Blog Posts
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FDI: Reporting Under Automatic Route
Whenever foreign investors subscribe to an issue of shares by an Indian company, there are certain reporting requirements that need to be complied with. In terms of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, the reporting obligations arise at two stages: (i) within 30 days…
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Differential Voting Rights: A Markets Perspective
Economic Times carries the views and recommendations of various market participants about the feasibility and economics of issue of differential voting rights by Indian companies. One interviewee notes: “Differential voting rights can work every where in the world, and so also in India. These are ideally good instruments for passive investors, typically small investors, who…
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India Today: Law School Rankings
Spicy IP points to India Today magazine’s latest survey ranking law schools in India. This year’s results reveal the following order at the top in the overall ranking: 1. National Academy of Legal Studies & Research University (NALSAR), Hyderabad;2. National Law School of India University (NLSIU), Bangalore;3. Campus Law Centre, University of Delhi, Delhi;4. National…
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Some Lessons from Bear Stearns
The New York Times DealProfessor has a column Burying Bear Stearns that highlights the takeaways from the Bear Stearns saga, which incidentally are matters we often endeavour to stress on this blog. They are: – Moral hazard– Systemic risk– Corporate governance
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SWFs as FIIs; Other Amendments to FII Regulations
SEBI has announced a fairly detailed set of amendments to the SEBI (Foreign Institutional Investors) Regulations, 1995. One of the key amendments relates to the recognition of sovereign wealth funds (SWFs) as a category of investors eligible to invest into the Indian markets as FIIs. This marks a significant move because it makes clear the…
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External Commercial Borrowings Liberalised
In August 2007, the Government tightened its policies on external commercial borrowings (ECBs). However, subsequently, in view of the changed economic scenario in the country, it has decided to liberalise its policies on ECBs. In a circular issued yesterday, the Reserve Bank of India (RBI) now allows borrowers in the infrastructure sector to borrow up…
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A Progress Report on SEBI’s Recent Initiatives
LiveMint carries a report analyzing SEBI’s progress under its new chairman, Mr. C. B. Bhave, who completes 100 days in office. While several initiatives have been taken in the primary and secondary markets, there seems to be a lot to be done as far as legal and investigation matters are concerned. The report states that…
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Enabling SMEs Access the Capital Markets
Although the small and medium enterprises (SMEs) constitute a significant portion of India’s economy, they face several hurdles in accessing capital in a cost-effective manner. As far the capital markets are concerned, the SEBI (Disclosure and Investor Protection) Guidelines, 2000 provide several eligibility criteria for companies to qualify for being able to initiate public offerings.…
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Participatory Notes and Disclosure Requirements
In an earlier post, we had discussed the decision of the Securities Appellate Tribunal (SAT) setting aside a SEBI order that imposed a penalty of Rs. 1 crore on an FII for giving a false declaration regarding its issuance of participatory notes. Our guest contributor, Somasekhar Sundaresan, has written a column in The Business Standard…
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Financial Disclosures by Companies
A column by Rahul Roy in The Business Standard deals with the proposed revision and simplification of Schedule VI to the Companies Act. This schedule prescribes the presentation and disclosure requirements for financial statements. The column strenuously argues that the current version of Schedule VI is severely outdated and as to how it should be…
