The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 has been enacted to ensure that public shareholders of a listed company are treated fairly and equitably in relation to a substantial acquisition or takeover of ... Continue Reading
Payments banks are a new model of banks conceptualised by the Reserve Bank of India (RBI) on the recommendations of Nachiket Mor committee. The Reserve Bank expects payment banks to target India’s migrant labourers, low-income households and small ... Continue Reading
An Asset Reconstruction Company is a specialized financial institution, regulated by the RBI, which buys the NPAs or bad assets from banks and financial institutions so that the latter can clean up their balance sheets. Or in other words, ARCs ... Continue Reading
Section 29A of the IBC Amendment Act, mandates disqualification of certain persons from submitting a resolution plan. This section bars certain participants from being a resolution applicant and submitting resolution bids for firms that are undergoing insolvency process if such ... Continue Reading
Foreign Portfolio Investment (FPI) is investment by non-residents in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc. Under the SEBI FPI Regulations, 2014, Foreign Institutional Investors (FIIs), sub accounts and Qualified Foreign Investors (QFIs) were merged ... Continue Reading
External Commercial Borrowings are commercial loans raised by 'eligible resident borrower' from 'recognised non-resident entities' and should conform to parameters such as minimum maturity period, permitted end-use of funds, maximum all-in-cost ceilings etc. Resident entities eligible to raise ECB include ... Continue Reading
A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained 'past due' for a specified period of time. In simple terms, an asset is tagged as non ... Continue Reading
Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank transactions through a mobile platform. The interface is regulated by the Reserve Bank of India and works by instantly transferring ... Continue Reading
ASBA (Applications Supported by Blocked Amount) is a process developed by SEBI for applying to a public issue including IPO. It is mandatory for all public issues opening on or after January 01, 2016. ASBA is an application containing an authorization to ... Continue Reading
The marginal cost of funds based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend. It is an internal tenor linked benchmark or reference rate for the banks. The MCLR methodology was ... Continue Reading
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