Tag: Banking and Finance

NBFC upper layer

Public Funds and Mandatory Listing: Navigating RBI’s Regulation of the Upper Layer NBFCs

Insights & Updates | July 27, 2026 | Practice Area: , , , ,

With effect from July 1, 2026, the Reserve Bank of India has introduced certain amendments to thethe Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025(“Updated Directions”).The Updated Directions,inter alia, bring in a modification to the criteria for determination of Non-Banking Financial Companies (“NBFCs”) in the Upper Layer and replace the erstwhile parametric scoring methodology (based on size, leverage and interconnectedness) with an asset size threshold of INR 1,00,000 crore (Rupees One Lakh crore) (approximately USD 10 billion at an exchange rate of 1 USD to INR 100) and above for identification of an entity as an NBFC in the Upper Layer.
This note discusses the framework for scale-based regulation of NBFCs and the implications of the latest amendments on the NBFCs in the Upper Layer with specific focus on the mandatory listing requirement for such NBFCs.

spectrum license

Treatment of Spectrum Usage Rights in Insolvency: The Supreme Court’s Decision in State Bank of India v. Union of India

Insights & Updates | April 15, 2026 | Practice Area: ,

The Insolvency and Bankruptcy Code, 2016 (“IBC”) is intended to be sector agnostic and to provide a uniform framework for corporate insolvency resolution and liquidation for diverse businesses regardless of their industry sector. Nevertheless, there are challenges under the IBC framework for companies operating in certain industries, owing in large part to the nature of their value generating assets and the sector specific regulations governing their industry. One such sector is the telecom industry where the treatment of spectrum usage rights/licenses in case of a telecom service provider’s (“TSP”) insolvency was the subject of the Supreme Court’s (“SC” or the “Court”) recent decision in State Bank of India v. Union of India. After examining the interplay between the IBC and the telecom regulations governing spectrum allocation to TSPs, the Court held that spectrum usage rights allocated to TSPs and reflected in their balance sheets as an intangible ‘asset’ did not constitute assets of the TSP for purposes of the IBC and, therefore, could not be subjected to IBC proceedings. The Court’s decision has far reaching implications for the interface between the IBC and the constitutional framework governing natural resources, the treatment of intangible assets in insolvency, and the principles guiding the interaction between overlapping statutory regimes. This note analyzes the SC’s decision and its implications for stakeholders.

redevelopment project - essential checks

Essential Checks Before Buying a New Flat in a Redevelopment Project

Insights & Updates | March 4, 2026 | Practice Area: , ,

Given the significant rise in redevelopment activity across Mumbai, this note examines the critical legal, regulatory, and commercial checks that buyers, investors, and financial institutions must undertake before committing to a unit in a redevelopment project. It highlights key considerations under applicable laws such as the Real Estate (Regulation and Development) Act, 2016 and the Maharashtra Ownership Flats Act, 1963, along with practical due diligence measures relating to title, statutory approvals, society consent, and development agreements.

External Commercial Borrowings framework

Liberalizing India’s External Commercial Borrowings Framework: Key Changes Under the 2026 Amendments

Insights & Updates | February 22, 2026 | Practice Area: , , , , ,

The Reserve Bank of India (“RBI”) has made significant changes to the external commercial borrowings (“ECB”) regulations through the issuance of the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 (“Amended Regulations”) on February 16, 2026, which amend the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (“PrincipalRegulation”).
The Amended Regulations have made substantial changes to the eligible borrowers, recognized lenders, applicable end uses, minimum average maturity requirements and pricing norms as well as to other key issues. Collectively, these changes liberalize the entire ECB framework, making it more business– friendly for Indian entities and providing an opportunity to a wider pool of overseas creditors to approach Indian borrowers in a regulated manner. This note analyzes the key changes under the Amended Regulations.

Acquisition finance by banks in India

Acquisition Finance by Banks in India

Insights & Updates | February 20, 2026 | Practice Area: , , , , ,

The Reserve Bank of India has introduced amendment directions to the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 and the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025 (“Amendment Directions”), to permit banks to extend credit facilities for equity acquisitions in India. This note examines the regulatory framework under the Amendment Directions and explores the key parameters governing acquisition financing by Indian banks.

Data center investments in India

Data Centers as a Critical Asset Class: Assessing Power, Cooling, Land-Use, Interconnectivity, and Financing Models

Insights & Updates | February 10, 2026 | Practice Area: , , , , , , ,

Data centers constitute a critical, distinct infrastructure asset class offering stable, long-term returns comparable to regulated utilities. Realizing scalable value requires legal structuring across five interdependent dimensions: reliable, high-capacity power; efficient cooling technologies; complex land-use entitlements; interconnectivity density; and specialized financing frameworks linked to performance and ESG compliance.

foreign exchange management regulations

Foreign Exchange Management (Guarantees) Regulations, 2026: Towards a Principle-based Approach for Cross Border Guarantees

Insights & Updates | February 9, 2026 | Practice Area:

Guarantees are one of the cornerstones of any financing transaction. With India’s credit markets increasingly oriented towards cross border transactions, an overhaul of the two-decade old Foreign Exchange Management (Guarantees) Regulations, 2000 (“2000 Regulations”) was long overdue. In an effort to rationalize and streamline the regulatory framework for cross border guarantees, the Reserve Bank of India (“RBI”), on January 06, 2026, notified the Foreign Exchange Management (Guarantees) Regulations, 2026 (“2026 Regulations”), which replace the 2000 Regulations. Additionally, the RBI has made consequential amendments to the guarantee-related provisions in various other master directions to remove inconsistencies and overlaps in the regulatory framework.
In contrast to the transaction-based approach for permissible cross border guarantees under the 2000 Regulations, the 2026 Regulations adopt a principle-based approach that permit cross border guarantees if certain stipulated conditions are satisfied. As a consequence, the 2026 Regulations expand the scope of permissible cross border guarantees under the automatic route, albeit with tightened reporting requirements.
This note highlights and decodes the key features of the 2026 Regulations.

co-lending arrangements

Co-Lending Arrangements: Collaborative Attempts to Bridge the Credit Gap

Insights & Updates | January 27, 2026 | Practice Area: ,

The Reserve Bank of India has issued an updated regulatory framework for co-lending arrangements between regulated entities (“REs”), which came into effect on January 1, 2026. The revised co-lending framework, which forms part of theReserve Bank of India (Commercial Banks – Transfer and Distribution of Credit Risk) Directions, 2025, Reserve Bank of India (All India Financial Institutions – Transfer and Distribution of Credit Risk) Directions, 2025 and Reserve Bank of India (Non-Banking Financial Companies – Transfer and Distribution of Credit Risk) Directions, 2025, each dated November 28, 2025 (collectively “2025 Directions”), significantly expands the scope of co-lending arrangements beyond priority sector lendingand to partnerships between all REs rather than only between banks and non-banking financial companies. The 2025 Directions also introduce critical operational requirements to co-lending arrangements, including enhanced disclosures, a blended interest rate, a minimum retention share of 10%(Ten per cent)for each co-lending partner, synchronized asset classification norms and an enabling provision for default loss guarantees by the originating RE. This note analyzes the key features of the regulatory framework for co-lending as contained in the 2025 Directions.

MahaRERA order

MahaRERA Issues Key Circular on Execution of Deeds of Cancellation

Insights & Updates | January 5, 2026 | Practice Area: , ,

Defaults by allottees in making timely payments continue to pose serious challenges for real estate promoters, often resulting in stalled inventory, disrupted cash flows, and project-level financial stress. While the Real Estate (Regulation and Development) Act, 2016 permits cancellation of allotments in accordance with the agreement for sale, the absence of a clear statutory mechanism for giving effect to such cancellation—particularly where allottees refuse to cooperate—has led to prolonged deadlocks. Addressing this long-standing procedural gap, the Maharashtra Real Estate Regulatory Authority (“MahaRERA”) has now issued a significant circular prescribing a standard operating procedure for execution and registration of deeds of cancellation. This note examines the background to the Circular, the judicial developments that prompted it, and its practical implications for promoters, allottees, and registering authorities.

IBC Bill, 2025

IBC (Amendment) Bill, 2025: Creditor-Initiated Insolvency Resolution Process

Insights & Updates | November 28, 2025 | Practice Area: , ,

One of the innovations proposed in the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (the “Bill”) is a new resolution framework that is intended to serve as an alternative to the conventional corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016. Termed as the creditor-initiated insolvency resolution process (“CIIRP”), this process is designed as a largely out-of-court mechanism, but with the National Company Law Tribunal playing a supervisory role at key stages, including in case of a dispute, for grant of a moratorium and approval of a resolution plan. Another distinguishing feature of the CIIRP is that the corporate debtor continues to remain in control of the business (subject to certain checks and balances), in contrast to the CIRP where control is ceded to the resolution professional. This note analyzes the CIIRP framework as proposed in the Bill. For our analysis of other provisions of the Bill, please refer to our note here.