Search results

To highlight pertinent points in the frequently-asked questions (FAQs) issued on April 3, 2018 by the US Treasury Department Financial Crimes Enforcement Network concerning its Customer Due Diligence Requirements for Financial Institutions (“CDD Rule”), which were published on May 11, 2016 and became effective on May 11, 2018.

Discusses clarification and guidance in the FAQs concerning beneficial ownership requirements for administrative and internal accounts, claims for exclusion from the definition of legal entity customer, information requirements for pooled investment vehicles, the requirement for beneficial ownership information from foreign publicly-traded companies, information requirements for existing customers, certification of beneficial ownership information when existing accounts are renewed, requirements for refreshing existing beneficial ownership information, retention of beneficial ownership records, aggregation for currency transaction reporting, and requirements to understand the nature and purpose of a customer relationship.

Covered financial institutions and industry associations have sought clarification and guidance on a range of topics, several of which have been addressed in the FAQs.

Expert guidance from lawyers focused on regulatory, compliance and transactional issues for financial institutions.

An exhaustive analysis of the current state of play of both the old and new law and the regulations promulgated thereunder. A one‐stop analysis of the state of the requirements under the USA Patriot Act and particularly how it affects broker‐dealers.

To draw lessons learned from recent anti‐money laundering enforcement actions.

After providing a brief introduction to the AML regime, this article reviews the recent high‐profile enforcement actions. The article then examines what compliance lessons can be learned from these recent cases. Put differently, the article attempts to identify those measures that firms can take now to avoid being subject to headline‐grabbing enforcement actions in the future.

Lessons learned from key recent enforcement actions include the following: SAR filings matter and ensuring an adequate SAR regime means ensuring both systems and staffing are commensurate with an institution's activities; an AML program can only function well if it is calibrated properly to the risks that the institution's businesses face; business growth needs to be accompanied by AML compliance growth; as institutions expand globally, they need to consider how to apply their AML programs across geographies and to ensure that common best practices are being followed by all employees, wherever located; and financial institutions must ensure not only that they have written policies and procedures, but also that those procedures are followed in practice.

Draws the most important lessons learned from recent key anti‐money laundering enforcement actions.

Timely access to reasonably priced financing is critical to promote and sustain small and medium sized businesses (SMEs). This study aims to examine the role of the newly constituted SME exchanges in funding the growth of Indian SME firms. The impact of obtaining public equity capital on the firm’s growth prospects, capital structure and credit profile is the focus of this paper. In addition, this study compares the cost and speed of raising capital on specialised SME exchanges to the main board.

To examine the impact of raising public equity capital, this study uses a difference-in-difference (DID) regression analysis. SMEs that raised financing on the SME exchange between 2013 and 2018 make up the treatment sample. This study uses a propensity score matching technique to find the control group from a sample of unlisted enterprises to reduce the likelihood of selection bias.

This study finds that SME profitability drops after an initial public offering (IPO), which is consistent with previous research. This study also discovered that after a company is listed, its total debt falls. This study also shows that after the IPO, there is no change in the borrowing costs of SME enterprises. Finally, this study finds an evidence of a decline in sales growth following the IPO, implying that the firms use the IPO money to rebalance their accounts after a period of heavy investment rather than for growth finance.

A thriving and efficient equity financing market for SMEs has the potential to establish itself as a viable alternative to the existing dominant bank financing option. To the best of the authors’ knowledge, this research is the first to examine the role of SME exchanges in the funding of Indian SME firms.

This research paper aims to explore the relationship of financial performance and capital structure of Indian pharma firms of BSE 500, the impact of research and development (R&D) expenditure on financial performance and also explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance.

The balanced panel data of listed pharma firms of BSE 500 are used for the research study, and the present study adopts both the panel and ordinary least square (OLS) estimation techniques to draw the results.

The results exhibit that the high debt ratio is harmful for the accounting performance of the selected sample of pharma firms of BSE 500. Besides, market competition negatively moderates the relationship between capital structure and firm performance.

The research findings provide evidence for the policymakers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace.

The core contribution of the current research is to examine impact of R&D expenditure on financial performance and the moderating role of market competition on the relationship of capital structure and firm performance to the best of the authors' knowledge, and no single study has previously explored this relationship in the context of BSE 500 pharma firms.

The purpose of this paper is to focus on examining the first day returns of initial public offerings (IPOs) and the role of information on their performance. The study tries to optimize the returns of the new issues during 2005-2012 with risk as a constraint.

The initial returns are measured through the market-adjusted excess return and the risk associated with the new issue is measured through underwriters’ reputation. The returns have been optimized through a mixed integer linear problem using the Maple software.

The previous studies show that various informational variables affect the listing day returns significantly. The results of the present study indicate that the mean of initial returns for IPOs during 2005-2012 is 18.03 and the mean risk for these issues is 0.46. The findings also suggest that the optimal returns are obtained in the pre-recession era (2005-2008) and the value for the same is 50.02 percent.

The current study contributes in the investment decisions for global investors as every investor wants to maximize his/her returns. The optimal returns with risk as a constraint will help the investors in improving their investment decision as a prudent investor does not aim solely at maximizing the expected return of an investment but is also interested in optimizing with the minimization of risk.

The purpose of this paper is to examine the relevance of information, transparency and information efficiency in short-run performance of new issues. The current research evaluates the short-run performance of IPOs during 2005-2012, which even includes the recessionary period. The present study evaluates the impact of informational variables on first-day returns.

The short-run performance of the IPOs is measured through market adjusted excess return. A structural equation model (SEM) has been designed to identify how information influences the short-run performance of IPOs.

The results of structural model reveal that the sale of promoters’ stake and underwriters’ reputation are the major contributors towards information and are found to be highly significant statistically. The model also shows that the issue size (a component of information) is statistically insignificant at 5 per cent. The model suggests that the availability of information has negative impact on the first day returns indicating that the issuer which disclose maximum information to the public get lower returns on the listing day and hence, their issues are less underpriced.

The present study has a contribution in investment decisions for global investors, as the participation of international investors is common in IPOs of emerging markets. The findings of the study are expected to be useful to the practitioners in predicting the pricing of IPOs based on the informational variables influencing their performance.

The infinitesimal perturbation (IP) method is commonly used in calculating stiffness and damping of journal bearing in horizon rotor systems. The boundary condition (BC) for the perturbed pressure is assumed being zero at leading edge of film, although it is usually not zero because of nonzero pressure gradient. This assumption is sufficiently accurate for most purpose in horizon rotors. However, for journal bearing in vertical rotor-bearing systems, the BC with the assumption in IP method will bring in significant errors in calculating linear dynamic coefficients. This paper aims to propose a method to obtain the dynamic coefficients of journal bearing in vertical rotors.

The stiffness and damping are approached based on IP method and the modified BC of perturbed pressure. As it is difficult to predict perturbed pressure at leading edge at a fixed coordinate system using IP method, a dynamic coordinate system is introduced in this method, of which the origin on circumferential direction is defined as the leading edge of film.

The effectiveness and accuracy of proposed IP method in dynamic coordinate (IPMDC) system are verified by comparing the obtained results with analytical solutions. The comparison shows that the results from IPMDC present a good agreement with the analytic solutions.

The proposed method can be applied in obtaining linear dynamic coefficients of journal bearing in vertical rotors with high precisions. Instead of the usual nonlinear analysis of vertical rotors, this method provides a feasibility of predicting the instability threshold of vertical rotor-bearing systems via linear models.