Although the issue of executive compensation has not been as dominant in the corporate governance discourse in India as it has been in other leading economies, it has begun to attract significant attention lately. While we have not had a chance on this Blog to touch upon the recent debates, it would be useful to refer our readers to a couple of posts (here and here) by Professor Balasubramanian...
Corporate Governance and Controlling Shareholders/Promoters
One of our pet peeves on this Blog has been the fact that the corporate governance regime in India does not adequately address the requirements of companies that have controlling shareholders (or promoters), which dominate the landscape in India. I have also advanced this argument in a couple of academic papers (here and here). While there does not seem to be much momentum in India to address...
Another Effort at Harmonizing Foreign Portfolio Investment
In 2010, the Working Group on Foreign Investment in India made an important set of recommendations in relation to the consolidation of various types of investment routes for foreign investors making portfolio investments into the Indian markets. The idea was to do away with the various routes presently existing, such as for non-resident Indians (NRIs), foreign institutional investors (FIIs) and...
FDI in NBFC Sector Relaxed
Foreign direct investment (FDI) in non-banking finance companies (NBFCs) has been subject to minimum capitalisation norms. For example, any foreign investment of more than 75% in an NBFC requires a minimum capitalisation of US$ 50 million through foreign inward remittances. As far as downstream investments are concerned, the Conslidated FDI Policy Circular provides that the relevant caps and...
Companies Bill Back on the Anvil
In July this year, the Standing Committee on Finance presented its report on the Companies Bill, 2011 suggesting some changes. The recommendations of the Committee have been discussed here. After taking into account the Standing Committee’s views, the Cabinet yesterday approved certain amendments to the Bill, which have been set out in a press release (accessible on the PIB website). From the...
FSLRC invites comments on approach paper
The Financial Sector Legislative Reform Commission has published its approach paper here. The Commission was set up to review the legal architecture for the financial sector and come up with findings and recommendations on aligning the Indian financial sector legal system with India’s current economic standing. The Commission has invited feedback from the public as part of the...
Ministry’s move to exempt shipping sector from the lens of Competition Act
[The following post is contributed by ACS Nidhi Ladha, who is a partner at Vinod Kothari & Co. She can be reached at [email protected]] The Competition Act 2002 [as amended by Competition (Amendment) Act, 2007] (the “Act”) supercedes the erstwhile MRTP Act and codifies a present-day competition law in India. The Act plays a twin role of making void all anti-competitive agreements...
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