Saraf And Partners, BOB Capital Markets Advises TJSB Sahakari Co-operative Bank

Saraf and Partners along with BOB Capital Markets Limited have successfully advised TJSB Sahakari Co-operative Bank's Management and Board, on the drafting of a policy for sale of security receipts (“SRs”). The policy sets out the procedures and guidelines for the sale of security receipts issued by asset reconstruction companies (ARCs) to qualified buyers.

This policy will enable TJSB Bank to monetise their SRs and enhance their liquidity position. The proposed policy for sale of SRs by TJSB bank is one of the first ones in the country by a co-operative bank. Furthermore, the sale of unlisted security receipts by any cooperative bank in India is not governed by specific guidelines and regulations by any regulator.

The policy covers various aspects of the sale process, such as the identification of SRs to be monetised, the valuation methodology, the bidding process, the documentation requirements, the risk management, and the reporting obligations.

The assignment was led by Partner Designate, Satyadarshi Kunal with important inputs from Partner, Abir Lal Dey.