Entries by Vinod Kothari Consultants

SEBI proposes stringent guidelines for IDs in a listed company

-Independence becomes stricter! Payal Agarwal | Executive (corplaw@vinodkothari.com) Introduction The concept of independent directors was first introduced in the Desirable Corporate Governance Code issued by the Confederation of Indian Industry[1] followed by the recommendation in the Corporate Governance Committee constituted by SEBI and headed by Mr. Kumar Mangalam Birla[2] (Kumar Mangalam Birla Committee). Later in […]

SEBI’s move to allow stock options to independent directors – Whether a threat to independence?

Aanchal Kaur Nagpal (corplaw@vinodkothari.com)   It is said that when morality has a fight against profit, it is rarely that profit loses. Humans are always looking for more and quite often give in to their greed. This is the underlying rationale when it comes to safeguarding the independence of an independent director– to cut off […]

Factoring Law Amendments backed by Standing Committee

-Megha Mittal  [finserv@vinodkothari.com] In the backdrop of the expanding transaction volumes, and with a view to address the still prevalent delays in payments to sellers, especially MSMEs, the Factoring Regulation (Amendment) Bill, 2020 (‘Amendment Bill’) was introduced in September, 2020, so as to create a broader and deeper liquid market for trade receivables. The proposed […]

MCA eases the requirement for setting up and conversion of an OPC

-Gift from the Union Budget 2021-2022 -Abhishek Saraf |Deputy Manager| (corplaw@vinodkothari.com) Introduction The concept of One Person Company (“OPC”) was discussed for the first time in India in the year 2005 by the JJ Irani Expert Committee[1] which suggested that with increasing use of information technology and computers, emergence of service sector, the entrepreneurial capabilities […]

Ease of doing business: Debt listed companies slide down to unlisted companies

Companies with listed but privately placed debt paper not to be regulated as ‘listed company’. FCS Vinita Nair | Senior Partner, Vinod Kothari & Company With an intent to promote listing of securities and bond market, Ministry of Corporate Affairs (MCA) in consultation with Securities and Exchange Board of India (SEBI), intended to exclude certain […]

LLPs Slated To More Stringent Reforms

Significant provisions soon to apply on LLPs   Payal Agarwal| Executive| Vinod Kothari and Company   Introduction Limited Liability Partnerships (LLPs) being a hybrid form of entity with characteristics of both companies as well as partnerships are governed by the provisions of Limited Liability Partnership Act 2008 (LLP Act).  LLPs are popular since due to […]

RBI consolidates directions for Housing Finance Companies

– Qasim Saif (finserv@vinodkothari.com)   Finance Minister in her speech for the budget 2019-20[1] stated that “Efficient and conducive regulation of the housing sector is extremely important in our context. The National Housing Bank (NHB), besides being the refinancer and lender, is also regulator of the housing finance sector. This gives a somewhat conflicting and […]