PRE-PACKAGED INSOLVENCY: TO UPHOLD THE LEGISLATIVE INTENT OR THE LETTER OF THE LAW?
Pre-packaged insolvency resolution process (“PPIRP”) was introduced by amending the Insolvency and Bankruptcy Code (“Code”) in April 2021[1]. This currently applies to Micro Small Medium Enterprises (“MSMEs”). This was enacted to provide ‘PPIRP’ as an alternative to Corporate Insolvency Resolution Process (“CIRP”) to mitigate the financial distress caused by the Covid-19 pandemic to MSMEs.
TRADE & COMMODITY FINANCING IN INDIA – AN OVERVIEW!
Trade finance is the financing of international trade flows. It exists to mitigate, or reduce, the risks involved in an international trade transaction. There are primarily two players in a trade transaction:
CLASSIFICATION OF SUSTAINABILITY LINKED DERIVATIVES IN INDIA
Sustainability Linked Derivatives (“SLDs”) are emerging as a powerful new instrument in the toolkit of financiers globally in the context of the growth of use of Environmental Social and Governance (“ESG”) factors in the financial world. For an orderly evolution, a suitable regulatory framework suited for this type of derivative contract is a must. SLDs …
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RBI Reforms the Framework on Loan Sales
Continuous growth of a robust secondary market and creation of additional avenues for raising liquidity have been the key requirements of the Indian loan market. To achieve this, the Reserve Bank of India (“RBI”) has rolled out the Master Directions – RBI (Transfer of Loan Exposures) Directions, 2021[1] (“Master Directions”) on 24th September 2021.
Secured Overnight Financing Rate (“SOFR”) in Arrears or Term?
Background SOFR is a risk-free reference rate (“RFR”) selected as the rate for usage in certain United States Dollar (“USD”) derivatives and other financial contracts, by the Alternative Reference Rates Committee (“ARRC”) of the Federal Reserve Bank of New York (“NY Fed”) in the year 2017. It is the preferred alternative to USD LIBOR.
TO BE OR NOT TO BE: An Assessment of a Pathological Arbitration Clause
The Hon’ble High Court of Delhi, placing reliance on a catena of judgments, has reiterated that the main attribute of an arbitration agreement is consensus ad idem to refer the disputes to arbitration. In the matter of “Sapna Gupta v. Ajay Kumar Gupta & Ors[1].”, it has been held that in case the same is …
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New Directives on Securitisation of Standard Assets – Revamping the Securitisation Landscape?
The Reserve Bank of India (“RBI”) on 24th September 2021, issued the Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021 (“Master Directions”). These Master Directions repeal the existing RBI guidelines on securitisation of standard assets. The Master Directions apply to the following entities:
Acceptability of e-Execution – A long way ahead
Technology has been an enabling factor in resuming businesses and closing transactions during the pandemic era while parties involved in such transactions are sitting miles apart from each other. In order to be in arms with the rise of digitization, the Indian Government has introduced and amended legislations to bring in electronic records and electronic …
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CCI order on WhatsApp policy: Is CCI filling up the vacuum of the Data Protection Regulator?
In a recent order dated 24th March 2021, the Competition Commission of India (“CCI”) has taken suo-motu cognizance of the updated privacy policy and terms of services of WhatsApp which were rolled out by WhatsApp on 4th January 2021 (“Updated Policy”).[1] It directed the Director General to investigate the anti-competitive issues in relation to the …