ArchiveDecember 2007

REITs on the Anvil

Real estate investment trusts (REITs) are similar to mutual funds. However, unlike mutual funds that usually hold securities, the underlying assets held by REITs are constituted by real estate properties. Investors in REITs can participate in returns from these real estate investments.The last couple of years have seen a boom in the real estate sector, and several Indian real estate companies...

Promoters’ Contribution; SEBI Ruling in the Reliance Power Case

In its order passed yesterday, the Securities and Exchange Board of India (SEBI) ruled that shares acquired by the promoters of Reliance Power Limited (RPL) pursuant to a scheme of amalgamation approved by the High Court of Bombay would be eligible for computation of promoters’ contribution under the SEBI (Disclosure and Investor Protection) Guidelines. SEBI however imposed the condition that the...

Contractual Mergers a Possibility

Presently, accomplishing a merger of two or more companies involved a fairly detailed process that lasts about four to six months, if not more. Under Sections 391 to 394 of the Companies Act, 1956, apart from the approval of the shareholders (and sometimes creditors) the merger also requires the sanction of the appropriate High Court (and often multiple High Courts).However, there is likely to be...

Department of Economic Affairs Internships; For Law Students Too

The Economic Times carries a story that the Department of Economic Affairs (DEA), which is part of the Ministry of Finance, has devised an internship programme to enable interaction between its officials and students pursuing higher studies in the field of economics, finance and management.It offers interesting options for law students as well. The news report states:“Also, students with at least...

Expanding Investment Horizons for Trusts

Historically, investment avenues for funds held by trusts have been limited. This is on account of Section 20 of the Indian Trust Act, 1882 which contains very specific instruments in which trusts can invest. These are in the nature of risk-free instruments such as government securities, bank deposits and the like, and does not include risk instruments such as stocks and derivatives. Of course...

Climate Change Disclosure

In an article titled “Making Impact Disclosure Mandatory” that appeared in the The Hindu Business Line on December 06, 2007, I have argued for imposing mandatory requirements on climate change disclosures by companies. Despite the wide range of risks and opportunities that climate change presents to the corporate sector, the level of disclosure to investors and deliberation of corporate policies...

M&A: Tackling Ambiguity in Deal Documentation

M&A lawyers are accustomed to drafting and negotiating contracts that contain complex terms and conditions relating to the performance of obligations by parties and remedies for their breach. It is not out of place for acquisition agreements to contain clause A that operates “notwithstanding any other provision contained in this Agreement”, and for clause B to operate “subject to the terms...

About this Blog

Welcome to the Indian Corporate Law Blog!At the outset, it is appropriate to set out the goals and objectives of this blog, and what it seeks to encompass. Very simply, it is nothing more than a humble effort to track key developments in the sphere of corporate law in India and to foster discussion and deliberation on issues as they emerge. It will also serve as an informal knowledge base for...

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