Blog Posts
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Direct Market Access to Institutional Investors
[Posted by Umakanth Varottil] SEBI yesterday issued a circular to the BSE and NSE with a view to granting direct market access to institutional clients through the brokers’ infrastructure. The rationale for the move is described in the circular as follows: “Direct Market Access (DMA) is a facility which allows brokers to offer clients direct…
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Foreign Investment in the Small Scale Sector
[Posted by Umakanth Varottil] The small scale sector has continued to receive protection from the Government when it comes to foreign investment, despite liberalisation pervading in the economy generally. It is time to alter that position, argues an editorial in today’s Financial Express: “Foreign direct investment (FDI) in small-scale industry (SSI)? It could be just…
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Derivatives in Commodities: Some Issues
[Posted by Umakanth Varottil] This is a cross-post from the Law and Other Things Blog.The issue over commodities exchanges and trading of futures and options in respect commodities has been brought to the fore with the Left parties deciding not to support the Forward Contracts (Regulation) Amendment Bill. By way of background, commodities trading can…
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Accounting for Derivatives Exposure
[Posted by Umakanth Varottil] A recent announcement by the Institute of Chartered Accounts of India (ICAI) has added to the imbroglio over derivatives. Accounting Standard 30 (AS30) that deals with accounting for derivatives was to become mandatory with effect from April 1, 2011. However, the ICAI in an emergent decision has called for an early…
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Improving Stock Sales Practices of Intermediaries
[Posted by Umakanth Varottil] Stock intermediaries around the world, such as brokers and sub-brokers, who recommend and sell securities to clients, are regulated by the securities regulatory agencies of the countries where they operate as well as the stock exchanges of which they are members. However, the stock intermediation industry has been facing several problems…
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Inadequacies of the FII Regime
[Posted by Umakanth Varottil] One of our guest contributors, Somasekhar Sundaresan, has a well-argued column in the Business Standard in which he calls for an overhaul of the regulations that govern foreign institutional investors (FIIs) in India. Here it is: The regulatory regime for foreign institutional investors (FIIs) is the Indian capital market’s window to…
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Tata-JLR Acquisition: The Legal Team
[Posted by Umakanth Varottil] Legal Week has a news report on the law firms that advised on the transaction. They are Hogan & Hartson (for Ford), Herbert Smith (for Tatas) and Allen & Overy (for the consortium of banks). The report, however, does not mention about the involvement of any law firms on the Indian…
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Fairness Opinions: Art or Science?
[Posted by Umakanth Varottil] It has been said that valuation of a company is more of an art than a science. This has manifested again in the Bear Stearns transaction that is currently hogging limelight among legal circles. In this case, Lazard issued a fairness opinion when JP Morgan’s transaction with Bear Stearns was first…