The chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi, said Thursday that lenders, including investment funds, should not enter into status quo agreements with business project holders and has asked all companies to comply with the regulations. “There are no regulations (status quo agreements). We have made our position clear. Businesses must respect the rules that exist,” said Tyagi Reporters on the sidelines of a capital market summit hosted by the industry organisation FICCI. The agreement is particularly relevant because the bidder would have access to the confidential financial information of the entity concerned. After receiving the commitment of the potential purchaser, the target entity has more time to set up additional defence facilities for the acquisition. In some situations, the target entity agrees to repurchase shares of the target with a premium in return for the potential purchaser. During the status quo period, a new agreement is negotiated, which generally changes the original loan repayment plan. This option is used as an alternative to bankruptcy or enforced execution if the borrower cannot repay the loan. The status quo agreement allows the lender to save some value from the loan.
In the event of forced execution, the lender must receive nothing. By working with the borrower, the lender can improve its chances of repaying some of the outstanding debt. “SEBI does not endorse or recognize any status quo agreement. We will take action (against the fund house) as soon as there is a default,” said Ajay Tyagi, president of SEBI, at a press conference here after the regulator`s board meeting. Businesses must comply with the rules. It`s not confusing,” said Ajay Tyagi (pictured), Sebi`s president, on the sidelines of a capital markets conference organized by FICCI. Comments on a “stalemate” came the day after the Essel group… The regulator claimed that Kotak Mutual violated the rules that require funds to repay all of the money to the declared net inventory value (NAV) when a system becomes due. This is the second cause of announcement sent home funds on this subject. Mumbai: Ajay Tyagi, chairman of the Securities and Exchange Board of India (Sebi), said Thursday that Indian asset management companies (AMC) could not resort to some kind of status quo agreement with borrowers. Prior to their accession to the new territories, a status quo agreement was negotiated between India and Densern and the princely states of the British Indian Empire. It was a bilateral form of the agreement.
The MF industry is experiencing a crisis attributed to fund managers who lend to business developers through borrowing programs. The funds also entered into “status quo agreements” with developers “so as not to sell the shares for a certain period of time, even in the event of default.” The comments come a day after Essel said some funds have agreed to extend the repayment period. On Wednesday, Subhash Chandra`s Essel Entertainment Enterprises Ltd (ZEEL) said its lenders, including investment funds, had extended loan repayment deadlines. On Wednesday, the Essel Group said the investment funds had decided to give it more time to repay. Mutual funds lent about 4,000 euros to ZEEL through non-convertible bonds (NCDs). Fund managers of fixed-rate plans, such as .B. Fixed Maturity Plans (FMPs), had purchased the EPZs in vain. In banking, a status quo agreement between a lender and a borrower terminates the contractual repayment plan of a struggling borrower and imposes certain steps that the borrower must take.