Tag: Capital Markets
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Personal Liberty vs. Public (Financial) Interest
[Posted by Umakanth Varottil] In the prolonging Sahara saga, following a contempt action initiated by SEBI last year the Supreme Court ordered judicial custody for Mr. Subrata Roy Sahara and certain other individuals. This is on account of their failure to comply with a previous judgment of the Supreme Court that orders two Sahara companies…
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Synchronised Trading: In Sync With the Law? – Part 2
[Posted by Umakanth Varottil] [The following guest post is contributed by Kanwardeep Singh Kapany (5th B.S.L.LL.B) and Mitravinda Chunduru (4th B.S.L.LL.B.), both students of ILS Law College, Pune This is a continuation of Part 1, which is available here] DEFENCES What amounts to commission of Illegal Synchronisation had been a moot point for quite a…
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Synchronised Trading: In Sync With the Law? – Part 1
[Posted by Umakanth Varottil] [The following guest post is contributed by Kanwardeep Singh Kapany (5th B.S.L.LL.B) and Mitravinda Chunduru (4th B.S.L.LL.B.), both students of ILS Law College, Pune] INTRODUCTION The on-line trading system on the stock exchange is a blind trading system, which maintains complete anonymity of the persons trading on it. It does not…
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SEBI Discussion Paper on “Revising the Capital Raising Process”
[Posted by Umakanth Varottil] There is a concern that issuers have resorted to private placements and qualified institutional placements (QIPs) to raise capital from specified investors rather than to public offerings of shares. This is due to the excessive burden and costs associated with a public offering of shares. Being cognizant of this tendency, SEBI…
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Reverse Cross-Listings: Foreign Companies Accessing the Indian Capital Markets
[Posted by Umakanth Varottil] Corporate and capital markets laws in India have allowed foreign companies to list in India in the form of Indian depository receipts (IDRs). While this facility was allowed with much fanfare, it has been accessed so far by only one company, i.e. Standard Chartered Bank. However, more companies might likely follow…
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Tighter Restrictions on Offshore Derivative Instruments
[Posted by Umakanth Varottil] The issue of offshore derivative instruments (ODIs) such as participatory notes (PNs) have been the subject matter of regulatory controversy for some time now. These are instruments issued by foreign institutional investors (FIIs) (now foreign portfolio investors (FPIs)) to investors overseas that mimic the risks and rewards on underlying securities held…
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“Dual-class” Share Structures
[Posted by Umakanth Varottil] The recent NYSE listing of Alibaba has once again brought to the fore the issue of dual-class share structures, as discussed in this column in the Economist. Alibaba’s founder and a group of insider shareholders have control rights that are disproportionate to their economic rights. The wave of dual-class structures in…
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Guest Post: Comments on SEBI’s Crowdfunding Paper
[Posted by Umakanth Varottil] [The following post is contributed by Debanshu Mukherjee, a Senior Resident Fellow at Vidhi Centre for Legal Policy, New Delhi] Last month, SEBI had issued a Consultation Paper on regulating Crowdfunding in India. Vidhi Centre for Legal Policy, a New Delhi based independent and not-for-profit think-tank prepared a detailed response to…
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Compensating Investor Losses in India
[Posted by Umakanth Varottil] Posted on SSRN is a new working paper titled “The Protection of Minority Investors and the Compensation of Their Losses: A Case Study of India” that I have authored. The abstract is as follows: Any legal system may potentially deploy two separate but related models to ensure the accuracy of disclosure…
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SEBI ICDR (Amendment) Regulations, 2014
[Posted by Umakanth Varottil] [The following post is contributed by Shampita Das of Vinod Kothari & Co. She can be contacted at shampita@vinodkothari.com] On 4 February 2014, SEBI issued a Notification amending the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘ICDR Regulations’) to make grading of an initial public offer (‘IPO’) by one…