Tag: Securities Regulation
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Mandatory Sunset Provisions in Shares with Superior Voting Rights
[Bhavya Solanki is a 4th year B.A., LL.B. (Hons.) student at the Maharashtra National Law University, Mumbai] Shares with differential voting rights [“DVR”], internationally known as dual class shares [“DCS”], are shares which have rights disproportionate to their economic ownership. DVRs include shares with superior voting rights [“SR Shares”] and shares with inferior voting rights. SR Shareholders get more than one vote…
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Fractional Ownership: Recommendations for Regulation
[Malavika Devaya is an Associate at Poovayya & Co., Bengaluru] Myre Capital, a fractional ownership platform by Morphogenesis, recently made headlines by raising INR 50 crores for its offering of the integrated township Magarpatta Cybercity. A concept that is fast gaining popularity in India but has been around in developed countries for a while now,…
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Disgorgement: An Equitable Remedy or a Penal Measure?
[Anoushka Biswas is a 3rd Year, B.A. LL.B. (Hons.) student at National University of Juridical Sciences, Kolkata] Disgorgement harbours the principle of giving up the possession of profits illegally obtained, leading to unjust enrichment. Black’s Law Dictionary defines disgorgement as “the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion”.…
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SEBI’s ‘Skin in the Game’ Directive – Investor Interest versus Employee Interest
[Aman Jha is a third-year student at National Law University, Delhi and Anurag Shah is a fourth-year student at School of Law, Christ University Bangalore] The Securities and Exchange Board of India (“SEBI”), through a circular dated April 28, 2021, has directed Asset Management Companies (“AMCs”) to compensate its key employees partly in the form…
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The Proposed Single Securities Markets Code
In the Budget 2021 speech, the Finance Minister announced a proposal “to consolidate the provisions of SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and Government Securities Act, 2007 into a rationalized single Securities Markets Code.” When implemented, this would represent a significant step in the modernization of securities regulation in India.…
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India’s Attempt to Regulate SPACs: Sponsors in the Spotlight
[Anushri Uttarwar is a 4th year law student at O.P. Jindal Global University] On March 11, 2021, the Securities and Exchange Board of India (“SEBI”) formed a group of experts to study the viability of introducing structures like special purpose acquisition companies (“SPACs”) in India. Contrary to SEBI’s guarded position, the International Financial Services Centre…
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SPAC Listings in India: Regulatory Hurdles and the Way Forward
[Devarsh Shah is a third-year law student at Gujarat National Law University] One of the most significant developments in the international capital markets in the past couple of years has been the revival of ‘Special Purpose Acquisition Vehicles (SPACs)’. In 2020, around $80 billion was raised in the US by 247 SPACs representing almost 50%…
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SEBI Informal Guidance on Receipt of Broking Income from Advisory Clients
[Rakshita Poddar is an Associate at Mindspright Legal in Mumbai] India’s financial advisory market has been developing at a rapid pace in the last decade and this required financial regulators like the Securities and Exchange Board of India (SEBI) to introduce a comprehensive and transparent set of laws for scrutinising the conduct of the market…
