Tag: SEBI
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SEBI appointed administrator to recover monies for investors: Boon or bane to the Insolvency and Bankruptcy Code, 2016?
[Bhavin Gada is a Partner at Economic Laws Practice, Advocates and Solicitors (“ELP”), and Manendra Singh is a Senior Associate at ELP. The views and opinions expressed are those of the authors and do not reflect the view of their firm nor do they constitute any legal opinion/ On October 3, 2018 the Securities and…
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Proposed New Regulatory Framework for Delisting Companies
[Manal Shah a 4th year student pursuing B.A. LL.B. (Hons.) with specialization in Corporate Law from the National University of Advanced Legal Studies, Kochi] Introduction The delisting process is presently regulated by the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (‘Delisting Regulations’). The Securities and Exchange Board of India (‘SEBI’)…
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Will SEBI Succeed in Creating a Vibrant Bond Market?
[Rajeev Jhawar is an Executive at Vinod Kothari Consultants Pvt Ltd] As part of the budget this year, India sought to expand its bond market beyond the traditional ambit of sovereign debt. Pursuant to this, Securities and Exchange Board of India (SEBI) has initiated efforts to diversify borrowings of Indian corporates by mandating them to…
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Delhi High Court Circumscribes SEBI’s Power to Initiate Adjudication Proceedings
Independent regulators must demonstrate their independence and fairness in their actions in order to maintain credibility. For this, the process by which they carry out their actions must be robust. This applies equally to India’s securities regulator, SEBI, which is the earliest independent regulator in the post-liberalisation era and one that heralded the advent of…
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SEBI on “Control”: Financing vs. Acquisition
Background and Context Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and its previous version of 1997, it is possible for a person to trigger the mandatory takeover offer requirement even without acquiring a single share in the company. This is because the person may be in “control” of the company as…
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Demystifying ‘Board Inter-locks’ under SEBI’s Amended Listing Regulations
[Gaurav Pingle is a practising Company Secretary in Pune and can be reached at gp@csgauravpingle.com] Introduction On June 2 2017, the Securities and Exchange Board of India (‘SEBI’) constituted a committee under the chairmanship of Mr. Uday Kotak for improving the standards of corporate governance of listed companies in India. On October 5, 2017, Kotak…
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SEBI Informal Guidance on Foreign Portfolio Investments in Unlisted Non-Convertible Debentures
[Kosha Thaker is a corporate lawyer with a law firm in Mumbai] Background Earlier, registered foreign portfolio investors (“FPIs”) were permitted to invest only in listed non-convertible debentures (“NCDs”) or to-be listed non-convertible debentures (i.e. if the NCDs were listed within a period of 15 days from such investment). There was, however, a special carve out…
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Investment by FPIs in Securitised Debt Instruments
[Anita Baid is a Senior Manager at Vinod Kothari Consultants P. Ltd] Investments by foreign portfolio investors (FPIs) in unlisted debentures and securitised debt instruments (SDIs) issued by Indian companies was allowed pursuant to a notification dated 27 February, 2017 issued by the Securities and Exchange Board of India (SEBI). Earlier in November, 2016, the Reserve…
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SEBI Informal Guidance: Investment Banking for State-Owned Enterprises
In order to avoid potential conflicts of interest, the various regulations issued by the Securities and Exchange Board of India (“SEBI”) provide that merchant banks cannot act in transactions involving their “associates”. This is so in public offerings, takeovers, buybacks, delisting offers and similar transactions that mandate the requirement for a SEBI-registered merchant banker. In…
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Disclosure Requirements Under the Insolvency and Bankruptcy Code: SEBI’s Proposed Amendments
[Mallika Sen is a 2nd year B.A. LL.B. (Hons.) student at the National Law School of India University, Bangalore and Rudresh Mandal is a 3rd year B.A. LL.B. (Hons.) student at the NALSAR University of Law, Hyderabad. Introduction On March 28, 2018, the Securities and Exchange Board of India (‘SEBI’) released a discussion paper on…
