Reload document 
Open in new tab RBI removes cap on investments in corporate bonds by FPIs
By Abhirup Ghosh (abhirup@vinodkothari.com), (finserv@vinodkothari.com)
The Reserve Bank of India (RBI) in its Sixth Bi-monthly Monetary Policy Statement for 2018-19 dated February 07, 2019[1] had declared that for the purpose of widening the spectrum of investors in the Indian corporate bond market, it will remove the cap on investment to be made by FPIs on corporate bonds. In furtherance to the declaration, the RBI on 15th February, 2019[2] issued a notification giving effect to the proposal.
Before we understand what the impact of the notification will be, let us recapitulate what the restrictions were. Read more →
MCA revisits SBO Rules
-Notifies amendments to facilitate implementation of the SBO Rules
CS Nikita Snehil (nikita@vinodkothari.com)
Amendment to Section 89 and 90 is one of the key amendments brought in by the Companies (Amendment) Act, 2017 (‘Amendment Act’). While, the Amendment Act has been enforced in phases, stakeholders were given the option to provide the public comments on the draft rules[1] in relation to Significant Beneficial Ownership (SBO), which was issued by MCA on Feb 2, 2018. Thereafter, on June 14, 2018, MCA vide its Notification, has enforced the provisions of amended Section 90 of the Companies Act, 2013 and also issued the Companies (Beneficial Interest and Significant Beneficial Interest) Rules, 2018[2] (‘SBO Rules’) in relation to the determination of SBO.
Thereafter, considering various practical difficulties in implementing the provisions of the SBO Rules, MCA on February 8, 2018[3] has notified the revised rules in order to facilitate better implementation of the provisions.
The following article explains the revised requirement of the Rules, responsibilities of the companies and the immediate actionables to be taken in order to comply with the revised requirements.
