In 2010, the Working Group on Foreign Investment in India made an important set of recommendations in relation to the consolidation of various types of investment routes for foreign investors making portfolio investments into the Indian markets. The idea was to do away with the various routes presently existing, such as for non-resident Indians (NRIs), foreign institutional investors (FIIs) and...
FDI in NBFC Sector Relaxed
Foreign direct investment (FDI) in non-banking finance companies (NBFCs) has been subject to minimum capitalisation norms. For example, any foreign investment of more than 75% in an NBFC requires a minimum capitalisation of US$ 50 million through foreign inward remittances. As far as downstream investments are concerned, the Conslidated FDI Policy Circular provides that the relevant caps and...
Companies Bill Back on the Anvil
In July this year, the Standing Committee on Finance presented its report on the Companies Bill, 2011 suggesting some changes. The recommendations of the Committee have been discussed here. After taking into account the Standing Committee’s views, the Cabinet yesterday approved certain amendments to the Bill, which have been set out in a press release (accessible on the PIB website). From the...
Ministry’s move to exempt shipping sector from the lens of Competition Act
[The following post is contributed by ACS Nidhi Ladha, who is a partner at Vinod Kothari & Co. She can be reached at [email protected]] The Competition Act 2002 [as amended by Competition (Amendment) Act, 2007] (the “Act”) supercedes the erstwhile MRTP Act and codifies a present-day competition law in India. The Act plays a twin role of making void all anti-competitive agreements...
Paper on “Peel-Off” Law Firms in India
Professor Jayanth Krishnan at the Indiana University Maurer School of Law has posted a paper titled Peel-Off Lawyers: Legal Professionals in India’s Corporate Law Firm Sector, which studies the phenomenon of lawyers leaving big law firms to set up their own practices. The paper is available on SSRN. The abstract of the paper is as follows: This study is about hierarchy within the legal...
Indian Journal of Arbitration Law
[The following announcement is posted on behalf of the Indian Journal of Arbitration Law] The inaugural edition of the Indian Journal of Arbitration Law (IJAL) () had been recently launched by Hon’ble Mr. Justice N.N. Mathur, Vice Chancellor, NLU Jodhpur & Chief Patron, IJAL on Thursday, September 27, 2012. The IJAL is a biannual peer reviewed student run journal, under the aegis of the...
Erroneous Legal Opinions and Criminal Liability
The Supreme Court has recently decided on the nature and extent of criminal liability that may be imposed on a lawyer who issues a legal opinion that is found to be erroneous. In what might be a matter of some relief to the legal fraternity, the court has set very high standards to be satisfied by the prosecution to charge a lawyer for the crime of conspiracy in defrauding a bank. In Central...
FDI Reforms Take Effect
We had earlier discussed the key aspects of the FDI reforms proposed by the Government. Unlike the previous occasion where the Government had to keep the FDI reforms in the retail sector in suspended animation, this time it was quick to notify the reforms that have now taken legal effect, as follows: Press Note No. 4 (2012 series): FDI in single-brand product retail trading; Press Note No. 5...
A Comment on the New FDI Reforms
The Government has attempted to stem the trend of economic policy paralysis by announcing a slew of measures yesterday with a view to enhancing foreign direct investment (FDI), including in some sensitive sectors which had witnessed political deadlock over the last year or so. The new measures relate to multi-brand retail, single-brand retail, civil aviation, power trading exchanges and...
IICA’s Legal Compliance Manual
I just came across a Legal Compliance Manual put together by the Indian Institute of Corporate Affairs (IICA). It contains a list of compliances required to be carried out on the part of businesses that arise under various central and state legislation. Areas addressed include corporate law, environmental law, labour law, tax law and other general laws. It is indeed a useful tool for...
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