The Protection and Enforcement of Interests in Aircraft Objects Bill

18 January 2025

Union Cabinet approved the Protection and Enforcement of Interests in Aircraft Objects Bill, 2024 (Cape Town Convention Bill) on 17 January 2025. This dedicated legislation aims to facilitate the financing and leasing of aircrafts in India. This bill guarantees the lessors to repossess leased high value equipment such as aircraft, engines, and helicopters in case of payment defaults by the lessee.

The Protection and Enforcement of Interests in Aircraft Objects Bill, 2022 aims to align Indian laws with international standards under the Cape Town Convention and its Aircraft Protocol. It establishes a legal framework to protect and enforce the rights of creditors, lessors, and other stakeholders in aircraft objects like aircraft and engines. By offering stronger creditor protections, the Bill seeks to enhance access to global credit markets, promote investment in India’s aviation sector, and provide efficient mechanisms for dispute resolution. This initiative is expected to reduce financial risks and bolster the growth of the aviation industry in India.

Indian Government is addressing these concerns of stressed lessor in Aviation industry through the recently approved Protection and Enforcement of Interests in Aircrafts Objects Bill, to align the Indian laws with the Cape Town Convention.

 

Proposed Amendments to to SEBI (LODR) Regs., 2015

SEBI issued a Consultation paper proposing certain amendments to SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 on 14 January 2025. The last date to submit the comments/views/suggestions from the public and other stakeholders is 4 February 2025. The primary focus is on mandating the issuance of securities in dematerialized form and updating certain out-dated provisions. If issuances of securities are dematerialized, it will eliminate the risks associated with the physical securities such as risk of loss, theft, mutilation and fraud.

Highlights of the Proposed Changes:

  1. Mandating issuance of new securities only in dematerialized form pursuant to –consolidation/split of face value of securities and scheme of arrangements and for investors without a demat account, issuer companies must open a separate demat account with a suitable ledger of ownership (“suspense escrow account”) for dealing with such securities.
  2. Omit regulations 40(4) and 40(5) regarding registration of transfer of securities in physical form as they have become irrelevant post April 1, 2019 because transfer of shares in physical form has been discontinued by SEBI.
  3. Doing away with the requirement of maintaining “proof of delivery”, as proof of dispatch via speed post/courier is sufficient.

The proposed amendments to SEBI (LODR) Regulations, 2015 aim to enhance corporate governance, transparency, and investor protection through stricter disclosure norms, ESG reporting, and audit reforms. By harmonizing compliance requirements and introducing stringent penalties for non-compliance, these changes align Indian markets with global standards, fostering investor confidence and sustainable market growth.


 

 

 

 

Disclaimer: The information published in the above newsletter is collected from various sources in electronic medium and analyzed by the firm. The reader is advised to consult the attorney qualified in their jurisdiction, before acting on any information contained in this newsletter. India Juris excepts no liability what so ever in this regard. 

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