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Showing posts from February, 2014

Revision in Interest rates of Micro Finance Institutions- Who will get benefit?

The Reserve Bank of India (RBI)vide a notification on 7 February 2014 has made modification to the non-banking finance companies (NBFCs)- micro finance institutions (MFIs) directions with regard to pricing of credit whereby the earlierinterest ratecap (As per the Malegam Committee recommendations, theinterest ratecap on loans given by MFIs has been fixed at 26%) imposed on NBFC-MFIs was reviewed and modified.
The notification reviews and modifies the interest rates to be charged by NBFC-MFIs to its borrowers and will be calculated to be lower of the following: a.The cost of funds plus margin; or b.The average base rate of the five largest commercial banks by assets multiplied by 2.75
Further, RBI shall at the end of each quarter advice on the average of the base rates of the fivelargest commercial banksand shall determine the interest rates for the ensuing quarter.  The modification is to take effect from 1 April 2014.
The modificationnotificationleads us to several tricky questions and t…

Registration of TV Channel

Registration TV Channel in India involves various registrations and approvals which includes, the approval/register itself with Ministry of Information & Broadcasting (“MIB”) and/or Telecom Regulatory Authority of India (“TRAI”) and/or (Wireless Planning & Coordination Authority) Wing of the Ministry of Communication and Information Technology (“WPC”) as the case may be. Though the Indian Telegraph Act, 1885 (“Telegraph Act”) does not explicitly define ‘telecommunications service’ and ‘broadcasting service’, the TRAI Act, 1997, defines communication service in Section 2(1)(k) as: “Service of any description (including electronic mail, voice mail, data services, audio-text services, video-text services, radio paging, and cellular mobile telephones services) which is made available to users by means of a transmission or reception of signals, writing, images, and sounds or intelligence of any nature, by wire, radio, visual or any other electronic means but shall not include broadc…

Collective Investment Scheme

For the last few years, Securities and Exchange Board of India (“SEBI”), the Indian securities regulator, has intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. It shall be noted that the Collective Investment Scheme (“CIS”) activities hereunder covers various relevant legislations, regulations and rules, for the time being in force in India and the legal entity has to obtain approval/register itself with SEBI as a Collective Investment Management Committee (“CIMC”) to be able to launch a CIS. In last few years, SEBI has intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis wherein various entities garner funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture.  Securities Appellate Tribunal (hereinafter the “SAT”) recently passed an order upholding SEBI’s findings against Alchemist Infra Reality Limited. The SAT …