Category: Uncategorized
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Satyam Computers – “Admission” of mammoth “fraud” – discussion and some updates
Ramalinga Raju, Chairman, of Satyam Computers is reported to have “admitted fraud” of Rs. 5040 crores (see amongst numerous other reports, this report). Without intending to overstate, I think, for India, this episode may be bigger than what Enron was for US. So many fundamental questions are likely to arise that the preliminary and obvious…
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All-pervasive lack of governance in the system
I wrote the following in my column in Business Standard today:- It is always tempting to write a ‘year that was’ piece towards the end of December. This column will not do so. Instead, it seeks to look at three unrelated current events that would remind one of how another year may go by, but…
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The Year That Was
A year ago, while ushering in 2008, there were strong signals that suggested challenging times were in the offing for the corporate sector. The global financial markets were reeling from the effects of the sub-prime crisis, and pundits had predicted the effect would be devastating. Those predictions, alas, turned out to be true – only…
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Pyramid Saimira: SEBI Investigation
A couple of days ago, the media carried reports of SEBI having directed one of the promoters to make an open offer to the shareholders of Pyramid Saimira Theatres Limited at a price that is at a substantial premium to current market price. However, just a day later, SEBI put out a clarification that it…
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FIPB Overrules Press Note 1 Objections
Press Note 1 of 2005 issued by the Department of Industrial Policy & Promotion (DIPP) requires foreign companies to obtain the prior permission of the Foreign Investment Promotion Board (and thereby making the automatic route for investment inapplicable) if they had a joint venture with another Indian partner in the same field. This condition is…
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Analysis of Recent SAT Rulings on Insider Trading and FUTP Against Dilip Pendse
(The following post is contributed by Bhushan Shah, an Indian lawyer currently pursuing a dual degree LL.M from New York University School of Law and National University of Singapore) The Securities Appellate Tribunal (‘SAT’ or ‘Tribunal’ ) recently set aside two orders (collectively referred as ‘Impugned Orders’ ) passed by market regulator i.e. Securities Exchange…
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The “Madoff Scheme” and Failure of Regulation
The expression “Ponzi scheme” is not something we are terribly familiar with in India. To be honest, I heard of this concept only a couple of years ago. But now, these words are resonating in the media after the alleged fraud by Bernard Madoff came to light last week. New York Times’ City Room Blog…
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Companies Bill, 2008: No advisory services by auditors
One of the important measures taken in the Companies Bill, 2008 is to prevent Chartered Accountants from offering actuarial, advisory and management services to companies which have engaged them as statutory auditors. Section 127 of the Bill provides: An auditor appointed under this Act shall provide the company only such other services as are approved…
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ARBITRAL PROCEEDINGS AND THE JURISDICTION OF COURTS
The case of Vijay Kumar Gupta v. Renu Malhotra, recently decided by the Delhi High Court, deals with the important issue of the definition of the word “Court” in the Arbitration and Conciliation Act, as well as the pecuniary jurisdiction of the High Court. In 1998, the decree-holder filed a petition before the Delhi High…
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LLP Bill Passed in Parliament
Media reports (here and here) indicate that the Limited Liability Partnership Bill, 2008 has been passed by Parliament. It was passed in the Lok Sabha on December 12, 2008, while the Rajya Sabha had already approved the Bill on October 24, 2008. The Ministry of Company Affairs has also published on its website two sets…
