There is a concern that issuers have resorted to private placements and qualified institutional placements (QIPs) to raise capital from specified investors rather than to public offerings of shares. This is due to the excessive burden and costs associated with a public offering of shares. Being cognizant of this tendency, SEBI has proposed measures to nudge issuers to move away from private...
RBI Circular on Security for External Commercial Borrowings
The Reserve Bank of India (RBI) prescribes stringent norms on external commercial borrowings (ECBs) as also the grant of security in favour of foreign lenders or suppliers who have extended ECBs to Indian borrowers. While clarity has been developing over the years, there has often been doubt regarding specific types of securities and guarantees to be granted. Now, the RBI has issued a circular...
Briefing on Related Party Transactions
The NSE Centre for Excellence in Corporate Governance has published its quarterly briefing on “Related Party Transactions”, which has been authored by Professor Vikramaditya Khanna. The executive summary is as follows: – Related Party Transactions (RPTs) are a topic of increasing interest around the world, especially as some of them have been associated with quite well known frauds. –...
Corporate and Financial Law Colloquium: Call for Papers
[The following announcement is posted on behalf of The Michigan – Jindal Centre for Global Corporate and Financial Law and Policy, Jindal Global Law School] Background Corporations form the backbone of a country’s economy and the status of its commercial laws determines the robustness of its economy. Corporations not only assist in improving the local economy, they also play a key role in raising...
Non-Signatories Bound By Arbitration Agreement
[The following post is contributed by Bhushan Shah at Mansukhlal Hiralal & Company, Mumbai] The Bombay High Court in a recent judgment of Rakesh S Kathotia and Anr vs Milton Global Limited and Ors applied the ‘group of companies doctrine’ upheld by the Apex Court in Cholro Controls India Private Limited v...
Academy on International Trade Law and Policy in New Delhi
The Centre for WTO Studies, in partnership with the World Trade Institute, Berne is launching the 2nd WTI – CWS Joint Academy on International Trade Law and Policy in New Delhi, from May 25 – June 19, 2015. Taught by distinguished academics and practitioners from India and abroad, the course will equip participants with theoretical and practical insights into various issues relating to...
Year-End Reforms from SEBI
We wish our readers a very happy 2015! The end of 2014 was marked by a flurry of announcements from SEBI, some of which are briefly discussed in this post. Re-Classification of Promoters as Public The concept of “promoters” is quite significant in the Indian context as it is relevant for various purposes. While the existing SEBI regulations define a “promoter”, the circumstances are not entirely...
Derivative Action for Patent Infringement Disallowed
Spicy IP has a post discussing a judgment of the Bombay High Court in Darius Rutton Kavasmaneck v. Gharda Chemicals Limited, which involves a derivative claim by a shareholder of a company that traverses issues of company law and patent law. In disallowing the claim, the Bombay High Court dealt with issues pertaining to derivative actions and clarified circumstances where they would be allowed to...
Insider Trading and Tippee Liability
In recent times, there has been a lot of discussion about how the regulators and the prosecution have been enormously successful in obtaining convictions in insider trading cases in the U.S. That momentum may have been somewhat restrained by a ruling of the United States Court of Appeals for the Second Circuit in United States v. Newman, et. al. In that case, analysts at several hedge funds...
Reverse Cross-Listings: Foreign Companies Accessing the Indian Capital Markets
Corporate and capital markets laws in India have allowed foreign companies to list in India in the form of Indian depository receipts (IDRs). While this facility was allowed with much fanfare, it has been accessed so far by only one company, i.e. Standard Chartered Bank. However, more companies might likely follow in the future. A new paper titled “Reverse Cross-Listings — The Coming Race...
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