Tag: Options in Securities
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Bombay High Court Differentiates Options from Forward Contracts
[Debayan Gangopadhyay is a 3rd year B.A., LL.B. student at ILS Law College, Pune] An option in securities popularly known in forms such as “call” or “put” option is typically a clause in an agreement for transfer of shares through which the option holder gets the option to sell its shares to or buy additional
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Pricing of Options To Foreign Investors
The last few weeks have witnessed some activity from the Reserve Bank of India (RBI), which is indicative of a more liberalized approach towards the pricing at which foreign investors are able to sell their shares upon exercise of options (such as put options) made available to them under contractual documentation. Most of the indications
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Vexed issue of allowability/quantification/timing of expenditure on ESOPs
A troublesome issue for companies is the deductibility of ESOPs expenditure under the Income-tax Act, 1961. ESOPs (employees stock options/shares) are often given at a discount at their fair value. A share having a fair value of Rs. 100 is given, say, at Rs. 80. This is one extreme of a simple example. In practice,
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Miscellaneous
1. RBI Circular on Options We had carried two guest posts (here and here) on RBI’s notification dated 9 January 2014 relating to options and convertible instruments. This notification has generated a great deal of debate and its precise scope and contours are still being carefully ascertained. For a flavour of the further debate, the
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Guest Post: Optionality Clauses Permissible in FDI Instruments – the Heydays for Exit Rights
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Guest Post: RBI Circular on ‘Options’
[The following post is contributed by Parag Bhide, who is a Principal Associate at Universal Legal, Mumbai] Finally, Foreign Investors investing into India are able to include ‘options’ in their investment agreements. The Reserve Bank of India (“RBI”), through its circular dated 9 January 2013 (“Circular”) has legitimized inclusion of options/right to exit in the
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Analysis of SEBI Notification on Pre-emption Rights and Options – Part 2
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Analysis of SEBI Notification on Pre-emption Rights and Options – Part 1
[Last week, we had discussed SEBI’s recent notification granting conditional validity to pre-emption rights and options in securities of Indian companies. In the following two-part post, Ms. Sikha Bansal of Vinod Kothari & Company provides a detailed background to SEBI’s recent reforms and analyses their impact. She can be reached at corplaw@vinodkothari.com] In our elaborative
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SEBI Notification on Pre-Emption Rights, Put and Call Options
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