[Prachya J. Bhattacharya and Sahsransh Pandey are 3rd year students at Gujarat National Law University, Gandhinagar] In an effort to foster the consistent growth of alternative investment funds (AIFs), the Securities & Exchange Board of India (SEBI) introduced a consultation paper on 2 February 2024. The paper aims to allow AIFs to create encumbrance on their equity holdings in infrastructure...
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...
A Faster Track for Debt Financing: Examining India’s Proposed Public Issuance Framework
[Dhaval Bothra and Rajdeep Bhattacharjee are students at Symbiosis Law School, Pune] The Indian corporate debt market, while exhibiting notable dynamism, grapples with a critical challenge: the stark predominance of private placements. This overreliance on opaque transactions significantly restricts public participation and impedes overall market development. Recognizing this constraint, the...
Reinforcing Secured Creditors’ Rights: Insights from the Ronak Industries Case
[Shruti Srivastava is a 4th year B.A., LL.B. (Hons.) student at National Law University and Judicial Academy, Assam] In the ever-evolving landscape of financial regulations, the concept of a secured creditor has assumed significant importance. A momentous shift occurred with the introduction of section 26-E in The Securitization and Reconstruction of Financial Assets and Enforcement of Security...
Call for Papers: 3rd RGNUL-SAM Conclave on Emerging Trends in Banking & Finance in India, 2023
The Rajiv Gandhi National University of Law, Punjab (RGNUL) is an autonomous National Law University (NLU) established by the RGNUL Act (No. 12 of 2006) passed by the Legislature of the State of Punjab, under the second wave of reforms instituted by the Bar Council of India. Established in 2006, RGNUL has garnered a pan-India reputation as a stellar institution for legal research and education...
Debenture Holders’ Right to Object to Material Related Party Transactions
[Vinita Nair is a Senior Partner at Vinod Kothari & Company] The Securities and Exchange Board of India (‘SEBI’) continues to tighten the regulatory regime for debt-listed entities as it aims to promote the corporate bond market. After equating debt-listed entities with outstanding value of listed non-convertible debt securities of Rs. 500 crore and above with equity-listed entities for the...
Bombay High Court’s ASREC Ruling: Form v. Substance in SARFAESI Proceedings
[Sharanya Shivaraman is an Advocate practicing in Mumbai and a graduate of ILS Law College, Pune] The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was enacted over two decades ago to facilitate loan recovery and the securitisation of financial assets of banks and financial institutions. Under the framework of the Act, section 13 is a key...
Supreme Court Holds Tax Authorities to be Secured Creditors: Quandary Revived
[Sikha Bansal is a Partner and Neha Sinha an Executive at Vinod Kothari & Company. They can be reached at [email protected]] Earlier this week, in State Tax Officer v. Rainbow Papers Limited (6 September 2022), the Supreme Court (‘SC’) dealt with the question whether the provisions of Insolvency and Bankruptcy Code, 2016 (‘IBC’), especially section 53, overrides section 48 of the...
Supreme Court on Debentureholders’ Rights under Intercreditor Agreements
[Sikha Bansal is a Partner at Vinod Kothari & Company and can be reached at [email protected]] 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...
Supreme Court Decision in Vidarbha: Return to the Pre-IBC Era
[Abhismita Goswami is a Trainee Associate at Mindspright Legal, Mumbai] An application for initiating a corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 (“IBC”/ “Code”) can be filed with the National Company Law Tribunal (“NCLT”) by the financial creditors (“FCs”) and operational creditors (“OCs”) of a corporate debtor (“CD”), under section 7 and...
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