Corporate Updates – 08-05-2015


SEBI with an intention to have an effective regulation of the Depositories, Securities and Exchange Board of India (SEBI) has come out with the Master Circular for Depositories. This Master Circular is a compilation of all the existing / applicable circulars issued by SEBI upto 31/03/2015. In case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail. This Master Circular shall supersede previous Master Circular CIR/MRD/DP/11/2014 dated April 07, 2014.


RBI has modified the Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 to provide cushion to Securitisation Companies and Reconstruction Companies w.r.t the maximum resolution period of 8 years for restructuring proposals of stressed assets, as approved by BIFR / CDR / JLF. For all such purpose, restructuring proposals approved / to be approved by BIFR/CDR/JLF, SC/RCs shall now be permitted to accept a resolution period co-terminus with other secured lenders and redemption period of Security Receipts (SRs) held against these assets may be extended to be in congruence with the resolution period approved by BIFR/CDR/JLF, subject to the Independent Credit Rating Agencies continuing to positively rate these SRs, i.e. as long as the Net Asset Value of the SRs continue to be positive.

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