[Ryan Joseph is a 3rd year B.B.A., LL.B. (Hons.) student at Jindal Global Law School] A decision of the Madras High Court in January this year in GPE (India) Limited v. Twarit Consultancy has added to the controversial debate over the enforcement of put options that guarantee assured returns. The High Court toed the line with other courts and upheld an arbitral award, notwithstanding the...
Relaxation for Flip Structures under the New Overseas Investment Regime
[Shubh Gautam is a fourth year B.A.LL.B (Hons) student at Chanakya National Law University, Patna] Indian startups and new age companies are jumping on the bandwagon of ‘flipping’ their business. This trend has been addressed by the Foreign Exchange Management (Overseas Investment) Rules, 2022 issued on August 22, 2022 (forming a part of the new overseas investment regime). The new overseas...
What the ODI-OPI Holds for Indian Entities
[Hrithik Merchant is a 4th year law student pursuing BA LLB (Hons.) from National Law School of India University, Bangalore] The Reserve Bank of India (“RBI”) reported that between April 2000 and August 2022 there was a financial commitment (“FC”) of overseas investment issued to the tune of USD 614 billion. Overseas investment has been accretive with Indian ventures attempting to access global...
Government Allows FDI into the Indian Solar Energy Market
[Akshat Bhargava is an Associate at Shardul Amarchand Mangaldas & Co and Nandini Shenai is a 4th Year BBA LLB (Hons) student at NMIMS School of Law, Mumbai] The Indian Constitution lists electricity in the concurrent list, and both the Union and State legislatures have simultaneous authority to enact legislation on the topic. In the case of a contradiction or conflict, nevertheless, the law...
Can Air India Trigger Turbulence on the Enforcement Proceedings of Cairn Energy?
[Subodh Asthana and Madhur Bhatt are penultimate year law students at Hidayatullah National Law University, Raipur] Cairn Energy PLC has approached the US District Court for the Southern District of New York (“US Court”) seeking enforcement of a $1.2 billion arbitration award against India. It won the award in December 2020 for proving the breach of fair and equitable treatment (“FET”)...
Unqualified Fair & Equitable Treatment Clause: It’s Time to Revamp
[Ameya Vikram Mishra is an associate at J. Sagar Associates, New Delhi and Nikhil Pratap an advocate practising in Delhi] Recently, Cairn Energy plc filed a petition in the South District of New York to attach Air India’s assets. This action has been taken pursuant to an award by an arbitral tribunal (“Tribunal”) constituted under the Bilateral Investment Treaty between the United Kingdom and...
SPAC Listings in India: Regulatory Hurdles and the Way Forward
[Devarsh Shah is a third-year law student at Gujarat National Law University] One of the most significant developments in the international capital markets in the past couple of years has been the revival of ‘Special Purpose Acquisition Vehicles (SPACs)’. In 2020, around $80 billion was raised in the US by 247 SPACs representing almost 50% of the raised capital of about $174 billion. While SPAC...
FDI Limit Hiked to 74%: An Impetus for the Insurance Sector
[Ekta Janghu is an Associate at Wadia Ghandy & Co., Mumbai and Riya Gupta is an Associate at Algo Legal, Mumbai] On February 1, 2021, the Finance Minister announced a host of reforms vide its first paperless budget. Amongst these, was the proposal to increase the threshold for foreign investment in the Indian insurance sector to 74% from the erstwhile threshold of 49%. The announcement was...
Flip Structure Transactions: Regulatory Implications in India
[Divyansh Nayar is a 5th Year B.A.LL.B student and Arth Singhal a 4th Year B.A.LL.B student, both at National Law University Odisha] Over the last decade, the concept of a “flip” has gained popularity in the venture capital circles, especially amongst Indian startups seeking support from foreign investors. A “flip” transaction is one where an Indian company incorporates a company in a favourable...
China’s Claim concerning App Ban Under International Investment and Trade Law – Part II
[Angeline Priety and Rohin Goyal are fourth-year law students at Gujarat National Law University] In Part I of this post, we explained the possible recourse that Chinese investors may have against India’s app ban under the Indo-China Bilateral Investment Treaty (“BIT”). In Part II, we shall first examine India’s possible defence against claims by Chinese investors under the Indo-China BIT and...
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