[Palash Varyani is a 3rd-year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] India’s currency derivatives market is undergoing a profound transformation following the Reserve Bank of India’s (RBI) recent directive, set to be enforced on May 3. Brokers are advising clients to square off rupee derivatives positions as the regulatory landscape undergoes a...
RBI Tweaks Norms on Investments in AIFs: A Breather to the Regulated Lenders
[Srishti Multani and Aryan Birewar are 4th year BBA LLB (Hons.) students at Symbiosis Law School, Pune] On 27 March 2024, the Reserve Bank of India (‘RBI’) released a notification (‘Revised Notification’) relaxing certain directions given to regulated entities (‘RE’) in the notification (‘Previous Notification’) dated 19 December 2023 after due consultation with the stakeholders and industry...
Settling the Jurisdictional Conundrum: Navigating the App Developers v. Google Judgement
[Sanjana Rebecca Samuel is a 4th year B.A., LL.B. (Hons.) student at Symbiosis Law School, Pune] On 19 January 2024, the Madras High Court dismissed the suit filed by several app developers against Google. The developers asserted that Google’s policies within the Play Store contravened stipulations and directives outlined in the Payment and Settlement Systems Act, 2007 (“PSS Act”). Additionally...
Open Questions on RBI’s Enforcement Actions in Indian Fintech
“God may be in the details, but the goddess is in the questions. Once we begin to ask them, there’s no turning back.” – Gloria Steinem Over the last month and a half, the enforcement actions of the Reserve Bank of India (RBI) with respect to Paytm and in relation to certain payment arrangements through corporate cards have raised substantive questions of law, facts and due process. This...
Regulating the Unregulated: RBI’s Proposed Regulatory Framework for the Fintech Sector
[Daksh Kasliwal and Shubham Sehgal are 3rd year law students at Gujarat National Law University, Gandhinagar] Over the past decade, India’s fintech industry has been experiencing a remarkable growth trajectory and has emerged as the third largest fintech economy in the world. WEF, in its study, has placed India alongside the United Kingdom, the United States, and Singapore as “the most...
Beyond the Hype: Risks and Regulations in Binary Options Trading
[Shaswat Kashyap is a 3rd-year student at Gujarat National Law University and Snigdha Dash a 3rd-year student at National Law University, Odisha] A post late last year on Money Control highlighted a disquieting trend where certain financial influencers (finfluencers) are endorsing binary-trading platforms that the Reserve Bank of India (RBI) has blacklisted. Social media profiles with significant...
Transforming the Financial Landscape: RBI’s Overhaul of Forex Authorization Framework
[Harshal Chhabra and Shaswat Kashyap are 2nd year and 3rd year students respectively at Gujarat National Law University] In response to the dynamic shifts in the financial landscape, the Reserve Bank of India (the RBI) on 26 December 2023 introduced a draft licensing framework for Authorized Persons (APs) under the Foreign Exchange Management Act, 1999 (the Act). This move signifies a pivotal...
Revolutionizing Finance: RBI’s Bold SRO Framework Unveiled
[Dhaval Bothra and Rajdeep Bhattacharjee are law students at Symbiosis Law School, Pune] The Reserve Bank of India (“RBI”) recently unveiled the “Draft Omnibus Framework for recognising Self-Regulatory Organisations (“SROs”) for Regulated Entities (“REs”)”, which represents a significant change in recognizing SROs for REs under its authority. The Draft Omnibus Framework outlines the essential...
RBI’s SRO Framework: Shaping Responsible Growth in the Indian Financial Sector
[Shaswat Kashyap and Anand Vardhan are third-year law students at Gujarat National Law University] With the ever-growing adoption of innovative technologies, coupled with the rapid growth of regulated entities, it is becoming cumbersome for the Reserve Bank of India (“RBI”) to effectively regulate the sector. Self-regulatory organizations (“SROs”) can provide a vital link between the regulator...
The RBI’s Watchful Eye on AIFs: Navigating Conflict and Evergreening Risks
[Dhaval Bothra is a law student at Symbiosis Law School, Pune] As the chief regulator of financial institutions, the Reserve Bank of India (“RBI”) oversees varied entities from commercial banks to non-banking financial companies, ensuring prudent behaviour and protecting the interests of investors. Among the plethora of financial instruments under its purview, alternative investment funds...
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