In the late 1990s, it was possible for Indian unlisted companies to raise capital overseas and list on overseas stock exchanges without having a primary listing in India. Companies such as Rediff and Sify had taken advantage of this mechanism and listed on the US stock exchanges. However, a few years ago, this route was effectively blocked when the Government of India stipulated that a primary...
SEBI introduces ‘Angel Funds’
[The following post is contributed by CS Vinita Nair – [email protected] & Pooja Rawal – [email protected] from Vinod Kothari & Company, Practising Company Secretaries] “Angel investors bring both experience and capital to new ventures. SEBI will prescribe requirements for angel investor pools by which they can be recognised as Category I AIF venture capital funds”...
SEBI Notification on Pre-Emption Rights, Put and Call Options
The enforceability of pre-emption rights and put and call options in securities of Indian companies has been fraught with difficulties for a number of years. These have been discussed in detail in this paper, with arguments made for streamlining these provisions to recognise such rights and options in investment agreements. Although the Securities and Exchange Board of India (SEBI) had been...
Amendments to SEBI’s FUTP Regulations Effective
In previous posts (here, here and here), we had discussed issues that had arisen under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to the Securities Market) Regulations, 2003 (the FUTP Regulations), particularly in the context of front running. We had also discussed SEBI’s proposal to amend the FUTP Regulations to expand the scope of front running and also to bring in...
Update on Delisting of Fresenius Kabi Oncology Limited
[The following post is contributed by Yogesh Chande, who is a Consultant with Economic Laws Practice, Advocates & Solicitors. Views of the author are personal] On 22 July 2013, the SEBI whole time member passed an order in relation to the proposed voluntary delisting of Fresenius Kabi Oncology Limited (Target Company) by its promoters in accordance with the SEBI (Delisting of Equity Shares)...
No More Front Running Through The Back Door
[This post is contributed by Anjali R. Menon, who is a Senior Associate at a leading law firm in Mumbai. She also runs a blog at . She can be reached at [email protected]. It relates to the issue of front running, which has been previously discussed on this Blog in the context of cases decided by the Securities Appellate Tribunal (SAT) and the Securities and Exchange Board of India (SEBI)...
Regime on Fraudulent Trade Practices Strengthened
We had earlier discussed two decisions of the Securities Appellate Tribunal (SAT) (here and here) and also an order of SEBI (here) on whether the front-running activities of persons other than “intermediaries” can be brought within the purview of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (the PFUTP Regulations). While the SAT...
SEBI issues Operational and Reporting Guidelines for AIFs
[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...
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