Blog Posts
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Spiralling Effects of the Financial Crisis
[Posted by Umakanth Varottil] (The global financial crisis is now at a stage where the debate is transcending from one of decline in bottomlines of companies, falls in stock markets, tightening of credit and the like to wider issues that have greater social ramifications. If these issues are not dealt with appropriately, it could lead…
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Updates: Bits of Interest
[Posted by Umakanth Varottil] Very often, we come across interesting pieces of information pertaining to topics covered on this Blog that may not necessarily require in-depth analysis or discussion. At the same time, such information may be of relevance to some of our readers. In order to bridge this gap, we have provisionally included a…
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Competition Commission: Delays in Merger Control
[Posted by Umakanth Varottil] Although the Competition Commission is expected to become functional soon, it appears from press reports that its role pertaining to merger control will commence only in due course and not immediately. The draft of the Competition Commission of India (Combinations) Regulations (discussed earlier on this Blog) is still subject to discussion…
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Reactions to the Satyam Sale
[Posted by Umakanth Varottil] The swiftness with which the sale of Satyam was effected has made headlines (please see links below). At stake were not only the interests of the company and its stakeholders (including shareholders, employees, customer, and so on) but also the credibility of India as an investment destination (particularly in the IT…
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The G20’s pledge to crack down on tax havens
[Posted by V. Niranjan] The most significant outcome of the recently concluded G20 summit is perhaps its resolve to crack down on tax havens – unprecedented as it is, its implications are not entirely clear. In the communiqué of April 2, the G20 promises to “take action against non-cooperative jurisdictions, including tax havens” and declares…
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A Much Needed Reading Down of Dharmendra Textiles
[Posted by Shantanu Naravane] An earlier post highlighted the implications of the decision of the Supreme Court in Dharmendra Textiles (306 ITR) on penalty proceedings under the revenue laws, including the Income Tax Act. The Court there overruled its earlier decision in Dilip Shroff, and concluded that there is no requirement of mens rea in…
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Reputational Sanctions in Corporate Governance
[Posted by Umakanth Varottil] Who Shall Govern? CEO/Board Power, Demographic Similarity, and New Director Selection The Satyam episode has led to debates about inadequacies in corporate governance norms in India. One of the issues currently being discussed pertains to the level of investor activism in the Indian markets. Compared to the developed economies such as…
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SEC Proposals to Curb Short Selling
[Posted by Umakanth Varottil] Who Shall Govern? CEO/Board Power, Demographic Similarity, and New Director Selection The U.S. SEC earlier this week announced a set of proposals to curb short selling. One the one hand, it is argued by proponents of short selling (primarily institutional investors such as hedge funds) that such activity helps contribute to…
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Staid Capital Markets
[Posted by Umakanth Varottil] Primary capital market activity in the form of public offerings and rights offerings is virtually down to a trickle. While that is not at all surprising considering the somber market conditions, some numbers have been recently reported in the Business Standard as follows: Fund mobilisation through initial public offerings (IPOs) touched…
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AAR doubts Ishikawajima – Territorial Nexus and Royalties
[Posted by V. Niranjan] An earlier post discussed the taxability of royalties paid to non-residents for technical services. There has been substantial conflict in decisions on this point. Under Section 9(1)(vi) of the Income Tax Act, 1961, royalties payable by non-residents in respect of a right, property or service utilized for the purpose of making…