[Dhaval Bothra and Akshat Jain are law students at Symbiosis Law School Pune and National Law University Delhi, respectively] Trust remains the cornerstone in matters of public money, and the Securities and Exchange Board of India (“SEBI”) is the watchdog of this trust. In furtherance of this aim, almost two years ago, the SEBI introduced amendments to the “fit and proper rule” under the...
Strengthening AIF Governance: SEBI’s Pro-Rata Proposal
[Sagun Modi is a 4th Year B.A. LL.B. (Hons.) student at National Law University, Odisha] Alternative investment funds (‘AIFs’) have emerged as vital investment vehicles in the global financial landscape. They provide investors with diversified investment opportunities beyond traditional asset classes. India witnessed a 30% increase in investment commitments into AIFs, from Rs. 6.41 trillion in...
SEBI Circular on ESG Disclosures of Value Chains: A Double-Edged Sword
[Avani Hegde and Praneel Panchagavi are 3rd year B.A., LL.B. (Hons.) students at Symbiosis Law School, Pune] The Securities and Exchange Board of India (SEBI) issued a circular on July 12, 2023 notifying the mandate for environmental, social, and governance (ESG) disclosures and assurance requirements for value chains of the top 250 listed entities by market capitalization from the financial year...
SEBI’s Sponsorship Shake-Up: Unravelling the Implications for Mutual Funds
[RS Sanjanaa is a third-year BA LLB (Hons.) student at Symbiosis Law School, Pune] A sponsor of a mutual fund refers to any bank, financial institution or a corporate who acts as the promoter of the mutual fund. The entity establishes the fund, obtains necessary approvals and funding, and incorporates an asset management company (“AMC”). On June 27, 2023, the Securities and Exchange Board of...
Identifying Senior Managers: Revisions to Listing Rules
[Pammy Jaiswal and Mahak Agarwal are with Vinod Kothari & Co] The concepts of senior management (‘SM’) and senior managerial person or personnel (‘SMP’ or ‘SMPs’) was not present under the regime established by the Companies Act, 1956, and it was first introduced in section 178 of the Companies Act, 2013 (the ‘Act, 2013’). The law requires the nomination and remuneration committee to...
Corporate Climate Litigation: Comparing ClientEarth-Shell with the Indian Regulatory Framework
[Dhanshitha Ravi and Santosh S are third and final year law students respectively at Symbiosis Law School, Pune] The United Kingdom High Court (“UKHC”) on the 12 May 2023 delivered a landmark judgment in the realm of corporate jurisprudence in a first of its kind climate-change based derivative action in ClientEarth v. Shell plc. This action was brought by ClientEarth, a minority shareholder in...
SEBI’s Order on Spoofing – A Way Forward
[Shivangi Paliwal and Mahak Shinghal are final year B.A. LL.B. (IPR Hons.) and B.B.A. LL.B. (IPR Hons.) students at National Law University, Jodhpur] Section 12A of the Securities and Exchange Board of India Act, 1992 [“SEBI Act”] read along with Regulation 3 & 4 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 [“PFUTP...
SEBI’s Reforms for REITs/InvITs: Assessing the Broader Corporate Governance Concerns
[Nikhil Javali is a 4th year B.B.A. LL.B. student at National Law University Odisha] As real estate investment trusts (‘REITs’) and infrastructure investment trusts (‘InvITs’) gain global recognition as a powerful investment vehicle, India is taking significant strides towards aligning its REIT/InvIT regulations with global best practices. Across the world, REITs have emerged as a dominant...
Stricter Framework for Sale, Lease or Disposal of Undertaking by a Listed Entity
[Nitu Poddar is a Partner at Vinod Kothari and Company, and can be reached at [email protected]] Disposal of an undertaking (whole or substantially the whole) can be carried out either as part of a scheme of arrangement or otherwise by way of slump sale or business transfer agreement (‘BTA’). Disposal, other than by way of scheme of arrangement, has so far been regulated according to...
Analysis of SAT Order: Appointment of Independent Director Above 75 years
[Gaurav Pingle is a practising company secretary and can be reached at [email protected]] Considering the importance of independent directors on the boards of listed entities, the Securities and Exchange Board of India (“SEBI”) has been amending the provisions relating to their appointment, re-appointment, appointment process, remuneration, and the like under the SEBI (Listing Obligations and...
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