Month: February 2025

CIRP regulations

CIRP Amendment Regulations 2025: Streamlining Resolution Processes and Protecting Homebuyer Interests

Insights | February 25, 2025 | Practice Area: , ,

As of December 2024, insolvencies in the real estate sector accounted for approximately 22% of admitted cases under the Insolvency and Bankruptcy Code, 2016 (“IBC”), making it second only to the manufacturing sector that accounted for 37% of admitted cases. The high volume of insolvencies in the real estate sector, the imperative to protect homebuyer interests and specific challenges faced by this sector have resulted in several amendments focused specifically on the insolvency process for real estate projects. Recently, the Insolvency and Bankruptcy Board of India (“IBBI”) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025 (“2025 Amendments”) amending certain provisions of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”), which once again have a special focus on the corporate insolvency resolution process (“CIRP”) of real estate developers. This note discusses the 2025 Amendments and their likely impact on streamlining the resolution process and protecting homebuyer interests.

fpi investments

FPI Investments in the Indian Debt Markets: An Overview

Insights | February 13, 2025 | Practice Area: , , , ,

Investments in debt securities in India by non-residents require compliance with an array of Indian foreign exchange and securities regulations. Overseas investors intending to invest in debt instruments in India typically do so either under the Reserve Bank of India’s (“RBI”) framework for external commercial borrowings (“ECB”) or through the route available for foreign portfolio investors (“FPI”) registered with the Securities and Exchange Board of India (“SEBI”). In recent years, the FPI route has become a popular option for overseas investors looking to invest in India’s debt markets on a regular basis as it allows for greater flexibility in terms of interest, repayment terms, security cover and end use of funds in comparison to the ECB route. According to data from the National Securities Depository, FPI investments in the Indian debt markets stood at INR 1.1 trillion in 2024. 
In January 2025, the RBI issued Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (“Master Direction”), which, inter alia, consolidates a number of the circulars and directions issued by the RBI on investments in debt instruments by non-resident investors, including FPIs. This note analyzes the key regulatory aspects governing FPI investments in corporate debt securities, particular in light of the Master Direction.

india korea relations

Namaste Korea: January 2025 Edition

Namaste Korea | February 11, 2025 | Practice Area: ,

Welcome to the third edition of the “Namaste Korea” newsletter. This newsletter provides an overview of the latest business/trade news and developments in Indian law and practice which are relevant to Korean businesses and other organizations with India-related interests. The newsletter also includes sector-specific updates, including in automotive, manufacturing, telecom, technology, electronics and gaming.

mortgage lending

Strengthening Diligence for a Secure Mortgage Lending

Insights | February 7, 2025 | Practice Area: , ,

Mortgages on immovable property is a preferred and most common form of collateral for both retail and corporate borrowers. Recognizing inherent property risks, lenders typically conduct a legal due diligence, often through external counsel, who issue a title search report (“TSR”) that scrutinizes the title and identifies potential issues. Scrutinizing the title is essential to ascertain the ownership of the property and to ensure that the title is clear and free from any defects, encumbrances and claims. A recent case before the Hon’ble Supreme Court of India, Central Bank of India & Anr. v. Smt. Prabha Jain & Ors., emphasized that banks must be careful with inadequate TSRs and recommended that the Reserve Bank of India formulate guidelines for preparing TSRs. This note discusses the recommendations of the Supreme Court and outlines the key facets of preparing a TSR.

Investing in India: An Overview of Legal Considerations – 2025 Checklist

Insights | February 5, 2025 | Practice Area: , , , , , , ,

Foreign investment continues to play a crucial role in India’s economic growth with India achieving the milestone of having received USD 1 trillion of foreign direct investment since April 2000. While the cumulative FDI received in the financial years ended March 31, 2023, and March 31, 2024 remained similar, there has been an increase in the FDI received between April 2024 to September 2024 in comparison to previous years.
This note examines certain key legal considerations for foreign investors investing in India and highlights key updates included in the legal framework during the calendar year 2024.