[The following post is contributed by Nidhi Ladha, who is a Junior Partner at Vinod Kothari & Co. She can be reached at [email protected]] SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) were notified by SEBI on May 21, 2012 which thereby replaced the SEBI (Venture Capital Funds) Regulations, 1996. After notification of AIF Regulations, SEBI has granted in...
Securities Laws (Amendment) Ordinance, 2013 gives more teeth to SEBI
[The following post is contributed by Nivedita Shankar, who is a Senior Associate at Vinod Kothari & Co. She can be reached at [email protected] In an earlier post, we had provided an overview of the Ordinance and the possible rationale behind it. This post provides more specific details] The President of India promulgated The Securities Laws (Amendment) Ordinance, 2013 (“Ordinance...
Constitutional Validity of Regulatory Regime for CIS Upheld
Earlier this week, a single judge of the Calcutta High Court in Rose Valley Real Estate & Construction Ltd v. Union of India upheld the constitutional validity of certain sections of the SEBI Act (including section 11AA) and certain provisions of the SEBI (Collective Investment Scheme) Regulations, 1999 (the CIS Regulations). Specifically, a challenge was mounted to amendments to the SEBI Act...
Fresenius Kabi: SEBI Order on Delisting
[The following post is contributed by Yogesh Chande, who is a Consultant with Economic Laws Practice, Advocates & Solicitors. Views of the author are personal] It may be recalled that, pursuant to an announcement issued by Fresenius Kabi Oncology Limited (target company) on 30 May 2012, the stock exchanges were informed that its promoter shareholders have notified the target company of their...
Securities Laws Amendment Ordinance: An Overview
As some of us have observed time and again on this Blog, the substantive aspects of securities regulation have become progressively extensive and sophisticated in India. Over the last two decades of SEBI’s functioning, it has constantly updated securities laws to meet with market developments, whether it is in the primary markets (IPOs, QIPs, etc.) or in the secondary markets (insider trading...
Committee Report on Foreign Portfolio Investments
In mid-June, SEBI had announced the submission of a report by the Committee on Rationalization of Investment Routes and Monitoring of Foreign Portfolio Investments under the chairmanship of Mr. K.M. Chandrasekhar. The full report in now available online. The key recommendations of the committee are to combine the erstwhile portfolio investment categories of foreign institutional investors (FIIs)...
SAT Order on Minimum Public Shareholding Norms
The Securities Appellate Tribunal issued its order in the case involving compliance of the public shareholding norms in Gillette India Limited. Gillette had filed an appeal against an order of the Securities and Exchange Board of India (SEBI) rejecting Gilette’s proposal for compliance with the public shareholding norms. However, SAT dismissed Gillette’s appeal in an order that extensively...
SEBI Order on Public Shareholding Norms
The deadline for compliance by non-government entities of the public shareholding norms went by on June 3, 2013. Immediately thereafter, SEBI yesterday issued an order against 108 companies that have failed to comply with these norms. SEBI’s press release summarizing its order is available here. A couple of points are noteworthy. The first relates to the rapidity with which SEBI has acted. This...
SEBI Clarifies on Schemes of Arrangement
Following SEBI’s circular of February 4, 2013 imposing stringent requirements for oversight of schemes of arrangement, there were certain issues that required clarification (discussed here and here). Now, by way of another circular dated May 21, 2013, SEBI has clarified some of the outstanding issues and also made some modifications to the previous circular. In this post, we discuss some of the...
Public Shareholding Norms: Consequences of Non-Compliance
The June 2013 deadline for compliance by listed companies with the minimum public shareholding of 25% is looming closer. The deadline for compliance by public sector (government) listed companies to comply with the 10% minimum public shareholding will follow in August. Over the last few months, several companies have already reduced their promoter shareholding to meet with these norms. This has...
Recent Comments