Evolving strategies and structures for credit platforms in India

Friday, February 08, 2019

SESSION: 10:00 AM - 03:45 PM (IST)

Venue: NDA Research Center - Imaginarium AliGunjan, Alibaug (Travel FROM GATEWAY OF INDIA BY NDA SpeedBoats)
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INTRODUCTION

The Indian credit market is probably going through its biggest turmoil. From an offshore credit funding perspective, one of the most popular routes for offshore players to invest debt in the Indian markets, the FPI route, was marginalised by introduction of the new 50/20 rule. Masala bonds did not take off and ECBs continue to remain suboptimal due to regulatory restrictions. Borrowing costs are notching up as sources of domestic credit dry up. As a result, offshore credit players are closely eyeing the opportunities of setting up onshore lending vehicles in the nature of NBFCs, HFCs, AIFs, which have their own set of challenges in terms of ability to list, raise leverage, cash traps and tax efficacy. However, in the after math of the IL&FS crisis and RBI’s close watch on the private lending space, the prospects of such on-shore credit platforms need to be carefully analysed.

On the other hand, IBC coupled with the recent amendments to the Indian Arbitration Act and the Specific Relief Act are providing for a robust enforcement mechanism. The revamped enforcement regime is encouraging, rupee is at an all-time low, NBFCs are available for cheaper valuations than they ever were, but deal activity is still poised as investors are still waiting for the markets to bottom out, for the worst to come. The brunt overall, is being faced by borrowers across the spectrum, who are now faced with the issue of availability of capital itself, and not merely high cost of capital.

As a research oriented firm that spends about 35% time towards research and policy initiatives, we invite you to join a select high profile gathering to discuss the growth and sustainability of credit platforms in India, from a legal, tax and business perspective. The discussion will form a part of the Think Tank created by us to address the credit crisis in India, and collate legal, regulatory and tax recommendations to the regulators.

Focus Area

  • Recent NBFC crisis and its impact on the credit market in India
  • FPI investment in bonds – still an option?
  • ECBs, Masala Bonds, FVCI investments – alternatives for offshore investors
  • Structures for offshore credit platforms
  • Setting up onshore credit platforms – NBFC / HFCs v. AIF (with focus on capitalisation challenges, instruments and leverage)
  • Tax Considerations – Investing directly or through intermediate jurisdictions
  • Sustainability of credit platforms – Analysing the enforcement regime (with focus on IBC)
  • Analysing NBFC / HFC Growth cycle – Acquisitions and Exits
  • ARCs – Should you consider one?
  • Future prospects in the Indian credit market

Speakers

Ruchir Sinha

Leader, Corporate Transactions Group

Nishith Desai Associates

Ruchir Sinha leads the Private Equity and M&A Practice at the firm. Ruchir has been involved in several high profile PE / M&A transactions and focuses on financial services and real estate space. He also advises leading global sponsors and LPs on setting up of offshore and domestic funds, including the more recent captive investment platforms, from a legal, tax and regulatory perspective. He has been involved in developing pioneering instruments for structured finance and in setting up and acquisition of onshore and offshore credit platforms.

He was nominated amongst the top 3 lawyers in India (under 35 category) at IDEX Legal Awards. Several of his transactions in structured finance and private equity have been nominated as Most Innovative by Financial Times, London. He is also the recipient of the Scholarship of the International Bar Association for his paper on structured finance at the IBA Conference in Vancouver. Actively contributes to policy development for private equity and structured finance through international industry bodies, and was also involved in the drafting of the SEBI REITs Regulations.

Nishchal Joshipura

Leader, Corporate Transactions Group

Nishith Desai Associates

Nishchal Joshipura leads the Private Equity and Mergers & Acquisitions practice at strategy driven international law firm, Nishith Desai Associates. He is also co-heads the Investment Funds practice at Nishith Desai Associates. He is a Lawyer, Chartered Accountant and MBA. Nishchal has led several high profile M&A and Private Equity deals and set up multiple offshore and domestic India focused funds. He specializes in legal and tax structuring of complex cross-border transactions. He also advises major MNCs on Corporate & Securities laws, Transfer Pricing, International Taxation, Globalization, Structuring of Inbound/ Outbound Investments and Exchange Control Laws. He has been highly “Highly Recommended” by various legal directories for legal and tax advice on M&A, Private Equity and Investment Funds. He has also been nominated as a “Young Achiever” at the Legal Era Awards based on industry research, reviews, rating and surveys conducted by Legal Era.

Vyapak Desai

Leader, International Litigation & Dispute Resolution Practice

Nishith Desai Associates

Vyapak Desai leads the International Litigation & Dispute Resolution Practice at the multi-skilled, research and strategy driven international law firm, Nishith Desai Associates. A senior attorney with the firm, Vyapak specializes in bringing in the highest level of analytical arrangement in cross border complex litigations while also leading the Corporate and Securities practice at the firm. Known for his reasonable, pragmatic and solution-oriented approach, is also a trained Mediator/Conciliator and an experienced arbitrator in international commercial arbitrations. Vyapak's vast experience in legislation includes representing clients as Counsel in a host of complex cases including disputes related to shareholders agreements, international trade, oil & gas, infrastructure and construction, and investment treaty involving international commercial arbitrations under rules of ICC, LCIA, SIAC, ICDR-AAA, UNCITRAL etc. In India, and all over the world, jurisprudence has undergone a massive change over the past decade. The law has become more intricate and intertwined. Keeping in sync, Vyapak has cultivated expertise in insolvency and corporate law as well as in investigation/white collar crimes. In a career spanning decades, Vyapak has been advising U.S & Asian conglomerates, telecom giants, world’s second largest oilfield services and large private equity funds amongst others, to desired outcome.