The Securities and Exchange Board of India recently issued several amendments and clarificatory circulars in respect of debenture issuance in India in order to enhance the transparency of disclosures by issuers, strengthen the role of debenture trustees (DTs) and protect the interests of investors. These changes reflect a paradigm shift with respect to the role envisaged for DTs, while issuers are also now subject to a much stricter regime.
Securitisation as a structured finance mechanism has several commercial advantages, including balance sheet and risk management, increased liquidity, cost-efficient financing, the marketability of the resulting securities and the opportunity for portfolio diversification. With the continuing need for liquidity by non-banking financial companies, the growing appetite of investors and the developments on the regulatory front, securitisation is likely to remain on the upward curve in the near future.
The Reserve Bank of India recently issued a circular introducing changes to the regulatory framework for housing finance companies (HFCs). Among other things, the circular defines what constitutes an HFC, sets out the minimum net owned funds required by HFCs and sets out the requirements for non-banking financial company-investment and credit companies. This article examines the recent changes.
The Reserve Bank of India recently announced a resolution framework for COVID-19-related stress to address borrower default pursuant to the stress caused by the pandemic without necessitating a change of ownership and without an asset classification downgrade modifying the existing framework. This article focuses on the key changes introduced for corporate loan accounts (ie, exposures other than personal loans).