[Pammy Jaiswal is a Partner at Vinod Kothari and Company, and can be reached at [email protected]] The Securities and Exchange Board of India (SEBI) has issued a discussion paper on 22 May 2019 on proposed changes to the conditions relating to a buyback. While one of the proposed changes in terms of computing the buy-back size is logical, the other change on taking the debt to equity...
Call for Papers: The National Law School of India Review
[Announcement from the National Law School of India Review] About NLSIR The National Law School of India Review (NLSIR) is now accepting submissions for its upcoming issue – Volume 32(1). The NLSIR is the flagship law review of the National Law School of India University, Bangalore, India. The NLSIR is a bi-annual, student edited, peer-reviewed law journal providing incisive legal scholarship on...
Obliterating Unnecessarys Delays: SEBI Proposes 10% Mandatory Deposits for Appeal
[Shubham Gupta is a 4th Year Student at the Institute of Law, Nirma University] The Indian judicial system is grossly afflicted with litigation, some of which tends to be frivolous. The Supreme Court, in its Sahara decision, stated that ‘ways and means need to be evolved to deter the litigants from their compulsive obsession toward senseless and ill-considered claims’. Therefore, with the aim of...
Battle for Claiming Secured Assets: Insolvency Code vs SARFAESI Act
[Jai Bajpai is a student at the School of Law, University of Petroleum and Energy Studies, Dehradun] The objective of the Insolvency and Bankruptcy Code 2016 is to determine solutions for non-performing assets. It is to provide a collective mechanism for resolving insolvency within a framework of equity and fairness to all stakeholders and to preserve economic value in the process. It prescribes...
Clipping the Powers of the CCI: Reflections from the Bharti Airtel Case
[Vrinda Aggarwal and Advik Rijul Jha are Fourth Year Law Students (BA-LLB) at Jindal Global Law School, Sonipat, Haryana] On 5 December 2018, the Supreme Court held that when there is a conflict between the jurisdiction of the Competition Commission of India (CCI) and the Telecom Regulatory Authority of India (TRAI), the latter is to prevail. Under section 18 of the Competition Act, 2002, the CCI...
The Need to Revisit Merger Control Thresholds in a Data Driven Economy
[Priyadarsini T P is a 4th year B.A LL.B (Hons) student at the National University of Advanced Legal Studies, Kochi] Implications of data on competition are manifold. One of the ways in which these manifest is when a horizontal merger takes place between two undertakings in a market where data are the input for delivery of a certain service. The adverse effects may be more serious when the market...
IBC and its Interface with Other Legislation: NCLT Clears the Air Again
[Rongeet Poddar is a final year BA LLB (Hons.) student at the West Bengal National University of Juridical Sciences, Kolkata and Yashika Gupta a fourth year BA LLB (Hons.) student at Hidayatullah National Law University] The Principal Bench of the National Company Law Tribunal (NCLT) has, in April this year, ordered the Securities and Exchange Board of India (SEBI) to de-attach the immovable...
Complexities in Regulating Artificial Intelligence & Machine Learning in the Indian Financial Market
[Rishabh Sharma is a IV Year student at NALSAR University of Law, Hyderabad] The Algorithmic Trading Market: Global Industry Analysis, Trends, Market Size, and Forecasts up to 2025 Report forecasts the global algorithmic market in trading to expand at a compound annual growth rate of 11.8 percent between the period from 2019 to 2025. In the backdrop of such a rapidly booming global trading...
RBI’s Revised Circular on Resolution of Stressed Assets
[Aayush Mitruka and Vividh Tandon graduated from ILS Law College, Pune and are currently working with law firms in Delhi and Mumbai respectively. They can be reached at [email protected] and [email protected]] The Reserve Bank of India (RBI) announced the much-awaited revised circular on resolution of stressed assets on 7 June 2019. It may be recalled that the Supreme Court had...
Call for Blog Posts: RMLNLU Arbitration Law Blog
[Announcement from RMNLU’s Society for Excellence in Arbitration Law] RMLNLU’s Society for Excellence in Arbitration Law invites guest contributions to its blog. Offers for contributions are welcome from academics (including researchers and Ph.D. students), practitioners (lawyers, NGO employees, and civil servants) and students. Blog posts could cover any area of Arbitration Law, but must (a)...
Demystifying Pre-Deposit Clauses in Arbitration Agreements
[Anirudh Lekhi is an associate at a law firm in New Delhi, having graduated from National University of Juridical Sciences in 2017] Parties elect to incorporate pre-deposit clauses (PDCs) in arbitration agreements to principally weed out frivolous claims. Typically, PDCs provide for parties to deposit a portion of the amount claimed, with a bank, before initiating arbitration. In this regard, a...
Financial Statements of Foreign Subsidiaries of Indian Listed Companies
Corporate group structures are common among Indian listed companies which hold shares in subsidiaries both in India and other countries around the world. Due to differences in financial reporting requirements in all jurisdictions where the corporate group is present, the Companies Act as well as regulations issued by the Securities and Exchange Board of India (SEBI) have sought to harmonize such...
Concept of Retiring Auditors under the Companies Act, 2013
[Munmi Phukon is a Principal Manager at Vinod Kothari & Company, and can be reached at [email protected]] Five years since the implementation of the Companies Act, 2013 (CA 2013), a common agenda pertaining to appointment/ reappointment of statutory auditors is going to be placed before the shareholders in the ensuing annual general meetings of most of the companies. Since the scheme of...
Call for Papers: NLIU-Trilegal Summit on Corporate and Commercial Laws
[The following is an announcement from the Centre for Business and Commercial Laws, NLIU Bhopal] The Centre for Business and Commercial Laws of National Law Institute University, Bhopal (NLIU), in collaboration with Trilegal, is organizing the 5th NLIU-Trilegal Summit on Corporate and Commercial Laws on 31 August 2019. The present edition of the summit is an effort to continue the successful...
Bombay High Court Differentiates Options from Forward Contracts
[Debayan Gangopadhyay is a 3rd year B.A., LL.B. student at ILS Law College, Pune] An option in securities popularly known in forms such as “call” or “put” option is typically a clause in an agreement for transfer of shares through which the option holder gets the option to sell its shares to or buy additional ones from the transferor on a future date. An “option” is the right or entitlement, but...
Who Does India’s Draft Enabling Framework for Regulatory Sandbox actually Enable?
[Anupriya Dhonchak is a student at the National Law University New Delhi A longer version of this post is available on the Kluwer Competition Law Blog] One of the salient recommendations of the Reserve Bank of India (RBI) Working Group’s Report on FinTech and Digital Banking was the introduction of a regulatory sandbox in India. A regulatory sandbox is an innovative tool which allows market...
Specially Defined Relevant Markets: A Case for Reconsideration
[Kavya Lalchandani is a 3rd year Student at National Law University Odisha] Abuse of dominant position is defined under section 4 of the Competition Act, 2002 as the ability of an enterprise to behave independently of the competitive forces in the market and affect the consumers in its favour. It is a position of strength that is enjoyed by a particular enterprise in the relevant market. Being a...
The Enforceability of Investor Rights in Indian Private Equity
[Arjya B. Majumdar is an Associate Professor at Jindal Global Law School] Globally, private equity (PE) and venture capital funds are among the primary factors supporting entrepreneurship and furthering growth in companies. These investments are ordinarily made in exchange against some form of minority shareholding in the investee company, such as equity shares or convertible preference shares or...
Taxation as a Form of Regulating Cryptocurrencies In India
[Samarth Chaudhari is a final year LL.B. student at Jindal Global Law School, Sonipat] Cryptocurrencies, derived from the innovation of blockchain technology, can function as a reliable online payment method with several benefits.[1] However, the Reserve Bank of India (RBI) has unambiguously prohibited all financial institutions regulated by it from dealing in cryptocurrencies and its related...
SEBI’s Framework for Innovation Sandbox – Infusing FinTech into India’s Securities Markets
[Mansi Mishra is a 2nd year B.A.LL.B. (Hons) student at National Law Institute University, Bhopal] The Securities and Exchange Board of India (SEBI), amidst much speculation in the securities market, proposed the “Framework for Innovation Sandbox” by way of its circular dated 20 May 2019. This post seeks to analyse the key proposals of the SEBI framework and to highlight the takeaways for the...
Trade Union as Operational Creditor: The Conundrum of Purposive Interpretation
[Vishal Hablani is a 4th year B.A.L.L.B. (Hons.) student at WBNUJS, Kolkata] Recently a judgment was passed by the Supreme Court in JK Jute Mill Mazdoor Morch v. Juggilal Kamlapat Jute Mills Company Ltd., wherein it was observed that a trade union could file an application in the capacity of an operational creditor, on behalf of workmen, for initiating the corporate insolvency resolution process...
Jurisdiction of Adjudicating Authorities over the Rejection of a Resolution Plan
[Piyush Rathi is a 4th year B.A. L.L.B student at NALSAR University of Law] Earlier this year in K. Sashidar v Indian Overseas Bank, the Supreme Court held that the adjudicating authorities, i.e., the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) have no jurisdiction or authority to analyse or evaluate the commercial decision of the Committee of...
The CoC Stalemate: Issue of Voting Thresholds and the Way Forward
[Shubham Kumar is a student from Hidayatullah National Law University, Raipur Ayushi Tiwari from Dr. Ram Manohar Lohia National Law University, Lucknow. Both are in their 3rd year B.A. LL.B.] The preamble of the Insolvency and Bankruptcy Code, 2016 (IBC) states that the objective of the IBC is to promote resolution over liquidation. Keeping the said objective in mind, the interpretation of...
Bombay High Court Cements the Continuing Jurisdiction of Arbitration-Seat Court during Enforcement
[Parimal Kashyap is a third year B.A., LL.B (Hons.) student at Dr. Ram Manohar Lohiya National Law University, Lucknow] Is an arbitral award synonymous to the decree of a court? A reading of section 36 of the Arbitration and Conciliation Act 1996 may suggest a positive answer. The provision dealing with enforcement of domestic awards reads: 36. Enforcement.—(1) Where the time for making an...
Announcement: 16th Consilience Conference at NLSIU, Bangalore
[Announcement on behalf of the Law and Technology Society, NLSIU Bangalore] The Law and Technology Society is pleased to host the 16th Consilience Conference on “Intermediary Liability and Content Regulation: Principles, Perspective and Solutions” on 25th May at the university campus in Bangalore. The objective of this year’s conference is to bring together experts from diverse backgrounds...
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