Blog Posts
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Amendments to SEBI Prohibition of Insider Trading Regulations
[Posted by Jayant Thakur] SEBI has amended the SEBI Prohibition of Insider Trading Regulations vide notification dated 19th November 2008, available here. While I will post here later in more detail some issues relating to the amendments, let me highlight a couple of points. The definition of “insider” has been amended. Interestingly, there is magic…
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Anand Bhatt, negotiated to his end
[Posted by Somasekhar Sundaresan] It would have been his 60th birthday tomorrow. And he was overseeing preparations for the anniversary celebrations of his firm, which completed 125 years on November 29, 2008. Instead, his remains were cremated at Mumbai’s Chandanwadi electric crematorium that evening. Anand Bhatt, was a leading solicitor and senior partner of Wadia…
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Thoughts on the ASBA process – Part I
[Posted by Umakanth Varottil] (The following post comes to us from Prerak Ved, an advocate with Crawford Bayley & Co.) SEBI has introduced the system of ASBA (Applications Supported by Blocked Amount) vide its circulars dated July 30, 2008 and operationalised the same vide its circular dated August 29, 2008 (“ASBA Circulars”). It is applicable…
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Ceiling on Executive Pay
[Posted by Umakanth Varottil] In previous posts, we had highlighted significant differences between the law on executive pay in the US and in India, and how the Indian regime may be more conducive to preventing excesses by corporate executives. In the US, the position is as follows: Excessive managerial influence also extends to fixing managers’…
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Legal and Economic Fallout of Mumbai Attacks
[Posted by Umakanth Varottil] The key question being posed in legal and financial circles relates to the extent of insurance coverage for loss caused by terror attacks, and also the related liability of various state and private actors involved. In a column in Rediff Money, Kumkum Sen highlights possible issues on liabilities, both civil and…
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Lifting the Corporate Veil for Tort Claims
[Posted by Umakanth Varottil] As we have seen previously (here and here), the law relating to lifting of the corporate veil is not only ridden with several ambiguities, but also that courts are generally slow to lift the corporate veil. This holds true even in cases that involve mass torts against subsidiaries of large corporate…
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Supreme Court on ‘Allotment of Shares’ and ‘Issue of Bonus Shares’
[Posted by Mihir Naniwadekar] In a recent judgment (Khoday Distilleries v. CIT, Civil Appeal 6654/2008, judgment of 14 November 2008), the Supreme Court explained some important corporate law concepts. The issues before the Supreme Court arose out of a matter under the Gift Tax Act, 1958; and the Supreme Court had to elaborate upon the…
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Condolences
[Posted by Umakanth Varottil] We would like to express our sincere condolences to all those who have been affected by the recent events in Mumbai, which have left the world in shock and disbelief. We, at this Blog, indeed have a very close connection with this city. Not only is Mumbai the financial capital of…
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Paper on Capital Flows into India
[Posted by Umakanth Varottil] The RBI has published a paper by its Deputy Governor, Rakesh Mohan, titled “Capital Flows to India”. Although it approaches the topic predominantly from an economy and policy standpoint, it is also helpful in identifying the different types of flows (debt and equity) and carries a historical account of capital flows…
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Minimum Pricing Norms Eased for GDRs/FCCBs
[Posted by Umakanth Varottil] In yet another move to boost the capital markets, the Government has relaxed the minimum pricing norms for the issue of securities (being GDRs/ADRs/FCCBs) to foreign investors. This comes on the heels of similar relaxations provided to qualified institutional placements (QIPs) some weeks ago. There are two changes proposed: (i) the…