[Rajarshi Singh and Rakesh Sahu are penultimate year BA.LLB students at National University of Study and Research in Law, Ranchi] The Authority for Advance Ruling, New Delhi (AAR), in its order dated 26 March 2020 in Re Tiger Global International II Holdings, Mauritius denied the benefits claimed by the applicants under the India-Mauritius Double Tax Avoidance Agreement (DTAA) on the ground that...
Promoter-Friendly Amendments to the SEBI Takeover Regulations
Cash-starved companies are presently considering raising funds through various means during the economic downturn. When it comes to equity funding, the natural option would be to rely on their promoters to infuse more capital. Towards this end, the Securities and Exchange Board of India (SEBI) on 16 June 2020 issued amendments to the SEBI (Substantial Acquisition of Shares and Takeovers)...
Decriminalization of Minor Economic Offences: A Step in the Right Direction?
[Pratik Sahai and Manjri Singh are IV year students at NALSAR University of Law, Hyderabad] Amidst the economic slowdown as a consequence of the Covid-19 pandemic, there is an intention on the part of the Government to bring about much-awaited reforms to the corporate regulatory regime. The Ministry of Finance released a proposal on decriminalization of minor economic offences on 8 June 2020, and...
Third Party Funding of Disputes: Easing the Burden on Stressed Litigants
[Soham Banerjee is an Associate in the Dispute Resolution team of a law firm in Mumbai] With the outbreak of the of the Covid–19 virus, litigants are under immense stress owing to the non-functioning of the courts, except only for urgent matters. The judiciary, which is, in any event, overburdened with backlog and pendency of cases has been functioning in an extremely restricted manner...
How Banking Business Works: A Banking Lawyer’ Perspective
[Pramod Rao is Group General Counsel, ICICI Bank. He sets out a simplified explanation of a very complex system, broken down to basics. This post represents his personal views] Banks take deposits and pay interest on them. Banks lend money and receive interest on them. The difference between the two is margin. The margin pays for costs, such as employees’ salaries, branch rent and infrastructure...
Orders in the WhatsApp Leak Case: Technological Constraints and UPSI
[Pranav Mihir Kandada is a rising 3rd year student at NALSAR University of Law, Hyderabad] Ever since the first case of insider trading through online messaging about two decades ago, insider trading in the digital era has gained new contours over the years. In India, the advent of instant messaging services with end-to-end encryption has turned them into a new venue for communication of...
RBI’s Discussion Paper on Bank Governance
Corporate governance in banks and financial institutions has captured a great deal of attention lately in India. One may attribute this to high profile episodes involving governance issues in banks such as ICICI Bank as well as Yes Bank, both involving the former chief executive officers (CEOs). There is generally a sense that universal corporate governance norms prescribed by the securities...
Modifying an Approved Resolution Plan Due To Covid-19
[Shebani Bhargava is a 4th year student at the Maharashtra National Law University Mumbai (MNLU Mumbai)] The novel coronavirus and the unprecedented nationwide lockdown have disrupted the country’s economy. As a consequence, multiple businesses may face the threat of insolvency. In order to soften the setback and ease the financial stress, the Government, along with the Insolvency and Bankruptcy...
Opportunistic Delisting in the Times of Covid-19: Need for Checks and Balances
[Tanvi Prabhu is a IV year student and Mansi Mishra a III year student, both at National Law Institute University, Bhopal] With Covid-19 adversely affecting the markets, stocks are trading at multi-year lows. Companies, investors and shareholders are enduring the brunt of a bearish market. But, unsurprisingly, a few companies are embracing this opportunity to exit the stock market completely...
Suspension of the Insolvency and Bankruptcy Code: The Way Forward
[Shreya Choudhary and Arnav Sinha are final year students of ILS Law College, Pune] In the wake of recent developments involving the Insolvency and Bankruptcy Code of 2016 (IBC), it is important to explore the various alternatives to restructuring debt, dealing with stressed assets and furthering the economic growth in the country. The Finance Minister announced various changes to the IBC to...
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