Investment by FPIs in securitised debt instruments
/0 Comments/in Capital Markets, FEMA, Securitisation /by Vinod Kothari ConsultantsBy Anita Baid,(anita@vinodkothari.com)(finserv@vinodkothari.com)
Investments by Foreign Portfolio Investors (FPIs) in unlisted debentures and securitised debt instruments (SDIs) issued by Indian companies was allowed pursuant to SEBI notification dated 27th February, 2017[1]. Earlier in November, 2016, Reserve Bank of India (RBI) had also permitted investment by FPIs in unlisted non-convertible debentures and securitised debt instruments issued by Indian companies[2]. The said amendments by the securities market regulator and financial services regulator were the final push which was needed to encourage more FPI investments in India.
Previously, FPIs could invest only in debt securities of companies engaged in the infrastructure sector. This was a clear indication that the government aimed to develop the infrastructure sector in India. But eventually, it seemed that the government did not want to restrict this to infrastructure only and wanted to reap all the benefits for developing a dynamic and facilitating bond market in the country.
Economic development and smooth flow of funds into the economy are the twin sides of the same coin and the government of India has very well taken this into account while amending the FPI regulation. Allowing FPI investments in unlisted debt instruments of Indian companies, was a step by the government to relax the burden which the companies had to bear, while raising funds in the form of equity. The regulation in turn blocked the companies from tapping into fresh funds and listing of debt instruments, which called for additional burden of complying with a host of other regulations.
Indian Valuation Standards: Standardizing the rules of valuation in India
/0 Comments/in Accounting and Taxation, Companies Act 2013, Corporate Laws, Indian Accounting Standards (Ind AS), Valuations /by Vinod Kothari ConsultantsRefer to valuation approaches here- https://vinodkothari.com/2020/09/valuation-approaches-and-methods/
The Curious Case of Home-Buyers: All is Well?
/0 Comments/in Insolvency and Bankruptcy /by Vinod Kothari ConsultantsBy Sikha Bansal, (sikha@vinodkothari.com) (resolution@vinodkothari.com)
All the hullabaloo surrounding the inclusion of “home-buyers” in the category of financial creditors was put to rest by the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (“the Ordinance”). The Ordinance amends the definition of “financial debt” u/s 5 (8) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) so as to include in clause (f): Read more →
MCA raises curtain on SBO Rules – Notifies final rules with several changes.
/0 Comments/in Amendments to the Companies Act 2013, Corporate Laws /by Vinod Kothari ConsultantsCS Vinita Nair, vinita@vinodkothari.com
CS Nikita Snehil, nikita@vinodkothari.com
Vinod Kothari & Co. | June 14, 2018
Amendment to Section 89 and 90 is one of the key amendments proposed in Companies (Amendment) Act, 2017 (Amendment Act). While, the Amendment Act is being 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 6, 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] (‘Final Rules’) in relation to SBO. This is one of the most onerous provision rolled out by MCA. The purpose of this Section is to ask companies ‘Parde ke peeche kaun hai? Saamne aao!’. The present Article explains the provisions of the amended Section 90 and the Final Rules. Read more →
MCA reduces SBO threshold from 25% to 10%
/0 Comments/in Amendments to the Companies Act 2013, Corporate Laws /by Vinod Kothari ConsultantsMCA amends MGT Rules- alignment with Companies (Amendment) Act, 2017
/0 Comments/in Amendments to the Companies Act 2013, Corporate Laws /by Vinod Kothari ConsultantsBy Megha Saraf (megha@vinodkothari.com),(corplaw@vinodkothari.com)
Introduction
Subsequent to the Ministry of Corporate Affairs (“MCA”) notifications dated 9th February, 2018 and 7th May, 2018 through which MCA hadenforced 43 sections and 28 sections of the Companies (Amendment) Act 2017, (“Act, 2017”),it has once again come up with another set of notificationsvide its notification dated 14th May, 2018 bringing 5more sections of Act, 2017 to life and amending corresponding Rules that are prescribed. Read more →
Property Share Business Models in India
/2 Comments/in Alternative investment Vehicles /by Vinod Kothari ConsultantsBy Vishes Kothari (vishes@vinodkothri.com)
Real estate suffers from the paradox of being a much sought after mode of investment which is at the same time illiquid, has high investment threshold and is difficult to adminster and manage. However technology can provide newer and more efficient ways of investing smaller amounts into co-ownership of property.
