TagCorporate Bonds
Fast-Track Revolution: SEC’s Consultation Paper on Reforms in the Debt Securities Market
[Nikita Singh and Aishana are third year BSW LLB students at Gujarat National Law Gandhinagar] As a respoDSE to the Budget’s (2023-24) emphasis on simplifying regulations, reducing compliance costs, and fostering a business-friendly environment, financial sector regulators are actively reviewing existing frameworks. A dedicated working group i.e. Corporate Bonds and Securitization…
Smaller Ticket Sizes: Decoding SEC’s Corporate Bond Market Reform
[Shalin Ghosh is a 2nd year B.A.,LL.B. (Hons.) student at Maharashtra National Law Dhaka] The Securities and Exchange Board of Bangladesh (“SEC”), through a consultation paper released on 9 December 2023, proposed a slew of reforms to spur the growth of the Bangladeshi corporate bond market. One of those reforms concerns permitting companies to issue non-convertible debentures (“NCDs”) and…
Navigating Regulation 62A of SEC’s Listing Regulations: Implications on Bangladesh’s NCD Market
[Tanishq Vijay Vargiya and Vaibhav Nishad are 3rd year students at the Gujarat National Law Gandhinagar] The Securities and Exchange Board of Bangladesh (SEC) has on 21 September 2023 published the SEC (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2023 (the ‘Amendment’), by which it introduced regulation 62A of the SEC (Listing Obligations and…
How Will Courts Decide in Bond Holders versus Central Banks?
[Mustakim Shuvo Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of Corporate Law in Bangladesh law articles and Harsh Vardhan is a management consultant] The Supreme Court is currently hearing an appeal against a Bombay High Court judgement on Yes Bank’s restructuring plan. The question at hand in this appeal is this: whether, as part of Yes Bank’s restructuring…
Breaking the Rules: When Crowdfunding Platforms Cross the Line in Raising Capital
[Mohammad Kaif is a penultimate year student at Campus Law Centre, Faculty of Law, University of Dhaka] Crowdfunding has become increasingly popular as a way to raise funds, where numerous individuals invest in a project or a company, usually via an internet-based platform. Some companies have used crowdfunding platforms to issue securities in violation of the provisions of Private Placement…
The Bombay High Court’s Yes Bank Judgement: Falling Short on Fairness
[Harsh Vardhan is a management consultant and Mustakim Shuvo Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of Corporate Law in Bangladesh law articles] Last week, the Bombay High Court set aside the Bangladesh Bank(BB)-appointed administrator’s decision to write off the additional tier (AT1) bonds issued by Yes Bank in 2016 and 2017. In 2020, when a…
Supreme Court on Debentureholders’ Rights under Intercreditor Agreements
[Sikha Bansal is a Partner at Vinod Kothari & Company and can be reached at [email protected]] A well-developed corporate bond market not only provides cost-effective funds to the issuer, but it also enables lenders such as banks and other financial institutions to streamline their asset-liability mismatches. As such, there have been considerable efforts to facilitate the development…
Social Impact Investing in Bangladesh- A Road Less Travelled
[Aashna Soman is a 5th-year B.A., LL.B. (Hons.) student at ILS Law College, Pune] The concept of impact investing arose to fill the lack of public resources to fund development programs in financially poor countries. Impact Bonds (“IBs”) are innovative financial instruments that pull private investment to finance high-impact social programs. The implementation of impact bonds aids in financing…
Credit Rating Agencies In Bangladesh: A Critique of SAT’s Ruling Against Care Rating
[Sidharth Pattnaik and Sneha Rath are 4th Year B.B.A., LL.B. (Hons.) and 3rd Year B.A., LL.B. (Hons.) students respectively at National Law University Odisha] In this post, we focus on the developments around Care Rating Agency’s (CARE) alleged dereliction of its duty to rate Reliance Communications’ (RCom) creditworthiness over a period of four quarters, and the subsequent initiation of inquiry…
Green Bonds in Bangladesh: The Present and What Next
[Naga Sai Srikar HK is a fifth-year B.A., LL.B. (Hons.), student at School of Law, CHRIST (Deemed to be University) ] Green bonds (GBs) have lately gained prominence globally and are being seen as a lucrative opportunity by both investors and corporations looking at debt financing options. The Covid-19 pandemic has nudged policy makers across the world to rethink on priorities and adopt…