Category: Uncategorized
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Bombay High Court on Share Transfer Restrictions
The question of whether transfer restrictions imposed by agreement on shares of a listed company are enforceable has been a vexed one. Numerous decisions of the Supreme Court as well as High Courts had expressed somewhat different views on the nuances of the issue. However, some stability was brought about in 2010 by a decision…
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Exemptions to Government Companies: A Corporate Governance Perspective
[The following post is contributed by Shriya Jain, Fourth year student & Param Pandya, Fifth year student of Gujarat National Law University, Gandhinagar, Gujarat. The authors can be contacted at shriyaj11@gnlu.ac.in & paramp10@gnlu.ac.in respectively]. A government company is defined under section 2(45) of the Companies Act, 2013 (‘2013 Act‘) as a company in which not less…
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Subordinated debentures – A Capital Supporting Instrument
[The following guest post is contributed by Vinita Nair of Vinod Kothari & Co. The author may be contacted at vinita@vinodkothari.com] Non Banking Financial Companies (NBFCs) in India are always seeking sources of raising funds. Capital is costly and therefore NBFCs rely more on public funds. Public funds as defined under the Systemically Important Non-Banking…
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SEBI’s Action on Illegal Collective Investment Schemes
[The following guest post is contributed by Pavit Singh Kochar, a legal associate (corporate) with KNM & Partners Law Offices, New Delhi] The Securities and Exchange Board of India (SEBI), the Indian market regulator has been taking significant steps over the last couple of years by protecting the interests of retail investors due to their…
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Supreme Court on SEBI’s Jurisdiction Over GDRs
The Supreme Court in Securities and Exchange Board of India v. Pan Asia Advisors Ltd. clarified that the jurisdiction of the Securities and Exchange Board of India (SEBI) extends to the issuance of global depository receipts (GDRs) by Indian companies to foreign investors, and also to ensnare lead managers to such issuances if they have…
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Metal to Paper: India’s Sovereign Gold Bonds
[The following guest post is contributed by Rishi A, a fourth year student of Hidayatullah National Law University] The Government of India recently released a concept paper on Sovereign Gold Bonds. It has been proposed that these bonds would carry a fixed rate of interest of around 1.5-2%, which can be further raised by individual…
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MCA’s Exemption Notification for Government Companies
[The following guest post is contributed by Vinita Nair of Vinod Kothari & Co. The author may be contacted at vinita@vinodkothari.com.] By way of a notification dated June 5, 2015 exempted Government companies, private companies, section 8 companies and nidhi companies from complying with certain provisions of the Companies Act, 2013 (“Act, 2013” or “Act”…
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Analysis of the New SEBI Promoter Re-classification Norms
[The following guest post is contributed by Shashank Prabhakar, a Senior Associate with Finsec Law Advisors. These are the author’s personal views] Shareholders in a listed company are classified under two broad categories, i.e., those that belong to the promoter / promoter group and those shareholders who are members of the public with no familial…
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MCA’s Exemption Notification for Section 8 Companies
[The following guest post is contributed by Nitu Poddar of Vinod Kothari & Co. The author may be contacted at nitu@vinodkothari.com. By way of a notification dated June 5, 2015, the Ministry of Corporate Affairs (“MCA”) exempted Section 8 companies,[1] government companies private companies and nidhi companies from complying with certain provisions of the Companies…
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The Supreme Court on Penalties and Liquidated Damages
In its recent judgment in Kailash Nath Associates v DDA, the Supreme Court has considered some important questions relating to section 74 of the Indian Contract Act 1872. As its conclusions appear to depart from some well-known principles of contract law, the case warrants close attention. Section 74, of course, provides that the claimant in…
