IBC ordinance: Now home buyers are on par with banks in the resolution process
The ordinance passed by Government of India on Wednesday (June 06, 2018) to Insolvency and Bankruptcy Code (IBC) treats home buyers in ailing real estate companies on par with banks in the resolution process. The new IBC ordinance tags the buyers of home buyers with financial creditors which empowers even a single home buyer to…
Read article Salient features of IBC (amendment) ordinance 2018
President Mr.Ram Nath Kovind on Wednesday (June 6, 2018) gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. The Government in its statement said that the changes envisioned in the amendment are expected to further strengthen the Insolvency Resolution Framework in the country and produce better outcomes in terms of resolution as…
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Timelines for large accounts under Insolvency and Bankruptcy Code 2016 (IBC)
(This post elucidates details of timelines for implementation of Resolution Plan (RP) and insolvency application to be filed by the lenders if a RP is not implemented as per the timeline.) In terms of RBI circular dated February 12, 2018, the ‘Resolution Plans’ (RP) under IBC shall be implemented within the timeline given below in…
Read article What’s the big deal about bankruptcy law?
(This post narrates the background of introducing the ‘bankruptcy law’ and in what way the new law is likely flags the problem loans and protects the interest of lenders.) The ‘Insolvency and Bankruptcy Code, 2016’ bill will be shortly enacted as an ‘ACT’ which will be dealing with resolutions of insolvency and bankruptcy. The fundamental…
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Regulations for Credit Rating Agencies (CRAs) in India
The Indian Credit Rating agencies are governed by the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 (“the Regulations”). SEBI however recognizing the need for more stringent oversight introduced the SEBI (Credit Rating Agencies) Regulations, 2018, which replaced the earlier regulations. These updated regulations aimed to reinforce the credibility and accountability of…
Revised Procedure for Transfer of Unclaimed Amounts to the Depositor Education and Awareness (DEA) Fund
In accordance with the updated regulatory guidelines, all banks are required to transfer to the Depositor Education and Awareness (DEA) Fund (“the Fund”) the amounts becoming due in each calendar month. These include proceeds from inoperative accounts and balances that have remained unclaimed for ten years or more, along with interest accrued on interest-bearing deposits…
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