We have established a specialized banking and finance practice comprising seasoned professionals who comprehend the distinctive needs of each client and offer tailored advice because we know the load of these hefty files. Our firm is well-equipped to assist with diverse banking, corporate, and cross-border financing needs.
We serve as trusted advisors to major corporations, banks, and financial institutions, offering efficient and constructive solutions in navigating complex financing procedures and arrangements. Our expertise extends to supporting financing transactions, structured finance for assets, and restructurings. Leveraging our firm's extensive industry and regulatory knowledge, our banking and finance practice excels in effectively assisting clients in structuring successful transactions that address regulatory and industry considerations. Known for our responsiveness and providing clear, simplified solutions, our banking and finance practice has the capability to work seamlessly and productively with international clients. Clients have confidence in our lawyers' practical and business-oriented approach to achieving their desired objectives.
1. Banking Regulations
The primary regulatory authority overseeing the Indian banking sector is the Reserve Bank of India (RBI), endowed with extensive powers to regulate various facets of the financial industry. These powers encompass the establishment and licensing of banks, including branches of foreign banks in India, as well as the formulation of norms for corporate governance, prudential standards, and conditions for structuring financial products and services.
To comply with the all the above, details are to be determined along with the monetary policy, regulating money, foreign exchange, government securities markets, financial derivatives, overseeing debt and cash management for the government, payment and settlement systems, and currency management. Our firm ensures that every clause matches the frequency of the additional financial sector regulators, such as the Securities Exchange Board of India (SEBI) for the securities market, the Insurance Regulatory and Development Authority of India (IRDAI) for the insurance sector, and the Insolvency and Bankruptcy Board of India (IBBI) for overseeing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) for smooth functioning of the business.
2. Structuring and documentation for financing transactions
In the Indian market, a diverse array of banks is involved in secured finance. Significant corporate financing deals are primarily financed by major Indian banks, international banks, and institutional non-banking finance companies (NBFCs). Having a team of professionals to monitor all of these makes our firm reliable in the banking and finance sector nuances.
3. External Commercial Borrowings
Currently, there are two avenues for raising funds through External Commercial Borrowings (ECBs): the approval route and the automatic route. The government has established specific eligibility criteria governing the automatic route, including considerations such as amounts, industry, and the designated end-use of the funds. Companies intending to raise funds through ECB must adhere to these eligibility criteria, and once met, they can proceed to raise funds without requiring explicit approval. Thus, keeping up the pace with the latest policies is a must to do which our firm always
4. Debt restructuring
In conjunction with the fundamental skills in Corporate Finance, including valuation, modelling, and distressed M&A, we undertake these assignments leveraging extensive expertise in various recapitalizations and reorganizations. Our capabilities extend to corporate liability management, encompassing activities like debt buy-backs, tender offers, and consent solicitation processes. Additionally, we excel in capital raising, with a particular focus on the expansive private debt markets. Our proficiency also extends to pension liability restructuring and navigating the intricate landscape of tax matters, which invariably play a pivotal role in ensuring the success of a transaction.
5. Recovery and enforcement proceedings
Enforcement actions under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (Securitization Act) are pursued for recovery. Simultaneously, arbitration proceedings, governed by the Arbitration & Conciliation Act 1996, are initiated to recover outstanding amounts based on the Arbitration Agreement or clause within the loan documents. This recourse is taken when the Recovery of Debts due to Banks and Financial Institutions Act, 1993 is not applicable. Additionally, criminal actions, alongside civil proceedings, are instigated under the Indian Penal Code and other relevant laws, particularly in cases where the debt involves fraud, cheating, misfeasance, etc. Furthermore, criminal complaints are filed under Section 138 of the Negotiable Instruments Act, 1881, addressing the dishonour of cheques issued by borrowers to the bank in fulfilment of legally enforceable liabilities. Having the experience of working on all the above issues makes us proficient in dealing the same coming out with flying colours in this branch.