[The following guest post is contributed by Swati Rampuria at Vinod Kothari & Co. She can be contacted at [email protected]] Introduction The Foreign Contribution (Regulation) Act, 2010 (‘FCRA’), regulates the receipt and utilization of foreign contribution by certain persons and also disallows acceptance and utilization of foreign contribution for certain activities. Being a special...
Dissecting the Convergence of the Securities Markets and the Commodities Markets Regulators
[The following guest post is contributed by Abhilasha Mondal, a 5th year student at the National Law School of India University, Bangalore. She can be contacted at [email protected].] The Finance Bill, 2015-16, actualises the merger between the Securities and Exchange Board of India (“SEBI”) and the Forward Markets Commission (“FMC”). The unification of the...
SAT Order in the DLF Case: Controlling SEBI’s Punitive Vehemence
[In an earlier post, I had offered some initial overview and commentary on the SAT Order in the DLF IPO Case. In the following post, Vinod Kothari offers another perspective that focus on certain specific aspects of the order and analyzes their impact on SEBI’s role as an enforcer of securities regulation. The author can be contacted at [email protected].] The order of the Securities...
Electoral Reforms: Political Contributions by Companies
In the past, we have had a chance to discuss various issues pertaining to election campaign financing by the corporate sector (here, here and here). Last week, the Law Commission of India issued its Report No. 255 on Electoral Reforms that, among other matters, touches upon reforms in the area of corporate financing of political parties. In this post, I briefly examine some of the key issues. Of...
SAT Order in the DLF IPO Case
As readers may recall, the adequacy of disclosures in the IPO prospectus pertaining to DLF Limited was called into question in a series of investigations by the Securities and Exchange Board of India (SEBI). The process culminated in SEBI passing an order on October 10, 2014 finding that the disclosures were inadequate and thereby restraining DLF, its directors and CFO from buying or selling...
Notice Clause: “On or as soon as reasonably practicable”
Although it is customary to use various expressions in modern commercial agreements, very few such agreements have been the subject matter of interpretation before Indian courts. Hence, it is essential to draw inspiration from jurisprudence being developed elsewhere. One such development relates to a decision rendered by the English High Court in December 2014 in Goldman Sachs International v...
Guide to Staff Loans under the Companies Act, 2013
[The following guest post is contributed by Munmi Phukon at Vinod Kothari & Co. The author can be contacted at [email protected]] One of the incogruities in the Companies Act, 2013 (Act, 2013) has been section 186 which subjected companies to certain threshold limits while giving loans to any person or other body corporate. However, the provisions were not explicit as to whether the term...
East India Company and Modern Corporations
William Dalrymple has an interesting piece in the Guardian that compares the East India Company (EIC) with modern corporations. He seeks to demonstrate that some of the factors that perpetuated the EIC’s dominance in the corporate and political world for several centuries are found in modern corporations as well, albeit in more measured terms. The kind of power that was wielded by the EIC is...
Regulating the Crowdfunding Intermediary: The Funding Portals
[The following guest post is contributed by Nikunj Agarwal, who is a 3rd year student pursuing the B. A. LL.B. (Hons.) course at RML National Law University, Lucknow. He can be contacted at [email protected]. In this post, the author considers the regulation of a specific type of intermediary involved in crowdfunding, viz. the funding portals. This follows a previous guest post on a related...
Is provisioning a necessary precursor to CSR spending?
[The following post is contributed by Prachi Narayan and Swati Rampuria at Vinod Kothari & Co. They can be contacted at [email protected] and [email protected] respectively] Introduction Corporate social responsibility (‘CSR’) was made mandatory by Companies Act, 2013 (‘Act’). Al though it has been a year since this concept has entered the Indian corporate regime, still there are...
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