Category: Uncategorized
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Huge penalties being levied by SEBI following recent Supreme Court decision
SEBI has recently passed several orders levying penalty of crores of rupees for matters like non-filing of documents/information. What is interesting is that levy of such huge and flat penalties is said to be mandatory and inevitable following the mandate of recent decision of the Supreme Court in case of SEBI v. Roofit Industries…
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Corporate Governance Lessons from the Erstwhile Managing Agency System
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India Plans to Tap into Green Bonds
[The following guest post is contributed by Arundhuthi Bose, who is an Executive at Vinod Kothari & Co.] Introduction Issuing bonds to raise funds from investors is not a novel concept. A bond, in common parlance, is an instrument evidencing indebtedness of the bond issuer to the bondholders. Here, a debt instrument is issued by the issuer…
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Differentiated Banks – Leading the March Towards Financial Inclusion
[The following guest post is contributed by Neelasha Nemani, who is a 4th year B.A. LL.B. (Hons.) student from National Law University Odisha, Cuttack.] India’s impetus on financial inclusion is now stronger than ever. Recently, the Reserve Bank of India (RBI) granted an in principle approval to 11 entities to set up Payments Banks[1] and…
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Premium on Buyback: a Deductible Expenditure?
In an earlier post on this blog, Mr. Jayant Thakur had considered certain decisions of the Income Tax Appellate Tribunal (notably, Chemosyn v. ACIT) where the ITAT had held that “… premium paid by the company on buyback of shares of a warring shareholder group is deductible as business expenditure in the hands of the company…” It…
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Presumption in Insider Trading
Given the evidentiary problems in insider trading cases, SEBI has resorted to the use of presumptions in its enforcement of the SEBI (Prohibition of Insider Trading) Regulations, 1992. Some of the issues that arose due to this approach have been discussed in the past. These issues have resurfaced more recently in a short order of…
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Competition Law: Analysis of the COMPAT Order in Surendra Prasad v. CCI
[The following guest post is contributed by Sarthak Raizada and Kartikey Kulshreshtha, who are 4th year students at Dr. Ram Manohar Lohiya National Law University, Lucknow.] Introduction The Competition Act, 2002 (the “Act”), while still in the early stages of its development in India, has witnessed immense litigation. The Competition Commission of India (“CCI”) has…
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Contract Depriving a Party of Interest: Immorality and Public Policy
[The following guest post is contributed by Amitav Singh, a fourth-year student at the National University of Advanced Legal Studies (NUALS), Kochi] In a recent decision in Union of India v. M/s NK Garg & Co. (“NK Garg”), decided on 2 November, 2015, a single judge of the Delhi High Court (“Court”) held that any…
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Whether Collection of Margin on Derivative Trades is Mandatory?
[This post is contributed by Prachi Pandya, founding proprietress of Corporate Attorneys and Vanessa Fernandes, an intern at Corporate Attorneys] Despite being termed as a weapon of mass destruction by Warren Buffet, derivatives are still an integral part of stock market trading. Whilst purchasing equity, one has to pay the entire value of the shares…
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Problems with the RBI’s new ECB framework
[This guest post is by Pratik Datta and Shefali Malhotra, who are Consultants at the National Institute of Public Finance and Policy (NIPFP). They can be reached at prat.nujs@gmail.com and shefali.malhotra@nipfp.org.in respectively.] Introduction This blog had earlier explained the policy backdrop leading up to the Reserve Bank of India’s (RBI’s) draft framework for External Commercial…
