Blog Posts
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SEBI’s New Insider Trading Regulations Notified
[Posted by Umakanth Varottil] Changes to the insider trading regime in India have been in the offing for quite some time now, and were the subject-matter of a report under the chairmanship of Justice N.K. Sodhi. Yesterday, SEBI notified the SEBI (Prohibition of Insider Trading Regulations), 2015 that take into account the committee’s recommendations as…
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SEBI’s Proposal on “Wilful Defaulters”
[Posted by Umakanth Varottil] Over the years, the Reserve Bank of India (RBI) has significantly tightened the regime relating to “wilful defaulters” who are declared as such through a process stipulated by the RBI. Upon such a declaration, the regulatory regime of the RBI effectively stifles the ability of a wilful defaulter from raising further…
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Supreme Court on Corporate Officers’ Criminal Liability
[Posted by Umakanth Varottil] The Supreme Court of India on Friday issued its judgment in Sunil Bharti Mittal v. Central Bureau of Investigation on whether senior corporate officers are to be held criminally liable for acts of their companies. After an analysis of the law on the issue and its application to the facts of…
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SEBI Discussion Paper on “Revising the Capital Raising Process”
[Posted by Umakanth Varottil] There is a concern that issuers have resorted to private placements and qualified institutional placements (QIPs) to raise capital from specified investors rather than to public offerings of shares. This is due to the excessive burden and costs associated with a public offering of shares. Being cognizant of this tendency, SEBI…
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RBI Circular on Security for External Commercial Borrowings
[Posted by Umakanth Varottil] The Reserve Bank of India (RBI) prescribes stringent norms on external commercial borrowings (ECBs) as also the grant of security in favour of foreign lenders or suppliers who have extended ECBs to Indian borrowers. While clarity has been developing over the years, there has often been doubt regarding specific types of…
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Briefing on Related Party Transactions
[Posted by Umakanth Varottil] The NSE Centre for Excellence in Corporate Governance has published its quarterly briefing on “Related Party Transactions”, which has been authored by Professor Vikramaditya Khanna. The executive summary is as follows: – Related Party Transactions (RPTs) are a topic of increasing interest around the world, especially as some of them have…
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Corporate and Financial Law Colloquium: Call for Papers
[Posted by Umakanth Varottil] [The following announcement is posted on behalf of The Michigan – Jindal Centre for Global Corporate and Financial Law and Policy, Jindal Global Law School] Background Corporations form the backbone of a country’s economy and the status of its commercial laws determines the robustness of its economy. Corporations not only assist…
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Non-Signatories Bound By Arbitration Agreement
[Posted by Umakanth Varottil] [The following post is contributed by Bhushan Shah at Mansukhlal Hiralal & Company, Mumbai] The Bombay High Court in a recent judgment of Rakesh S Kathotia and Anr vs Milton Global Limited and Ors applied the ‘group of companies doctrine’ upheld by the Apex Court in Cholro Controls India Private Limited v. Severn Trent Water Purification Inc & Ors, (2013) 1 SCC 641 whereby…
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Academy on International Trade Law and Policy in New Delhi
[Posted by Umakanth Varottil] The Centre for WTO Studies, in partnership with the World Trade Institute, Berne is launching the 2nd WTI – CWS Joint Academy on International Trade Law and Policy in New Delhi, from May 25 – June 19, 2015. Taught by distinguished academics and practitioners from India and abroad, the course will…
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Year-End Reforms from SEBI
[Posted by Umakanth Varottil] We wish our readers a very happy 2015! The end of 2014 was marked by a flurry of announcements from SEBI, some of which are briefly discussed in this post. Re-Classification of Promoters as Public The concept of “promoters” is quite significant in the Indian context as it is relevant for…