Entries by Vinod Kothari Consultants

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 […]

Easing Delisting of Equity Shares

-Shreya Masalia and Anushka Vohra corplaw@vinodkothari.com In order to make the existing delisting Regulations robust, efficient, transparent and investorfriendly, the Securities Exchange Board of India (‘SEBI’) has issued the SEBI (Delisting of Equity Shares) Regulations, 2021[1] (‘Delisting Regulations, 2021’) on June 11, 2021, thereby superseding the erstwhile SEBI (Delisting of Equity Shares) Regulations, 2009[2] (‘Erstwhile […]

Various forms of Secured Lending

-Anita Baid, anita@vinodkothari.com In this era of ever-increasing demand and continuous urge for developments, limitation of financial resources come as the biggest constraint in overall satisfaction of an individual or entity’s needs. Financial or funding options provided by various financial institutions such as banks and NBFCs come as a solution to such financial constraints. Loans […]

Restructuring of restructuring: Post 1st April NPAs may be upgraded as Standard under ResFra 2.0

– Anita Baid (anita@vinodktohari.com) Source: FIDC’s letter to RBI dated June 3, 2021 seeking clarification on clause of Resolution framework – 2.0 relating to Individuals and Small Businesses and disclosures in the balance sheet read along with the RBI response via email dated June 7, 2021. Though called a clarification it actually makes a substantive […]

List of Disclosures Requirements Applicable to NBFCs

  Srl No Particular Clause Reference Remarks List of Disclosure in Annual Report – As per RBI Direction 1 NBFCs shall disclose in their annual reports the details of the auctions conducted during the financial year including the number of loan accounts, outstanding amounts, value fetched and whether any of its sister concerns participated in […]

Rationalisation of KYC- Measures for relief or technical advancement?

-Kanakprabha Jethani and Anita Baid (finserv@vinodkothari.com) Background Considering the resurgence of the Covid-19 pandemic on the economy, the RBI Governor, on May 5, 2021, announced several measures with a view to infuse liquidity in the economy, avoid another wave of borrower defaults[1] as well as aid in ease of business during the lockdown. Out of […]