[The following post is contributed by Sunayna Jaimini, who is an Associate at Singhania and Partners, New Delhi and can be contacted at [email protected]. The post contains research inputs from Kriti Kaushik, Associate at Singhania & Partners, New Delhi who can be contacted at [email protected]] Introduction As consumers, we all are aware that every manufacturer affixes declarations on...
Regime on Fraudulent Trade Practices Strengthened
We had earlier discussed two decisions of the Securities Appellate Tribunal (SAT) (here and here) and also an order of SEBI (here) on whether the front-running activities of persons other than “intermediaries” can be brought within the purview of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (the PFUTP Regulations). While the SAT...
Companies Bill Passed by the Rajya Sabha
In a significant development, the Companies Bill, 2012 was passed by the Rajya Sabha (the Upper House of Parliament). The press release of the Government, which terms the event as “historic”, is available here. The new law will come into force once it receives the assent of the President. The Bill had already received the approval of the Lok Sabha (the Lower House) in December 2012. The...
SEBI issues Operational and Reporting Guidelines for AIFs
[The following post is contributed by Nidhi Ladha, who is a Junior Partner at Vinod Kothari & Co. She can be reached at [email protected]] SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) were notified by SEBI on May 21, 2012 which thereby replaced the SEBI (Venture Capital Funds) Regulations, 1996. After notification of AIF Regulations, SEBI has granted in...
FDI and the “Control” Question
Eons ago, an English judge remarked that “public policy” is an unruly horse and once you get astride it you will never know where it will carry you. Lately, corporate India has been left to contend with another unruly horse in the form of the concept of “control”, whose scope and meaning have been stretched in different directions without the requisite precision, often altering according to time...
Approval of New FDI Norms; Impact on Multi-brand Retail
In an earlier post, we had discussed the relaxation measures approved by the Union Cabinet for increase in the foreign direct investment (FDI) in certain sectors. Now, the specific changes to the FDI Policy Circular of 2013 have issued. The changes to the FDI caps and routes are available on the website of the Press Information Bureau (PIB) (under releases issued on August 1, 2013). Separately...
Securities Laws (Amendment) Ordinance, 2013 gives more teeth to SEBI
[The following post is contributed by Nivedita Shankar, who is a Senior Associate at Vinod Kothari & Co. She can be reached at [email protected] In an earlier post, we had provided an overview of the Ordinance and the possible rationale behind it. This post provides more specific details] The President of India promulgated The Securities Laws (Amendment) Ordinance, 2013 (“Ordinance...
Constitutional Validity of Regulatory Regime for CIS Upheld
Earlier this week, a single judge of the Calcutta High Court in Rose Valley Real Estate & Construction Ltd v. Union of India upheld the constitutional validity of certain sections of the SEBI Act (including section 11AA) and certain provisions of the SEBI (Collective Investment Scheme) Regulations, 1999 (the CIS Regulations). Specifically, a challenge was mounted to amendments to the SEBI Act...
Fresenius Kabi: SEBI Order on Delisting
[The following post is contributed by Yogesh Chande, who is a Consultant with Economic Laws Practice, Advocates & Solicitors. Views of the author are personal] It may be recalled that, pursuant to an announcement issued by Fresenius Kabi Oncology Limited (target company) on 30 May 2012, the stock exchanges were informed that its promoter shareholders have notified the target company of their...
Securities Laws Amendment Ordinance: An Overview
As some of us have observed time and again on this Blog, the substantive aspects of securities regulation have become progressively extensive and sophisticated in India. Over the last two decades of SEBI’s functioning, it has constantly updated securities laws to meet with market developments, whether it is in the primary markets (IPOs, QIPs, etc.) or in the secondary markets (insider trading...
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