Blog Posts
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DEMAT Account for Religious Deities
[Posted by Shantanu Naravane] An interesting issue recently fell for the consideration of the Bombay High Court- whether DEMAT accounts could be held in the name of deities. The Court answered this question in the negative, relying on largely practical and partially moralistic reasons in coming to its conclusions. The decision was pronounced by a…
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Delhi High Court clarifies Transfer Pricing law
[Posted by Shantanu Naravane] In a fillip to the increasing global ambitions of Indian industries, the Delhi High Court, in Maruti-Suzuki India Ltd. v. ACIT, clarified the application of transfer pricing provisions to the use of foreign trademarks in India. The issue arose out of the Maruti-Suzuki collaboration all of us are well aware of,…
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“Subject to” Contracts and Agreements “Not Completed”
[Posted by V. Niranjan] “The moral of the story is to agree first and start work later.” So observed Lord Clarke recently, in delivering the unanimous judgment of the United Kingdom Supreme Court in RTS Flexible Systems [“RTS”] v. Molkerei Alois Muller Gmbh [“Muller”]. The judgment considers several questions of law that are of significance…
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Legal character of an overdraft facility
[Posted by Shantanu Naravane] Earlier this month, a division bench of the Bombay High Court considered an important question regarding the legal character of an overdraft facility offered to a customer. The issue before the Court in Sargam Foods v. State of Maharashtra, was whether the cash credit facility offered by a bank can be…
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The United States Supreme Court on the ‘Principal Place of Business’
[Posted by Shantanu Naravane] Two earlier posts had discussed the issue and the oral arguments before the United States Supreme Court in Hertz Corp. v. Friend. Earlier this year, the Court delivered a unanimous verdict, holding that the ‘principal place of business’ of a corporation is its ‘nerve centre’, i.e. the headquarters of the corporation.…
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Interpretive Guidance in Rule-Making
[Posted by Umakanth Varottil] While reading the Supreme Court’s judgment in the Daiichi case, which Mihir has discussed here, I was particularly struck by certain observations of the court that appear at the end of the judgment. The case involved an intensive reading and close interpretation of the provisions of the SEBI Takeover Regulations. Here…
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Report/revision of Takeover Regulations
[Posted by Jayant Thakur] The Report of the Takeover Regulations Advisory Committee (TRAC) is, as is widely reported, released. SEBI’s Press Release summarizes the important recommendations. Here’s my short piece on the subject in today’s Mint. Here are Sandeep Parekh’s views on his blog. Would write soon here particularly on issues such as the hike in…
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Regulating Bankers’ Pay
[Posted by Umakanth Varottil] Consistent with international trends to impose greater regulation on executive compensation in banks, the Reserve Bank of India (RBI) has issued draft guidelines on compensation of whole time directors/ chief executive officers / risk takers and control function staff. This applies to private sector and local area banks and all foreign…
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Physical Settlement in Derivatives Trading
[Posted by Umakanth Varottil] Over a decade ago, when trading in derivatives was commenced on Indian stock exchanges, it was decided that such instruments must be introduced in a phased manner. This was following the recommendations in the L.C. Gupta Committee report. Consequently, various types of derivatives were introduced at different points in time –…