Banking And Finance
The whole financial system depends on the banking sector. Offering infrastructure, financing, and investment has an impact on the national economy. The backbone of the world’s economy is the banking sector. Activities of banks in these areas include commerce, finance, insurance, and investment.
More so than any other country, the financial and economic environment is now quite favourable. India has a robust legal framework to keep a lid on this dynamic business, mostly carried out by agencies like the RBI and SEBI. They regulate almost every aspect of banking and financial activity, from stocks to accounts and credits.To avoid the intervention of courts during anomalies, there is the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act India) that empowers Financial Institutions and Banks to recover their Non-performing Asset (NPA) loans on their own.
To help in keeping up withevolving regulations, ensure that transactions are legally-compliant, and help financial institutions in instituting provisions under the SARFAESI Act, Avobe Legal provides end-to-end services for all transaction structuring, creation of securities, insolvency and bankruptcy proceedings, promoter funding/loan against shares, and debt restructuring. We have represented top banks before distinct fora and also represented private clients against banks related to distinct matters in distinct courts/tribunals.
- End-to-end due diligence on behalf of banks for loans/debt recovery, etc.
- Drafting, negotiating, and finalizing transaction documents for individuals and institutions as per requirement.
- Drafting and negotiating security documents
- Recovery and enforcement proceedings
- Compliance and regulatory enforcement
- Syndicated and bilateral loans
- Asset and trade financing
- Litigation for disputes arising out of bank default, civil, criminal, and administrative claims against entities and individuals concerning money matters.
- Litigation of Individuals against banks related to SARFAESI before DRT & DRAT.
One of the more developed sectors in India, the financial market is expanding and changing as the digital financial environment takes hold. The political, economic, and regulatory environments are continually changing, and the markets are adapting. Consequently, a need for innovative, creative thinking arises. Clients are seeking advice on how to carry out bank and/or bond transactions, which are now subject to a range of restrictions and market standards, as a result of the changing conditions. According to our opinion, traditional legal practice and an awareness of technological advancements should be merged to help clients with their specific business challenges. We have a specialized banking and finance practice made up of seasoned specialists that comprehend the particular needs of each customer and offer solutions in line with those needs. Additionally, we are well-positioned to handle banking, corporate, and cross-border financial needs. To find effective and positive solutions with complicated financing methods and arrangements, we serve as trusted advisors to big enterprises, banks, and financial institutions. Additionally, we assist with restructurings, asset-structured finance, and financing transactions.
A recapitalization, which entails the realignment of the liability side of the balance sheet and may be carried out even while the company's assets are intact, is distinct from asset restructuring since it involves activities taken to realign the asset side of the balance sheet. For instance, a company can opt to take on more debt to pay for the purchase of its shares. On the other hand, distressed recapitalizations that are implemented to cope with unmanageable debt levels sometimes need the sale of assets to raise money for debt repayment.
Both persons and companies can become insolvent. Corporate insolvency and personal bankruptcy are the two terms used to describe these situations. Both terms allude to a circumstance in which a person or business cannot pay a debt now or in the near future because their assets are worth less than their liabilities. According to Code, insolvency is a "state" in which one's assets are insufficient to cover one's obligations. If left unchecked, insolvency will result in company liquidation and non-corporate bankruptcy.
There are six major regulators for the banking sector in India are:
- SEBI: Its main goal is to safeguard investors' interests by preventing fraud and guaranteeing the efficient and equitable operation of the markets.
- RBI: The RBI's main duties include managing monetary policy, as well as overseeing and regulating the financial industry, particularly commercial banks and non-banking financial companies.
- IRDAI: Its goals are to advance and regulate the insurance business as well as safeguard the interests of insurance policyholders. It routinely sends insurance companies advisories about the revisions to laws and regulations.
- PFRDA: Its main goals are to safeguard the interests of pension plan participants and to ensure economic security for the elderly through the regulation and growth of pension funds.
- AMFI: It is a nonprofit organization that self-regulates and seeks to advance professional and ethical standards within the mutual fund sector to increase public awareness of and access to these products.
- MCA: MCA's goals are to safeguard the interests of all parties involved, maintain an environment that is fair and competitive, and assist in the expansion and development of businesses. It establishes the laws and norms necessary to guarantee that the corporate sector operates legally.
Why Avobe Legal
In our journey towards excellence, we are committed to attract, finest solution. Avobe Legal’s reputation is owed to the exceptionally talented and dedicated professionals whose ideas drive the Firm forward.
As one of Rajasthan’s boutique law firm, we help our clients grow, innovate and thrive. For over a period of two years, we have built a reputation for our expertise, specialised solutions and the ability to think ahead. We find the most relevant and highly tailored solutions to our clients’ composite legal challenges.
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