Corporate Updates – 21-11-2016

News from NIRC of ICSI

Today, 21st November, 2016, NIRC of ICSI is organizing a Study Session on the topic "CURRENCY DEMONETIZATION – IMPACT & WAY FORWARD" by CS (Dr.) R K Agarwal, (M.Com, MBA, LL.B., LL.M, Ph.D. FCS, FCA & ACMA), Past Chairman, NIRC-ICSI from 5.30 PM onwards at NIRC Auditorium, 4, Prasad Nagar Institutional Area, New Delhi-110005. Participation is FREE: PCH – 2.


MCA has notified 15th November, 2016 as the date on which certain provisions of the Insolvency and Bankruptcy Code, 2016 shall come into force. Chapters III- Insolvency Professional Agencies, Sections 206 and 207 have been enforced. Further, the Companies Act, 2013, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Payment and Settlement Systems Act, 2007 and the Limited Liability Partnership Act, 2008 have been thereby amended in the manner specified in the schedule provided in the code.


RBI, in its notification has expanded the list of eligible debt instruments in which foreign portfolio investors (FPIs) can invest and included certificates or instruments issued by special purpose vehicles, securities issued and listed in accordance with SEBI regulations on Public Offer and Listing of Securitised Debt Instruments, 2008 and unlisted securities such as non-convertible debentures (NCDs) and bonds issued by public or private companies. Consequently FPIs will now be allowed to invest in unlisted instruments subject to a minimum residual maturity of three years. Further, RBI has also imposed restriction of the end use of funds raised, saying that issuers cannot use these funds for investment in real estate business, the capital market and in purchase of land. Further, FPIs would collectively be able to invest a maximum of Rs 35,000 crore in these instruments and that this Rs 35,000-crore limit would be a part of the overall limit that FPIs have to adhere to for investment in domestic corporate bonds.

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