Tag: Banking and Finance

CIRP regulations

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

Insights & Updates | 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 & Updates | 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.

mortgage lending

Strengthening Diligence for a Secure Mortgage Lending

Insights & Updates | 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.

jet airways

From Rescue to Ruin: The Supreme Court’s Judgment in Jet Airways and the Future of Airline Insolvencies

Insights & Updates | November 21, 2024 | Practice Area: , ,

In a recent judgment, the Supreme Court of India ordered the liquidation of Jet Airways (India) Limited, bringing an end to the five-year-long saga of efforts to revive the distressed airline. Two years after the airline entered the corporate insolvency resolution process, the National Company Law Tribunal, in June 2021, approved the resolution plan submitted by the Jalan Fritsch Consortium, the successful resolution applicant. However, various challenges arose with implementation of the resolution plan, which led the successful resolution applicant to seek multiple extensions and concessions from the adjudicating authority. Finally, the Supreme Court set aside the March 2024 order of the National Company Law Appellate Tribunal and used its inherent powers under Article 142 of the Constitution to order the airline’s liquidation.

The Supreme Court’s judgment is significant as it underscores the importance of implementing resolution plans within agreed upon timelines and identifies certain gaps and shortcomings in the Insolvency and Bankruptcy Code, 2016 as far as implementation of resolution plans are concerned. This note analyzes the judgment to discuss its implications for the implementation of resolution plans as well as specific challenges in the context of insolvencies in the aviation industry.

commencement certificate and completion certificate

Clarification on Exemption from Project Registration and Interpretation of Commencement and Completion Certificate

Insights & Updates | November 5, 2024 | Practice Area: , , ,

Maharashtra Real Estate Regulatory Authority (“MahaRERA”) earlier had already issued clarification regarding projects which are exempted from getting registered under the Real Estate (Regulation and Development) Act, 2016 and what denotes a commencement certificate and completion certificate in plotted real estate projects vide circulars and orders. However, there was still some ambiguity regarding interpretation of these issues. Therefore, in order to ensure ease of reference and harmonious construction as well as to cure the anomaly, MahaRERA decided that these issues covered under various circulars/orders be merged and incorporated in a consolidated order and hence issued the present order i.e. Order No.62/2024.

Fraud Risk Management

Fraud Risk Management Obligations of NBFCs: Recent Changes Introduced by the RBI

Insights & Updates | September 24, 2024 | Practice Area: , ,

With the aim of introducing a comprehensive and clear set of rules for fraud risk management in Non-Banking Finance Companies, the Reserve Bank of India has introduced the Master Directions on Fraud Risk Management in Non-Banking Finance Companies. These Directions have revamped the landscape of fraud risk management for NBFCs, through the introduction of enhanced compliance requirements. While the 2016 Master Directions obligated NBFCs to timely report frauds detected in their operations, the new Directions require NBFCs to also take proactive steps to prevent and detect fraudulent activities. The effect of these Directions is that NBFCs need to thoroughly review their existing policies and frameworks and to introduce significant changes to become compliant with the RBI’s mandate.

Clean energy

Clean Energy: Issue 3 of 2023

Periodic Roundups | November 23, 2023 | Practice Area: , , ,

S&R Associates presents the third issue of its quarterly roundup series on clean energy. Here, we cover updates from the period between the months of July and October of 2023.
This issue comprises regulatory updates on renewable energy and electric vehicles, respectively, including central and state government notifications in this regard, along with India-related updates and international developments.
In addition, we provide an overview of carbon credits, including in respect of its market dynamics.

Innovative Constructions

Innovative Constructions: Assessing the Investment Viability of New Construction Technologies

Insights & Updates | November 20, 2023 | Practice Area: , , , , ,

Every year, Indians require 10 million new homes. At the same time, global markets are increasingly focused on sustainability, climate change and ESG-related goals. The confluence of such factors has created various opportunities to employ climate-responsive construction techniques, including through the use of eco-friendly and sustainable material. Relatedly, the interplay of energy-efficient solutions, green-certified buildings, targeted investments and financing, key legislative changes, government incentives and a coordinated regulatory framework, as well as increased digitalization, may change this ecosystem in fundamental ways.

Carbon credits in India

Carbon Credits: An Overview

Insights & Updates | September 27, 2023 | Practice Area: , , , ,

The idea of carbon credits, including the establishment of a market for such credits, has generated significant global attention in recent years. While this idea is not new, it has become especially important today to understand what such credits entail and how these can benefit businesses – given the worldwide momentum towards ESG-related goals.
Carbon market transactions involve the purchase of emission rights from entities which have the technical and/or economic ability to reduce emissions. India’s Carbon Credit Trading Scheme, 2023 defines a ‘carbon credit’ to mean a value assigned to a reduction, removal or avoidance of emitted greenhouse gases amounting to one metric ton of CO2 or its equivalent. Accordingly, certificates may be issued by the government under the newly amended Energy Conservation Act, 2001.
In regulated carbon markets, each registered/obligated entity may be allotted a certain number of credits. Those that produce fewer emissions than the number of credits issued by the government (or an authorized agency) may enjoy a surplus. Conversely, companies with older and/or less efficient operations may generate more emissions than their credit allocation. The latter category may then look to buy credits to balance their emissions, including on account of a regulatory mandate.
This exchange between buyers and sellers will establish the market price. If it is cheaper for an emitter to trade in, rather than control, emissions, they can buy credits. Those that find it feasible to reduce emissions at a cost less than the market price can sell. Emissions trading can thus transform the right to emit a pollutant into a tradable good and create economic incentives for reduction.

Clean Energy: Issue 2 of 2023

Clean Energy: Issue 2 of 2023

Periodic Roundups | July 26, 2023 | Practice Area: , , ,

S&R Associates presents the second issue of its quarterly roundup series on clean energy. Here, we cover the period between the months of April and June, 2023.
Broadly, this issue comprises regulatory updates on renewable energy and electric vehicles, respectively, including central and state government notifications in this regard, India-related updates and international developments, as well as other miscellaneous items.
In addition, separate analyses with respect to the newly introduced carbon credit trading framework in India provide an overview of the country’s proposed carbon market. Lastly, we discuss the advisability of green hydrogen certification in India.