The Securities and Exchange Board of India (SEBI) (Prohibition of Insider Trading) Regulations, 2015 (the “PIT Regulations”) have undergone refinement since their enactment. Earlier this year, SEBI introduced changes by way of the SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018 that came into effect on 1 April 2019. The amendments to the PIT Regulations clarify that the...
Comparing Venture Capital Business Forms in India and China
My colleague Lin Lin and I have a working paper titled “Venture Capital In China And India: Does Business Form Matter?”. The abstract is as follows: This paper re-evaluates the importance of business organizational forms with regard to venture capital funds by exploring two major Asian markets, China and India. Evidence suggests that the limited partnership is the leading business form among...
MCA Clarifies “Appointed Date” in Schemes of Arrangement
In schemes of arrangement, whether by way of a merger, demerger or other form of corporate restructuring, the timing of when the transaction takes effect becomes important. It is from such a date that the financial statements of the companies involved will reflect the effect of the transaction. Given that the transaction may be completed anytime during the course of a financial year, parties have...
Trade Associations and Pharmaceutical Industry: A Competition Conundrum
[Yashvardhan Singh is a 2nd year student and Palash Moolchandani a 3rd year student, both at the National Law University Odisha] Trade Associations are business platforms where players of a particular industry meet to discuss common concerns and to take collective decisions about certain practices in that industry. The role of trade associations in any industry and the economy cannot be disputed...
Tribute to a Trailblazer in Indian Legal Education
We are deeply saddened to learn about the passing of Professor Shamnad Basheer. Shamnad was far from the archetypal legal academic. While he enjoyed a stellar reputation for teaching and research in the field of intellectual property (IP), his heart was set on nobler goals such as diversity in access to legal education and reforms in the common law admissions test (CLAT) in law schools. It is...
Implementing Pre-packaged Insolvency in the Indian Context: Challenges and Suggestions
[Akhil Kumar is a fifth year BA LLB (Hons.) student and Ayushi Singh a fourth year BA LLB (Hons.) student, both at NUALS, Kochi] The Ministry of Corporate Affairs has been considering the introduction of a pre-packaged insolvency process to the Insolvency and Bankruptcy Code, 2016 and has invited comments from stakeholders. The proposal is in line with the objectives of the code to ensure...
SEBI Committee on Regulating Proxy Advisors
Over the last decade, India has witnessed considerable shareholder activism in that shareholders, particularly institutions, have become more active in exercising their corporate franchise. Proxy advisory firms have formed an integral part of this movement, as they provide advice to both institutional and individual shareholders on how they may exercise votes at shareholder meetings of companies...
CSR Becomes Stringent, With Penal Consequences
The concept of corporate social responsibility (CSR) took on a different hue in India with the enactment of the Companies Act, 2013. Section 135 of the legislation introduced a requirement on large companies to spend two percent of their average profits over the preceding three years towards certain statutorily defined causes. Although often mistakenly considered to be mandatory, the statutory...
Financial Statements of Foreign Subsidiaries of Indian Listed Companies
Corporate group structures are common among Indian listed companies which hold shares in subsidiaries both in India and other countries around the world. Due to differences in financial reporting requirements in all jurisdictions where the corporate group is present, the Companies Act as well as regulations issued by the Securities and Exchange Board of India (SEBI) have sought to harmonize such...
Delhi High Court Restrains Short Seller’s Report
Short selling involves the selling of a security that an investor or a trader does not have in possession when placing the sale order in the system. A short seller borrows the security and then sells it in the market with an expectation that it can buy back the same security at a later date for a lower price than it was sold for. The difference in the selling price and the buying price would be...
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