Blog Posts
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The Tale of the Resigning Director
[Posted by Umakanth Varottil] In the aftermath of events that occurred at Satyam and Nagarjuna Finance, there has been a mass exodus of independent non-executive directors from boards of Indian listed companies. More often that not, there is no apparent reason offered for resignation by such directors. As we had discussed in an earlier post,…
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SEBI prohibits issue of shares with “superior” rights
[Posted by Jayant Thakur] SEBI has issued a circular dated July 21, 2009, to make amendments to prohibit issue of shares with superior voting rights by listed companies. This is pursuant to SEBI announcement discussed by Mr. Umakanth earlier in this blog here and that post makes an interesting analysis of the term “superior voting…
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Venture Capital – Foreign and Domestic: Some Comparisons
[Posted by Umakanth Varottil] Consistent with the expansion of the venture capital industry in India, the regulatory regime has been formulated with a view to foster such growth. While the domestic venture capital industry is governed by the SEBI (Venture Capital Funds) Regulations, 1996, the foreign venture capital industry (investing into Indian companies) is governed…
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Greater Role for Judicial Intervention in Foreign Arbitration
[Posted by V. Niranjan] The decision of the Supreme Court in Bhatia International and its implications are well known, and have been discussed on this blog on several occasions. In a recent judgment, the Supreme Court has further entrenched the decision. The decision, Citation Infowares Ltd. v. Equinox Corporation, (2009) 5 UJ 2066 (SC), raised…
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“Clarifications” by SEBI to the additional 5% creeping acquisition requirements
[Posted by Jayant Thakur] Readers may recollect that SEBI had amended the Takeover Regulations vide a notification dated October 30, 2008 and a 5% creeping acquisition was introduced for holding between 55-75% under certain conditions. This notification was discussed by me in this blog here. Certain concerns were raised as to the interpretation of the…
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A Dubious Interpretation of Dharmendra Textile
[Posted by Shantanu Naravane] Three earlier posts have discussed the decision of the Supreme Court in Dharmendra Textile v. Union of India, and how two benches of the ITAT, in Pune and Bombay, have attempted to narrow down the scope of the decision. This reading down has been done in cases where the fact scenarios…
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Competition Law in Transition: Multiplicity of Regulators
[Posted by Umakanth Varottil] In competition law, there seems to be a duopoly situation as far as the regulatory sphere is concerned. The Competition Commission of India (CCI) is already in place with several provisions of the Competition Act, 2002 having been notified to take effect from May 20, 2009. Moreover, the CCI has also…
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An Analysis of the LLP Act
[Posted by Umakanth Varottil] A paper titled The Indian LLP Law: Some Concerns for Lawyers and CAs by Amit M. Sachdeva and Sachin Sachdeva has been posted on SSRN. Here is the extract: With a view to giving the entrepreneurs the necessary regulatory support, India enacted its first law on limited liability partnerships in December…
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Is a tax avoidance motive necessary for application of Transfer Pricing provisions?
[Posted by Mihir Naniwadekar] In a recent decision, ACIT v. MSS India, ITA No. 393/PN/07, the Pune Bench of the Income Tax Appellate Tribunal had to consider an interesting issue pertaining to the application of transfer pricing provisions. On an appeal after a transfer pricing assessment, the CIT (Appeals) had held in favour of the…
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SEBI Notification Regarding Anchor Investors, etc.
[Posted by Umakanth Varottil] RNI-1300 A couple of weeks ago, we had discussed some primary market reforms that were announced by SEBI. Most of those reforms have now been notified by SEBI by way of amendments to the SEBI (Disclosure and Investor Protection) Guidelines, 2000. The notification contains a fair amount of detail regarding anchor…