While ministerial discussions on cryptocurrency regulation had been taking place at the G-20 level, we are expecting the Department of Economic Affairs (“DEA”) may come out with a consultation paper for regulating virtual digital assets (“VDA”) as soon as October this year.Continue Reading FIG Paper (No. 39 – Series 3): Recent Learnings from the Indian Virtual Digital Assets Regulatory Space
Global M&A activity in the financial services sector appears to have slowed, despite a strong start in 2024, in line with general market trends. The Financial Institutions Group (“FIG”) is experiencing a unique phase of consolidation, with deal values increasing despite a significant decline in deal volume. This trend can be seen in a 5% YoY rise in deal value and a 30% drop in volume in the first half of 2024[1], suggesting a shift towards larger, strategic mergers.[2]Continue Reading FIG Paper (No. 38): M&A in FIG Space: Recent Trends and Shifts
This FIG Paper highlights recent trends in enforcement actions of the Reserve Bank of India (“RBI”) against different financial institutions, which has seen a significant 88% rise since 2021.Continue Reading FIG Paper (No. 36 – Series 1): Analysing RBI’s Enforcement Trends (2022-24)
On May 18, 2023, the Securities and Exchange Board of India [“SEBI”] had placed a consultation paper related to the total expense ratio charged by Asset Management Companies [“AMC”] to unitholders of mutual funds. June 8, 2023 was set as the deadline for submission of public comments. The due date, however, was extended to June 8, 2023.
The proposal is aimed at curbing distributor practices such as unnecessary switching of schemes and pushing new fund offerings for higher commissions. SEBI in its consultation paper proposed to introduce performance fees for funds. It proposed two approaches, but also suggested testing the models under the Regulatory Sandbox.Continue Reading FIG Paper (No. 21 – Series 1): SEBI’s Mutual Fund Expense Ratio Consultation Paper: Impact Analysis
A Working Group on Digital Lending (“RBI WG”), constituted by the Reserve Bank of India (“RBI”), had published its Report in November 2021. It had made recommendations on (i) the legal and regulatory framework for digital lending; (ii) technology; and (iii) financial consumer protection, implementable over the near-term (up to one year) and medium-term (beyond one year).Continue Reading FIG Paper (No. 16 – Series 1) – Impact Analysis of RBI’s Recommendations of the Working Group on Digital Lending – Implementation
On July 4, 2022, the Reserve Bank of India (“RBI”) clarified to all banks and non-bank payment system operators (“PSOs”) that its prior approval would be required for any (a) takeover/ acquisition of control, which may or may not result in change of management; and (b) sale/ transfer of payment activity to an entity not authorised for undertaking similar activity (“Circular”).Continue Reading FIG Paper (No. 15 – Series 1) – Payment System Operators (PSOs) – New M&A Implications
On June 20, 2022, the Reserve Bank of India (RBI) clarified to authorised non-bank prepaid payment instrument (PPI) issuers that PPIs may not be loaded from credit lines, and any such practice should be stopped immediately.Continue Reading FIG Paper (No. 13) – RBI guidance on loading of PPIs through credit lines
The recent Master Directions issued by the Reserve Bank of India (RBI) on Credit cards and Debit cards – Issuance and Conduct Directions, 2022, dated April 21, 2022, is a consolidation of existing guidelines on the subject, except that it has brought about greater clarity by providing definitions on what is a credit card, credit limit and other related terminologies. In addition, it has spelt out more explicitly the scope of co-branding arrangements and the roles of card issuers and co-branding partners.Continue Reading FIG Papers (No. 12: Series-1) RBI Master Directions on Credit and Debit Cards
In part 2 of this series of blogs (Key Features IFSC Lisiting Regulations in Relation to Listing of SPACs), we touched upon the newly-introduced framework for the issuance and listing of special purpose acquisition companies (“SPACs”) at the International Financial Services Centres (“IFSC”) under the International Financial Services Centres Authority (Issuance and Listing of Securities) Regulations, 2021 (“IFSC Listing Regulations”). In this part of the blog we are going to look at the IFSC Listing Regulations with a critical eye to detect the gaps that continue to exist despite the framework being put in place and identify areas that can be improved upon to leverage the unique status of entities in IFSC.Continue Reading Role of IFSC in the Indian SPAC Dream: An Overview – Part 3
