[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...
A Breath of Fresh Air for Stressed Debts? Demystifying SEBI’s Consultation Paper on SSFs
[Mahim Raval is a 3rd year B.Sc., LL.B. (Hons.) student at Gujarat National Law University in Gandhinagar] India’s financial landscape has been grappling with the persistent burden of stressed assets, hampering the flow of credit and impacting economic growth. While the Reserve Bank of India (“RBI”) has introduced multiple schemes to resolve the burgeoning non-performing assets of banks, the...
Inside SEBI’s Consultation Paper: Reshaping SSFs in Indian Finance
[Harsh Mittal and Sidhanth M K Majoo are 3rd year B.B.A. LL.B. (Hons.) students at National Law University, Odisha] The Indian financial system has long been burdened by the prevalence of stressed assets, necessitating substantial capital infusions into banks, non-banking financial companies (“NBFCs”), and other financial institutions. These stressed assets have constrained the ability of...
RBI’s Draft Directions on Wilful Defaulters: Implications and Concerns
[Aamir Kapadia and Tejas Venkatesh are penultimate year BBA L.L.B. (Hons.) students at Jindal Global Law School] On September 21, 2023, the Reserve Bank of India (“RBI”) released the Draft Master Direction on treatment of Wilful Defaulters and Large Defaulters. The purpose behind the draft is to solicit public comments on proposed regulations to tighten the norms applicable to wilful defaulters...
A Bank’s Post-Merger Liability for Pre-Merger Crimes
Earlier this month, the Supreme Court in Religare Finvest Limited v. State of NCT of Delhi (2023INSC819) considered the question whether the transferee bank in a merger can be fastened with corporate criminal liability for offences committed by the officials of the transferor bank prior to a merger of the two entities. The Court answered in the negative given the specific facts and circumstances...
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