Blog Posts
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More on the “Decoupling” Theory
[Posted by Umakanth Varottil] The previous two posts (here and here) have argued that the “decoupling” theory, when it comes to emerging markets (like India and China), is a myth. Here is some additional analysis in an article in the Economist: “INVESTORS were until recently big fans of the “decoupling” theory, the notion that Asian…
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Stock Market Turmoil and the Role of Regulation
[Posted by Umakanth Varottil] This is a cross-post from the Law and Other Things blog, to which also I contribute. Riding the downward tide of the global capital markets, Indian stock prices too tumbled 1,408 points on Monday, January 21, 2008 making investors poorer by $155 billion in a single day. The rout continued on…
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The Asian Stock Market Meltdown
[Posted by Umakanth Varottil] The oft-repeated adage that goes “when America sneezes, the rest of the world catches a cold” was proven to be true once again when stock markets across Asia crashed, some to record levels. The Indian markets were not to be spared—the Sensex tumbled 1,408 points on Monday, and share prices continued…
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Competition Commission: Draft Merger Regulations Now Available
[Posted by Umakanth Varottil] An earlier post on this blog noted the concerns of the industry relating to the merger regulations proposed by the Competition Commission and also certain comments made by the acting chairman of the Competition Commission of India to allay any fears of the industry. The proposed draft of the Competition Commission…
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IPOs: Listing Day Price Band
[Posted by Umakanth Varottil] Initial public offerings by companies are beset with the aspect of what is known as ‘underpricing’. This is when companies accessing the capital markets for the first time experience a significant jump in the stock price on the first day of trading. This works to the advantage of investors who have…
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Competition Commission and Merger Regulation
[Posted by Umakanth Varottil] The Competition Commission is working on the draft of the Competition Commission (Combinations) Regulations, which are expected to be announced shortly. Due to concerns from the industry regarding these regulations operating as a serious hurdle to M&A activity in the country, there are indications that the Competition Commission will introduce provisions…
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Stoneridge: US Supreme Court Limits Scope of Securities Law Suits
[Posted by Umakanth Varottil] BackgroundA significant decision in the area of securities laws was handed two days ago by the US Supreme Court in the case of Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc. In its judgment (available here), the court (by a 5:3 majority) held that private actions for securities fraud (under Section 10(b)…
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Indo-Mauritius Tax Treaty: Benefits to Stay
[Posted by Umakanth Varottil] Indications are that the Double Taxation Avoidance Treaty between India and Mauritius will stay despite pressure from the Indian tax authorities. In fact, the Treaty may be strengthened to withstand repeated scrutiny from the Indian tax authorities. The Economic Times reports: “The controversial double tax avoidance treaty between India and Mauritius…
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Comparative Corporate Governance (Part II)
[Posted by Umakanth Varottil] Continuing from the previous post on this topic: 4. The Convergence vs. Divergence DebateThe dominance of managers over shareholders in the US, the role of institutions in the UK, that of banks and labour unions in Germany, the existence of complex cross holding structures in East Asia (such as chaebol in…