Banking and Finance

On 26 July 2017, the National Company Law Tribunal New Delhi (NCLT) passed an order admitting M/s Bhushan Steel Limited (Corporate Debtor) into corporate insolvency resolution process (CIRP), pursuant to a Section 7 application filed by the State Bank of India (SBI) under the Insolvency and Bankruptcy Code, 2016 (Code).  Tata Steel Limited (TSL) emerged as the successful resolution applicant with its proposed resolution plan being approved by the Committee of Creditors (CoC) of the Corporate Debtor on 20 March 2018.

After the introduction of the distributed ledger technology for secured debt issuances on 1 April 2022, the Securities and Exchange Board of India (SEBI) had for better investor protection, issued directions to cover for due diligence and security creation for security offered after the issue date. SEBI vide Circular No. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/106 dated 4 August 2022 (August 4 Circular), had further laid down guidelines for debenture trustees and listed issuer companies on additional security creation and due diligence requirements.

Securities and Exchange Board of India (SEBI) vide its circular on ‘Review of timelines for listing of securities issued on a private placement basis’ dated 30 November 2022 and bearing reference no. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/167 (hereinafter, the Amendment) amended Chapter VII (Standardization of timelines for listing of securities issued on a private placement basis) of the Operational Circular dated 10 August 2021 issued by SEBI (hereinafter, the Operational Circular).

The Securities and Exchange Board of India (SEBI) vide its Notification No. SEBI/LAD-NRO/GN/2022/103 dated 14 November 2022 has further amended the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations) by notifying the SEBI (Listing Obligations and Disclosure Requirements) (Sixth Amendment) Regulations, 2022 (Amendment).

Nations across the world are taking steps to meet their respective environmental, social and governance (ESG) commitments, pursuant to various global commitments in the backdrop of the United Nations Sustainable Development Goals (UN SDGs) and international treaties especially the ‘Nationally Determined Contribution’ (NDCs) adopted under the Paris Agreement.

Securities and Exchange Board of India (SEBI) vide its circular bearing reference no. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/147 dated 31 October 2022 (the Circular) amended Chapter VIII (Specifications related to ISIN for debt securities) of the Operational Circular dated 10 August 2021 (Operational Circular). International Securities Identification Numbers (ISINs) , are unique codes with 12 characters, which are used for uniquely identifying securities like stocks, bonds warrants and commercial papers.

In order to encourage investments by non-institutional investors in the corporate bond market, Securities and Exchange Board of India (SEBI) vide its circular no.

The Securities and Exchange Board of India (SEBI) has, by its circular dated 19 October 2022 and bearing reference number SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/142 (2022 RFQ Circular), widened the ambit of its circular dated 24 January 2013 on the creation of a framework for a dedicated debt segment, and in turn for the usage of the request for quote platform of stock exchanges (RFQ Platform). The 2022 RFQ Circular shall come into effect on and from 1 January 2023.

The Hon’ble Supreme Court in its judgement dated 12 May 2022 in PTC India Financial Services Limited v Venkateswarlu Kari and Anr, (Civil Appeal No. 5443 of 2019) (PTC Judgement), provided some much needed clarity on various issues pertaining to the creation and enforcement of pledge created over securities in dematerialised form (Pledged Shares).