘Notification’). The restrictions cover both systemically important NBFCs as well non-systemically important ones. The guidelines have been issued in line with the draft guidelines for the […]