The last few years have witnessed a dispute between two families that relate to the right to nominate directors to the board of Yes Bank. Earlier this week, the Bombay High Court issued its judgment in Madhu Kapur & Ors. v. Rana Kapoor & Ors., which seeks to resolve the dispute – at least temporarily – and in the process clarifies some areas of corporate law and contract law...
Materiality and Disclosure Under Clause 36 of the Listing Agreement
[The following guest post is contributed by Supreme Waskar, who is a corporate lawyer] By an order passed earlier this month, an adjudicating officer of SEBI imposed a fine of Rs. 2 crores on New Delhi Television Ltd. (“NDTV”) for failure to promptly disclose material information to stock exchanges under clause 36 of the listing agreement. Facts of the case On February 21, 2014, NDTV had received...
Lack of Regulatory Clarity on Foreign Investment in the Insurance Sector
[The following guest post is contributed by Nivedita Shankar, Senior Associate, Corporate Law Division, Vinod Kothari & Company. The author may be reached at [email protected]]. An increase in the threshold limit for foreign investment in insurance companies has been hailed as a major thrust for the insurance sector, which has seen very few players. In this background, the Indian...
Negotiable Instruments Amendment Ordinance Promulgated
In May, the Government proposed the Negotiable Instruments (Amendment) Bill, 2015 with a view to amending the Negotiable Instruments Act, 1882 (the “NI Act”). This was necessary due to jurisdictional issues pertaining to cases brought under section 138 of the NI Act for dishonour of cheques. The background and rationale for the amendment has been stated explicitly in the Statement of Objects and...
DIPP Clarification on NRI Investments
[The following guest post is contributed by Dipanjali Nagpal of Vinod Kothari & Co. The author may be contacted at [email protected]. This post follows upon an earlier more brief post on the topic.] The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India reviewed the Consolidated Foreign Direct Investment (FDI) Policy Circular of...
Duty of a Crowdfund Campaigner towards Contributors
[The following post is contributed by Nikunj Agarwal, a 3rd year, B.A. LL.B. (Hons.) student at RML National Law University, and Arjun Agarwal, a 2nd year, B.A. LL.B. (Hons.) at W.B. National University of Juridical Sciences. They may be contacted at [email protected]. This post discusses the first legal proceeding by the Federal Trade Commission of United States with reference to...
RBI Proposal on Rupee Linked Bonds
In the past, rupee denominated bond issuances have essentially been available to multilateral institutions, of which the International Finance Corporation (IFC) had availed of them. Now, the Reserve Bank of India (RBI) has announced a draft framework, which allows Indian companies as well to tap this avenue for raising debt. Indian corporates that are eligible to avail of external commercial...
The Applicability of Minimum Alternate Tax to Foreign Investors
[The following guest post is contributed by Abhik Chakraborty, who is a 4th year student at NUJS, Kolkata] The Supreme Court in Ajanta Pharma Ltd. V. Commissioner of Income Tax-9, Mumbai [1] has clarified that the intent with which the provision related to minimum alternate tax (MAT)[2] was inserted in 1996 was to ensure that zero tax companies[3] pay at least a minimum amount of tax on their...
Lenders Empowered to Take Control over Distressed Firms
The Reserve Bank of India (RBI) yesterday conferred a significant power to banks to acquire control of borrower companies which fail to achieve prescribed milestones as part of their restructuring. Under this arrangement, the Joint Lenders’ Forum (or JLF, formed for the purpose of addressing distressed assets) may “convert the whole or part of the loan and interest outstanding into equity shares...
Whether Land is a “Security” Under Collective Investment Schemes
[The following guest post is contributed by Prachi Pandya, who is the founding member of Corporate Attorneys and can be contacted at [email protected]] It is a matter of interest that the trigger point of framing the SEBI (Collective Investment Schemes) Regulations, 1999 (the “CIS Regulations”) was owing to initiatives by private entrepreneurs undertaking plantation or agricultural...
Recent Comments