An issue discussed repeatedly in commercial circles is the dilemma between the ethical arguments against corruption, and the commercial arguments in favour of ‘efficient grease’. This dilemma is particularly felt when facing bureaucratic bottlenecks in countries like India (the ‘when in Rome’ argument). The latest edition of the Economist carries an interesting piece, arguing that the commercial...
Changes to Minimum Pricing Norms for Transfers of Indian Securities
(In his previous post, Tanmay Amar examined the new base pricing norms for issue of securities by Indian companies to non-resident investors. He now follows it up with an analysis of the new RBI circular, which is hot off the press, that amends pricing norms for transfers of securities between a resident investor and a non-resident investor) Introduction This post discusses the revised guidelines...
FDI in Trusts
(In the following post, Abhishek Tripathi, an independent legal practitioner, and Mani Gupta, an Associate at Luthra & Luthra examine some complexities in the regulations pertaining to FDI in trusts) The recently notified Consolidated FDI Policy of the Government of India (“FDI Policy”), in para 3.3.3, prescribes that ‘FDI in Trusts other than VCF is not permitted.’ This is an insertion that...
Proposed changes in India’s arbitration law: Part I
The Ministry of Law and Justice has recently released a Consultation Paper on Arbitration on ‘Proposed Amendments to the Arbitration & Conciliation Act, 1996’. We would like to thank Mr. Bhushan Shah for bringing this to our attention. In this post, I will briefly look at two of the main changes proposed; and some more changes will be examined in a second post. 1. The extent of Part I of the...
Bits of Interest
1. Regulation of Credit Rating Agencies Drawing lessons from the role of credit rating agencies (CRAs) in the recent financial crisis, SEBI has imposed additional transparency and disclosure norms for the Indian CRAs. SEBI’s circular issued on May 3, 2010 covers issues such as maintenance of records of the rating process, dealing with conflicts of...
Core Investment Companies – Draft RBI Guidelines
(The following post has been contributed by Vijay Kumar, a lawyer and a company secretary by qualification, who is practising as an Advocate in the Chennai High Court with the law firm of Iyer and Thomas) Non – Banking Finance Companies have been classified as a. Asset Finance Company b. Investment Company c. Loan Company The Reserve Bank of India (RBI) is now proposing to introduce a third...
Recent Comments