[Poojita Saxena is a 4th year law student at the National Law Institute University, Bhopal] One of India’s leading renewable energy companies, ReNew Power, recently announced the execution of a definitive business combination agreement with RMG Acquisition Corporation II. The USD 8-billion transaction enables the combined power generation company to get listed on NASDAQ by the second quarter of...
Foreign Contribution (Regulatory) Amendment Act, 2020: A Challenge for Non-Profits?
[Shreya Mishra and Ayesha Bhattacharya are recent graduates of the West Bengal National University of Juridical Sciences, Kolkata. The authors would like to thank Prof. Umakanth Varottil for his comments] Recently, the Central Government froze the accounts of Amnesty International India, citing violation of foreign funding laws, while the latter has accused the Central Government of halting its...
Voluntary Retention Route for Foreign Portfolio Investors
[Bhawana Keshwani is a student at Law College Dehradun, Faculty of Uttaranchal University] In March 2019, the Reserve Bank of India (RBI) along with Government of India and the Securities and Exchange Board of India (SEBI) introduced a new window called “Voluntary Retention Route” to encourage Foreign Portfolio Investors (FPI) to lock their investments in India for a considerable period. This...
Cross Listing of Shares: A Start
[Rahul Sinha is a consultant with EY] The Securities and Exchange Board of India (“SEBI”) constituted the ‘Expert Committee for listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated outside India on Indian stock exchanges’ on 12 June 2018 with a view to facilitating companies incorporated in India to directly list their equity shares...
Direct Listing of Indian Companies on Foreign Exchanges and Vice Versa: A New Era for Fundraising
[Tanaya Desai is a 5th-year student at ILS Law College, Pune] Introduction In its press release dated June 12, 2018, the Securities Exchange Board of India (“SEBI”) expressed its intention to consider facilitating unlisted companies incorporated in India to directly list their equity share capital on foreign exchanges and, concurrently, of foreign firms on Indian exchanges. In furtherance of the...
Cross Border Mergers in India: RBI Notification and Some Implications
[Roshni Menon is a 5th year B.A., LL.B (Hons.) student at School of Law, Christ University in Bangalore] Upon tracing the history of cross border mergers in India, one finds that the erstwhile Companies Act, (“1956 Act”) did contain provisions relating to the subject, however limited in its application. This law permitted a merger between a foreign company and an Indian company where the...
Why the FDI Policy’s Price Influence Restrictions on E-Commerce Marketplaces Have Failed
[Mark Papang and Sanchit Varma, 4th year students at NALSAR University of Law] Introduction The FDI Policy of India contains a number of provisions to ensure that the employment of foreign capital does not militate against healthy competition in the e-commerce sector. However in practice, many of these provisions have not had a significant impact on the manner in which e-commerce entities operate...
Press Note 1 of 2018: Revision of the FDI Regime
[Amitabh Robin Singh is a corporate lawyer practising in Mumbai] The Department of Industrial Policy and Promotion has issued Press Note 1 of 2018 dated January 23, 2018 (“PN 1”), which liberalizes the foreign direct investment (“FDI”) regime across various sectors. However, I would like to open this post by not discussing a particular sector, but with the language that concludes PN 1. There has...
Anti-Dilution and Rights Issue: On the Right Side of the Law?
[Job Michael Mathew is a 4th year BA.LL.B (Hons) student at NALSAR University of Law. He may be reached at [email protected]] This post examines whether the instrument of rights issue can be used by unlisted companies in enforcing anti-dilution provisions which may be one of terms in a shareholders’ agreement with a foreign investor. Put simply, anti-dilution means compensating the investor...
Inconsistency between FDI policy and FCRA in the Media Sector
[Aditya Singh Rajput and Nelson Chaudhuri are researchers at the National Institute of Public Finance and Policy (NIPFP), New Delhi. The authors thank Radhika Pandey and Sumant Prashant from NIPFP for their valuable inputs] The post highlights an inconsistency which exists in the current Foreign Direct Investment (FDI) Policy and the Foreign Contribution (Regulation) Act, 2010 (FCRA) with respect...
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