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Ji Liu,

ISDA has endorsed the use of PRIME Finance arbitration clauses in standard derivatives documentation

Alternative credit providers are facing a laundry list of new restrictions to ensure they aren’t the root of the next crisis. This month’s three-part cover story looks at the key issues in the global shadow banking debate

Bruno Marchese Peruvian regulations (Law 27287) allow for the issuance and acceptance of incomplete promissory notes as instruments representing payment obligations. The Law allows for such notes to be issued without having to set forth a specific payment date, or the actual amount payable under the note, and other stipulations that are typically included in notes and similar payment documents, but may be left blank in these incomplete promissory notes. The items left blank in the note will have to be completed by the creditor, upon the occurrence of certain events.

Carlos Fradique Me´ndez Laura Villaveces Hollmann Colombia has made great stride towards contributing to the development of its markets. In particular, construction has experienced a boom in the past months as the sector grew about 16.9% in the first quarter of 2013 compared to 2012, residential buildings increased 14.7% and non-residential 21.8%. Maintenance and repair also grew 2.7% and construction licences 31.5%. All of which creates an interesting scenario, further supported by new regulations providing for useful real property investment models that are attractive to both foreign and national investors. Real-estate funds in Colombia were created rather late compared to international standards, and were only allowed since 2007. Yet the impact was not that great because of the regulatory restrictions that hindered their development.

Karan Talwar Noorul Hassan According to a recent Thomson Reuters M&A report, M&A deals in India were lowest in the last four years at $23.8 billion for January-September 2013. However, total cross-border M&A involving India grew 36.7% to $19.3 billion, driven by a 178% spike in outbound M&As, while inbound deals slipped 2.3% to $10.8 billion from the first nine months of 2012. The Companies Act, 2013 (the Act) has replaced the archaic 50 year old company law in India. The new Act promises to revamp the landscape of corporate restructuring and M&A in India, with fast track mergers between small companies and holding-subsidiary companies coupled with simplified procedures. More importantly, section 234 of the new Act now allows both inbound and outbound mergers and amalgamations with foreign companies as opposed to the earlier law, which specifically disallowed a foreign company from being a transferee company. The term foreign company has been defined as any company or 'body corporate' incorporated outside India, whether or not it has a place of business in India. However, only foreign companies established in jurisdictions yet to be notified by the government shall be allowed to merge with Indian companies.

The lighter side of the past month in the world of financial law

The IMF’s Michaela Erbenova discusses the role of alternative credit, and the best approach to supervision

John Breslin The Irish Parliament passed the Personal Insolvency Act 2012 (the Act) in December 2012, as part of its commitment to reform key areas of Irish law in the context of troika funding. It is being implemented over the course of 2013, and is not yet fully in force. The Act represents a major reform of personal insolvency law, creating new processes as an alternative to bankruptcy. The suitability of any of the new processes in a given situation will depend on the level of the debt, and whether it is secured or unsecured. The Act also makes fundamental changes to bankruptcy law in Ireland. It has significant implications for banks holding or purchasing distressed assets. The highlights of the Act are as follows:

A fragmented regulatory framework, relationship-based lending and legal restrictions have hindered the development of China’s debt capital markets