Category: Uncategorized
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Direct and Indirect Foreign Investment: Is There Clarity Now?
Last week, we had blogged about new guidelines that were announced on indirect foreign investments, wherein some questions were raised regarding the scope of these guidelines. However, since then, the Government has issued two Press Notes on February 13, 2009 that contain detailed provisions for implementation of the new guidelines. Press Note 2 of 2009…
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Proposal for Uniform Par Value on Shares
In a previous post, we discussed the difficulties posed by the current system of par value of shares whereby companies are free to determine the par value of their shares. Some of these difficulties will be addressed in SEBI’s proposal to create a uniform par value system for all listed companies. However, the current proposal…
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SEBI amends Takeover Regulations – but on a narrow, Satyam-type cases, compass
SEBI has amended the Takeover Regulations today, Friday, 13th February 2009 (see here) and the subject is what we had all been expecting and that it is an enabling provision to exempt open offer requirements in Satyam-like cases. The amendment empowers SEBI to exempt from one or more provisiions of the Chapter III of the…
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“Beyond Satyam: Analyzing Corporate Governance in India”
That was the theme for a panel discussion organized last week in New York by the Jindal Global Law School. The panel consisted of internationally renowned academics and practitioners of corporate governance: Mr. Roel Campos, former SEC Commissioner, Professor John Coffee of Columbia Law School, Professor Michael Useem of the Wharton Business School and Professor…
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FDI in Indian Investing Companies
Indirect investment into Indian operating companies that are the subject matter of sectoral percentage caps on foreign investment has always been a vexed question. For instance, if a foreign company invests directly into an Indian operating company, and also invests in another Indian company that in turn invests into the operating company, how should the…
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Lessons for Financial Sector Regulation
Lloyd Blankfein, the chief executive of Goldman Sachs, offers his explanation of the things that went wrong in the financial services sector which resulted in contagion and the global financial crisis. In his column in the Financial Times, Blankfein outlines the failings and the lessons from the crisis: – risk management should not be predicated…
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Dealing with Duopoly in a Regulated Sector
A recent episode involving determination of fees by commodity exchanges has sparked off an intense debate on the role of a regulator in dealing with a duopoly situation. The regulator here is the Forward Markets Commission (FMC) and the players the two commodities exchanges, NCDEX and MCX. The trigger is a decision by the FMC…
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Disclosure of Pledge of shares of Promoters – some more thoughts
SEBI had notified amendments requiring disclosure of pledged/encumbered shares of Promoters that were discussed preliminarily here where the links of the notifications were also given. A reading of these notifications, issued differently over a few days, but read together, reveals some points worth highlighting here. 1. It may be recollected that now there are three…
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SEBI provides disclosure formats for pledged shares of Promoters
Further to my earlier post here, SEBI has issued today, 3rd February 2009, two circulars which essentially lay down formats for disclosures of pledged shares by Promoters and related matters. The first one gives the format for disclosures pursuant to newly introduced Regulation 8A of the Takeover Regulations and the second one provides for amendment…
