NeSL: A repository of legal evidence holding the information pertaining to any debt/claim
National E-Governance Services Limited (“NeSL”) is a Union government company and is governed by the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. It is appointed by the Insolvency and Bankruptcy Board of India (“IBBI”) as an Information Utility (“IU”). As a regulated…
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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…
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Understanding Credit Default, Stressed Assets, and Non-Performing Assets (NPAs)
Credit Default, Stressed Assets, and Non-Performing Assets (NPAs) are interrelated concepts within the domain of credit risk management. While often used interchangeably, each term has a distinct meaning and relevance in assessing the financial health of lending institutions and borrowers. Credit DefaultCredit default refers to the failure of a borrower to fulfill the repayment obligations…
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Restructuring, Rehabilitation, and Recovery of Loans: A Comprehensive Overview
Introduction Loan restructuring, rehabilitation, and recovery are critical components of credit risk management within the banking and financial services sector. These processes aim to support borrowers experiencing financial distress, preserve the economic value of assets, and ensure the stability of the financial system. This article provides an in-depth overview of the mechanisms and regulatory frameworks…
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Distinction Between Internal and External Credit Ratings in Risk Assessment
Introduction Credit ratings play a pivotal role in the effective assessment and management of credit risk within the financial system. These ratings may originate from external independent agencies or be internally developed by financial institutions. While both internal and external ratings serve the purpose of evaluating creditworthiness, they differ significantly in terms of their source,…
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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