Photo of Ramya Chandrasekhar

Associate in the Finance & Projects Practice at the Bangalore office of Cyril Amarchand Mangaldas. Ramya specialises in structured finance, corporate finance and banking regulatory compliance. She can be reached at ramya.chandrasekhar@cyrilshroff.com

SEBI’s Framework for Innovation Sandbox - Fintech

Amidst the fast-paced growth of the fintech industry in India, financial regulators in the country have been swift to recognise each such development and keep pace with the market. One particularly interesting development is the global adoption of regulatory sandboxes.

From 2016, a range of committees constituted by different financial regulators began to advocate adoption of regulatory sandboxes, drawing from success stories in other jurisdictions.[1] But 2019 marks a significant moment, as three of India’s prominent financial regulators have rolled-out either draft or final frameworks on regulatory sandboxes for fintech.[2]

The frameworks seek to spur fintech innovation in India and have been welcomed by all stakeholders alike. The framework released by the Securities and Exchange Board of India (SEBI) adopts a particularly holistic approach towards regulation of many different aspects of a sandbox. In this post, we seek to critique the ‘Framework for Innovation Sandbox’, released by SEBI on May 20, 2019 (Sandbox Framework).
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Foreign Portfolio Investor - Corporate Debt - Voluntary Retention Route

As the Indian economy has grown over the years, so have the means of raising foreign debt by Indian companies. What began with limited investment channels for foreign banks and certain qualified institutional investors, has now flourished into a robust foreign debt investment market. Based on the commercial considerations driving a deal, Indian corporates can now raise ECBs under multiple tracks, issue various kinds of rupee denominated bonds, or avail of monies through fund structures such as alternative investment funds (AIFs) and real estate investment trusts (REITs).

Added to this mix is the foreign portfolio investment (FPI) route. What sets FPI apart is the degree of commercial flexibility it accords to investors and companies. For example, end-use and pricing norms applicable to FPI investments are relatively relaxed. Because of this, FPI is often the preferred option for raising debt, particularly short-term debt and working capital funding requirements.[1]
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data privacy protection bill India

We are moving towards a data centric world, and “data is the new oil”[1]. And few would disagree that a key debate today in finance is ‘trust and privacy vs. using data for business growth’. As modern day businesses look to adapt themselves to generate revenue from customer related data, regulators across the world are grappling with the formulation of effective laws to regulate the data-driven economy. Given the relative novelty of the concept, regulators are reflecting on fundamental questions such as the right to privacy, property rights over data and the right to use the collected data.

In India, the Reserve Bank of India (“RBI”) has been fairly forward looking, by passing various regulations and constituting a host of committees to address issues ranging from cyber security to customers data protection norms.[2] In almost all its regulations, RBI has adopted a data privacy framework similar to the one advocated by the Justice BN Srikrishna Committee in its Personal Data Protection Bill, 2018 (“DP Bill”) – an amalgamated framework consisting of consent-and-notice and the vesting of certain rights with the originators of such information.[3] Undoubtedly, the DP Bill will have an impact on the manner in which data is collected, processed and shared by the financial industry. With this as the background, the authors seek to analyse the impact of the DP Bill on businesses engaged in the financial sector.
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