– Qasim Saif | finserv@vinodkothari.com
Addressing risk faced by NBFCs and enhancing their capacity to absorb such risk has been a key point of consideration under the Scale Based Regulations (SBR) for NBFCs. SBR also intends to curb regulatory arbitrage available to very large NBFCs whose size of operations are more or less in line with that of banks.
Read more →In pursuance of the Scale Based Regulatory Framework
-Anita Baid | Vice- President and Aanchal Kaur Nagpal | Assistant Manager
The Scale Based Regulatory Framework, introduced by the Reserve Bank of India (‘RBI’), among several other things, proposed to regulate loans extended by NBFCs to their directors, senior officers and relatives thereof.
In this regard, the RBI has, vide its notification on Loans and Advances – Regulatory Restrictions – NBFCs dated April 19, 2022, issued two sets of regulatory provisions – one for NBFC-UL and NBFC-ML and the other for NBFC-BL (‘Guidelines’).
– Parth Ved, Executive | parth@vinodkothari.com
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Our resources on SBR: https://vinodkothari.com/sbr
– Anita Baid, Vice President | finserv@vinodkothari.com
RBI has been concerned with the adverse regulatory arbitrage posing systemic risk in the NBFC sector. In order to align the regulatory provisions with the objective of preserving financial stability and reducing systemic risks, a scale based regulatory framework has been introduced which is to be effective from October 1, 2022. The SBR is a calibrated and graded regulatory framework proportional to the systemic significance of NBFCs.
Read more →Aanchal Kaur Nagpal | Assistant Manager (finserv@vinodkothari.com)
Team Financial Services | finserv@vinodkothari.com
Details of the 10th Securitisation Summit, 2022 – https://vinodkothari.com/secsummit/
Post-event report of the 9th Securitisation Summit, 2021 – https://vinodkothari.com/2021/11/9th-securitisation-summit-report/
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– Qasim Saif | Manager | finserv@vinodkothari.com
Entities are exposed to financial risks arising from many aspects of their business. The nature of the risks varies with the nature of the business activities carried on by the business entities, for example, some entities might be concerned about exchange rates or interest rates, while others might be concerned about commodity prices. Entities implement different risk management strategies to eliminate or reduce their risk exposures.
Read more →Harmonisation of NPA recognition: 15th Feb. 22 clarification, to the 12th Nov. 21 clarification
Our analysis on the Feb. 15 clarification is available here: https://vinodkothari.com/2022/02/nbfc-npa-characterisation-a-reprieve-a-day-too-late/
Our write-up on RBI’s Clarifications on the NPA SMA Recognition: https://vinodkothari.com/2021/11/npa-classification-norms-2/
Our discussions on the topic are also available on Youtube:
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