The Corporate Debt Restructuring (CDR) mechanism in India has a three-tier structure to help restructure corporate debt for viable companies facing financial problems. The CDR Standing Forum and its Core Group lay down policies, while the CDR Empowered Group, consisting of executives from participating financial institutions, considers restructuring proposals from the CDR Cell. If a proposal is deemed feasible, the CDR Cell then works with lenders to develop a detailed restructuring plan within set timeframes for approval by the Empowered Group. The goal of CDR is to provide a timely, transparent process to restructure debt outside of legal proceedings for the benefit of all parties involved.
Asset Reconstruction company means acquisition by any securitization company or reconstruction company of any right or interest of any bank or financial institution in any financial assistance for the purpose of realization of such financial assistance. Asset Reconstruction company is a company registered under section 3 of the Securitization & Reconstruction of financial assets & Enforcement of security interest ( SARFAESI ) Act 2002.
It is regulated by RBI as a Non – banking Financial company
RBI has exempted ARCs from the compliances under section 45- 1A ( Requirement of registration & net owned fund ) , Section 45 – 1B ( Maintenance of liquid assets ) , Section 45 – 1C ( Creation of reserve fund ) of the Reserve Bank Act, 1934 .
ARC Functions like an AMC within the guidelines issued by RBI.
The ARC transfers the acquired asset to one or more trusts at the price at which the financial assets were acquired from the originator
https://enterslice.com/nbfc-registration.html
Yes Bank detailed presentation (2008 to 2019)ShubhamChugh9
The presentation is all about yes bank and describing its in depth details from year 2008 to 2019 and also its future prospects with all the major frauds and their NPAs details, along with this a questioner is also presented when we visited yes bank ltd.
also its balance sheet of year 2008 to 2019 is being discussed.
100 marks topics for banking and insurance projectsbanking-insurance
Complete topics for 100 marks project for banking and insurance
http://www.managementparadise.com/forums/banking-insurance-final-100-marks-projects/16283-topics-100-marks-project-banking-insurance.html
Asset Reconstruction company means acquisition by any securitization company or reconstruction company of any right or interest of any bank or financial institution in any financial assistance for the purpose of realization of such financial assistance. Asset Reconstruction company is a company registered under section 3 of the Securitization & Reconstruction of financial assets & Enforcement of security interest ( SARFAESI ) Act 2002.
It is regulated by RBI as a Non – banking Financial company
RBI has exempted ARCs from the compliances under section 45- 1A ( Requirement of registration & net owned fund ) , Section 45 – 1B ( Maintenance of liquid assets ) , Section 45 – 1C ( Creation of reserve fund ) of the Reserve Bank Act, 1934 .
ARC Functions like an AMC within the guidelines issued by RBI.
The ARC transfers the acquired asset to one or more trusts at the price at which the financial assets were acquired from the originator
https://enterslice.com/nbfc-registration.html
Yes Bank detailed presentation (2008 to 2019)ShubhamChugh9
The presentation is all about yes bank and describing its in depth details from year 2008 to 2019 and also its future prospects with all the major frauds and their NPAs details, along with this a questioner is also presented when we visited yes bank ltd.
also its balance sheet of year 2008 to 2019 is being discussed.
100 marks topics for banking and insurance projectsbanking-insurance
Complete topics for 100 marks project for banking and insurance
http://www.managementparadise.com/forums/banking-insurance-final-100-marks-projects/16283-topics-100-marks-project-banking-insurance.html
CDR was instituted by Reserve Bank of India (RBI), National Central bank of India in August 2001 as a voluntary mechanism to reorganize outstanding debt obligations.
The reorganization of the debt can be made by the following ways:
Increasing the tenure of the loan
Reducing the rate of interest
One time settlement
Conversion of debt into equity
Converting un-serviced portion of interest into term loan
It has been a successful instrument allowing corporates to return to profitability for benefit of all stakeholders involved.
CDR( Corporate Debt Restructuring)
can be described as a proactive measure to not let companies land into a troublesome financial situation from where they cannot make a recovery. It can be explained as a voluntary and non-regulatory method for organizations to deal with their dues.
What is Corporate Debt Restructuring, how can it be done and what are the rules and guidelines for CDR? Read this Research Report from Resurgent India to know everything about Corporate Debt Restructuring.
Slides from Abu Dhabi Prroject Financing Conference (2002) on "Negotiating the Terms & Conditions of the Project Debt and Achieving Financial Close"
Krysa - Speciál, Prosinec - vládne Krysa, Potřebuji nový začátek, Život musí plynout jako řeka, bydlení: Adventní interiér, Energie dní: týden od 5.12. 2016
In this session, we are going to brand a SharePoint site from start to finish. We will use SharePoint Designer, HTML and custom CSS to design a site how not to look like SharePoint. We'll touch upon themes, page layouts as well as master page design. As well as learn how to upgrade a SharePoint 2007 design to SharePoint 2010.
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What are the materials that give structure and strength to Batman’s suit, and how durable are they? We've taken a deeper look to examine just how unbreakable this superhero really is in this infographic.
Read more: http://on.mash.to/1rg2jM0
NPA in Indian Banking Industry, Analysis of Bankruptcy Code, Resolution mechanism through Asset Reconstruction Company (including Valuation Techniques)
Corporate India - Distress Resolution Solutions Sumedha Fiscal
The Indian Banking scenario is going through unprecedented times with stressed loan portfolio. The portfolio of all Banks put together is more than 7 lakh crore which is > 10% of total advances and there is an apprehension that there could be significant additions too.
Realizing the problem RBI has come out with many changes and schemes to tackle such stressed accounts.
Here are come of the distress resolution solutions that you can look into.
Acquisition Opportunity! Exploring the Future of Ayurvedic & Unani Medicines!Resurgent India
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The goal of the demonetization move in India is to make the economy stronger and eliminate the parallel cash economy which is unaccounted and untaxed. While this can impact the GDP negatively in the short term, it should have positive long term consequences. For e-commerce companies, which already have a digital payments system in place, it should lead to higher online payment and eventually eliminate the painful cash on delivery option. However, in the short term, witness a decline in GMV from India as the economy adjusts to the “new normal”.
Msme funding – Opportunities & Challenges (Part 5)Resurgent India
In India, the preferred mode of finance is either self or other sources. This further complicates the situation, as with these sources an enterprise cannot challenge the increasing competition
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SME exchange
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2. What is CDR (Corporate Debt
Restructuring)?
CDR( Corporate Debt Restructuring)
can be described as a proactive measure to not let companies land
into a troublesome financial situation from where they cannot make
a recovery. It can be explained as a voluntary and non-regulatory
method for organizations to deal with their dues.
3. Need for CDR
Banks have to face various difficulties while restructuring their large
exposures specially which are involving more than one lender,
under consortium / multiple banking arrangements. In the
background of these difficulties, need for such a specialized
institutional mechanism arose.
The main objective of the CDR framework was to
• Ensure a timely and transparent mechanism for restructuring the
corporate debts of viable entities facing problems,
• outside the purview of BIFR,
• DRT and other legal proceedings,
• for the benefit of all concerned.
5. CDR mechanism has three
tier structures
1. CDR Standing Forum
and its Core Group
2. CDR Cell
3. CDR Empowered Group
6. CDR Standing Forum and its Core
Group
It is a representative general body of all financial institutions and banks
participating in CDR mechanism. It is a self-empowered body which lays
down policies and guidelines to be followed by the CDR Empowered Group.
The CDR Standing Forum comprises
• Chairman & Managing Directors of all banks
• Financial institutions
• Executive Director of RBI.
The Forum elects its Chairman for a period of one year, CDR Standing Forum
meets once in every six months.
7. CDR Empowered Group
The individual cases of corporate debt restructuring are decided by the CDR
Empowered Group, consisting of ED level representatives of financial
institutions and banks who have an exposure to the concerned company.
Voting will be in proportion to the exposure of the lenders only.
8. CDR Empowered Group
The group considers the preliminary report of all cases of requests of
restructuring, submitted to it by the CDR Cell.
After the Empowered Group decides that restructuring of the
company is prima-facie feasible and the enterprise is potentially
viable in terms of the policies and guidelines evolved by Standing
Forum, the detailed restructuring package will be worked out by
the CDR Cell in conjunction with the Lead Institution.
9. CDR Cell
The CDR Cell initially scrutinizes the proposals received from borrowers /
lenders, by calling for a proposed rehabilitation plan and other information
and put up the matter before the CDR Empowered Group.
CDR Mechanism can be joined by all banks and financial institutions. It can
also be joined by Non Banking Finance Companies (NBFCs), Asset
reconstruction Companies (ARCs), State Level Institutions (SLIs) and Co-
Operative Banks.
10. CDR Structure
CDR Structure
Empowered
Group(EG)
Standing Forum &
Core Group
CDR Cell
Lays down policies &
guidelines to be
followed by EG and CDR
Cell for debt
Restructuring Comprise
of MD and Chairman of
Banks & FIs along with
Executive Director of
RBI
Comprise of ED level
representative of Banks
& FIs who have
exposure in the
concerned company
Decides whether the
restructuring is feasible
or not and potentially
viable.
Initial scrutiny of
proposal
Prepares a detailed
restructuring plan if
feasibility approved by
EG.
11. Found
Feasible
Approval
from EG
Lenders/Borrowers submits the
restructuring proposal to CDR cell
Initial scrutiny by CDR Cell by
calling for proposed rehabilitation
plan & other information
Proposal forwarded to
Empowered Group for Approval /
modification / rejection
Preparation of detailed
restructuring plan by CDR Cell with
help of creditors and experts from
outside (if required)
Time frame
30 days
Time frame
90 Days, could
be extended
to 180 days
12. To be approved by Empowered Group
by Super Majority vote (By value ≥
75% & By number ≥ 60% )
Issuance of Letter of Approval
Issuance of Letter of Approval Time frame
120 days
13. There are other issues also details of which can be accessed
for the website of RBI as well as the CDR site (www.rbi.org.in
and www.cdrindia.org). I am quite hopeful that all of us
would gain further insight into the CDR mechanism.