Category: Uncategorized
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Lenders Empowered to Take Control over Distressed Firms
The Reserve Bank of India (RBI) yesterday conferred a significant power to banks to acquire control of borrower companies which fail to achieve prescribed milestones as part of their restructuring. Under this arrangement, the Joint Lenders’ Forum (or JLF, formed for the purpose of addressing distressed assets) may “convert the whole or part of the…
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Whether Land is a “Security” Under Collective Investment Schemes
[The following guest post is contributed by Prachi Pandya, who is the founding member of Corporate Attorneys and can be contacted at contact@corporateattorneys.in] It is a matter of interest that the trigger point of framing the SEBI (Collective Investment Schemes) Regulations, 1999 (the “CIS Regulations”) was owing to initiatives by private entrepreneurs undertaking plantation or…
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Finally, Some Exemptions to Private Companies
[The following guest post is contributed by Vinod Kothari and Aditi Jhunjhunwala of Vinod Kothari & Co. The authors may be contacted at vinod@vinodkothari.com and aditi@vinodkothari.com respectively.] The 9-lakh (0.9 million) odd private companies in India have already been subjected to unprecedented compliances required under the Companies Act, 2013 (the “Act”) given the financial year-end…
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Committee to Review the Companies Act
Although the Companies Act, 2013 is brand new and yet to be brought into force in its entirety, there is already a lot of discussion about the need to reevaluate the legislation. The Government has taken initial steps to address some of the issues by way of the Companies (Amendment) Act, 2015. However, as we…
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Liberalization of Investments by Non-Resident Indians
Non-resident Indians (NRIs) have long been considered as a separate category of investors who have enjoyed some privileges compared to other classes of foreign investors. NRIs have been allowed to investment either on a repatriable basis (with more stringent norms) and on a non-repatriable basis (with less stringent norms). Earlier this week, by way of…
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Dissecting SEBI’s Powers Under Section 11B of the SEBI Act, 1992: Part 3
[The following guest post is contributed by Kanwardeep Singh Kapany, and is a continuation of previous posts in Parts 1 and 2] Direction to disgorge does not amount to double jeopardy The expression disgorgement is a common term in developed markets across the world, though it is new to the securities market in India. The…
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A Novel Exception to Privity of Contract?
(The following guest post is contributed by Shivprasad Swaminathan, who is Associate Professor at the Jindal Global Law School) The Delhi High Court’s judgment Utair Aviation v Jagson Airlines formulates a novel ‘conduct, acknowledgement and admission’ exception to privity of contract. This post argues that neither is the exception doctrinally warranted, nor its invocation in the…
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Dissecting SEBI’s Powers Under Section 11B of the SEBI Act, 1992: Part 2
[The following guest post is contributed by Kanwardeep Singh Kapany, and is a continuation of a previous post in Part 1] Retrospective application Section 11B was introduced to the statute through the 1995 Amendments with effect from January 25, 1995. In a certain case before the Supreme Court of India,[1] the misconduct had taken place…
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Dissecting SEBI’s Powers Under Section 11B of the SEBI Act, 1992: Part 1
[The following guest post is contributed by Kanwardeep Singh Kapany, a 5th year B.S.L.LL.B student at ILS Law College, Pune. The author can be contacted at kanwardeepskapany@gmail.com. In this three-part series, the author analyzes the provisions of Section 11B of the SEBI Act, 1992 which confers wide powers on SEBI to regulate the capital markets.…
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Financial Assets and the Rights of Nominees and Successors
(The following guest post is authored by Sumit Agrawal, who is an Assistant Legal Advisor, Securities and Exchange Board of India at its Head Office in Mumbai. He can be contacted at mailsumitagrawal@gmail.com. Views are personal.) There is a frequent debate as to who will own an investor’s assets (shares and debentures, life insurance, provident…
