Tag: Promoters

  • Section 29A of the Insolvency and Bankruptcy Code, 2016: The Ambit Narrows

    [Rudresh Mandal is a 4thyear student at NALSAR University of Law and Mallika Sen is a 3rdyear student at National Law School] Section 29A of the Insolvency and Bankruptcy Code, 2016, (‘IBC’) has been heavily criticised for casting a net exceedingly wide for preventing maximisation of pay-outs to creditors merely because the bidder is the promoter of…

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  • SEBI Informal Guidance on Profit Sharing Arrangements

    [Posted by Umakanth Varottil] Last year, the Securities and Exchange Board of India (“SEBI”) clamped down on upside sharing arrangements between promoters or senior management of listed companies on the one hand and private equity investors on the other. Accordingly, the securities regulator amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “LODR…

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  • SEBI Order Denying Inter-se Promoter Transfer Exemption

    [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-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} [Guest post by Shashank Prabhakar, who is a lawyer with Finsec Law Advisors] The Whole…

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  • The Tata Episode: Corporate Governance and the Continuing Influence of Promoters

    [Posted by Umakanth Varottil] It is generally understood that corporate governance norms ought to address agency problems between various actors in a company. Moreover, in companies with concentrated shareholding, the agency problems between controlling shareholders (referred to in India as “promoters”) and minority shareholders tend to be rampant, and hence corporate governance measures need to…

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  • Change in Shareholding of Individual Promoter Triggers Takeover Code

    [Posted by Umakanth Varottil] [The following guest post is contributed by Supreme Waskar, who is a corporate lawyer] In its interpretative letter dated March 01, 2016 under the SEBI (Informal Guidance) Scheme, 2003, in the matter of Capital Trust Limited (“CTL”), SEBI clarified the provisions of regulation 3(3) of the SEBI (Substantial Acquisition of Shares and…

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  • Analysis of the New SEBI Promoter Re-classification Norms

    [Posted by Umakanth Varottil] [The following guest post is contributed by Shashank Prabhakar, a Senior Associate with Finsec Law Advisors. These are the author’s personal views] Shareholders in a listed company are classified under two broad categories, i.e., those that belong to the promoter / promoter group and those shareholders who are members of the…

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  • Voting Agreements and Takeover Regulations

    [Posted by Umakanth Varottil] Earlier this week, SEBI issued an informal guidance based on a request by the promoters of Cipla Limited on the implications of voting agreements under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “Takeover Regulations”). Background; Facts The brief facts are that Dr. Y.K. Hamied and his family…

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  • Year-End Reforms from SEBI

    [Posted by Umakanth Varottil] We wish our readers a very happy 2015! The end of 2014 was marked by a flurry of announcements from SEBI, some of which are briefly discussed in this post. Re-Classification of Promoters as Public The concept of “promoters” is quite significant in the Indian context as it is relevant for…

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  • Guest Post: Regulations by SEBI under the Companies Act, 2013 for Promoter Acquisitions

    [Posted by Umakanth Varottil] [The following post is contributed by Yogesh Chande, who is a Consultant with Economic Laws Practice, Advocates & Solicitors. Views of the author are personal] In terms of section 13(8) of the Companies Act, 2013 (Act), a company, which has raised money from public through prospectus and has any unutilised amount…

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