Blog Posts
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Hostile Takeovers & Embedded Defences
[Posted by Umakanth Varottil] The Financial Times reported last week in the context of EADS (the maker of the Airbus aircraft) that “France and Germany are finalising changes to EADS’ corporate by-laws to prevent foreign investors building significant stakes in – or even taking over – Europe’s flagship aerospace and defence company.” The plan is…
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Immediate agenda for reform before SEBI
[Posted by Somasekhar Sundaresan] When a new chairman takes charge at the Securities and Exchange Board of India (“SEBI”) the media tends to be full of what the new chairman ought to be doing. Here are some action items that SEBI ought to address as a matter of priority:- a) The SEBI (Foreign Institutional Investors)…
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Readings on India Knowledge@Wharton
[Posted by Umakanth Varottil] The current issue of India Knowledge@Wharton contains a few interesting readings that pertain to the Indian corporate and financial sector. First, “India’s 2008 Budget: Few Incentives for Global Investors, but a Windfall for Farmers” discusses the Budget and its implications, primarily to foreign investors. Second, in The Public Benefits of Public…
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Taxing Sovereign Wealth Funds
[Posted by Umakanth Varottil] Just as hearings are being conducted before two subcommittees of the U.S. House of Representatives in relation to sovereign wealth funds (SWFs), and as the International Monetary Fund is stepping up efforts to formulate a code of conduct to regulate SWFs, a new story has emerged regarding the possible tax position…
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SEBI Rationalises Filing Fee Structure
[Posted by Umakanth Varottil] The following post is contributed by Somasekhar Sundaresan The first board meeting under the new Chairman of the Securities and Exchange Board of India (“SEBI”) has taken a very significant decision. SEBI has slashed the ad valorem fee rates attendant with filing of various draft offer documents, by nearly 80%, and…
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Insider Trading Regulations to Undergo Further Amendments
[Posted by Umakanth Varottil] Readers may recall that the SEBI (Prohibition of Insider Trading) Regulations, 1992 underwent detailed amendments in 2002. This was primarily to plug several loopholes in the law, some of which were exposed in the few insider trading cases that came up for hearing under the original regulations, the Hindustan Lever Case…
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Foreign Investments into India: Tax Structuring
[Posted by Umakanth Varottil] Foreign investors invest funds into Indian companies in anticipation of financial returns. These returns usually take the form of dividend payment by the Indian companies, interest payment (in case of debt securities that are yet to be converted into equity) and capital gains on sale of investment. Although all three types…
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FCEB Taxation
[Posted by Umakanth Varottil] 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…
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Reverse Mortgages Explained
[Posted by Umakanth Varottil] 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…