The distinction between a forward contract for sale and purchase of securities in a company on the one hand and the creation of an option in relation to such securities on the other hand bears considerable relevance when it comes to their enforceability. While the Securities Contracts (Regulations) Act, 1956 (SCRA) and various notifications issued therein by the Central Government as well as the...
SEBI’s Denial of Relief to Pledgees in the Karvy Case
We had last month discussed the ex parte ad interim order passed by the Securities and Exchange Board of India (SEBI) wherein the regulator found that Karvy Stock Broking Limited (KSBL) had wrongfully pledged securities belonging to its clients to various lenders in exchange for funds borrowed. Since then, four lenders, (i) Bajaj Finance Limited, (ii) ICICI Bank Limited, (iii) HDFC Bank Limited...
5th GNLU Moot on Securities and Investment Law
[Announcement on behalf of the Gujarat National Law University, Gandhinagar] Since its establishment in 2015, the GNLU Moot on Securities and Investment Law (GNLUMSIL) has garnered praise for providing a platform to students to be able to simulate challenges faced by the Indian capital markets and, at the same time, offering them a stimulating opportunity for research and learning in the domain...
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 Exchange Board of India (“SEBI”) notified the SEBI (Appointment of Administrator...
Promoter’s Stake in Private Banks and Kotak Mahindra Bank’s Preference Share Issue
[Anirudh Goyal and Vishal Hablani are 4thand 3rdYear B.A.L.L.B. (Hons.) students respectively at West Bengal National University of Juridical Sciences, Kolkata] The Reserve Bank of India (“RBI”) on 14 August 2018 took the view that the recent issue of preference shares by Kotak Mahindra Bank to dilute the stake of Uday Kotak, the promoter of bank, does not meet the regulatory norms. The bank on 2...
A Tribunal Benched
The Securities Appellate Tribunal has yet again been rendered dysfunctional. I wrote a piece in the Business Standard last week about how, yet again, the functioning of the tribunal for substantive final hearings has come to a halt. As the appellate tribunal that is exclusively empowered to hear appeals against every order of the Securities and Exchange Board of India, the Insurance Regulatory...
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