13 Aug 2020
The provisions of the Companies Act, 2013 (the “Act”) relating to the issuance of debentures, stipulate various requirements which the issuing company has to comply with, which includes maintaining a Debenture Redemption Reserve (DRR) account and in case of a secured debenture, filing of charge-related documents. The outbreak of COVID-19 and the related regulatory lockdowns have affected business inflows and administrative functioning of many organizations. On one hand, some of the companies are facing financial difficulties in meeting their repayment obligations under the debentures issued, while on the other hand, these companies are unable to meet the statutory requirements stipulated under the Act. Considering the request of various stakeholders, the Ministry of Corporate Affairs, India (“the MCA”) has brought out several relaxations relating to the compliance requirements for debenture issuance under the Act.

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07 Aug 2019

The looming crisis concerning Non-Banking Financial Companies (NBFC) necessitated some quick action on the part of the government to stabilize the shaking consumer confidence on the shadow banking sector. Although scholars are still confident of the sector’s performance as a whole but delayed disbursement caused by liquidity crunch was seen as a cause of concern that required quick redressal to attain balance.  >>

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12 Oct 2017

What you need to know about peer to peer (p2p) lending platforms:

Master directions by Reserve Bank of India (RBI)

Reserve Bank of India (RBI) on Oct. 4, 2017 issued a Master Direction[1] regarding the various registration/eligibility/compliance norms for P2P Lending Platforms which was a follow up action to the notification[2]  issued on 24 August, 2017 wherein RBI specified that a “non-banking institution that carries on the business of a peer to peer lending platform to be a Non-Banking Financial Company (“NBFC”).”>>

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25 Sep 2017

RBI Notifications On Peer To Peer Lending Platforms: More Confusion Than Clarity

Financial Newspapers (Sept.  21, 2017 edition) were widely reporting about the latest notification[1] issued by Reserve Bank of India which specified that a “non-banking institution that carries on the business of a peer to peer lending platform to be a Non-Banking Financial Company (“NBFC”).”>>

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