Blog Posts
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Now, Kidnapping Insurance
Today’s Business Times, Singapore (page requires subscription) carries an interesting story that companies in India are taking out kidnapping insurance for their top employees located in high-growth hubs such as Hyderabad, Bangalore and Delhi suburbs Gurgaon and Noida. As for the nature of the policies taken, the newspaper reports: “The kidnapping-terror policies cover ransom, hiring…
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Participatory Notes: Regulating Complex Financial Instruments
Today’s Mint carries a column by Niranjan Rajadhyaksha that deals with the issues relating to regulation of complex financial instruments such as participatory notes that are held by investors like hedge funds. Referring to the classic debate between public regulation and market regulation, he states: “Regulators have two options: to demand more clarity on what…
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Insider Trading and Short Swing Profits
SEBI yesterday issued a Consultative Paper on introduction of ‘Short Swing Profit’ regulations in India. Under this proposal, any insider would be compelled to surrender profits to the company that are derived from a transaction involving the purchase and sale of securities by the insider within a period of six months. The consultative paper sets…
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REITs on the Anvil
Real estate investment trusts (REITs) are similar to mutual funds. However, unlike mutual funds that usually hold securities, the underlying assets held by REITs are constituted by real estate properties. Investors in REITs can participate in returns from these real estate investments. The last couple of years have seen a boom in the real estate…
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Promoters’ Contribution; SEBI Ruling in the Reliance Power Case
In its order passed yesterday, the Securities and Exchange Board of India (SEBI) ruled that shares acquired by the promoters of Reliance Power Limited (RPL) pursuant to a scheme of amalgamation approved by the High Court of Bombay would be eligible for computation of promoters’ contribution under the SEBI (Disclosure and Investor Protection) Guidelines. SEBI…
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Contractual Mergers a Possibility
Presently, accomplishing a merger of two or more companies involved a fairly detailed process that lasts about four to six months, if not more. Under Sections 391 to 394 of the Companies Act, 1956, apart from the approval of the shareholders (and sometimes creditors) the merger also requires the sanction of the appropriate High Court…
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Department of Economic Affairs Internships; For Law Students Too
The Economic Times carries a story that the Department of Economic Affairs (DEA), which is part of the Ministry of Finance, has devised an internship programme to enable interaction between its officials and students pursuing higher studies in the field of economics, finance and management. It offers interesting options for law students as well. The…
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Expanding Investment Horizons for Trusts
Historically, investment avenues for funds held by trusts have been limited. This is on account of Section 20 of the Indian Trust Act, 1882 which contains very specific instruments in which trusts can invest. These are in the nature of risk-free instruments such as government securities, bank deposits and the like, and does not include…
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M&A: Tackling Ambiguity in Deal Documentation
M&A lawyers are accustomed to drafting and negotiating contracts that contain complex terms and conditions relating to the performance of obligations by parties and remedies for their breach. It is not out of place for acquisition agreements to contain clause A that operates “notwithstanding any other provision contained in this Agreement”, and for clause B…
