[Naman Kasliwal is a final year law student at Gujarat National Law University] The Government has estimated an investment requirement of around $1.4 trillion by 2025 in India’s infrastructure sector. To bridge this gap and fund this crucial sector, innovative financing mechanisms are essential. Infrastructure investment trusts (“InvITs”), introduced by the Securities and Exchange Board of India...
Value Chain Reporting in the BRSR: A Critique
[S Vishnu Ameya is a B.A., LL. B (Hons.) graduate from Damodaram Sanjivayya National Law University, Visakhapatnam] In recent years, disclosure of the environmental, social and governance (ESG) practices of a company have gained significant attention from investors, regulators, and stakeholders worldwide in building reputation, trust and managing risks. However, the question arose, whether such...
Assignment and Arbitration Agreements: Assignee’s “Burden” to Arbitrate
[Chiranth Mukunda is a 2nd Year B.A., LL.B. (Hons.) Student at National Law School of India University, Bengaluru] In DLF Limited v. PNB Housing Finance Ltd (22 March 2024), while considering a petition under section 11 of the Arbitration and Conciliation Act 1996 ( A&C Act), the Delhi High Court observed that an assignee would be bound by the arbitration agreement in a claim brought by the...
The Debate Over Supreme Court’s Curative Intervention in Arbitration
[Madhav Goel and Anjali Sharma are researchers at the TrustBridge Rule of Law Foundation] In April 2024, the Supreme Court of India in Delhi Metro Rail Corporation v. Delhi Airport Metro Express Private Limited (‘DMRC v. DAMEPL’) overturned an arbitral award of nearly Rs. 8,000 cr against the DMRC which was to be paid to DAMEPL, a joint venture between Reliance Infrastructure Limited and...
When a Rights Issue becomes Oppressive: A Look at Byju’s Recent Controversy
[Rituraj Singh Parmar and Priyam Indurkhya are 4th year B.A., LL.B. (Hons.) students at National Law Institute University, Bhopal] Think & Learn Private Limited, popularly known as Byju’s, has been facing several legal battles nationwide. In February 2024, the investors of Byju’s filed a petition for oppression and mismanagement with the National Company Law Tribunal, Bengaluru (“NCLT”). The...
Regulating the Stock Game: SEBI’s Norms for Fantasy Trading Platforms
[Garv Arora is 4th year B.A., LL.B. (Hons.) student at HNLU, Raipur] The Indian stock markets have witnessed an increase in the third-party platforms that provide virtual trading services based on real-time price data. The Securities and Exchange Board of India (‘SEBI’) has recently unveiled new norms for the dissemination of real-time securities price data to third parties, including various...
A Critical Analysis of SEBI’s Crackdown on Fantasy Trading
[Aamir Kapadia and Shivam Yadav are final-year BBA, LLB (Hons.) students at Jindal Global Law School] On 27 May 2024, the Securities and Exchange Board of India (“SEBI”) issued a circular, “Norms for Sharing of Real Time Price Data to Third Parties” (“the Circular”) to, inter alia, stock exchanges generally restricting them from sharing real-time market data with third-party entities (primarily...
Navigating SEBI’s New IPO Norms: Enhancing Transparency or a Burden?
[Shreya Saswati and Sruti Patra are 4th year B.A.LL.B. (Hons.) students at National Law University, Odisha] Recently, the Securities and Exchange Board of India (“SEBI”) sent a letter to bankers with a list of 31 advisory points on due diligence pertaining to initial public offerings (“IPO”). The IPO disclosure requirements at present are quite broad and clear. Starting from the preparation of...
CCI (Determination of Monetary Penalty) Guidelines, 2024: A Long-Awaited Move
[Srishti Multani, Amritanshu Pushkar, and Aryan Birewar are 4th Year BBA LLB (Hons.) students at Symbiosis Law School, Pune] On March 6, 2024, the Competition Commission of India (‘CCI’) notified the CCI (Determination of Monetary Penalty) Guidelines, 2024 (‘Guidelines’) to help the CCI determine the penalty to be imposed for infractions of the Competition Act, 2002 (‘Act’). They provided the...
Minimum Promoter Contribution Revisited: SEBI’s Amendment
[Adnan Danish and Zaier Ahmad are penultimate year BA LL.B. (Hons.) students at National Law Institute University, Bhopal ] Following the Union Budget for the fiscal year 2023-24, an Expert Committee was established under the chairmanship of Mr. S.K. Mohanty, a former Whole Time Member of the Securities and Exchange Board of India (‘SEBI’). The Committee’s mandate was to review the SEBI (Listing...
Revisiting the ‘Settled’ Law on MSMED and Arbitration Acts: An Alternative Way Forward
[Ameya Sharma and Tassawar Ali are second-year students pursuing B.A., LL.B (Hons.) from NALSAR University of Law, Hyderabad] In Gujarat State Civil Supplies Corporation Ltd. v. Mahakali Foods Pvt. Ltd., the Supreme Court settled the conflict between the Micro, Small and Medium Enterprises Development Act, 2006 [“MSMED Act”] and the Arbitration and Conciliation Act, 1996 [“A&C Act”]. It was...
Pitch It or Ditch It: Are Investor and Analyst Presentations Mandatory?
[Mythri Murali is a 5th year B.A., LL.B. (Business Law Hons.) student from National Law University, Jodhpur] Listed companies typically hold gatherings with analysts and investors after quarterly results or at least once a year to share information about their performance and future prospects. These meetings often include presentations, conference calls, group meetings, one-on-one interactions...
SEBI’s New Price Discovery Framework: Navigating the Tax Implications
[Parv Jain is a 3rd-year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] Recently, the Securities and Exchange Board of India (‘SEBI’) led the way and proposed a unique price discovery method for listed Investment Companies (‘ICs’) and listed Investment Holding Companies (‘IHCs’) through its consultation paper on “Framework for Price Discovery of Shares of listed...
Board Effectiveness: Challenges and Opportunities
[Bharat Vasani is Senior Advisor – Corporate laws at the Mumbai office of Cyril Amarchand Mangaldas. An earlier version of this post was published on the Cyril Amarchand Mangaldas Blog] It is the board’s responsibility to successfully run a company, as set out in terms of section 179 of the Companies Act, 2013 (“Act”). Hence, it is imperative that the boards function effectively to ensure that...
The DMRC Case – Assessing Exercise of Curative Jurisdiction in Annulment of Arbitral Award
[Prince Todi is an Associate at AZB & Partners, Mumbai. Yavipriya Gupta is an Advocate practising at the Bombay High Court and the Supreme Court of India] Perhaps, a pro-arbitration jurisdiction can be characterized as one having consistent laws, with a focus on expeditious adjudication of disputes, minimal judicial intervention, and a presence of strong enforcement framework aimed at...
Unravelling RBI’s Climate Disclosure Mandate: A Step towards Financial Sustainability?
[Shivam Bhattacharya is a 5th year and Subhasish Pamegam is a 3rd year law student at Gujarat National Law University, Gandhinagar] In a significant development, the Reserve Bank of India (“RBI”) has published the ‘Draft Disclosure Framework on Climate-related Financial Risks, 2024’. The framework mandates the Indian financial institutions (“FIs”) to incorporate climate-related assessments into...
Disparate Voting Mechanisms for Authorised Representatives under the IBC: Homebuyers’ Interests?
[Paras Khetan is a 3rd year BA.LLB (Hons.) student at the National Law School of India University in Bangalore] Recently, the National Company Law Appellate Tribunal (NCLAT) in Vijay Saini v. Devender Singh had the opportunity to interpret section 25A(3A) of the Insolvency and Bankruptcy Code, 2016 (IBC) in the context of a withdrawal application under section 12A of IBC. The NCLAT applied...
Ensuring Market Integrity: SEBI’s New Framework on Unaffected Prices Amidst Market Rumours
[Sahil Kripalani is a 4th year B.B.A., LL.B. (Hons.) student at Gujarat National Law University] In an effort to enhance market integrity and ensure fair valuation, the Securities and Exchange Board of India (“SEBI”), by its recent circular, has introduced a new framework focused on managing unaffected prices amidst market rumours. According to the SEBI Listing Obligations and Disclosure...
SEBI’s Proposal for Indian Mutual Funds and Overseas Investments
[Adnan Danish and Zaier Ahmad are penultimate year BA LL.B. (Hons.) students at National Law Institute University, Bhopal ] The Securities and Exchange Board of India (SEBI) has recently issued a consultation paper that aims to address a regulatory gap. Currently, SEBI-registered mutual funds can invest in various overseas securities, including American Depository Receipts (ADRs), Global...
The Case for Farmland REITs: Redefining Real Estate Investments
[A.S Vamsi Krishna and Swagat Ahuja are 4th year B.A.LL.B. (Hons.) students at Rajiv Gandhi National University of Law, Punjab] Real estate investment trusts (‘REITs’) are publicly owned entities that enable a broad spectrum of investors to acquire fractional ownership in real estate assets. In recent years, farmland investments via REITs has gained traction due to their ability to provide stable...
Downstream Investments by FOCCs – Resolving the Regulatory Conundrum
[Roshan Cyriac is a 4th-year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] Foreign investors can invest in India directly through foreign direct investment (FDI) or through an entity owned and controlled by it (FOCC). An FOCC is a company incorporated in India but owned and controlled by a (non-resident) foreign company. When a non-resident transfers shares in Indian...
Arbitration Realities: Patterns of Challenges and Judicial Responses
[Madhav Goel, Karan Gulati, Sonam Patel, and Anjali Sharma are researchers at the TrustBridge Rule of Law Foundation] Arbitration has become a widely used mechanism to resolve contractual disputes in India. It offers greater flexibility and better alignment with parties’ incentives than courts. Since the parties voluntarily choose arbitration, they are generally expected to accept the outcomes...
Indian Shareholder Activism: Approaching a Turning Point?
[Karan Anand and Bhaskar Vishwajeet are students at Jindal Global Law School] The unsuccessful merger between Zee Entertainment Enterprises Limited (“ZEEL”) and Culver Max Entertainment Private Limited (“SPNI”) has reignited the debate on the status of shareholder activism in incomplete mergers in India. In the wake of the termination of the merger, some of SPNI’s institutional shareholders...
SEBI’s Right of Recovery: Limited to One’s Lifetime or Beyond?
[Urvashi Misra is a Counsel and Arnab Ray an Associate at AZB & Partners, New Delhi] Actio personalis moritur cum persona, i.e., personal actions die with the death of a person is a well-established legal principle, which is widely accepted by judicial and regulatory authorities, including the Securities and Exchange Board of India (“SEBI”). While SEBI has been implementing this principle in...
Demystifying Financial Debt: A Deep Dive into a Supreme Court Ruling
[Tanisha Gautam is a 4th year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] The Insolvency and Bankruptcy Code, 2016 (IBC) established the boundaries between ‘financial debt’ and ‘operational debt’, which has been further clarified and expounded upon by the judiciary over time. The landmark judgment by the Supreme Court in Global Credit Capital Limited v. Sach...
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