Tag: SEBI
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SEBI’s Discretion (or Lack Thereof) in Imposing Penalty – A Twist in the Tale
[The following guest post is contributed by Vaneesa Agrawal, Securities Lawyer and former Legal Officer, SEBI. She can be reached at vaneesa.agrawal@gmail.com. A previous post on this Blog relating to the subject matter can be found here.] Background There has been much furore in the corporate world due to the Supreme Court’s order in SEBI…
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Brightline Test for Acquisition of Control
[The following guest post is contributed by Supreme Waskar, who is a corporate lawyer] In the backdrop of ambiguity and concerns in relation to acquisition of ‘control’ of a listed target company, the Securities and Exchange Board of India (“SEBI”) has initiated a consultation process by way of its discussion paper dated March 14, 2016 (“Discussion…
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Individual Triggers for Takeover Offers
[The following guest post is contributed by Jyoti Srivastava, who is a Manager at Vinod Kothari & Co.] The Securities and Exchange Board of India (SEBI) has framed regulations providing for the acquisition of shares and takeover of listed companies known as ‘Takeover Code’ or SEBI (Substantial Acquisition of Shares) Regulations, 2011 (‘SAST Regulations, 2011’).…
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SEBI Board Meeting: Wilful Defaulters, Control, etc.
The meeting of SEBI’s board held today has resulted in some crucial decisions. An important one relates to SEBI’s new approach towards reconsidering the definition of “control” under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This is because an acquirer who acquires control without obtaining the minimum number of shares (i.e. 25%…
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Indian REITs – Story So Far, Challenges and Expectations from Budget 2016
[This guest post is contributed by Yashesh Ashar and Swati Adukia. They are tax professionals and specialize in mergers and acquisition tax. Please note that the views are personal] I. Introduction The Securities and Exchange Board of India (“SEBI”) notified the SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) on September 26, 2014 ,…
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Cashless Employee Stock Option Scheme and Insider Trading Regulations
Last year, the Securities and Exchange Board of India (“SEBI”) issued a guidance note clarifying certain matters regarding employee stock option plans (ESOPs) and their implications under the SEBI (Prohibition of Insider Trading) Regulations, 2015 (the “Insider Trading Regulations”). Specifically, it stated that the “contra-trade” restrictions do not apply to the exercise of stock options…
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Update: Proposed Amendments to the AIF Regulations
[The following post is contributed by Bhushan Shah and Labdhi Shah from Mansukhlal Hiralal & Company] Alternative Investment Funds (AIF(s)) play a vital role in Indian economy as they drive economic growth and contribute significantly to nation building. To regulate AIFs under one single regime, the Securities and Exchange Board of India (SEBI) in 2012 notified SEBI…
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Fiduciary Capacity of Regulators and the Right to Information
[The following guest post is contributed by Apoorv Chaturvedi, who is a 4th year BA LLB student at the Jindal Global Law School] The regulatory regime in India is a complex system with multiple regulators set up for promoting “healthy and orderly development”[1] and to “prevent malpractices”[2] of companies, banks, stock markets etc. This healthy…
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SEBI: Report on Alternative Investment Funds
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 encouraging onshore fund management…
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SEBI Adjudication Order: Disclosure of Encumbrances Over Shares
The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “SAST Regulations”) contains provisions in Reg. 31 that requires promoters of a company to disclose to the company and the stock exchanges the details of shares encumbered by them and also any invocation or release of encumbrance. The genesis of the requirement to disclose…
