Security Token Offerings & their Application to Structured Finance

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Moving to DeFi

– Subhojit Shome, Executive | subhojit@vinodkothari.com

Introduction

As per a Forbes article[1] published in early 2021, DeFi and Security Token Offerings (STO) had scaled new heights with 2020 being “a banner year for capital formation and secondary trading” using security tokens. DeFi applications were reported to be prevalent across 15 countries around the world (including the major developed economies) and 39 of the top 100 largest banks in the world were reportedly working on security tokens or blockchain applications. Expert estimates[2] predict the security tokens industry to surpass the market volume for cryptocurrencies in the next five years and in terms of issue proceeds, the global security token market reaching $3 billion by 2025.

Figure 1: Estimated Growth of Security Token Offerings (STO)[3]

Blockchain-based tokens can be described as digitally scarce units of value the characteristics and circulation of which are prescribed via computer code.[4]

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Workshop on RPTs – implementing the new LODR framework

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Registrations can be made at –

https://docs.google.com/forms/d/e/1FAIpQLSdPUjdFQCfxiVulF4dfuprZqEg-DlfyLvXMweDL-1MrOJeuwQ/viewform

Update: Please note, the workshop is deferred and will not be held on April 4, 2022. Revised date for the workshop will be announced shortly. Do express your interest in the form above for further communications! In case of any queries reach out to anushka@vinodkothari.com

Secretarial Audit: Regulatory Framework

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– CS Vinita Nair, Senior Partner, Vinod Kothari & Company

Microfinance specific regulations made uniformly applicable to all Microfinance Lenders

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Aanchal Kaur Nagpal | Assistant Manager (finserv@vinodkothari.com)

Resurgence of synthetic securitisations: Capital-relief driven transactions scale new peaks

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Resurgence of synthetic securitisations: Capital-relief driven transactions scale new peaks – Vinod Kothari | vinod@vinodkothari.com [Revised March 2022] Balance sheet synthetic securitisations, apparently aimed at capital relief and economic capital management, have scaled new peaks in the European market. In the US market, credit risk transfer transactions have registered substantial traction in the RMBS space. […]

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Sangraha February- 2022

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The Pious Intent of Promoting Factoring

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Preserve of a select few?  

Over the last two years, the regulatory developments vis-à-vis factoring, and more specifically, ‘who can be a factor’ has been a to-and-fro ride. With widening of the scope of entities eligible for factoring to its effective roll back vide the Registration of Factors (Reserve Bank) Regulations, 2022 (‘Registration Regulations’), the factoring market found itself stuck in ambiguity arising because of the disparity between the Factoring Regulation (Amendment) Act, 2021 (‘Amendment Act’) and the Registration Regulations. Ironically enough, only days after the notification of Registration Regulations, the Economic Survey 2021-22 was released, which held a rather positive outlook as regards the factoring market, in view of the reliefs provided vide the Amendment Act.

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