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CKCK·Law Offices

Overview

Indian banking and finance practice operates within a multi-layered regulatory framework — the Banking Regulation Act, 1949, the RBI Act, 1934, the Companies Act, 2013, the FEMA NDI and Borrowing Rules and a body of RBI Master Directions on every category of lending and security. The firm advises lenders (commercial banks, NBFCs, foreign lenders, AIFs, ARCs) and borrowers across the entire transaction lifecycle.

A loan agreement is read carefully on day one and again on the day of default. Drafting must serve both readings.

Transaction types

i.

Syndicated Lending

Multi-lender facilities, agent and security-trustee arrangements, intercreditor agreements.

ECB

External Commercial Borrowings

FEMA-compliant offshore borrowing under the Master Direction on ECBs.

SARFAESI

Security Packages

Mortgage, charge, hypothecation, pledge, personal guarantee and DSRA architecture.

ARC

ARC Transactions

Sale of stressed assets to asset-reconstruction companies under SARFAESI.

Syndicated & Bilateral Lending

The firm acts on the lender and borrower side of bilateral and syndicated facilities. Documentation typically comprises the facility agreement, security documents, the inter-creditor agreement, the security-trustee deed and ancillary documents. The firm's drafting protocol covers conditions precedent, conditions subsequent, financial covenants, information undertakings, reps and warranties, events of default and prepayment provisions.

External Commercial Borrowings

ECBs are governed by the RBI Master Direction on External Commercial Borrowings, Trade Credits and Structured Obligations. The framework distinguishes between the Automatic Route and the Approval Route, sets all-in-cost ceilings, mandates minimum average maturities, restricts permissible end-uses and requires Form ECB filings with the RBI.

Security Packages

Security creation in India turns on the Transfer of Property Act, 1882, the Indian Stamp Act, the Companies Act, 2013 (Section 77 charge registration), the Depositories Act and the Indian Contract Act. The firm structures security packages — first-ranking and pari-passu, fixed and floating, tangible and intangible — that withstand scrutiny in enforcement proceedings.

ARC Transactions

Sales of stressed assets to asset-reconstruction companies are regulated under the SARFAESI Act, 2002 and the RBI Master Direction on Transfer of Loan Exposures. The firm advises lenders and ARCs on swiss-challenge auctions, security-receipt structuring, recovery rights and the transition of underlying security from selling lender to ARC.

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For lending that documents the upside and the downside.

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