Tag: Private Equity
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Understanding the Exit Rights Provided by Private Companies
[Posted by Umakanth Varottil] [The following guest post is contributed by Ananya Banerjee, a 5th Year Student of University of Calcutta, Department of Law] Investing in companies (especially in startups) involves a huge risk. For this reason, financial investors look for exit rights which allow them to exit the company with a high return on the investment…
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SEBI: Report on Alternative Investment Funds
[Posted by Umakanth Varottil] Yesterday, the Alternative Investment Policy Advisory Committee appointed by SEBI under the chairmanship of Mr. Narayana Murtyh issued its first report. The Committee has suggested a number of reforms on different fronts, including creating a favourable tax environment for investors, unlocking domestic sources of venture capital and private equity, enabling and…
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Paper on Private Equity in India
[Posted by Umakanth Varottil] Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”;} In the past, some readers have asked if we could cover matters pertaining to the private equity sector in greater…
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Arbitration of Shareholder Disputes
[Posted by Satyajit Gupta] In an article in the Financial Express, my colleague Debashish Sankhari and I have looked at whether disputes of oppression and mismanagement in relation to the affairs of a company can be adjudicated through arbitration. This is an important practical question for many a financial investor (and even a long-term strategic…
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SEBI Notifies Regulations on Alternative Investment Funds
[Posted by Umakanth Varottil] Last year, SEBI had issued a concept paper on comprehensive regulation for alternative investment funds (AIFs). The proposal to set up a separate framework was approved by SEBI at its board meeting held last month. This proposal has now been operationalised by the promulgation of the SEBI (Alternative Investment Funds) Regulations,…
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Trends in Private Equity Investment Structures
[Posted by Umakanth Varottil] 1. A report in the Mint demonstrates the popularity of convertible instruments over plain-vanilla equity when it comes to investments by private equity firms. 2. A post on New York Times’ Deal Professor Blog discusses trends in contractual structures for private equity investments from a broader perspective in the wake of…
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Liquidation Preference: How Effective is it?
[Posted by Umakanth Varottil] In a column in the Economic Times, Amrita Singh and Siddharth Shah discuss the relevance of the concept of liquidation preference in Indian investment transactions: “The progressive liberalisation of the foreign investment regime has provided a major boost to private equity and venture capital investments in Indian companies. With the advent…
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Success of Venture Capital Investments in India
[Posted by Umakanth Varottil] One of our readers, Aravind Balajee, brings to our attention this story from VC Circle. It relates to a tremendously successful exit by a venture capital investor, UTI Ventures, from an Indian portfolio company, Excelsoft Technologies Pvt. Ltd. The details are here: “There is a thing or two to learn from…