Category: Uncategorized
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FCEB Taxation
In an earlier post on this blog, we analysed foreign currency convertible bonds (FCEBs). Although there was nothing on this count in the Finance Minister’s budget speech, the Finance Bill contains provisions clarifying the taxation position on FCEBs and the shares that arise out of conversion. Today’s Hindu Business Line carries an article describing the…
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Reverse Mortgages Explained
Today’s Business Standard carries a column by Stanley Pinto that looks at reasons why reverse mortgages have failed in India. More importantly, it contains a lucid explanation of the concept: “The reverse mortgage facility allows senior citizens to unlock the value of their most valuable asset, their home, by mortgaging it and enjoying the use…
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Budget Impact
This year’s budget, termed by the media as a populist one, has received mixed reactions from the corporate sector. At the same time, it has not gone well with the stock markets, which fell following the budget announcements. The entire set of budget materials is available here. Now, we look at some of the key…
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Taxation Issues in Short Selling
An earlier post on this blog had discussed the introduction of short selling in the Indian market and its implications on the market. Today’s Hindu Business Line has an article that refers to lack of clarify in the taxation regime with respect to short sales. Obviously, there seem to be several loose ends to tie,…
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Corporate Governance Study
Research in areas of corporate governance involving Indian companies has not been substantial, compared to that in its emerging market counterparts such as China. However, a recent study that has been commissioned by the IFC Global Corporate Governance Forum in consultation with SEBI and the National Institute for Securities Markets (NISM) is likely to bridge…
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Should Insider Trading be Permitted?
An affirmative answer to this question will almost always be dismissed as outlandish. But, Henry Manne, who is considered the father of law and economics, has argued for deregulation of insider trading for the last 40 years. His ideas have encountered a barrage of criticisms from other legal scholars. Further, as far as I am…
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Analysing Foreign Currency Exchangeable Bonds (FCEBs)
When it came to borrowings in foreign currency, Indian companies hitherto had two options, namely (i) external commercial borrowings (ECBs) where they borrow monies in foreign currency, or (ii) foreign currency convertible bonds (FCCBs) where they issue bonds denominated in foreign currency that are convertible into shares of the issuer company. About a week ago,…
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Indian Sovereign Wealth Fund: Now a Possibility
Sovereign wealth funds (SWFs) have become the flavour of the day. Not only are the SWFs of various countries investing billions of dollars in companies around the world, they are generating a significant amount of skepticism from regulators in host countries urging greater transparency.As far as India is concerned, initial indications from the Reserve Bank…
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Guest Contributor: Somasekhar Sundaresan
It is my pleasure to introduce our guest contributor, Mr. Somasekhar Sundaresan Practice Focus: Capital Markets, Securities Laws, Banking and Non-banking Financial Services and Mergers and Acquisition involving listed companies. Somasekhar has extensive experience and expertise in the practice and evolution of securities laws in India. While primarily a transactional lawyer, he is intensely involved…
