APPLICATION UNDER SARFAESI- A Liberal Approach by the Supreme Court
By Richa Saraf, (legal@vinodkothari.com) Read more →
RESTRICTIVE REMEDY UNDER SECTION 14 OF SARFAESI ACT
/0 Comments/in Case laws, SARFAESI /by Vinod Kothari ConsultantsBy Richa Saraf , (legal@vinodkothari.com) Read more →
Guidance Note to NBFCs for nomination of counsel in Delhi High Court
/0 Comments/in NBFCs, SARFAESI, Securitisation /by Vinod Kothari ConsultantsBy Richa Saraf, (legal@vinodkothari.com)
BACKGROUND:
- In exercise of its powers under sub clause (iv) of clause (m) of sub section (1) of section 2 read with section 31A of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( “SARFAESI Act”), the Central Government issued a notification[1] dated August 5, 2016 notifying 196 Non- Banking Financial Companies (“Notified NBFCs”) as “Financial Institutions”, registered with the Reserve Bank of India (RBI) and having asset of Rs. 500 crore and above as per their last audited balance sheet, on which the SARFAESI Act is applicable. Read more →
Impact of GST on factoring transactions
/0 Comments/in Indirect Taxes, SARFAESI, Securitisation /by Vinod Kothari ConsultantsBy Abhirup Ghosh, (gst@vinodkothari.com)
Factoring is a very popular product mode of working capital funding across the globe. In India, however, the picture is not quite rosy for factoring companies. Nevertheless, like every other thing in the country, factoring transactions will also be affected by the introduction of GST in India. Here in this article, we intend to walk you through the probable impact, GST would create on factoring transactions. Read more →
Is the two-section ordinance key to India’s bulging NPA crisis?
/0 Comments/in Insolvency and Bankruptcy, NBFCs, SARFAESI, Securitisation /by adminBy Vinod Kothari, (vinod@vinodkothari.com)
The much-awaited ordinance, expected to make a tangible impact on India’s crisis of piling non-performing assets (NPA), was signed into law by the President on 5 May 2017. The Ordinance, consisting of barely two sections, makes amendments to the regulatory framework of banking in India, the Banking Regulation Act. After reading the law, one is forced to ask if this is what was holding up the resolution of NPA crisis in the country. Did it actually have to take all this time?
Increased Capital Requirements for Asset Reconstruction Companies (ARCs) by Kirti Sharma, April 8, 2017
/0 Comments/in SARFAESI /by adminRBI Announcement
With a view to increase more cash based sales of Non-Performing Assets (NPAs), the Reserve Bank of India (RBI) has amended the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 increasing the capital requirement for Asset Reconstruction Companies (ARCs) to 100 crores from 2 crores in the Statement on Developmental and Regulatory Policies issued on 6th April 2017.
Implications
This move of the regulator would raise concern for the smaller ARCs operating in the country to comply with the steep rise in the capital requirement norms.
The final guidelines in this regard shall be issued by the end of April 2017.