[The following guest post is contributed by Niddhi Parmar of Vinod Kothari & Co.] Earlier under Companies Act, 1956 (section 2(23A)) the term “listed public companies” was in a manner that clearly excluded private companies. Consequently, listed private companies were exempt from certain provisions that were exclusively applicable to listed public companies. However, the Companies Act, 2013...
GNLU Moot on Securities and Investment Law
[The following announcement is being posted on behalf of the Gujarat National Law University] Gujarat National Law University is pleased to announce the inaugural edition of GNLU Moot on Securities and Investment Law, scheduled to be held from 11th to 13th September, 2015. Given the interest of the student community in the nuances of these laws and considering the fact that none of the existing...
The Indian Financial Code Draft II: Catalyzing “Too Big to Fail” In India?
[The following post is contributed by Mandar Kagade, who is a Policy Analyst at the Bharti Institute of Public Policy, Indian School of Business] The Indian Financial Code has proposed to constitute the Financial Stability & Development Council (“FSDC”) pursuant to Chapter 76 of the Code with the objective of fostering the stability and resilience of the financial system by identifying and...
Status of Subsidiary Private Companies in India – Cross Border Holdings
[The following guest post is contributed by Siddharth Raja, Founding Partner of Samvad Partners. Views are personal, and comments are welcome] The Ministry of Corporate Affairs’ (“MCA”) recent issuance of a notification providing for exceptions, modifications and adaptations in the application of the Companies Act, 2013 (the “2013 Companies Act”) to “private companies” has once again revived the...
Composite Caps for Foreign Investment Formalized
We had earlier discussed the Union Cabinet’s decision to create composite caps for foreign investment under various categories. That decision has now been formalized in the form of Press Note No. 8 of 2015 issued by the Department of Industrial Policy & Promotion, Government of India (“DIPP”). In the previous post, we had highlighted two outstanding issues from the Cabinet decision that were...
Participatory Notes
[The following guest post is contributed by Rishi A, a fourth year student of Hidayatullah National Law University] Introduction The Supreme Court appointed Special Investigations Team (“SIT”), in its report on how best to curb black money, made a number of recommendations. One of these was to check the misuse of participatory notes (“p-notes”). When the markets opened on the following...
Secretarial Standards – 1: Circulation of Signed Board Minutes
[The following guest post is contributed by Nivedita Shankar, Partner, Corporate Law Division at Vinod Kothari & Co.] Paragraph 7.6.4 of Secretarial Standards – 1 (“SS-1”) states that signed board minutes have to be circulated to all directors within 15 days of their signing. This is a novel requirement and is an addition to the already lengthy process surrounding finalisation of board...
SEBI Regulations Inapplicable to “Phantom” Stock Schemes
The SEBI (Share Based Employee Benefits) Regulations, 2014 (the “Regulations”) regulate various types of schemes offered by companies to their employees relating to shares. In two separate letters issued pursuant to requests for informal guidance, SEBI has stated that the Regulations are not applicable to phantom stock options and similar schemes that do not involve the actual issue or transfer...
Is the Alternate Listing Platform for Start-Ups Really an Alternative?
[The following guest post is contributed by Geeta Dhania, Partner and Abhyuday Bhotika, Associate at Luthra & Luthra Law Offices. Views are personal.] For any business to grow it is pertinent that it has access to capital and is able to complete the capital formation cycle. Companies should be able to access the funding they need for their growth and the investors should be able to smoothly...
Revitalising Distressed Assets Through the Joint Lenders Forum
[The following post is contributed by Dhanush. M, a 4th year studnent at the Jindal Global law School] The rapid growth of non-performing assets (NPAs), especially with regard to public sector banks (PSBs) is a major hurdle to the sustenance of the banking system. This prompted the Reserve Bank of India (RBI) to issue a paper in early 2014 titled “Framework ForRevitalising Distressed Assets and...
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