Background: History Repeats Itself The Securities and Exchange Board of India (“SEBI”) has in recent year initiated actions pertaining to the alleged lack of accurate disclosures in prospectuses issued by companies in public offerings of securities. One high profile case involved the initial public offering (“IPO”) of DLF Limited wherein SEBI issued an order restraining DLF, its directors and CFO...
Non-compete Fee: A Bane for Minority Shareholders
[The following post is contributed by Soham Roy & Akhil Nene, who are 5th year students at the National Law University Odisha] A non-compete fee is paid to exiting promoters or founders of a company to ensure that they do not compete for a certain period of time with the company they are exiting. Recently, there was considerable controversy surrounding the HDFC Life-Max merger as a result of...
Announcement: Essay Competition in Corporate Law
[The following announcement is posted on behalf of the Corporate Law Society, National Law University, Jodhpur] Corporate Law Society, National Law University, Jodhpur, is pleased to announce the 1st Pranita Mehta Memorial Essay Competition, 2016 in memory of the university’s exceptional student, Ms. Pranita Mehta. The Competition is open to all students pursuing under-graduate (three/five...
The Inapplicability of Money Lending Laws to Regulated NBFCs
[The following guest post is contributed by Munmi Phukon, who is a Senior Manager in the Corporate Law Division at Vinod Kothari & Co.] Introduction In 2011, a landmark judgment of the Gujarat High Court in Radhe Estate Developers Vs. Versus Mehta Integrated Finance Co. Ltd. and Ors (the ‘Gujarat Ruling’) contested the very fact of applicability of the Bombay Money Lending Act, 1946 (the...
Exempted inter-se transfer amounts to ‘sale’
[The following post is contributed by Supreme Waskar, who is a corporate lawyer in Mumbai] In an earlier post on February 18, 2012, Mr. Umakanth Varottil had discussed the informal guidance issued by the Securities and Exchange Board of India (SEBI) to Strides Arcolabs in connection with the company’s eligibility to issue securities to its promoters on a preferential allotment basis...
Takeover Regulations and the Banking Sector
Two separate but recent developments underscore the need to treat the banking sector differently when it comes to compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “Takeover Regulations”). While the first relates to the applicability of the Takeover Regulations to capitalization of banks, the second relates to restructuring debts of borrower...
Call for Papers: Journal on Corporate Law & Governance
[The following announcement is posted on behalf of the Journal on Corporate Law & Governance] This is a call for papers for Volume 2 Issue 2 of the Journal on Corporate Law & Governance published by the National Law University, Jodhpur. The broad theme of the volume is -“RBI & SEBI: The Evolved Gatekeepers to the Indian Financial System post 2014” Sub-themes 1. FDI Policy 2016: Hits...
Arbitration in India: The Merits of Third Party Funding
[The following post is contributed by Gourav Mohanty, who is a lawyer in Mumbai] Introduction The effort at improving India’s arbitration sentiment by the creation of the Mumbai International Arbitration Centre (“MIAC”) has received applause, although many in the legal industry, for example Mr. Nishith Desai, do not think of it as a game changer. The MIAC has a lot going for it, from eminent...
The Need for Cyber Security Due Diligence in M&A Transactions
[The following post is contributed by Prajoy Dutta, a third year B.A.,LL.B (Hons.) student at Institute of Law, Nirma University, Ahmedabad and Srinivas Raman, a fourth year B.A.,LL.B (Business Law Hons.) student at National Law University, Jodhpur] Introduction In the rapidly expanding mergers and acquisitions (“M&A”) environment, companies often overlook the finer aspects of due diligence...
Call for Submissions: NLUJ Law Review
[The following announcement is posted on behalf of the NLUJ Law Review] About the Review The NLUJ Law Review is the flagship journal of National Law University, Jodhpur, established with the objective of promoting academic research and fostering debate on contemporary legal issues in India. It is a bi-annual, double-blind student reviewed and student-edited journal focusing on an inter...
Recent Comments