The Supreme Court held that liabilities arising from corporate guarantees qualify as financial debt under Section 5(8) of the Insolvency and Bankruptcy Code. Consortium lenders were therefore entitled to Financial Creditor status and inclusion in the Committee of Creditors.
The Supreme Court ruled that a shortfall payment clause in a Deed of Hypothecation can qualify as a contract of guarantee under the IBC. The judgment grants consortium lenders Financial Creditor status and strengthens their role in insolvency proceedings.
SEBI proposes SDI rule changes to align listed securitisation norms with RBI directions, covering SPDE governance, disclosures, trustee changes, and more.
SEBI has proposed wide-ranging amendments to the Buy-Back Regulations, including revival of open market buy-backs and removal of mandatory Merchant Bankers. The reforms aim to simplify compliance while strengthening investor protection measures.
SEBI clarifies that physical security creation alone is insufficient for demat assets. Trustees must ensure depository-level registration to validate charges and protect investors.
The Court held that post-facto shareholder ratification cannot legalize misuse of funds raised through disclosures. The key takeaway is that securities law violations remain enforceable despite later approvals.
The order highlights failures in verification and delayed action by a DDP in FPI processes. The key takeaway is that DDPs must ensure strict compliance and due diligence at every stage.
SEBI targets SPV status, borrowing ambiguity, and investment restrictions in REITs and InvITs. The reforms aim to enhance flexibility and market efficiency.
The revised FDI policy formally defines “beneficial owner” using anti-money laundering standards, bringing clarity to investment approval requirements for investors linked to neighbouring countries.
The regulator suggests making nomination the default option in single-holder accounts, requiring investors to actively opt out to simplify succession and reduce unclaimed assets.
