Banking and Finance
February 3, 2021

DISCLOSING THE FINANCIAL IMPACT OF THE COVID-19 PANDEMIC – WILL THE SEC RULING CHANGE THE REGULATOR’S APPROACH IN INDIA?

Enforcement action in the US In March 2020, the Securities Exchange Commission (the “SEC”) formed a Coronavirus Steering Committee to actively oversee the monitoring of COVID-19-related misconduct by listed entities. On December 4, 2020, the SEC issued its first enforcement order against a listed entity for making misleading disclosures about the financial impact of the…

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Covid-19, Financial Services
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February 1, 2021

HIGHLIGHTS OF INDIA’S BUDGET 2021-2022

Introduction India’s Union Budget (the “Budget”) was announced today (February 1, 2021), and the Finance Bill, 2021 (the “Finance Bill”) was tabled in Parliament. The Finance Bill will be discussed in Parliament before its enactment, and therefore, it is likely that the Finance Bill may be amended because of these discussions. Once enacted, unless specified…

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Financial Services, Ravi S. Raghavan, Tax
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November 26, 2020

RBI PANEL ISSUES RECOMMENDATIONS TO PRIVATE SECTOR BANKS IN INDIA

On November 20, 2020, the internal working group of the Reserve Bank of India (RBI) released its report listing out some recommendations for changes to banking license requirements and the corporate structure of private sector banks in India.

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Akil Hirani, Banking and Finance, Financial Services
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September 2, 2020

YES BANK v. ZEE: A CURIOUS CASE OF COMFORT AND GUARANTEE

Introduction Letters of Comfort (LoC) have been issued by the promoters of various borrower companies to Indian banks, overseas branches of Indian banks and non-bank lenders. In many cases, these have been equated with guarantees. On August 19, 2020, the Bombay High Court dismissed an interim application by Yes Bank against Zee Entertainment Enterprise Limited…

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Banking and Finance
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July 13, 2020

M&A IN STRESSED INDIAN COMPANIES – WILL THE SEBI AMENDMENTS HELP?

The SEBI has permitted stressed companies to undertake a preferential issue at a price, which is the average of the weekly high and low of the volume-weighted average price (‘VWAP’) of its equity shares during the preceding two (2) weeks. In order to be eligible to avail of the foregoing relaxation, a stressed company must…

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Corporate/M&A
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April 2, 2020

INDIA’S NEW GUIDELINES FOR PAYMENT AGGREGATORS AND PAYMENT GATEWAY PROVIDERS

Introduction and implications in a nutshell As per the Reserve Bank of India’s (the “RBI”) Annual Report, the number of card payment transactions carried out through credit cards and debit cards during 2018 and 2019 was 1.8 billion and 4.4 billion, respectively. Prepaid Payment Instruments (PPIs) recorded a volume of about 4.6 billion transactions valued…

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Banking and Finance, Financial Services, Payment Aggregators, Payment Gateway
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August 7, 2019

THE RESERVE BANK OF INDIA LIBERALIZES EXTERNAL COMMERCIAL BORROWING NORMS ON END-USE PROVISIONS

Introduction Earlier this year, the Reserve Bank of India (the “RBI”) had revised the framework on external commercial borrowings (“ECBs”), and put in place a new and simplified framework for Indian entities to borrow monies from foreign lenders.  On July 30, 2019, the RBI has further relaxed the restrictions on end-use of ECBs for corporates…

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Banking and Finance
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June 4, 2019

RBI RELEASES DRAFT GUIDELINES TO BETTER REGULATE INDIA’S SHADOW BANKS IN THE AFTERMATH OF THE IL&FS CRISIS

On May 24, 2019, the Reserve Bank of India (the “RBI”) released a draft liquidity risk management framework (the “Proposed Framework”), which is proposed to be made applicable to all non-deposit taking non-banking financial companies (“NBFCs”) with a minimum asset size of INR1 billion (US$14.42 million approximately), all deposit taking NBFCs and all systematically important…

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Banking and Finance
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January 23, 2019

INDIA’S EXTERNAL COMMERCIAL BORROWINGS REGIME SIMPLIFIED

The Reserve Bank of India (the “RBI”) has revised the external commercial borrowings (“ECB”) framework on a regular basis in a bid to make foreign borrowings a lucrative method of raising capital.  On December 17, 2018, the RBI replaced the erstwhile regulations on ECBs and notified the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018. …

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Banking and Finance
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April 13, 2016

INDIA MOVES TO A UNIFIED PAYMENT INTERFACE REGIME

Introduction On April 11, 2016, the Reserve Bank of India (the “RBI”) flagged off the Unified Payment Interface (“UPI”) system, which will be a channel that will enable multiple bank accounts to be accessed through a single mobile application (“APP”).  The launch of the UPI system will revolutionize India’s financial sector. This update discusses the…

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Banking and Finance
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December 16, 2015

EXTERNAL COMMERCIAL BORROWINGS BY INDIAN COMPANIES MADE EASY

Introduction On November 30, 2015, the Reserve Bank of India (the “RBI”) revamped the regime governing external commercial borrowings (“ECBs”) by Indian companies and introduced a revised framework (the “Revised Framework”). The Revised Framework significantly relaxes the rules on permitted lenders, rupee denominated borrowings (“RDBs”) and long term foreign currency denominated borrowings (“LTBs”). The Revised…

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Banking and Finance, Corporate/M&A
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July 10, 2015

BORROWERS BEWARE – BANKS CAN NOW TAKE OVER COMPANIES TO RECOVER THEIR DEBT

Introduction To address various issues surrounding distressed assets in the banking system, on February 26, 2014, the Reserve Bank of India (the “RBI”) issued the Framework for Revitalising Distressed Assets in the Economy (the “Framework”). The Framework, inter alia, requires lenders to compulsorily form a Joint Lenders Forum (the “JLF”) if the principal or interest…

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Banking and Finance, Insolvency and Restructuring
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