Can AIF grant loans?
/0 Comments/in Alternative investment Vehicles, Financial Services, SEBI /by Vinod Kothari ConsultantsIntegration of Financial Markets and Capital Markets
/0 Comments/in Alternative investment Vehicles, Bond Market, Capital Markets, Financial Services /by Vinod Kothari ConsultantsFresh set of conditions for strategic investments in REITs and InvITs
/0 Comments/in Alternative investment Vehicles, Financial Services /by Vinod Kothari ConsultantsBy Saloni Mathur , (finserv@vinodkothari.com)
The SEBI vide its circular dated 18th January 2018[1](‘Circular’) issued guidelines on participation by the strategic investors in InVIT’s and REIT’s. These guidelines have been issued in pursuance to the powers conferred on SEBI as per the provisions of the section 11(1) of the Securities and Exchange Board of India Act, 1992(‘SEBI Act’) read with regulation 33 of the Securities and Exchange Board of India (Real Estate Investment trusts) and (Infrastructure Investment trusts) regulations, 2014.[2]
COMPARATIVE ANALYSIS OF AMENDMENTS TO INVIT’S AND REIT’S REGULATIONS, 2017
/0 Comments/in Alternative investment Vehicles, Financial Services, Housing finance, SEBI /by Vinod Kothari ConsultantsBy Saloni Mathur & Kirti Sharma , (finserv@vinodkothari.com)
The SEBI in its Board Meeting on 18th September, 2017[1] approved several changes to the regulations issued for REITs.
The recent amendments by way of Securities and Exchange board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2017[2] and the Securities and Exchange board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2017[3] has brought about several changes in the existing regulations, which are the necessary incorporations to the changes that were proposed in the board meeting held on September 18th, 2017. SEBI in its Board Meeting made certain amendments to the SEBI (infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real Estate Investment Trusts) Regulations, 2014 (referred to as ‘REIT Regulations’).
State of Indian Capital Markets
/0 Comments/in Capital Markets /by Vinod Kothari ConsultantsBy Mayank Agarwal (finserv@vinodkothari.com )
Capital market is the one-stop solution for both companies and investors looking to utilize idle money in the most financially sound manner. While money markets provide short-term (generally less than one year) route of raising money, capital markets provide a much broader avenue. Although businesses rely upon money market sources to address liquidity issues, capital markets are explored with the intention of improving the solvency situation of the businesses.
A healthy and booming capital market is a clear-cut indication that the domestic people have confidence in the financial ecosystem of the country and that they trust the government and financial institutions with their money. Strong capital market volume aids economic growth by mobilization of savings and providing funds to those in need, thus increasing productivity.
SEBI Board approves amendments to REIT Regulations
/0 Comments/in Alternative investment Vehicles /by Vinod Kothari ConsultantsBy Shreya Routh, (finserv@vinodkothari.com)
Introduction
The SEBI in its Board Meeting on 18th September, 2017[1]approved several changes to the regulations issued for REITs. Before we start discussing the changes approved, let us quickly recap the way in which a REIT operates. REIT is a form of alternative investment vehicle. The working mechanism of a REIT involves purchase of commercial properties and then providing them on rent to tenants. The funding is done through issuance of units to public which are tradable on stock exchanges. The main advantage of a REIT structure is grounded on the tax exemptions that it receives.
Since, REITs mechanism observed a complete downfall and the fact that till date no REIT has been listed with SEBI, the proposed amendments come as a saviour intending to gear up the market for REITs. Read more →
RBI revamps Directions for issuance of Commercial Paper
/0 Comments/in Banking Regulations, Bond Market, Capital Markets, NBFCs /by Vinod Kothari ConsultantsBy Richa Saraf, legal@vinodkothari.com
The Reserve Bank of India (RBI) vide Notification No. MRD.DIRD.01/CGM (TRS) – 2017 dated August 10, 2017 has issued Reserve Bank Commercial Paper Directions, 2017 (“New Directions”). The new guidelines are in supersession of the existing directions on Commercial Paper in the Master Directions on Money Market (Section II) RBI/FMRD/2016-17/32 dated July 7, 2016 (“Old Directions”). The following table captures the difference between the old and new directions:- Read more →
SEBI allows Category III AIFs to invest in commodities market
/0 Comments/in Alternative investment Vehicles /by Vinod Kothari ConsultantsBy Somesh Lund (finserv@vinodkothari.com)
Genesis of Category III AIFs
Alternate Investment Funds (AIFs) are privately pooled investment funds, incorporated in India, in the form of a trust, company, LLP or body corporate not covered under any other regulations prescribed by SEBI. These funds are governed by Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012[1].
Masala bonds: taking stock of developments so far
/0 Comments/in Bond Market /by Vinod Kothari ConsultantsBy Vallari Dubey (vallari@vindokothari.com)
Background
The Reserve Bank of India (RBI), on September 29, 2015, vide circular RBI/2015-16/193 had issued guidelines allowing Indian companies, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue rupee-denominated bond (masala bonds) overseas. Consequently, RBI, on April 13, 2016, vide circular RBI/2015-16/372 had reduced the tenure of such bonds to 3 years (previously 5 years) and allowed borrowing upto Rs. 50 billion (previously $ 750 million) under the automatic route. Now vide circular RBI/2016-17/316, RBI has again modified the tenure of these bonds. Interestingly, the tenure has now been segregated into 3 years and 5years respectively; while 3 years are for Masala Bonds raised upto USD 50 million equivalent in INR per financial year and 5 years for bonds raised above USD 50 million equivalent in INR per financial year.
Since its inception only Housing Development Finance Corporation Limited (HDFC) and National Thermal Power Corporation Limited (NTPC) have successfully listed its masala bonds on the London Stock Exchange worth INR 78 billion1 ($1.21 billion) and INR 20 billion ($300 million) respectively. Though HDFC’s masala Bonds are traded on London Stock Exchange (LSE), NTPC’s bonds are traded on both LSE and Singapore Stock Exchange (SGX).