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Systemizing Fairplay – Key Issues in the Indian Competition Law Regime

[Vedika Mittal is a Research Fellow in the Corporate Law and Financial Regulation vertical at Vidhi Centre for Legal Policy] Since the enactment of the Competition Act, 2002 (“Competition Act“), the business milieu has changed considerably globally and in India. More and more businesses are now being run in the virtual world and newer models of business exist now which would have been...

SEBI Clarifies Scope of Embargo Against Share Issuances Following Delisting

Companies that are undertaking a delisting of equity shares must be prepared to endure an embargo that would prevent them from listing their shares for a further period of time (five or ten years, depending upon the circumstances). Such a restriction is contained in regulation 30(1) of the SEBI (Delisting of Equity Shares) Regulations, 2009. This is to prevent companies from retreating the...

Failure of a Creditor to Submit a Claim in an Insolvency Process

[Bhavin Gada is a Partner at Economic Laws Practice, Advocates and Solicitors (“ELP”), and Manendra Singh an Associate Manager at ELP. The authors would like to thank Akshata Limaye, Associate at ELP, for her inputs] The corporate insolvency resolution process (CIRP) for corporate persons under the Insolvency and Bankruptcy Code, 2016 (Code) was introduced with the primary objective of providing...

Recovery Proceedings against Guarantors during the Insolvency of the Principal Debtor

[Milind Gaur is a 5th Year BBA LLB student of Symbiosis Law School, Pune.] Introduction With the dawn of the Insolvency and Bankruptcy Code, 2016 (the Code), a crucial and much needed framework was set in place for tackling the insolvency and bankruptcy regime in India. At the same time, the Code has elicited clarifications and interpretation across various provisions. One such question which...

The Legality of Smart Contracts in India

[Rishi A is legal analyst at spotdraft.com] Introduction Earlier this year, the State Bank of India (‘SBI’) launched BankChain, a blockchain platform formed by a consortium of 27 banks, which was proposed to be used to share e-KYC information about customers within the consortium. This would help with the transmission of information directly to the banks without any leakages or delays. Last week...

Applicability of the Limitation Act to Insolvency Proceedings: A Critical Analysis

[Madhumitha Srinivasan is an Associate at Advaya Legal and practising in the Bombay High Court. The views expressed are personal. An earlier post on the topic is available here] In a decision passed by the National Company Law Appellate Tribunal (NCLAT) in Black Pearl Hotels Pvt. Ltd. vs. Planet M Retail Ltd. (judgment dated 17 October 2017), it has been observed that the right to apply under the...

Does Section 11B of the SEBI Act Envisage ‘Non-Compliance’ of Directions? – Part I

[Rahul Sibal is a 4th Year student and Deep Shah a 3rd Year student of NALSAR Hyderabad] Background In March this year, the Securities and Exchange Board of India (‘SEBI’) confirmed an interesting interim order that was passed last year. The interim order (the ‘Order’) impounded profits that Beejay Investments derived from trading in securities, with such profits being termed as ‘unlawful gains’...

Anti-Dilution and Rights Issue: On the Right Side of the Law?

[Job Michael Mathew is a 4th year BA.LL.B (Hons) student at NALSAR University of Law. He may be reached at job.mathew94@gmail.com] This post examines whether the instrument of rights issue can be used by unlisted companies in enforcing anti-dilution provisions which may be one of terms in a shareholders’ agreement with a...

Supreme Court Declines to Make Composite Reference to Arbitration from Interrelated Multiple Agreements

[Ritvik M. Kulkarni is an associate with Wadia Ghandy & Co., Mumbai. Views are strictly personal] In its order last month in Duro Fulgeura v. Gangavaram Port Ltd., the Supreme Court of India refused to make a composite reference and to appoint a single arbitral tribunal for disputes arising out of multiple agreements between the same parties (the “Order”). Factual Background A tender was...

The Status of MLM Companies in India

[Shubhi Goyal is a 4th Year Student at NALSAR University of Law, Hyderabad] Multi-level Marketing Companies (“MLM Companies”) sell their products and services directly to consumers, instead of following the traditional distribution channel of Manufacturer – Distributor – Wholesaler – Retailer – Consumer. They rely for their business on a non-salaried workforce, which sells products to...

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