RBI widens FPI’s avenue in corporate bonds

/0 Comments/in /by

By Rajeev Jhawar (finserv@vinodkothari.com)

In recent times, the Government of India has liberalized the framework for raising External Commercial Borrowings(ECB) by Indian companies [read our article on this topic here]. Another change that we think can do good to India is the relaxation in the regulations for investments by Foreign Portfolio Investments(FPI).

The primary regulator for both the regime falls under the gamut of RBI because of the nature of capital account transaction between a resident and a non-resident. Since the FPI route consists of investment into the capital markets it is also regulated by the Securities and Exchange Board of India (SEBI), the primary capital market regulator in India.

The RBI vide its notification dated 27th April,2018, amended on 1st May ,2018 to relax their terms of investments in corporate bonds and in this write up we intend to analyze the same. Read more →

FDI in financial services sector: restrictions brought back but for unregulated entities

/0 Comments/in , , , , /by
Read more →

Implication of definitional change in related parties- As per the Companies (Amendment) Act, 2017

/0 Comments/in /by

By Smriti Wadehra (corplaw@vinodkothari.com)

Introduction

The Companies Act, 1956 (“Act, 1956”) did not define the word ‘related party’, however, in 12th September, 2013, MCA enforced the relevant provisions of the Companies Act, 2013 (“Act, 2013”) which defined the above term for the first time, and ever since then the definition has been changing to broaden its scope.

Ministry has brought significant changes in the definition of related party through the Companies (Amendment) Act, 2017 (“Amendment Act, 2017”) which has been made effective from 9th February, 2018. In this article we have majorly covered the changes brought in the definition of related party and its implications from compliance perspective. Read more →