[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...
FDI in the Aviation Sector
Jae Woon Lee and I have a working paper titled “Skies Half Open: Foreign Investment in India’s Airline Industry”, the abstract of which is as follows: The foreign investment regime governing the airline industry has been the subject matter of considerable debate. Our goal in this paper is to supplement the literature by embarking on an analysis of the foreign investment regime in India and...
Tata – Docomo Verdict: A Critical Analysis
[Post by Anurag Pareek, who is a Joint Partner at Lakshmikumaran & Sridharan (L&S). However, the views expressed herein are the author’s own, and not necessarily those of L&S. A related post on the topic can be found here.] Introduction Enforcing an arbitral award (the “Award”) issued by the London Court of Arbitration (“LCIA”), the Delhi High Court (the “Court”) on 20 April 2017...
DoCoMo v. TATA: Unanswered Questions Regarding Powers of the RBI
[The following post is contributed by Ambarish, who is a corporate lawyer. Views are personal. A related post on the topic can be found here.] The decision of the Delhi High Court in NTT Docomo Inc v. Tata Sons Limited has received a lot of media attention, specifically the part where the Court rejected an intervention application by the Reserve Bank of India (RBI).[1] In arriving at its...
Delhi High Court on Put Options and Guarantees under FEMA
The issue of whether put options, exits at assured returns and guarantee arrangements between Indian and foreign parties are enforceable under the provisions of the Foreign Exchange Management Act, 1999 (FEMA) has received much regulatory and judicial attention lately. The dispute between Tata Sons and NTT Docomo heard by the Delhi High Court was being watched very closely until the case was...
Abolition of the Foreign Investment Promotion Board
The economic liberalization that began in India in 1991 brought with it a substantial increase in foreign direct investment (FDI) since then. Those involved in, or following, these developments, since the 1990s will remember the rather significant role played by the Foreign Investment Promotion Board (FIPB) in approving FDI into the country. Foreign investors (or their Indian partners or investee...
Issue of Convertible Notes by Startups Permitted
[The following guest post is contributed by Bhushan Shah & Neha Lakshman from Mansukhlal Hiralal & Company. The views expressed in the post are personal] A convertible note is an instrument issued as debt and convertible into equity of a startup at the option of the holder, upon a future contingency taking place, usually when the startup obtains an additional round of investments...
Measuring outputs v. outcomes: Did the restriction on foreign investment in local debt achieve the intended outcome?
[The following guest post is contributed by Anurag Dutt, Arpita Pattanaik and Bhargavi Zaveri, who are researchers at the Finance Research Group at the Indira Gandhi Institute of Development Research, Mumbai.] A good policymaking process requires significant regulatory capacity. Before the policy is enacted, the State must (a) identify a market failure and an appropriate intervention to address...
The Hubtown Case: Supreme Court on the FDI Policy
[The following guest post is contributed by Tanavi Mohanty, who is a corporate lawyer practising in Mumbai] The decision of the Bombay High Court in the summary suit of IDBI Trusteeship Services Limited (ITSL) v. Hubtown Limited (Hubtown), better known as the Hubtown case has received a lot of attention for being the Bombay High Court’s pioneering judgment which unearthed a colourable structure...
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