[The following guest post is contributed by Surbhi Jaiswal of Vinod Kothari & Co. She can be reached at [email protected].] On 1 September, 2016, the Reserve Bank of India (RBI) issued two new sets of master directions, namely the Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and the Master...
Margin Requirements for Non-Centrally Cleared OTC Derivatives
[The following guest post is contributed by Rishi A., who is a 5th year law student at HNLU, Raipur] Introduction At the end of 2008, the world, especially the United States, witnessed one of the worst financial crises. The tipping point in this crisis was not the bad credit quality of the household mortgages that were losing their value because of a number of reasons including the growing...
RBI Issues Guidelines for “On Tap” Licensing of Private Universal Banks
In the past, the Reserve Bank of India (RBI) has been following a “stop and go” policy for licensing of new banks in the private sector. Under this policy, and on the last occasion in 2014, two private sector banks were granted licences to operate banks. However, this policy has been under review and discussion over the last few years. Consequently, the RBI in May this year issued the Draft...
Analyzing RBI’s Scheme on Structuring Big Ticket Stressed Assets
[The following guest post is contributed by Harsh Loonker, who is a 4th year student at the Jindal Global Law School, Sonipat] Introduction India’s central banking institution, the Reserve Bank of India (RBI), has issued guidelines on a Scheme for Sustainable Structuring of Stressed Assets.[1] These guidelines would mark a significant shift in reactive measures undertaken by regulators to act in...
Analysis of RBI’s Draft Guidelines for On-tap Licensing of Universal Banks in the Private Sector
[The following guest post is contributed by Aditya Sood, who is a 4th year BA, LLB (Hons) student at the West Bengal National University of Juridical Sciences, Kolkata] The Reserve Bank of India (RBI) on May 5, 2016 released Draft Guidelines for on-tap licensing of universal banks in private sector in India (“Draft Guidelines”).[1] The Draft Guidelines, if accepted, would mark a significant shift...
SEBI’s Regime on Wilful Defaulters
Earlier this year, the Securities and Exchange Board of India (SEBI) had issued a discussion paper that proposed tight curbs against wilful defaulters from accessing the capital markets. We had commented on the discussion paper in previous posts (here and here). Pursuant to the consultation process, SEBI last week issued amendments to various regulations in order to operationalize such curbs...
RBI Permits Deferment of Consideration and Escrow Mechanism Under Automatic Route
[The following post is contributed by Abhishek Dubey who is a Managing Associate with BMR Legal, Delhi. The views expressed here are personal.] In continuation of its policy to rationalize the existing regime under the Foreign Exchange Management Act and to promote the ease of doing business, the Reserve Bank of India (RBI) has amended the Foreign Exchange Management (Transfer or Issue of...
Indian REITs – Story So Far, Challenges and Expectations from Budget 2016
[This guest post is contributed by Yashesh Ashar and Swati Adukia. They are tax professionals and specialize in mergers and acquisition tax. Please note that the views are personal] I. Introduction The Securities and Exchange Board of India (“SEBI”) notified the SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”)...
Revision of FEMA Regulations – Promoting Ease of Doing Business
[The following guest post is contributed by Ananya Banerjee, who is a Fifth Year B.A.LL.B (Honours) Student at the University of Calcutta (Department of Law)] The Reserve Bank of India (“RBI”), through several notifications dated December 29, 2015, January 12, 2016 and January 21, 2016, has consolidated and revised nine sets of Regulations under the Foreign Exchange Management Act, 1999. The...
Fiduciary Capacity of Regulators and the Right to Information
[The following guest post is contributed by Apoorv Chaturvedi, who is a 4th year BA LLB student at the Jindal Global Law School] The regulatory regime in India is a complex system with multiple regulators set up for promoting “healthy and orderly development”[1] and to “prevent malpractices”[2] of companies, banks, stock markets etc. This healthy development is very closely related to the...
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