[Sikha Bansal is a Partner at Vinod Kothari & Company] A regulatory framework for asset reconstruction companies (ARCs) was introduced in India through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). This intended to put in place a system for clearing up non-performing assets (NPAs) from the books of banks and financial...
The Use of Circumstantial Evidence in Securities Law Enforcement
[Shruti Rajan is a partner in the Financial Regulatory Practice at Trilegal. Vidhi Shah is an associate with the Financial Regulatory Practice at Trilegal.] Quasi-judicial authorities are not bound by strict rules of evidence. It is settled law that they are “entitled to act on material that may not be accepted as evidence in a court of law,” and examine all relevant information and data in...
SEBI’s New Pledge/Re-Pledge System Overhaul: An Appraisal
[Gayatri Puthran is a 3rd Year B.B.A., LL.B. student at the Jindal Global Law School] In a bid to promote ease of doing business, the Securities and Exchange Board of India (‘SEBI’) on 2 September 2020 by way of its circular titled ‘Disclosures on Margin obligations given by way of Pledge/ Re-Pledge in the Depository System’ (‘Disclosure Circular’) dispensed with certain disclosure...
Applicability of the Limitation Act to the IBC: The Curious Case of Veer Gurjar
[Yashika Gupta is a 5th year B.A., LL.B. (Hons.) student at Hidayatullah National Law University, Raipur] On 14 August 2020, the Supreme Court (“SC”), yet again, cleared the air on the applicability of the Limitation Act, 1963 (“Limitation Act”) to the Insolvency & Bankruptcy Code, 2016 (“the Code”). In Babulal Varsharji Gurjar v. Veer Gurjar Aluminium Industries Pvt. Ltd., it categorically...
NCLT’s Riddled Take on Enforcement of Foreign Awards under the IBC
[Sridutt Mishra is a 5th year student and Parthsarthi Srivastava is a 4th year student, both at National Law University Odisha] The Insolvency and Bankruptcy Code, 2016 (‘IBC’) has always witnessed friction with respect to claims arising out of arbitration. In 2018, the Supreme Court settled the highly contested issue of whether an arbitral award pending challenge under section 34 of the...
Expert Evidence in Arbitration: Should India Dip Its Toes in the Hot-Tub?
[Harsh Srivastava is a 5th year B.A., LL.B. (Hons.) student at the National Law School of India University, Bangalore] For long, India has been seen as a ‘non-arbitration friendly’ jurisdiction owing, inter alia, to the length, costs and inefficiency of the proceedings. Efforts have been made to improve the arbitral framework of the country by incorporating international best practices and...
Litigation against Credit Rating Agencies: Delhi High Court Delineates the Scope
[Kajal Singh and Nikunj Maheshwari are 4th year law students at the Institute of Law, Nirma University, Ahmedabad.] Credit rating is a mechanism to address the asymmetry of information in the debt investment market, where the independent credit rating agencies (‘CRA’) rate the debt instruments issued by the borrower company (‘client’). Clients, to get their instruments rated, enter into an...
Arbitrability of Fraud and the ‘Public Flavour’ Standard
[Karan Kamath is a 2020 B.A. LL.B. (Hons.) graduate from Symbiosis Law School, Pune.] On August 19, 2020, a Division Bench of the Supreme Court decided Avitel Post Studioz Ltd. v. HSBC PI Holdings (Mauritius) Ltd., wherein the central question related to arbitrability of fraud, in an appeal arising out of the Bombay High Court’s decision in a petition under section 9 of the Arbitration and...
Call for Submissions: 5th Gary B. Born Essay Competition on International Arbitration
[Announcement on behalf of CARTAL] The Centre for Advanced Training and Research in Arbitration Law (‘CARTAL’) provides a platform for academicians, professionals and students to interact and discuss contemporary issues in arbitration law. The mandate of the Centre is achieved by the organization of workshops, conferences and guest lectures to facilitate the understanding of such issues. ...
Banning Short-Selling During Financial Crises – An Optimal Approach?
[Talin Bhardwaj is a third-year student of B.A. LL.B (Hons.) at the Rajiv Gandhi National University of Law, Patiala] The unprecedented circumstances emanating from the Covid-19 pandemic have created major instability in the financial markets of various countries that has been detrimental to the confidence of investors. This economic crisis has forced financial regulators around the world to take...
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