[Gautam Narayan and Asmita Singh are advocates practicing at the Supreme Court of India] In a departure from the principle that an arbitral tribunal becomes functus officio after having delivered the award, section 34(4) of the Indian Arbitration & Conciliation Act, 1996 (“Arbitration Act”) (which is based on article 34(4) of the UNCITRAL Model Law on International Commercial Arbitration...
Currency Derivatives Market in Transition: A Deep Dive into RBI’s Regulatory Intervention
[Palash Varyani is a 3rd-year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] India’s currency derivatives market is undergoing a profound transformation following the Reserve Bank of India’s (RBI) recent directive, set to be enforced on May 3. Brokers are advising clients to square off rupee derivatives positions as the regulatory landscape undergoes a...
Addressing Regulatory Arbitrage: Foreign Investment Compliance Recommendations for AIFs
[Harit Gandhi and Mukund Arora are fourth-year law students at National Law School of India University, Bangalore and Symbiosis Law School, Pune, respectively] Recently, commitments in alternative investment funds (‘AIF’) crossed INR 10 trillion for the first time amid rising demand from high net-worth individuals. As of December 2023, the investment commitments amounted to INR 10.84 trillion...
SEBI and Brokers’ Industry Standards Forum: Charting a New Course in the Sector
[Vaishnavi Srinivasan and Philip Oommen are lawyers based in Mumbai, and graduates of the National Institute of Securities Markets] In a pioneering move, the Securities and Exchange Board of India (SEBI) has established the Brokers Industry Standards Forum (BISF). Initially proposed in July 2023, the formation of the Industry Standards Forum by SEBI aims to establish regulatory standards, drawing...
RBI Tweaks Norms on Investments in AIFs: A Breather to the Regulated Lenders
[Srishti Multani and Aryan Birewar are 4th year BBA LLB (Hons.) students at Symbiosis Law School, Pune] On 27 March 2024, the Reserve Bank of India (‘RBI’) released a notification (‘Revised Notification’) relaxing certain directions given to regulated entities (‘RE’) in the notification (‘Previous Notification’) dated 19 December 2023 after due consultation with the stakeholders and industry...
Extinguishment of Personal Guarantee in Resolution Plan under the IBC
[Karnika Singh Pasayat and Vignaraj Pasayat are advocates practising in the Supreme Court of India and the High Court of Delhi] The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench, recently rendered a ruling in Puro Naturals JV v. Warana Sahakari Bank (Company Appeal (AT) (Insolvency) Nos.661-663 of 2023 dated November 24, 2023)on whether to approve a resolution plan that Puro...
Demystifying Overlap in Collective Investment Schemes and Joint Ownership Structures
[Mihir Vashishtha is a final year B.A., LL.B. (Hons.) student at National University of Study and Research in Law, Ranchi] With the rise of digitization in the capital market, there has been a notable surge in interaction between retail investors and the market, leading to increased investment activity. In turn, this increased digitization has incentivized market players to develop investment...
Distribution of Profits Accrued During CIRP: An Equitable Approach Towards Settlement of Claims
[Karthika S. Babu is a third-year B.A. LL.B. Student at Gujarat National Law University] The Insolvency and Bankruptcy Code, 2016 (“Code”) provides for a specialized mechanism, i.e., the corporate insolvency resolution process (“CIRP”) for the resolution of insolvency of financially distressed entities. The CIRP aims to mitigate the claims of the affected creditors against the distressed...
Navigating the Twilight Zone Conundrum: A Cautionary Tale for Restructured Preference Shareholders
[Snigdha and Subhasish Pamegam are 3rd year B.A., LL.B. students at Gujarat National Law University, Gandhinagar] The practice of companies issuing restructured preference shares (RPS) in exchange for operational debt during the ‘twilight zone’, a period wherein a company is susceptible to becoming insolvent, is now seen as a controversial strategy. The order of the National Company Law Tribunal...
Calcutta High Court on Jurisdiction in Shareholder Disputes under Companies Act: An Aberration?
[Abhijnan Jha is a Partner and Urvashi Misra a Senior Associate at AZB & Partners, New Delhi] It is trite law that where a statute prescribes something to be done in a particular manner, then it ought to be done in that manner alone and not in any other manner. This is a well-recognized position, with courts having the duty to filter out any misguided attempts by litigants to bypass statutory...
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