This document discusses key questions about Project Bank Accounts (PBAs) in Scotland based on guidance published by the Scottish Government. It provides explanations of what a PBA is, how the PBA arrangements are set up, the sequence in which related documents are entered into, the benefits of PBAs, the types of projects where PBAs will be used, and circumstances where PBAs may not be used. It also summarizes considerations and steps that main contractors and supply chain members will need to take to participate in and implement PBA arrangements.
RBI (Transfer of Loan Exposures) Directions have been issued in exercise of the powers conferred by the Sections 21 and 35A of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949; Chapter IIIB of the Reserve Bank of India Act, 1934; and Sections 30A, 32 and 33 of the National Housing Bank Act, 1987
AMENDMENTS TO SARFAESI ACT/RULES/DRT ACT AND RULES WHICH HAVE BEEN ENFORCEDMukesh Chand
The document summarizes key amendments to the Security Interest (Enforcement) Rules, 2002 and the Debt Recovery Tribunal (Procedure) Rules, 1993 in India that came into effect from November 4, 2016. Some of the major changes include:
1) Allowing delivery of notices by hand delivery in addition to other modes.
2) Reducing the notice period for subsequent auctions of secured assets from 30 days to 15 days.
3) Allowing service of notices via email in addition to other modes.
4) Providing for public auctions, including e-auctions of secured assets.
5) Reducing timelines for filing written statements and replies in DRT recovery applications.
Relief Measures by RBI and Banks to MSME, Real Estate and NBFC SectorSumedha Fiscal
In order to alleviate the economic pain widely caused by the global pandemic, RBI announces new measures. Here is a breakdown of the steps taken and what the future holds.
The document discusses operational creditors under the Insolvency and Bankruptcy Code (IBC) in India. Some key points:
1) Operational creditors, who are mainly small businesses and SMEs, often recover very little or none of the debts owed to them during corporate insolvency proceedings. This is because financial creditors have priority in recovering secured loans.
2) Operational creditors face difficulties initiating insolvency proceedings if the debt is disputed, unlike financial creditors. If approved by the court, their claims are often only a small portion of the total admitted claims.
3) Most insolvency cases so far in India have ended in liquidation rather than resolution, further reducing potential recovery for
M&A Update- The Latest Legal Developments In India Shruti Jadhav
The document provides updates on recent legal developments in India related to mergers and acquisitions (M&A). It discusses clarifications issued by regulatory authorities on indirect transfers and tax implications, screening of bidders in corporate insolvency resolution processes, revisions to SEBI's block deal mechanism, and shareholders' approval not being required for resolution plans under the Insolvency and Bankruptcy Code. It also summarizes other circulars and guidance on issues like determination of place of effective management, indirect acquisitions and exemptions under takeover regulations, and an SEBI order on acquisition of control.
Development and finance go hand in hand. It is difficult for a country to develop without finance. However, what is the new perception of development? Clearly it seems to encompass more than just economic figures. And what is the role of the Law and institutions such as the Central Bank in attaining development. With this presentation, I expound on this questions.
Significant Judgments on Insolvency and Bankruptcy CodeSumedha Fiscal
The document discusses 6 significant judgments related to the Insolvency and Bankruptcy Code in India from January 2022.
1. The Supreme Court held that Section 29A, which disqualifies certain persons from submitting resolution plans, would apply even if the resolution applicant was initially eligible. The date of plan submission is irrelevant.
2. The NCLAT held that banks cannot unilaterally withhold possession of fixed deposits after corporate insolvency resolution process initiation, as this would violate the moratorium.
3. The NCLAT affirmed that while courts can recall orders obtained by fraud, the adjudicating authority cannot recall admission or liquidation orders in the absence of fraud, as issues
Banking Companies- Accounting and Statutory Requirements with respect to Indu...Nikita Jangid
The document provides information about banks and banking in India. It defines what a bank is, discusses the key statutes that govern banking companies in India, and outlines some of the primary and secondary functions of banks. It also describes the system of bookkeeping used by banks in India, including the books of account maintained and the process for preparing final accounts in accordance with legal provisions. Finally, it provides a brief overview of IndusInd Bank, including its vision, mission, branch network, and business operations.
RBI (Transfer of Loan Exposures) Directions have been issued in exercise of the powers conferred by the Sections 21 and 35A of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949; Chapter IIIB of the Reserve Bank of India Act, 1934; and Sections 30A, 32 and 33 of the National Housing Bank Act, 1987
AMENDMENTS TO SARFAESI ACT/RULES/DRT ACT AND RULES WHICH HAVE BEEN ENFORCEDMukesh Chand
The document summarizes key amendments to the Security Interest (Enforcement) Rules, 2002 and the Debt Recovery Tribunal (Procedure) Rules, 1993 in India that came into effect from November 4, 2016. Some of the major changes include:
1) Allowing delivery of notices by hand delivery in addition to other modes.
2) Reducing the notice period for subsequent auctions of secured assets from 30 days to 15 days.
3) Allowing service of notices via email in addition to other modes.
4) Providing for public auctions, including e-auctions of secured assets.
5) Reducing timelines for filing written statements and replies in DRT recovery applications.
Relief Measures by RBI and Banks to MSME, Real Estate and NBFC SectorSumedha Fiscal
In order to alleviate the economic pain widely caused by the global pandemic, RBI announces new measures. Here is a breakdown of the steps taken and what the future holds.
The document discusses operational creditors under the Insolvency and Bankruptcy Code (IBC) in India. Some key points:
1) Operational creditors, who are mainly small businesses and SMEs, often recover very little or none of the debts owed to them during corporate insolvency proceedings. This is because financial creditors have priority in recovering secured loans.
2) Operational creditors face difficulties initiating insolvency proceedings if the debt is disputed, unlike financial creditors. If approved by the court, their claims are often only a small portion of the total admitted claims.
3) Most insolvency cases so far in India have ended in liquidation rather than resolution, further reducing potential recovery for
M&A Update- The Latest Legal Developments In India Shruti Jadhav
The document provides updates on recent legal developments in India related to mergers and acquisitions (M&A). It discusses clarifications issued by regulatory authorities on indirect transfers and tax implications, screening of bidders in corporate insolvency resolution processes, revisions to SEBI's block deal mechanism, and shareholders' approval not being required for resolution plans under the Insolvency and Bankruptcy Code. It also summarizes other circulars and guidance on issues like determination of place of effective management, indirect acquisitions and exemptions under takeover regulations, and an SEBI order on acquisition of control.
Development and finance go hand in hand. It is difficult for a country to develop without finance. However, what is the new perception of development? Clearly it seems to encompass more than just economic figures. And what is the role of the Law and institutions such as the Central Bank in attaining development. With this presentation, I expound on this questions.
Significant Judgments on Insolvency and Bankruptcy CodeSumedha Fiscal
The document discusses 6 significant judgments related to the Insolvency and Bankruptcy Code in India from January 2022.
1. The Supreme Court held that Section 29A, which disqualifies certain persons from submitting resolution plans, would apply even if the resolution applicant was initially eligible. The date of plan submission is irrelevant.
2. The NCLAT held that banks cannot unilaterally withhold possession of fixed deposits after corporate insolvency resolution process initiation, as this would violate the moratorium.
3. The NCLAT affirmed that while courts can recall orders obtained by fraud, the adjudicating authority cannot recall admission or liquidation orders in the absence of fraud, as issues
Banking Companies- Accounting and Statutory Requirements with respect to Indu...Nikita Jangid
The document provides information about banks and banking in India. It defines what a bank is, discusses the key statutes that govern banking companies in India, and outlines some of the primary and secondary functions of banks. It also describes the system of bookkeeping used by banks in India, including the books of account maintained and the process for preparing final accounts in accordance with legal provisions. Finally, it provides a brief overview of IndusInd Bank, including its vision, mission, branch network, and business operations.
REGULATIONS SURROUNDING THE LISTING OF Varun Vaish
The document discusses regulations surrounding the listing of securitized debt instruments in India. It outlines how amendments to the Securities Contracts Regulation Act in 2007 allowed securitized debt instruments to be publicly traded. SEBI then issued regulations in 2008 governing public offerings and listings of securitized debt instruments. This created a new market for these instruments with various players like originators, special purpose entities, trustees, and investors. SEBI also issued a listing agreement in 2011 to improve transparency and disclosure requirements for listed securitized debt instruments. However, issues around foreclosure laws and tax treatment of special purpose vehicle trusts still affect growth of the securitized debt market in India.
The Reserve Bank of India issued several circulars on April 21, 2016:
1. It allowed foreign investment in real estate investment trusts, infrastructure investment trusts, and alternative investment funds regulated by SEBI.
2. It required banks to provide investment advisory services through subsidiaries registered with SEBI rather than directly.
3. It allowed infrastructure debt funds set up as NBFCs to raise some funds through shorter term bonds and commercial paper.
4. It issued master directions on the pricing and issuance of shares by private banks and on the amalgamation of private banks.
SEBI also issued guidelines, including laying out a framework for private placement of debt securities through an electronic book mechanism. The Delhi government amended
Presentation on SARFAESI Act_Anurag Ghosh_16PGDMBFS08Anurag Ghosh
The document provides an overview of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) which allows banks to auction residential and commercial properties when borrowers default on loans. It discusses the history and provisions of the act, including giving banks the power to take possession of secured assets without court intervention. It also analyzes the rising level of non-performing assets (NPAs) in Indian banks and how the SARFAESI Act is important for helping banks reduce their NPAs by recovering assets.
This document discusses non-performing assets (NPAs) in banks. It notes that NPAs are loan accounts that do not generate income for the bank. Common causes of NPAs include poor selection of borrowers, lack of timely support, and failure to monitor loans. The document outlines the classification standards for NPAs as standard, sub-standard, doubtful, and loss. It also discusses various legal recovery mechanisms available to banks for recovering NPAs, including Debt Recovery Tribunals, SARFAESI Act, and sale of NPAs to asset reconstruction companies.
Scope for Insolvency Professionals - Sumedha IBCSumedha Fiscal
The Bankruptcy and Insolvency Code creates time-bound processes for insolvency resolution of companies & individuals which thereby will help India improve its World Bank insolvency ranking. The code has opened new opportunities for professionals particularly Chartered Accountants. This presentation looks at the wide scope for Insolvency Professionals.
The document discusses Vietnam's efforts to develop a new Public-Private Partnership (PPP) legal framework to attract more private investment in infrastructure projects.
The current PPP regulations in Vietnam have failed to make projects bankable or attract significant foreign investment due to issues like limited lender step-in rights, a lack of guarantees on foreign currency conversion, and restrictions on the use of foreign law.
A new draft PPP decree aims to address these issues and move Vietnam closer to having bankable PPP projects. It removes limits on state contributions, eases lender step-in rights, allows for foreign law and arbitration, and grants lenders rights to mortgage project assets and land use. However, guarantees on
Banker as a Lender - Principles and Practices of BankingVIRUPAKSHA GOUD
This document discusses various types of loans and advances provided by banks, including their classification. It covers sector-wise classification into priority and non-priority sectors. Advances are also classified as secured or unsecured, and by asset quality under prudential norms as standard, special mention account, or non-performing asset. Fund-based facilities like cash credit, term loans and bill discounting are described. Requirements for classifying book debts, supply bills and different security types like hypothecation, pledge and mortgage are provided. Proper loan classification allows for accurate provisioning and risk assessment.
The document discusses bank examination and supervision. It describes external supervision by government agencies and internal controls within banks. The purposes of examination are to ensure compliance with laws/regulations and evaluate financial soundness by identifying unsafe practices like inadequate lending practices. The Bangko Sentral ng Pilipinas is responsible for regular examination of all banking institutions to check for issues like embezzlement, defalcation, or other misappropriation of funds. Effective internal controls and audits are important for prevention.
The SARFAESI Act allows secured creditors like banks to enforce security interest for recovery of dues without court intervention. It gives banks the power to take possession of secured assets, sell them, or take over management upon default. The key steps are issuing a 60-day demand notice, taking possession if not paid, appointing an authorized officer, valuating and auctioning the assets. The debtor can raise objections within 15 days of notice or approach DRT within 45 days, otherwise the bank may proceed to sell the assets to recover dues.
1) The document provides definitions and explanations of key concepts related to banking including the definition of banking, banking companies, statutes governing banking companies, and functions of banks.
2) It explains that banking companies accept deposits and use the money to make loans. Their main function is to channel money from savers to borrowers. Various laws at both the federal and state level regulate banking companies.
3) The document also describes the system of bookkeeping used in banks including the general ledger, subsidiary books like cash books, purchase books and sales books, as well as bills receivable and payable books. Maintaining accurate accounting records is important for banks.
The document discusses securitization and asset reconstruction in India. It states that Section 5 of the Securitization and Reconstruction of Financial Assets and Enforcement Security Interest Act mandates that only banks and financial institutions can securitize their financial assets. It provides an example of how a bank called XYZ Bank can securitize its loan assets by transferring them to a special purpose vehicle, removing the assets from its books and freeing up capital for new lending. The special purpose vehicle then issues securities to investors to raise funds that are passed back to the originating bank.
The Reserve Bank of India regulates and supervises Non-Banking Financial Companies. The objectives are to ensure healthy growth, ensure they function as part of the financial system within policy frameworks, and maintain high quality supervision. This document provides clarification on regulatory changes and operational matters for NBFCs, the public, and other stakeholders through a question and answer format. Key differences between banks and NBFCs are that NBFCs cannot accept demand deposits or issue cheques, and deposit insurance is not available for NBFC depositors. Registration with RBI is mandatory for NBFCs, and there are requirements around minimum net owned funds, application process, and classifications of different types of NBFCs.
The SARFAESI Act allows banks and financial institutions to recover non-performing assets (NPAs) through securitization or asset reconstruction. It established provisions for registration and regulation of securitization companies and asset reconstruction companies. These companies can acquire financial assets from banks, issue security receipts to qualified institutional buyers, and employ measures to resolve NPAs such as debt restructuring, taking possession of collateral, and changing borrower management. However, issues with the SARFAESI Act include a thin investor base limited to qualified buyers and investor appetite focused only on short-term, highly-rated securities.
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
Legal Remedies Available for Housing finance recoveryVinod Mukunthan
The document discusses non-performing assets (NPAs) in the banking and housing finance industries in India. It provides background on how NPAs impact bank profitability and discusses laws related to dealing with NPAs, including:
1. The Recovery of Debts Due to Banks and Financial Institutions Act (DRT Act) of 1993, which established Debt Recovery Tribunals but still did not allow for fast enough recovery of debts.
2. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) of 2002, which gave banks more direct powers to take possession of secured assets without court intervention in order to help reduce NPAs.
Checklist for Auditors certificate to NBFCAmit Kumar
The document outlines the reporting requirements for auditors of non-banking financial companies in India, specifying that auditors must report on matters such as the company's registration, classification, public deposit holdings, capital adequacy ratios, and compliance with RBI regulations; if any issues are identified, the auditor must provide reasoning; and exception reports on unfavorable statements or non-compliance must be submitted to the DNBS.
DRT and DRAT has been of immense help to the bank and the borrower.Raju Samanta
The document discusses the Debt Recovery Tribunal (DRT) Act and its purpose of helping banks recover bad loans through a legal process. It established tribunals to more efficiently recover debts owed to banks. The DRT is overseen by a presiding officer and handles cases over 20 lakh rupees. Its judgments can be appealed to the Debt Recovery Appellate Tribunal. The Act aimed to reduce banks' non-performing assets and help their financial position by expediting the debt recovery process.
The document provides information on foreign exchange, accounts maintained in banks for foreign exchange (nostro and vostro accounts), documents used in foreign trade such as commercial invoices, certificates of origin, packing lists, bills of exchange, bills of lading, and bills of entry. It also discusses letters of credit including types of letters of credit, the mechanism of letters of credit, and discrepancies that may be found in shipping documents. Key terms related to letters of credit such as payment against documents, loan against imported merchandise, and import trust receipt are also explained.
Securitisation and reconstruction of financial assets and enforcement of secu...ACS Shalu Saraf
The SARFAESI Act enables secured creditors like banks and financial institutions to enforce their security without court intervention. It allows creditors to take possession of secured assets, sell them, or assign rights over them to recover loans in case of default. The Act established mechanisms for asset reconstruction companies to acquire financial assets from banks and issue security receipts to investors. It defines terms like borrower, financial asset, and non-performing asset. The constitutional validity of the Act was upheld by the Supreme Court. Methods of recovery include securitization, asset reconstruction, and direct enforcement of security. Amendments allowed debt to equity conversion and banks to purchase auctioned properties under certain conditions.
This document provides a summary of the SARFAESI Act of 2002 and the evolution of debt recovery systems in the Indian banking sector. It discusses how non-performing assets piled up in the sector due to inadequate debt recovery mechanisms and long civil court processes. This led to various committees and reforms over time to improve recovery of debts, including the establishment of Debt Recovery Tribunals, introduction of prudential norms, and reductions in statutory reserve requirements. A key reform was the enactment of the SARFAESI Act in 2002, which allowed banks and financial institutions to enforce security interests without court intervention.
Tenyiko Gomba is a South African student currently enrolled in Monash University's one-year Foundation Programme in the Business Stream, which prepares students for undergraduate study. She previously attended Loreto Convent School in Pretoria from 2011 to 2015 where she studied subjects including English, Afrikaans, Business Studies and Accounting. She has experience in community outreach, working as a cashier, and participating in the Johannesburg Stock Exchange challenge in 2014. She is proficient in English, Setswana, and Afrikaans and was involved in cheerleading and choir.
This document discusses how to improve relationships with people you constantly argue or fight with. It suggests trying to see things from their perspective and find their good qualities, as their bad behavior may stem from hurts, fears, or insecurities. Looking deeper can help find something good in them and take steps towards a truce. With Jesus' help, it may be possible to turn a foe into a friend or at least develop mutual respect, reducing misery and frustration.
REGULATIONS SURROUNDING THE LISTING OF Varun Vaish
The document discusses regulations surrounding the listing of securitized debt instruments in India. It outlines how amendments to the Securities Contracts Regulation Act in 2007 allowed securitized debt instruments to be publicly traded. SEBI then issued regulations in 2008 governing public offerings and listings of securitized debt instruments. This created a new market for these instruments with various players like originators, special purpose entities, trustees, and investors. SEBI also issued a listing agreement in 2011 to improve transparency and disclosure requirements for listed securitized debt instruments. However, issues around foreclosure laws and tax treatment of special purpose vehicle trusts still affect growth of the securitized debt market in India.
The Reserve Bank of India issued several circulars on April 21, 2016:
1. It allowed foreign investment in real estate investment trusts, infrastructure investment trusts, and alternative investment funds regulated by SEBI.
2. It required banks to provide investment advisory services through subsidiaries registered with SEBI rather than directly.
3. It allowed infrastructure debt funds set up as NBFCs to raise some funds through shorter term bonds and commercial paper.
4. It issued master directions on the pricing and issuance of shares by private banks and on the amalgamation of private banks.
SEBI also issued guidelines, including laying out a framework for private placement of debt securities through an electronic book mechanism. The Delhi government amended
Presentation on SARFAESI Act_Anurag Ghosh_16PGDMBFS08Anurag Ghosh
The document provides an overview of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) which allows banks to auction residential and commercial properties when borrowers default on loans. It discusses the history and provisions of the act, including giving banks the power to take possession of secured assets without court intervention. It also analyzes the rising level of non-performing assets (NPAs) in Indian banks and how the SARFAESI Act is important for helping banks reduce their NPAs by recovering assets.
This document discusses non-performing assets (NPAs) in banks. It notes that NPAs are loan accounts that do not generate income for the bank. Common causes of NPAs include poor selection of borrowers, lack of timely support, and failure to monitor loans. The document outlines the classification standards for NPAs as standard, sub-standard, doubtful, and loss. It also discusses various legal recovery mechanisms available to banks for recovering NPAs, including Debt Recovery Tribunals, SARFAESI Act, and sale of NPAs to asset reconstruction companies.
Scope for Insolvency Professionals - Sumedha IBCSumedha Fiscal
The Bankruptcy and Insolvency Code creates time-bound processes for insolvency resolution of companies & individuals which thereby will help India improve its World Bank insolvency ranking. The code has opened new opportunities for professionals particularly Chartered Accountants. This presentation looks at the wide scope for Insolvency Professionals.
The document discusses Vietnam's efforts to develop a new Public-Private Partnership (PPP) legal framework to attract more private investment in infrastructure projects.
The current PPP regulations in Vietnam have failed to make projects bankable or attract significant foreign investment due to issues like limited lender step-in rights, a lack of guarantees on foreign currency conversion, and restrictions on the use of foreign law.
A new draft PPP decree aims to address these issues and move Vietnam closer to having bankable PPP projects. It removes limits on state contributions, eases lender step-in rights, allows for foreign law and arbitration, and grants lenders rights to mortgage project assets and land use. However, guarantees on
Banker as a Lender - Principles and Practices of BankingVIRUPAKSHA GOUD
This document discusses various types of loans and advances provided by banks, including their classification. It covers sector-wise classification into priority and non-priority sectors. Advances are also classified as secured or unsecured, and by asset quality under prudential norms as standard, special mention account, or non-performing asset. Fund-based facilities like cash credit, term loans and bill discounting are described. Requirements for classifying book debts, supply bills and different security types like hypothecation, pledge and mortgage are provided. Proper loan classification allows for accurate provisioning and risk assessment.
The document discusses bank examination and supervision. It describes external supervision by government agencies and internal controls within banks. The purposes of examination are to ensure compliance with laws/regulations and evaluate financial soundness by identifying unsafe practices like inadequate lending practices. The Bangko Sentral ng Pilipinas is responsible for regular examination of all banking institutions to check for issues like embezzlement, defalcation, or other misappropriation of funds. Effective internal controls and audits are important for prevention.
The SARFAESI Act allows secured creditors like banks to enforce security interest for recovery of dues without court intervention. It gives banks the power to take possession of secured assets, sell them, or take over management upon default. The key steps are issuing a 60-day demand notice, taking possession if not paid, appointing an authorized officer, valuating and auctioning the assets. The debtor can raise objections within 15 days of notice or approach DRT within 45 days, otherwise the bank may proceed to sell the assets to recover dues.
1) The document provides definitions and explanations of key concepts related to banking including the definition of banking, banking companies, statutes governing banking companies, and functions of banks.
2) It explains that banking companies accept deposits and use the money to make loans. Their main function is to channel money from savers to borrowers. Various laws at both the federal and state level regulate banking companies.
3) The document also describes the system of bookkeeping used in banks including the general ledger, subsidiary books like cash books, purchase books and sales books, as well as bills receivable and payable books. Maintaining accurate accounting records is important for banks.
The document discusses securitization and asset reconstruction in India. It states that Section 5 of the Securitization and Reconstruction of Financial Assets and Enforcement Security Interest Act mandates that only banks and financial institutions can securitize their financial assets. It provides an example of how a bank called XYZ Bank can securitize its loan assets by transferring them to a special purpose vehicle, removing the assets from its books and freeing up capital for new lending. The special purpose vehicle then issues securities to investors to raise funds that are passed back to the originating bank.
The Reserve Bank of India regulates and supervises Non-Banking Financial Companies. The objectives are to ensure healthy growth, ensure they function as part of the financial system within policy frameworks, and maintain high quality supervision. This document provides clarification on regulatory changes and operational matters for NBFCs, the public, and other stakeholders through a question and answer format. Key differences between banks and NBFCs are that NBFCs cannot accept demand deposits or issue cheques, and deposit insurance is not available for NBFC depositors. Registration with RBI is mandatory for NBFCs, and there are requirements around minimum net owned funds, application process, and classifications of different types of NBFCs.
The SARFAESI Act allows banks and financial institutions to recover non-performing assets (NPAs) through securitization or asset reconstruction. It established provisions for registration and regulation of securitization companies and asset reconstruction companies. These companies can acquire financial assets from banks, issue security receipts to qualified institutional buyers, and employ measures to resolve NPAs such as debt restructuring, taking possession of collateral, and changing borrower management. However, issues with the SARFAESI Act include a thin investor base limited to qualified buyers and investor appetite focused only on short-term, highly-rated securities.
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
Legal Remedies Available for Housing finance recoveryVinod Mukunthan
The document discusses non-performing assets (NPAs) in the banking and housing finance industries in India. It provides background on how NPAs impact bank profitability and discusses laws related to dealing with NPAs, including:
1. The Recovery of Debts Due to Banks and Financial Institutions Act (DRT Act) of 1993, which established Debt Recovery Tribunals but still did not allow for fast enough recovery of debts.
2. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) of 2002, which gave banks more direct powers to take possession of secured assets without court intervention in order to help reduce NPAs.
Checklist for Auditors certificate to NBFCAmit Kumar
The document outlines the reporting requirements for auditors of non-banking financial companies in India, specifying that auditors must report on matters such as the company's registration, classification, public deposit holdings, capital adequacy ratios, and compliance with RBI regulations; if any issues are identified, the auditor must provide reasoning; and exception reports on unfavorable statements or non-compliance must be submitted to the DNBS.
DRT and DRAT has been of immense help to the bank and the borrower.Raju Samanta
The document discusses the Debt Recovery Tribunal (DRT) Act and its purpose of helping banks recover bad loans through a legal process. It established tribunals to more efficiently recover debts owed to banks. The DRT is overseen by a presiding officer and handles cases over 20 lakh rupees. Its judgments can be appealed to the Debt Recovery Appellate Tribunal. The Act aimed to reduce banks' non-performing assets and help their financial position by expediting the debt recovery process.
The document provides information on foreign exchange, accounts maintained in banks for foreign exchange (nostro and vostro accounts), documents used in foreign trade such as commercial invoices, certificates of origin, packing lists, bills of exchange, bills of lading, and bills of entry. It also discusses letters of credit including types of letters of credit, the mechanism of letters of credit, and discrepancies that may be found in shipping documents. Key terms related to letters of credit such as payment against documents, loan against imported merchandise, and import trust receipt are also explained.
Securitisation and reconstruction of financial assets and enforcement of secu...ACS Shalu Saraf
The SARFAESI Act enables secured creditors like banks and financial institutions to enforce their security without court intervention. It allows creditors to take possession of secured assets, sell them, or assign rights over them to recover loans in case of default. The Act established mechanisms for asset reconstruction companies to acquire financial assets from banks and issue security receipts to investors. It defines terms like borrower, financial asset, and non-performing asset. The constitutional validity of the Act was upheld by the Supreme Court. Methods of recovery include securitization, asset reconstruction, and direct enforcement of security. Amendments allowed debt to equity conversion and banks to purchase auctioned properties under certain conditions.
This document provides a summary of the SARFAESI Act of 2002 and the evolution of debt recovery systems in the Indian banking sector. It discusses how non-performing assets piled up in the sector due to inadequate debt recovery mechanisms and long civil court processes. This led to various committees and reforms over time to improve recovery of debts, including the establishment of Debt Recovery Tribunals, introduction of prudential norms, and reductions in statutory reserve requirements. A key reform was the enactment of the SARFAESI Act in 2002, which allowed banks and financial institutions to enforce security interests without court intervention.
Tenyiko Gomba is a South African student currently enrolled in Monash University's one-year Foundation Programme in the Business Stream, which prepares students for undergraduate study. She previously attended Loreto Convent School in Pretoria from 2011 to 2015 where she studied subjects including English, Afrikaans, Business Studies and Accounting. She has experience in community outreach, working as a cashier, and participating in the Johannesburg Stock Exchange challenge in 2014. She is proficient in English, Setswana, and Afrikaans and was involved in cheerleading and choir.
This document discusses how to improve relationships with people you constantly argue or fight with. It suggests trying to see things from their perspective and find their good qualities, as their bad behavior may stem from hurts, fears, or insecurities. Looking deeper can help find something good in them and take steps towards a truce. With Jesus' help, it may be possible to turn a foe into a friend or at least develop mutual respect, reducing misery and frustration.
Mr. Bernstein himself is one of the country’s foremost experts on the extended right to cancel through rescission, bankruptcy techniques in filing Proof of Claims in Chapter 13 BK cases, and overall stopping foreclosures for his clients.
The Principles and Practices of Organic Spinach Seed Production in the Pacifi...Seeds
This document provides information on organic spinach seed production in the Pacific Northwest region. It discusses the climatic and soil requirements for growing spinach seed crops, as well as details on planting, spacing, cultivation practices, and genetic maintenance through selection. Key pests and diseases that affect spinach seed crops are also outlined.
God is a refuge and source of strength for humanity, providing help during times of trouble. The passage states that even during earthquakes and natural disasters that shake the land and sea, believers should have no fear because God is with them as a protector.
La corrupción es uno de los principales problemas en Perú, según encuestas de Ipsos, donde el 47% de los ciudadanos lo consideraban uno de los tres principales problemas del país en 2010 y este porcentaje aumentó al 52% en 2015. Algunos de los factores principales que contribuyen a la corrupción en Perú incluyen la concentración de funciones en la Corte Suprema de Justicia, la falta de mecanismos transparentes para la selección de jueces, fiscales y policías, y salarios deficientes en el sector público.
The document summarizes key information from the UK Adjudicators newsletter regarding security of payment reforms and developments. The newsletter discusses:
1) Hong Kong implementing a pilot program for security of payment provisions on public works contracts, including provisions for payment claims, responses, adjudication of disputes, and mandating similar provisions in subcontracts.
2) Reforms to security of payment legislation in Western Australia that will largely adopt the model used in New South Wales, introducing statutory payment timelines, requiring payment schedules to dispute payment claims, and adjudicating disputed amounts.
3) Key impacts of the changes including greater resources required to dispute payment claims through detailed payment schedules, and restrictions on raising new issues in adjudication
RBI GUIDELINES: RESOLUTION OF STRESSED ASSETS DATED 12 FEBRUARY 2018GK Dutta
The Reserve Bank of India has issued various instructions aimed at the resolution of stressed assets in the economy, including the introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets. The details of the revised framework are elaborated in the following paragraphs.
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Project Bank Accounts in Scotland - 15 Key Questions
1. 1
Project Bank Accounts (“PBAs”)
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Project Bank Accounts
in Scotland
15 Key Questions
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2. 2
Project Bank Accounts (“PBAs”)Project Bank Accounts (“PBAs”) in Scotland
In September 2016, the Scottish Government published the following documents
relating to the use of Project Bank Accounts (PBAs):
• “Implementing Project Bank Accounts in Construction Contracts” (23 September
2016) (referred to in this note as “the Guidance”)
• “Scottish Government Template Trust Deed” (referred to in this note as “the
Trust Agreement)
• “Selection Stage Notices and Contractual Enabling Clauses” (referred to in this
note as “the Enabling Clauses”)
In this note, we consider some key questions arising from this initiative.
A PBA is a bank account that is opened for a construction project for the purposes
of holding money in trust for the benefit of named beneficiaries and dispersing
payment direct to those named beneficiaries.
The account will be opened in the joint names of the Employer and the Main
Contractor in the capacity of trustees.
Once money is deposited into the account, the Employer and the Main Contractor as
trustees will have no beneficial interest in the money. All that the Employer and the
Main Contractor will be able to do is operate the account as trustees for the benefit
of the named beneficiaries.
Provided a legal trust is created under Scots law, the Employer and the Main
Contractor will have no beneficial interest in the money once it is deposited in the
account and will hold the money as trustees for the benefit of named beneficiaries,
therefore if either the Employer or the Main Contractor becomes insolvent the
money in the PBA will not form part of the insolvent estate, and will therefore be
protected for the benefit of the named beneficiaries.
The named beneficiaries will be the Main Contractor and suppliers within the Main
Contractor’s supply chain.
1. What is a PBA?
3. 3
Project Bank Accounts (“PBAs”)
Five key aspects of the PBA arrangements are as follows:
• Enabling Clauses: there will be clauses in the main contract and supply chain
contracts that deal with the operation of the PBA arrangements and payment
from the PBA.
• Trust Agreement: there will be a separate Trust Agreement entered into between
the trustees (Employer and Main Contractor) and the beneficiaries of the trust
(Main Contractor / supply chain members) that sets up the legal trust and sets
out arrangements for payment from the PBA.
• Additional Party Agreement: there will be a procedure for adding additional
supply chain members to the Trust Agreement – this is called the Additional
Party Agreement.
• Banking Infrastructure: there will be banking infrastructure set up with the bank
that holds the PBA – the Employer and the Main Contractor as account holders
and trustees will enter into an agreement with the bank.
• Joint Instruction: there will be an agreed process for the Employer and the Main
Contractor issuing joint instructions to the bank for the release of money to the
named beneficiaries – this will involve the Employer and the Main Contractor
each signing a single joint instruction in an agreed format which is then delivered
to the bank. Online banking facilities might be available for use.
2. How are the PBA arrangements set up?
The PBA documents are entered into in the following order:
1. Main Contract: the main contract will be entered into first.
2. Trust Agreement: the Enabling Clauses contain an obligation to enter into the
Trust Agreement within seven days after the main contract is signed (Clause 1 of
the Enabling Clauses).
3. PBA Bank Mandate: The Trust Agreement then provides for the PBA Bank
Mandate to be signed within 14 days following the execution of the Trust
Agreement (Clause 3.1.1 of the Trust Agreement).
3. In what sequence are the documents entered into?
Project Bank Accounts (“PBAs”) in Scotland
4. 4
Project Bank Accounts (“PBAs”)
PBAs will be used where the project is being procured by a Scottish Government
body and is above the specified financial thresholds.
5.1 Scottish Government body
PBAs apply to Scottish Government and relevant bodies in scope of the Scottish
Public Finance Manual (SPFM).
This means the constituent parts of the Scottish Administration (i.e. the core SG,
the Crown Office and Procurator Fiscal Service, SG Executive Agencies and non-
ministerial departments); bodies sponsored by the SG (means those commonly
referred to as non-departmental public bodies (NDPBs) - NDPBs include Executive
NDPBs, Public Corporations and NHS Bodies); the Scottish Parliament Corporate
Body; and bodies sponsored / supported by the Scottish Parliament Corporate Body.
5.2 Financial Thresholds
PBAs are to be used in all projects (subject to certain exceptions described at point
6) where the estimated award value is at least:
• £4,104,394 for building projects; and
• £10,000,000 for civil engineering projects.
It is also likely that PBA arrangements will be used where pre-procurement project
estimates are marginally below these thresholds and where contract award values
unexpectedly come in below the thresholds levels.
Benefits of the PBA arrangement include:
• Faster Payment: supply chain members get paid quicker as payment is dispersed
direct to the supply chain members from the PBA at the same time as payment is
being made to the Main Contractor; rather than being cascaded down the supply
chain.
• Insolvency Protection: once money has been deposited in the PBA, provided a
legal trust has been created under Scots law, it will be ‘ring fenced’ in the event of
a Main Contractor insolvency or another upstream supply chain insolvency.
4. What is the benefit of the PBA arrangements?
5. In what projects will PBAs be used?
Project Bank Accounts (“PBAs”) in Scotland
5. 5
Project Bank Accounts (“PBAs”)
PBA arrangements might not be applied in above threshold contracts, in whole or in
part, for a number of reasons as provided for in the PBA documentation:
• Self-Delivery / Use of In-House Sub-contractors: paragraph 14 of the Guidance
provides that “If the successful bidder (i.e. tier 1) gives a firm undertaking to self-
deliver and/or use subcontractors (i.e. tier 2) from within the parent company to
which the tier 1 also belongs, such that one, other or a combination of both is
more than 75% of the main contract award value, then the commissioning body
may choose whether or not to proceed with the PBA.”
• Non-Deployment: paragraph 102 of the Guidance provides that “The PBA
should not be deployed for a tier 2 or tier 3 firm if they have been unable to
become a named beneficiary before at least 50% of their contract payments
have been made by their employer. The other payment process should remain
for the duration of the sub-contract. The reasons should be fully documented
by the relevant employing party and made available to the commissioning body,
who shall relay to Scottish Government (for feedback purposes).” – it should
however be noted that this guidance is not expressly implemented in the
Enabling Clauses.
• Supply chain elects not to participate: Clause 6 of the Enabling Clauses
anticipates that some supply chain members may not wish to participate in the
PBA arrangements. If this is the case then the Main Contractor is required to
obtain written reason from the supplier and provide a copy to the Employer.
• Main contractor excludes supply chain members: Clause 7 of the Enabling
Clauses permits the main contractor to exclude a supply chain member from
participating in the PBA arrangements for the following reason:
• The Contractor, acting reasonably, decides that it is not appropriate or
reasonable in all the circumstances for the supplier to participate in the PBA
arrangements.
• The main contractor’s decision will be deemed to be reasonable if it falls
within one or more of the following (non-exhaustive) grounds:
• the value of the sub-contract is below 1% of the main contract award
value (excluding VAT);
• the duration of the sub-contract is less than one calendar month;
• the payment provisions of the sub-contract are more frequent than
those set out in the main contract, or
• the payment provisions of the sub-contract cannot otherwise be
aligned with the payment provisions of the main contract. The Guidance
provides the example of materials charged as an aggregated bulk
across several sites.
6. Are there circumstances where PBAs might not be used?
Project Bank Accounts (“PBAs”) in Scotland
6. 6
Project Bank Accounts (“PBAs”)
If the style Enabling Clauses are followed then in practice all sub-contractors of any
tier should be able to participate in the PBA arrangements regardless of the value of
their sub-contract (subject to the exclusions described at 6. above).
Each party in the supply chain from the main contractor down should be (i) informing
their suppliers of the PBA arrangements, and (ii) inviting their suppliers to participate
in the PBA arrangements (see Clauses 2 and 3 of the Enabling Clauses).
Although the Guidance and Enabling Clauses refer to supply chain contracts with
a value of at least 1% of the main contract award value, in respect of supply chain
contracts below that value the intention is that the relevant suppliers can ask to join
and if they do so should be permitted to participate in the PBA arrangements (subject
to the exclusions described at 6. above) (See Clause 8 of the Enabling Clauses).
7. Who can participate in the PBA arrangements?
Supply chain members will participate by having suitable enabling clauses in their
supply chain contract and by either by being a party to the initial Trust Agreement or
by joining the Trust Agreement by way of an Additional Party Agreement.
8. How do supply chain members participate in the PBA arrangements?
However, where the main contractor wishes to exclude the supplier only on the first
ground above (value less than 1%) but the supplier nevertheless wants to participate
in the PBA then the main contractor is to ensure that the supplier can participate
(See Clause 8 of the Enabling Clauses).
It is an agreement by which a supply chain member will become a party to the Trust
Agreement and join the PBA arrangements.
It is intended that this will be a tripartite agreement among the two trustees (the
Employer and the main contractor) and the relevant supplier chain member (whether
that is 2nd, 3rd or 4th tier supplier etc.) (See Clause 5 of the Enabling Clauses, the
style Additional Party Agreement attached to the Trust Agreement and paragraphs
97/98/99 of the Guidance).
In terms of Enabling Clauses 5 and 8, the Employer, the Contractor and the
subcontractor or Supply Chain Member shall execute the Additional Party
Agreement as soon as practicable following the appointment of any such additional
subcontractors or Supply Chain Members. Suppliers wanting to participate will no
doubt want to see that the Additional Party Agreement is being prioritised to make
sure it is entered into quickly and in any event before their first payment is due.
9. What is an Additional Party Agreement?
Project Bank Accounts (“PBAs”) in Scotland
7. 7
Project Bank Accounts (“PBAs”)
Main contractors will have to:
• Provide completed account-opening forms, internet banking forms and trust
documents (including (where known) subcontractor beneficiaries) as part of
their tender
• Check that the main contract PBA clauses, Trust Agreement and banking
agreement are in acceptable terms
• Put in place processes / resources to implement the PBA arrangements
• Make payment applications in the correct format indicating the allocation of
payments to named beneficiaries
• Consider how to step down the PBA provisions into their sub-contracts and how
to procure that the opportunity to participate in the PBA is cascaded down its
supply chain. (See Clauses 3 and 4 of the Enabling Clauses)
• Consider any reasons for excluding supply chain members from the PBA
arrangement
• Make arrangements for having Additional Party Agreements processed with the
Employer and relevant supply chain members
• Consider how the PBA arrangements impact on its commercial proposal
10. What will main contractors need to do?
Project Bank Accounts (“PBAs”) in Scotland
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Project Bank Accounts (“PBAs”)
Supply chain members will have to:
• Take early steps to see that the PBA arrangements are being prioritised in the
context of its contract in order to see that the PBA arrangements are in place
before the first payment
• Check that the supply chain contract PBA clauses, Trust Agreement and
Additional Party Agreement are in acceptable terms
• Make sure that the contractual time scales for payment in their sub-contract are
closely aligned with the expedited time periods for direct payments from the
PBA
• Have the Trust Agreement or the Additional Party Agreement signed up as soon
as possible
• Obtain a certified true copy of the Trust Agreement
• Obtain details of the PBA bank account
• Obtain a copy of the agreement between the bank, the Employer and the Main
Contractor in order to fully understand the PBA arrangement
• Obtain a copy of a letter from the bank confirming that the bank has received a
copy of the Trust Agreement and that the bank confirms that it accepts that the
funds in the PBA are trust property (see paragraph 77 of the Guidance)
• Provide its bank details for payment
• Consider how to step down the PBA provisions into their sub-contracts and how
to procure that the opportunity to participate in the PBA is cascaded down its
supply chain (See clauses 3 and 4 of the Enabling Clauses)
• Consider any reasons for excluding supply chain members from the PBA
arrangement
• Consider how main contractor contra-charging clauses are likely to operate in
the context of the PBA
11. What will supply chain members need to do?
Project Bank Accounts (“PBAs”) in Scotland
9. 9
Project Bank Accounts (“PBAs”)
In accordance with the Housing Grants, Construction and Regeneration Act 1996 (as
amended), payment provisions in a construction contract should include for a ‘due
date’, a payment notice, a last date for issuing a ‘pay less notice’ and a ‘final date for
payment’.
The PBA arrangements will need to integrate suitably within that framework.
Therefore, for example, in respect of a particular application for payment it would
seem practical that payment should be made into the PBA after the last date for
issuing a ‘pay less notice’ – once the last date for issuing a ‘pay less notice’ has
passed then there will be certainty as to how much is to be paid in respect of the
particular interim payment. If payment was made into the PBA earlier, then it is
possible that the commissioning body could pay too much into the account and that
would result in reconciliation being required at subsequent payments.
If such an approach was taken then the last date for issuing a ‘pay less notice’ would
need to be a date sufficiently in advance of the ‘final date for payment’ so as to enable
money to be deposited into and disbursed from the PBA to the named beneficiaries
by the final date for payment, taking into account the practical requirements for
operating the PBA and the possible need to deal with a ‘pay less notice’.
There is also the issue of how a ‘pay less notice’ issued by the commissioning body
will impact on the allocation of payment among the named beneficiaries of the PBA;
as it is possible that the ‘pay less notice’ itself will not deal with the issue of allocation
among the named beneficiaries. It is possible that the main contractor will require at
least some time to assess the implications of the ‘pay less notice’ and how it impacts
on the main contractor and the other named beneficiaries. The main contractor
may of course need to issue one or more corresponding ‘pay less notices’ down the
supply chain.
The drafting between the Enabling Clauses and Trust Agreement will need to be
consistent and compatible.
At all levels of the supply chain, the PBA arrangement does not affect an employer’s
contractual right to evaluate the amount due to an employed party i.e. the former
can still adjust a payment application submitted by the latter.
12. How will the PBA arrangements integrate with the existing payment clauses?
Project Bank Accounts (“PBAs”) in Scotland
10. 10
Project Bank Accounts (“PBAs”)
Clause 3.6 of the Trust Agreement provides that any bank charges, money
transmission costs and other disbursements incurred in the establishment and
operation of the PBA will be borne by the Employer, such charges not to be paid out
of the PBA, but paid directly by the Employer to the Bank.
13. Who will pay the bank charges on the PBA?
No.
Paragraph 118 of the Guidance confirms the intention that the ability of a PBA to ring-
fence deposits relates only to payments which have been certified under the main
contract. It does not apply to money relating to a dispute between businesses in the
supply chain, which cannot be held in a PBA.
However, businesses could make separate arrangements (outside the PBA) to hold
money until a dispute is resolved.
PBAs do allow payments to be made more quickly once a dispute has been resolved.
14. Will disputed amounts be paid into the PBA?
No.
It is not the intention that the PBA will become a repository for unpaid cash retention.
However once retention becomes payable then the payment should be processed
through the PBA in the same way as other payments.
15. Will retention be paid into the PBA?
Project Bank Accounts (“PBAs”) in Scotland
11. 11
Project Bank Accounts (“PBAs”)
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