NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs

The National Company Law Appellate Tribunal (NCLAT) has allowed the banks to declare the accounts of IL&FS and its group companies as non-performing assets(NPA) if they have defaulted on payments.NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. However,the appellate tribunal has said… Continue reading NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs

IL&FS accounts can’t be NPAs without NCLAT nod

The National Company Law Appellate Tribunal (NCLAT) has said Infrastructure Leasing and Financial Services (IL&FS) accounts will not be declared as non-performing assets (NPA) without approval from the appellate tribunal. The order comes after the NCLAT said that subsidiaries of IL&FS would be divided into three categories — Green (companies that can meet all debt… Continue reading IL&FS accounts can’t be NPAs without NCLAT nod

Full disclosure: on the credit rating industry

Full disclosure: on the credit rating industry News: SEBI has tightened disclosure norms for credit rating agencies after they failed to warn investors in time about the deteriorating credit profile of Infrastructure Leasing and Financial Services Ltd (IL&FS). Important Facts: SEBI Guidelines: The credit rating agencies will have to inform investors about the liquidity situation… Continue reading Full disclosure: on the credit rating industry

Opinion | A much-needed revamp for rating agencies

Opinion | A much-needed revamp for rating agencies Article: The article discusses the issues with credit rating agencies in the backdrop of the recent IL&FS crisis Important Analysis Credit ratings and Credit Rating agencies Credit ratings provide retail and institutional investors with information that assists them in determining whether issuers of bonds and other debt… Continue reading Opinion | A much-needed revamp for rating agencies

Not just liquidity: on NBFCs crisis

Not just liquidity: on NBFCs crisis News: Non-banking financial companies are stuck in a liquidity crises which has now reached to the tumbling stock prices. Important Facts: About the crises: It started with defaults by Infrastructure Leasing and Financial Services Ltd (IL&FS), which has been classified as core investment company by RBI. This infrastructure lender… Continue reading Not just liquidity: on NBFCs crisis