#IBC / Insolvency and Bankruptcy Code

[akgvgassociates]

Forensic Accounting: Enabling fraud detection

Forensic accounting aims to evaluate financial records and identify fraud using a combination of accounting, auditing, and investigation abilities. It involves applying accounting techniques to legal problems and disputes to provide evidence that can be used in legal proceedings. Forensic accountants are frequently requested to investigate financial fraud and give qualified testimony in court. Read More:  Forensic Accounting: Enabling fraud detection

[tracedataresearch]

India Corporate Training Market to Witness Robust Growth with a Projected CAGR of 14% During 2024-2028

Korea SMEs and Startups Agency (KOSME) has introduced the Korean Corporate Competency Training Program, a specialized initiative designed to equip Indian university graduates with the skills needed to work in Korean companies. This program addresses the increasing need for cross-cultural awareness and corporate expertise as Korean businesses expand globally, with particular emphasis on strengthening their presence in the Indian market.

Focus will be on enhancing experiential learning through technologies like AR/VR, the Metaverse, and microlearning concepts. Courses on data and business analytics, AI-ML, cybersecurity, and cloud infrastructure are anticipated to be in high demand.

Rising Demand for Skill-Based Training: The Indian corporate training market is experiencing a surge in demand for skill-based programs, especially in technology, management, and soft skills. Companies are aligning their training strategies with government initiatives like Skill India and National Skill Development Corporation (NSDC) goals. These programs aim to address workforce competency gaps and enhance productivity. From a company’s perspective, upskilling boosts employee retention and efficiency. The government encourages collaborations between corporations and training institutions under Public-Private Partnership (PPP) models to strengthen the labor force and drive economic growth.

Increased Emphasis on ESG Training: Environmental, Social, and Governance (ESG) training is becoming a priority for Indian businesses to meet compliance and sustainability goals. Companies focus on sensitizing employees to sustainability practices, workplace diversity, and corporate governance. With increasing mandates from SEBI (Securities and Exchange Board of India) on ESG disclosures for listed companies, training helps in embedding ESG principles into business operations. The government’s emphasis on green policies, such as the National Action Plan on Climate Change (NAPCC), aligns with corporate strategies, making ESG training essential for maintaining competitive and regulatory edge.

Blended Learning Models: Corporations in India are adopting hybrid training models that combine classroom and digital learning. This trend aligns with the government’s Digital India initiative to promote technology in education. Blended models allow companies to balance cost-efficiency with effective learning outcomes. From an operational perspective, this approach offers scalability, enabling nationwide training for dispersed teams. The government push for improved internet connectivity through BharatNet plays a significant role in facilitating the growth of online training, particularly in semi-urban and rural areas.

Focus on Leadership and Governance Training: Indian companies are emphasizing leadership development programs to build governance capabilities in senior management. This trend is driven by the Companies Act, 2013, which mandates robust corporate governance structures, including board effectiveness and director responsibilities. Training in governance practices is critical for compliance and strategic decision-making. The government initiatives, such as the Insolvency and Bankruptcy Code (IBC), emphasize the need for well-trained leadership in handling business restructuring and resolution processes, ensuring companies remain resilient in a dynamic economic environment.

The report titled “India Corporate Training Market Outlook to 2029- By Market Structure (In-House and Outsourced Trainings), By Training Type (Technical Skills, Soft Skills, Compliance, and Leadership Development), By Industry Verticals (Finance, IT, Manufacturing, Healthcare, and Retail), By Organization Size” by TraceData Research said that the technical sector dominates the market growth as technical trainings are generally given to employees at the start of their professional journey in a company. Due to the pandemic, business operations were shifted to work from home model therefore many employees were on their own due to which they felt the need for technical skills. 

To Know More Details About the Sector, Please Follow the Link: -

India Corporate Training Market

Related Reports by Trace Data:

Indonesia Corporate Training Market Outlook to 2029

Malaysia Corporate Training Market Outlook to 2029

Contact Us: -

Mohit Kadian

support@tracedataresearch.com

+91-9266849840

[economics-around-you]

Company Law (CS Executive): In-Depth Guide for 2024 Exam 

 Company Law is one of the most crucial subjects for students pursuing the CS Executive course. It not only forms the basis for understanding corporate regulations and governance but also shapes the role of a Company Secretary in ensuring compliance with legal standards in organizations. This subject focuses on the Companies Act, 2013, and covers a wide range of topics, from company incorporation to corporate governance, CSR, and winding-up procedures. 

This detailed guide will help students prepare thoroughly for the Company Law paper in the CS Executive 2024 exam, while also outlining how Success Edge Academy can support students in their preparation journey. 

Detailed Syllabus for Company Law (CS Executive) 

Understanding the syllabus thoroughly is the first step toward excelling in Company Law. The syllabus is designed to give students a comprehensive knowledge of the legal framework governing companies. Let’s break down the syllabus into sections for easier understanding: 

1. Introduction to Company Law 

Development and Evolution: This section discusses the evolution of Company Law in India. Students must focus on the historical context that led to the Companies Act, 2013, and its amendments. 

The Companies Act, 2013: Detailed study of the significant provisions, amendments, and the relevance of the Act. 

Types of Companies: Public, Private, Government, and other categories, with focus on key differences in legal standing and requirements. 

2. Incorporation of Companies 

Procedure for Incorporation: In-depth study of steps involved in incorporating a company under The Companies Act, 2013. 

Memorandum and Articles of Association: Key provisions, contents, and procedures for alteration. 

Legal Doctrines: Understanding the Doctrine of Ultra Vires, Doctrine of Indoor Management, and Doctrine of Constructive Notice is crucial. 

Promoters: Roles, duties, and liabilities of promoters in forming a company. 

3. Share Capital and Debentures 

Types of Share Capital: Authorized, issued, subscribed, and paid-up capital. 

Issue of Shares: Procedures for the issue, transfer, transmission, and forfeiture of shares. 

Debentures: Types of debentures, issue procedures, redemption, and related regulations. 

4. Management and Administration 

Board of Directors: Structure of the board, appointment, removal, and resignation of directors. 

Roles and Responsibilities of Directors: Focus on the duties, powers, and liabilities of directors. 

Meetings: Rules governing Board Meetings, General Meetings, and Resolutions. 

Corporate Governance: Importance of governance and key provisions laid down in the Companies Act and SEBI guidelines. 

5. Corporate Social Responsibility (CSR) 

CSR Provisions: Specifics of Section 135 of the Companies Act. 

CSR Policy: Rules regarding formulation, reporting, and implementation of CSR activities. 

CSR Committee: Roles and functions of the CSR Committee and compliance requirements. 

6. Dividends, Accounts, and Audits 

Declaration of Dividends: Legal procedure for the declaration and distribution of dividends. 

Company Accounts: Maintenance of books of accounts, preparation of financial statements. 

Auditors: Procedures for the appointment of auditors, their responsibilities, and powers. 

7. Winding Up of Companies 

Types of Winding Up: Voluntary, compulsory, and other forms of winding-up under the Act. 

Role of Liquidators: Powers, duties, and responsibilities in the winding-up process. 

Insolvency and Bankruptcy Code (IBC): Importance of IBC, 2016, and its impact on winding-up procedures. 

8. Compromises, Arrangements, and Amalgamations 

Mergers and Acquisitions: Legal framework surrounding mergers, acquisitions, and demergers. 

Compromises and Arrangements: Procedural aspects of compromises between companies and creditors. 

Amalgamations: Legal requirements and procedural formalities for amalgamations. 

9. Oppression and Mismanagement 

Protection of Minority Shareholders: Rights available under the Companies Act for the prevention of oppression. 

National Company Law Tribunal (NCLT): Role of NCLT in handling cases of oppression and mismanagement. 

Exam Pattern for Company Law (CS Executive) 

The Company Law paper in the CS Executive exam is a mix of descriptive questions and case law applications. Students need to be well-versed in theory, but they also need to be able to apply their knowledge to real-life scenarios. 

Total Marks: 100 

Duration: 3 hours 

Types of Questions: Descriptive and practical case studies 

Weightage: 

Theoretical Concepts: ~40% 

Case Law Applications: ~60% 

Key Study Tips for Company Law 

Preparing for Company Law can seem daunting due to the vastness of the subject, but a strategic approach can make it manageable. Here are some study tips to help students ace this paper: 

1. Deep Dive into the Companies Act, 2013 

Thoroughly read each section of the Companies Act with a focus on incorporation, share capital, meetings, and winding-up. 

Keep updated with amendments to the Act, as the syllabus and exam questions often reflect recent legal changes. 

2. Case Laws and Applications 

Pay close attention to important case laws that illustrate the application of Company Law principles. Understanding how legal precedents are applied in real scenarios is vital for case-based questions. 

3. Summarize and Revise Key Sections 

Create concise notes or flashcards for quick revision of major sections like Board Meetings, Directors' duties, and winding up. This will help you revise quickly closer to the exam. 

4. Solve Past Year Papers 

Review past exam papers and identify patterns in the types of questions asked. Focus on understanding how questions are framed around case laws, practical applications, and theoretical concepts. 

5. Mock Tests and Time Management 

Enroll in mock tests that simulate real exam conditions. Practice completing questions within the time limit to manage your time effectively during the exam. 

6. Group Discussions and Peer Learning 

Participate in group discussions with fellow students. Discussing complex topics with others helps in better retention and understanding. 

7. Regular Revision 

Consistent revision of important topics is essential. Make a revision schedule that ensures you cover all the key topics multiple times before the exam. 

How Success Edge Academy Can Help You Ace Company Law 

At Success Edge Academy, we understand the challenges students face in mastering Company Law for the CS Executive exam. Here’s how we can support your preparation: 

Experienced Faculty: Our team includes expert faculty members with years of experience in teaching Company Law. Their in-depth knowledge helps students grasp complex legal provisions with ease. 

Structured Learning: We provide a well-structured syllabus plan that covers every aspect of Company Law, ensuring that students don’t miss out on any critical topics. 

Regular Assessments: Our regular tests and assessments help students track their progress and understand their areas of improvement. 

Practical Case Law Applications: We emphasize the practical application of Company Law through case laws, enabling students to tackle case-based questions confidently. 

Doubt-Solving Sessions: Dedicated doubt-clearing sessions allow students to resolve their queries and strengthen their understanding of difficult topics. 

Comprehensive Study Material: We provide up-to-date study materials, including the latest amendments and case laws, ensuring students have access to the best resources. 

With our focused and systematic approach, Success Edge Academy helps students build a solid foundation in Company Law, equipping them with the skills needed to succeed in the CS Executive exam. 

FAQs on Company Law (CS Executive) 

1. How important is Company Law in the CS Executive exam? 

Company Law is one of the core subjects in the CS Executive syllabus. It carries a total of 100 marks and focuses on providing a comprehensive understanding of the legal framework governing companies in India. 

2. What are the critical topics to focus on for Company Law? 

Key topics include Incorporation of Companies, Directors’ Duties and Responsibilities, Share Capital, Winding Up, Corporate Governance, and CSR. 

3. How can I effectively study case laws for Company Law? 

Focus on understanding the facts, legal principles, and outcomes of landmark cases. Practice writing answers that apply these case laws to hypothetical scenarios. 

4. How does Success Edge Academy help students with Company Law preparation? 

Success Edge Academy offers expert faculty, structured learning, regular assessments, and comprehensive study material, helping students prepare thoroughly for the CS Executive exam. 

Conclusion 

Mastering Company Law is essential for becoming a successful Company Secretary. With thorough preparation, regular practice, and expert guidance from Success Edge Academy, students can confidently 

[yourglobalexpansionpartner]

Navigating Economic Reforms: How They Influence Investment Decisions in India

India has become a global hotspot for investment, drawing attention from both domestic and international investors. As the economy continues to evolve, a critical factor influencing investment decisions is the series of economic reforms introduced by the Indian government. These reforms have reshaped the business landscape, making it essential for investors to understand their impact when planning to Invest in India.

The Role of Economic Reforms

India’s economic reforms aim to create a more open, competitive, and investment-friendly environment. Initiatives like the Goods and Services Tax (GST), the liberalization of FDI policies, and the implementation of the Insolvency and Bankruptcy Code (IBC) have streamlined processes, improved transparency, and bolstered investor confidence. These reforms are pivotal in reducing regulatory hurdles and making it easier for businesses to establish and scale in India.

The government's focus on digital transformation through programs like Digital India and Make in India has further enhanced India's attractiveness as an investment destination. These initiatives not only foster technological growth but also facilitate efficient business operations, allowing companies to tap into India's vast market potential more effectively.

Understanding the Reforms' Influence on Investment Decisions

For any investor looking to Invest in India, understanding these reforms is crucial. The GST, for example, has simplified the tax structure, reducing the complexity of doing business across multiple states. FDI reforms have allowed greater foreign ownership in sectors like retail, insurance, and defense, providing investors with more opportunities to enter the market. Moreover, the IBC offers a framework for resolving insolvency, which minimizes risks and offers better protection to creditors, a critical factor for foreign investors.

These reforms not only influence the ease of doing business but also shape long-term strategies. As India continues to focus on infrastructure development, energy sustainability, and manufacturing growth, sectors like renewable energy, real estate, and technology have become prime targets for investment. Investors can leverage these reforms to align their strategies with the country's growth trajectory.

The Role of Fox&Angel in Navigating India's Economic Reforms

At Fox&Angel, we understand the complexities of navigating economic reforms and their impact on investment decisions. Our expertise lies in providing investors with insights that help them make informed decisions. From understanding the intricacies of government policies to aligning your investment strategy with key growth sectors, we guide you every step of the way.

Conclusion

India's economic reforms have significantly transformed its investment landscape, offering unparalleled opportunities for growth. However, making the right investment decisions requires a deep understanding of these reforms and how they influence various sectors. Whether you're exploring FDI opportunities or seeking to expand in India's rapidly growing markets, navigating these changes is essential for success.

At Fox&Angel, we’re here to help you capitalize on India’s evolving economic landscape. Contact us today to explore how we can assist you in making smart investment decisions that align with India’s future.

Unlock the potential of investing in India—reach out to Fox&Angel now!

[jurishour]

Secured Creditors Hold Priority Over Government Tax Claims: Legal Precedents in India - Jurishour

Recent rulings by Indian courts have affirmed that secured creditors have priority over government tax claims during insolvency proceedings, underlining the significance of the Insolvency and Bankruptcy Code (IBC), 2016. Key judgments, including from the Bombay and Madras High Courts, have consistently supported the principle that secured creditors' rights, as enshrined in Section 31B of the IBC and Section 26E of the SARFAESI Act, take precedence over state claims for taxes such as sales tax, commercial tax, and income tax. These decisions uphold that secured creditors can recover debts through the sale of mortgaged assets before satisfying government dues. This emerging legal clarity strengthens the position of lenders during debt recovery and insolvency processes.

Read More:

[6nikhilum6]

NCLT Reopens Lavasa City Insolvency, Rejects Darwin Platform’s Resolution Plan

(NCLT) in Mumbai has dismissed Darwin Platform Infrastructure Ltd’s (DPIL) resolution plan for Lavasa Hill City due to failure in implementation. The tribunal ordered the restart of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), with Shailesh Verma as the resolution professional. Lavasa Hill City, located in Mulshi taluka of Pune district, was…

[ancoraa-resolution]

Understanding the Insolvency and Bankruptcy Code: The Role of Personal Guarantors

The Insolvency and Bankruptcy Code (IBC) is a comprehensive framework designed to address insolvency and bankruptcy issues in India. Enacted in 2016, the IBC aims to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals. This blog explores the key features of the Insolvency and Bankruptcy Code and the specific role of a personal guarantor under IBC.

Visit here:-

[wenikhilkumar]

Suprme court affirms rights of secured creditors over pledged shares under IBC

Supreme Court Affirms Rights of Secured Creditors Over Pledged Shares Under I&B Code In a landmark decision in May 2023, the Supreme Court of India reiterated the entitlements of secured creditors within the framework of the Insolvency and Bankruptcy Code, 2016 (I&B Code). The ruling in **M/S. Vistra ITCL (India) & Ors. v. Mr. Dinkar Venkatasubramanian & Anr.** established that secured creditors are entitled to retain the sale proceeds from shares pledged by a corporate debtor. This decision further cements the protections afforded to secured creditors under the I&B Code, providing crucial clarity in insolvency proceedings.

Case Background The case involves Amtek Auto Limited, which approached M/S. Vistra ITCL (India) & Ors. (the appellants) for a short-term loan facility of Rs. 500 crores. This facility was extended to the corporate debtor’s group companies, including M/s. Brassco Engineers Ltd. (Brassco) and M/s. WLD Investments Pvt. Ltd. (WLD). As part of this arrangement, Amtek Auto Limited pledged its equity shares in M/s. JMT Auto Ltd. (JMT) to secure the loan. When insolvency proceedings under Section 7 of the I&B Code were initiated against Amtek Auto Limited, a Resolution Professional was appointed, and the approval of a Resolution Plan was sought. The appellants, as secured creditors, moved to claim their rights over the pledged shares. However, the Resolution Professional rejected their claim, and this decision was upheld by the Adjudicating Authority and the National Company Law Appellate Tribunal (NCLAT). The appellants, aggrieved by these decisions, escalated the matter to the Supreme Court.

[kshitijtrading147]

The Role of Government Policies in Shaping PSU Stock Performance

Are you wondering what is The Role Government Policies in Shaping PSU Stock Performance. Than look no further than this blog. Here i have mentioned the top Reasons!

Public Sector Undertakings (PSUs) have long been a cornerstone of India's economic framework, contributing significantly to the nation's industrial and economic development. Understanding the intricate relationship between government policies and PSU stock performance is crucial for investors seeking to navigate the complexities of the Indian stock market. In this article, we delve into the role of government policies in shaping PSU stock performance, offering insights and actionable information for investors. 

Understanding PSUs and Their Importance 

PSUs are government-owned corporations established to undertake commercial activities on behalf of the government. These entities play a pivotal role in sectors such as energy, finance, infrastructure, and natural resources. PSUs like Oil and Natural Gas Corporation (ONGC), State Bank of India (SBI), and Bharat Heavy Electricals Limited (BHEL) are household names and major players in the stock market. The role of government policies in shaping PSU stock performance cannot be understated, as these policies directly influence operational efficiency and market perception. 

Key Government Policies Impacting PSU Stocks 

Disinvestment and Privatization 

Fact: The Indian government has set an ambitious disinvestment target of INR 1.75 lakh crore for FY 2023-24. 

Disinvestment involves selling government stakes in PSUs to raise capital. This policy can lead to improved operational efficiency and attract private investment, positively influencing stock performance. The role of government policies in shaping PSU stock performance is evident in the strategic moves towards privatization. 

Example: The strategic sale of Air India to the Tata Group in 2021 showcased the government's commitment to privatization, boosting investor confidence in PSUs. 

Budget Allocations and Fiscal Policies 

Annual budgets play a significant role in determining the financial health of PSUs. Increased budgetary allocations for infrastructure, defense, and energy sectors can directly benefit relevant PSUs. 

Stat: The Union Budget 2023 allocated INR 10 lakh crore to capital expenditure, a 33% increase from the previous year, expected to boost the performance of infrastructure PSUs. This highlights the role of government policies in shaping PSU stock performance through financial support. 

Regulatory Reforms 

Regulatory changes aimed at improving ease of doing business and reducing bureaucratic hurdles can enhance PSU efficiency and profitability. The role of government policies in shaping PSU stock performance is crucial in this context, as reforms can lead to significant operational improvements. 

Example: The introduction of the Insolvency and Bankruptcy Code (IBC) has streamlined the process of resolving distressed assets, aiding PSUs in managing bad loans more effectively. 

Sector-Specific Initiatives 

Government initiatives targeting specific sectors can have a profound impact on PSUs operating within those sectors. 

Fact: The 'Atma Nirbhar Bharat' initiative aims to make India self-reliant, with significant investments in the defense sector, benefiting defense PSUs like Hindustan Aeronautics Limited (HAL). These initiatives underscore the role of government policies in shaping PSU stock performance by providing targeted support. 

The Impact of Political Stability 

Political stability is a crucial factor that influences investor sentiment towards PSUs. Stable governments are more likely to implement and sustain policies that support PSU growth. Political certainty often translates to steady economic policies, fostering a conducive environment for PSU stocks to thrive. The role of government policies in shaping PSU stock performance is closely tied to the political landscape, impacting investor confidence and market dynamics. 

Performance Metrics and Investor Sentiment 

Dividend Yields: PSUs are known for offering attractive dividend yields. For instance, Coal India, a leading PSU, has consistently provided high dividends, making it a preferred choice for income-focused investors. This reflects the role of government policies in shaping PSU stock performance by ensuring stable returns. 

Market Sentiment: Investor sentiment towards PSUs can fluctuate based on government actions. Positive reforms and transparent governance typically enhance market confidence, driving stock prices upward. Understanding the role of government policies in shaping PSU stock performance is key to predicting these market movements. 

Conclusion: Strategic Investment in PSU Stocks 

For Indian investors, understanding the role of government policies in shaping PSU stock performance is essential for making informed investment decisions. By closely monitoring government actions, budget announcements, and regulatory reforms, investors can strategically position themselves to benefit from the growth potential of PSUs. The role of government policies in shaping PSU stock performance offers a roadmap for navigating the complexities of the stock market. 

Investing in PSU stocks offers a unique opportunity to align with the nation’s economic progress. With the right knowledge and strategy, investors can leverage government policies to their advantage, ensuring robust returns in the dynamic Indian stock market. 

By staying updated on policy changes and their implications, you can make well-informed investment choices. Subscribe to our newsletter for the latest insights and analysis on PSU stocks and other investment opportunities. 

This Article was written by Kshitij go check out his website

[acquisory]

Insolvency and Bankruptcy Code — IBC-BOON OR BANE

Introduction

The Insolvency and Bankruptcy Code (IBC), 2016 has been enacted to merge the existing laws related to insolvency and bankruptcy. The IBC involves standard steps which is viable and understandable. So, everyone, be it creditors, debtors, companies, or shareholders etc. shall have a standard perform for any matters relating to insolvency.

“The IBC has been a real game changer in the Indian economy’s business reform initiatives in the last twenty five years. Ease of doing business is ironically the base premise for enacting the comprehensive Code to exit from the business.”

The IBC has made a spectacular progress in short span. The recent orders issued by the Adjudicating Authorities are beginning to have profound impact on defaulting business owners as the message is loud and clear “settle dues or cede control”.

Why was IBC enacted?

Initially there was Presidency Towns Insolvency Acts, 1909 which was applicable in Kolkata, Chennai and Mumbai and the Provincial Insolvency Act 1920 for the rest of India, for regulating the insolvency laws. The Act applied to individuals and partnerships but exempted corporations from within its ambit. Post Independence, the bankruptcy and insolvency were specified in Constitution and with the passage of time there were numerous acts which governed Insolvency and bankruptcy issues such as the Sick Industrial Companies (special provision) Act, 1985 (“SICA”), SARFAESI Act, 2002, the Recovery of Debts due to Banks and financial institutions Act, 1993 (“RDDBFI Act”), Companies Act, 1956 as well as Companies act, 2013.

But these regulations have not yielded satisfactory results. These regimes were high fragmented, borne out of multiple judicial forums resulting in lack of clarity and certainty of jurisdiction. Further, we had various adjudicatory bodies/Tribunals to deal with such issues and matters under different Acts stated above.

So, this led to the unclear knowledge about the authority as to whom the parties should approach in the related matters. Hence, this resulted in overlapping of decisions. There was no common regulatory authority to regulate the rights of the secured or unsecured creditors, employees etc. or to determine the priority of their claims. Large number of stressed assets such as NPAs with low recovery rates due to a lack of enabling environment for the enforcement of creditor’s rights. Moreover there was no adequate or credible data regarding the assets, indebtedness etc. of companies which further heighten the problems. Hence large number of legislations and non-statutory guidelines have made the recovery of debt a complex and time consuming process.

The IBC is a welcome overhaul which has directly addressed in resolving the insolvency and bankruptcy issues of corporates and simultaneously serving creditors and public financial institutions by helping them in recovery of bad and distress loans and ultimately tackling Non Performing Assets. The Main objective of Code is distribution of the effects of a debtor in the most expeditious, equal and economical mode. The Code lays down the complete procedure of Insolvency Resolution process which involves collating claims and reviewing the requisite financial and other relevant records of the company. The introduction of this Code has brought in ample opportunities for professionals ranging from being appointed as official liquidator to managing the financial health of corporates in case of distressed assets.

Present Scenario

Today we have IBC, 2016, which provides a…

Read more: https://www.acquisory.com/ArticleDetails/52/Insolvency-and-Bankruptcy-Code--IBC-BOON-OR-BANE

[civilmentor1]

Current affairs - 25 July 2024

1. Insolvency & Bankruptcy Code (IBC) in India Syllabus: GS 3 /Economy News The Finance Minister has proposed to set up an integrated technology platform to improve the outcomes under the Insolvency & Bankruptcy Code (IBC). Insolvency In a growing economy like India, a healthy credit flow and generation of new capital are essential. When a company or business turns insolvent or “sick”, it…

[finlender]

 In the dynamic financial landscape of India, Non-Performing Assets (NPAs) have emerged as a significant challenge for banks and financial institutions. At Finlender, we aim to demystify NPA funding, providing clarity and insight into its mechanisms and implications.

What are NPAs?

NPAs, or Non-Performing Assets, are loans or advances for which the principal or interest payment remains overdue for a period of 90 days. NPAs are classified into three categories: substandard assets, doubtful assets, and loss assets. They indicate a deterioration in the quality of the bank's loan portfolio, impacting profitability and financial stability.

The Impact of NPAs

The high volume of NPAs has multiple adverse effects:

1- Reduced Profitability: Banks face reduced income due to non-receipt of interest payments.

2- Increased Provisions: Financial institutions must set aside a portion of their profits as provisions to cover potential losses, impacting their overall financial health.

3- Erosion of Capital: Persistent NPAs can lead to a significant erosion of a bank's capital base, affecting its ability to lend further.

NPA Funding: An Overview

NPA funding involves financial strategies and instruments designed to manage and resolve NPAs. It includes the following key aspects:

1- Asset Reconstruction Companies (ARCs): ARCs purchase NPAs from banks at a discounted rate, thereby cleaning up the banks' balance sheets. They then work on recovering the loan amounts through various strategies, including restructuring the loans or liquidating the underlying assets.

2- Debt Restructuring: Financial institutions may restructure the terms of the loan, such as extending the repayment period, reducing the interest rate, or converting a part of the debt into equity. This helps in making the debt more manageable for the borrower and increases the likelihood of recovery.

3- Government Initiatives: The Indian government has introduced various schemes and measures to address the NPA issue. Initiatives like the Insolvency and Bankruptcy Code (IBC) and the establishment of the National Asset Reconstruction Company Limited (NARCL) aim to streamline the resolution process and enhance recovery rates.

4- Stressed Asset Funds: Specialized funds are set up to invest in distressed assets. These funds have a higher risk tolerance and expertise in turning around non-performing assets, providing a viable solution for banks to offload their NPAs.

How Finlender Can Help

At Finlender, we offer a range of services to assist banks and financial institutions in managing NPAs effectively:

Advisory Services: Our team of experts provides strategic advice on NPA management, helping institutions devise effective resolution plans.

Asset Valuation: Accurate valuation of distressed assets is crucial for effective resolution. Finlender offers comprehensive asset valuation services.

Investment Solutions: We facilitate investments in stressed assets through our network of investors and specialized funds.

In conclusion, NPA funding is a critical component in maintaining the health of the banking sector in India. At Finlender, we are committed to providing innovative solutions and expert guidance to navigate the complexities of NPA management. By leveraging our expertise, financial institutions can achieve better recovery rates and ensure long-term financial stability.

READ MORE...NPA and OTS Finance Private Equity Project Finance Corporate Finance Company in India Finlender

[finlender2]

Stressed Capital or NPA Finance or OTS Finance or Distress Asset Finance

Restructure. Resolve. Revive

FinLender is a premier Indian Investment Banking firm for Stressed Account Funding. We specialize in providing comprehensive solutions for distressed assets, offering a range of services tailored to your financial needs. From NPA finance to OTS finance, special situation funding to distressed asset funding, our expert team is well-versed in navigating complex financial scenarios. We specialize in debt restructuring, offering interim finance under the IBC (Insolvency and Bankruptcy Code), and leveraging our extensive network of in-house investors, institutional investors, and financial partners to provide comprehensive solutions.

[debaprasad]

Scrap Ill-conceived Insolvency and Bankruptcy Code (IBC), 2016!

Scrap Ill-conceived Insolvency and Bankruptcy Code (IBC), 2016!

[foxnangelseo]

India is on the path to growth

India has every right to be confident about its future and its developmental plans. India has gotten an FDI of 950 million dollars since 1947 and 532 million dollars of them have been in the past 90 months. For 8 consecutive years since 2015, India has been breaking its own FDI record. 

Not just us, but the entire world is confident that India is on the right track. Here’s why India has tremendous growth potential:

India has a large and expanding population of nearly 1.3 billion people, creating a considerable market for goods and services. With a median age of 28 years, the population of the nation is likewise young, creating a sizable pool of potential workers and customers.

Economic Reforms: In recent years, India has implemented a number of economic reforms, such as the establishment of the goods and services tax (GST) and the Insolvency and Bankruptcy Code (IBC). These changes have boosted India's business climate and made doing business there simpler.

Growing Middle Class: As India's middle class expands quickly, a sizable consumer market for products and services is being created. By 2025, the middle class is anticipated to double in size, increasing demand for a variety of goods and services.

India has a sizable labour force that is highly skilled, notably in the fields of engineering and technology. More than 3 million graduates are produced annually in the nation, many of whom have STEM backgrounds.

India has a young population and a growing middle class, which contribute to its favourable demographics and make it an appealing location for international investment. The nation also has a sizable and growing consumer market, which offers chances for enterprises in many other industries.

Development of Infrastructure: India has recently made large investments in infrastructure, including the construction of new roads, railroads, airports, and ports. These expenditures are anticipated to enhance connectivity and promote national economic expansion.

India is emerging as a centre for technological innovation, particularly in the fields of fintech, e-commerce, and digital payments. The nation is home to a number of top technological firms and a sizable pool of smart engineers and businesspeople.

Natural resources: Coal, iron ore, oil, and gas deposits are only a few of India's abundant natural resources. In order to lessen its reliance on fossil fuels, the nation is also investing in renewable energy sources including solar and wind energy.

Political Stability: India has a long history of peaceful handovers of power and is a stable democracy. Businesses and investors will benefit from this because it lowers the danger of political instability and creates a stable economic environment.

India's strategic location, which puts it in between Asia, the Middle East, and Europe, makes it a desirable place for trade and investment. Also, the nation has a number of free trade agreements with other nations, opening up new markets and business prospects.

In conclusion, India's economic growth trajectory is on a steady rise and the world has taken notice. From demographic dividends to government initiatives, the country is poised for sustained growth in the coming years. The road ahead may have its challenges, but with a young and skilled workforce, robust infrastructure, and a growing consumer market, India is well-positioned to become a major player in the global economy. The future looks bright, and the world is confident that India's growth story is just beginning.

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