[Shloka Mathur is a 4th year B.B.A LL.B. (Hons) student at National Law University, Odisha.] In its recent regulatory directive, the Securities and Exchange Board of India (‘SEBI’) has altered and expanded the scope of ‘liquid assets’ in its definition. These assets provide financial institutions with the necessary liquidity to manage risks effectively and ensure market stability. Liquid assets...
Fast-Track Revolution: SEBI’s Consultation Paper on Reforms in the Debt Securities Market
[Nikita Singh and Aishana are third year BSW LLB students at Gujarat National Law University, Gandhinagar] As a response to the Budget’s (2023-24) emphasis on simplifying regulations, reducing compliance costs, and fostering a business-friendly environment, financial sector regulators are actively reviewing existing frameworks. A dedicated working group i.e. Corporate Bonds and Securitization...
Smaller Ticket Sizes: Decoding SEBI’s Corporate Bond Market Reform
[Shalin Ghosh is a 2nd year B.A.,LL.B. (Hons.) student at Maharashtra National Law University, Mumbai] The Securities and Exchange Board of India (“SEBI”), through a consultation paper released on 9 December 2023, proposed a slew of reforms to spur the growth of the Indian corporate bond market. One of those reforms concerns permitting companies to issue non-convertible debentures (“NCDs”) and...
Navigating Regulation 62A of SEBI’s Listing Regulations: Implications on India’s NCD Market
[Tanishq Vijay Vargiya and Vaibhav Nishad are 3rd year students at the Gujarat National Law University, Gandhinagar] The Securities and Exchange Board of India (SEBI) has on 21 September 2023 published the SEBI (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2023 (the ‘Amendment’), by which it introduced regulation 62A of the SEBI (Listing Obligations and...
How Will Courts Decide in Bond Holders versus Central Banks?
[Bhargavi Zaveri Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of IndiaCorpLaw Blog and Harsh Vardhan is a management consultant] The Supreme Court is currently hearing an appeal against a Bombay High Court judgement on Yes Bank’s restructuring plan. The question at hand in this appeal is this: whether, as part of Yes Bank’s restructuring...
Breaking the Rules: When Crowdfunding Platforms Cross the Line in Raising Capital
[Mohammad Kaif is a penultimate year student at Campus Law Centre, Faculty of Law, University of Delhi] Crowdfunding has become increasingly popular as a way to raise funds, where numerous individuals invest in a project or a company, usually via an internet-based platform. Some companies have used crowdfunding platforms to issue securities in violation of the provisions of Private Placement...
The Bombay High Court’s Yes Bank Judgement: Falling Short on Fairness
[Harsh Vardhan is a management consultant and Bhargavi Zaveri Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of IndiaCorpLaw Blog] Last week, the Bombay High Court set aside the Reserve Bank of India (RBI)-appointed administrator’s decision to write off the additional tier (AT1) bonds issued by Yes Bank in 2016 and 2017. In 2020, when a...
Supreme Court on Debentureholders’ Rights under Intercreditor Agreements
[Sikha Bansal is a Partner at Vinod Kothari & Company and can be reached at corplaw@vinodkothari.com] A well-developed corporate bond market not only provides cost-effective funds to the issuer, but it also enables lenders such as banks and other financial institutions to streamline their asset-liability mismatches. As such, there have been considerable efforts to facilitate the development...
Social Impact Investing in India- A Road Less Travelled
[Aashna Soman is a 5th-year B.A., LL.B. (Hons.) student at ILS Law College, Pune] The concept of impact investing arose to fill the lack of public resources to fund development programs in financially poor countries. Impact Bonds (“IBs”) are innovative financial instruments that pull private investment to finance high-impact social programs. The implementation of impact bonds aids in financing...
Credit Rating Agencies In India: A Critique of SAT’s Ruling Against Care Rating
[Sidharth Pattnaik and Sneha Rath are 4th Year B.B.A., LL.B. (Hons.) and 3rd Year B.A., LL.B. (Hons.) students respectively at National Law University Odisha] In this post, we focus on the developments around Care Rating Agency’s (CARE) alleged dereliction of its duty to rate Reliance Communications’ (RCom) creditworthiness over a period of four quarters, and the subsequent initiation of inquiry...
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