IndiaCorpLaw

Tag: Securities Regulation

  • SEBI Decisions on Public Offerings, Responsibility Reporting

    SEBI’s board has taken decisions on certain matters involving public offerings and business responsibility reporting. As far as the public offering process is concerned, some reforms have been introduced to promote the capital markets (e.g. increasing the minimum allotment for anchor investors and creating a separate category of disclosures for venture capital funds and other…

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  • Commentary on the SEBI Act

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  • SAT Order in the Sahara Case

    (This post has been contributed by Amit Agrawal, a legal practitioner practicing before Rajasthan High Court, Jaipur and an alumnus of the National Law School of India University, Bangalore) The Securities Appellate Tribunal (SAT) delivered its judgment yesterday in the case involving issue of securities by certain companies within the Sahara group. The judgment has come…

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  • Issue of GDRs and Market Manipulation

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  • Enforceability of Put and Call Options in India

    I have posted a working paper tentatively titled Investment Agreements in India: Is There an ‘Option’?, the abstract of which is as follows: Put and call options are ubiquitous in modern investment agreements, such as those involving joint ventures as well as private equity and venture capital investments. The enforceability of put and call options…

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  • SEBI’s Concept Paper on Alternative Investment Funds

    Currently, private pools of capital are not subject to detailed regulation. No mandatory registration of such investment vehicles is necessary. Registration of such vehicles as venture capital funds (VCFs) is more in the nature of a facility available to take advantage of various benefits available through such registration under SEBI VCF Regulations. While several private…

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  • Companies Bill Rekindled

    The recent change at the helm of affairs of the Ministry of Corporate Affairs (MCA) has rekindled the discussion on the Companies Bill. Newspaper reports indicate that the new Bill is expected to be introduced in Parliament during the monsoon session that begins August 1. The reports also highlight some key areas recently at the…

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  • Miscellaneous

    The following developments and readings may be of interest: 1. Sahara: Public Offering vs. Private Placement We have been following the Sahara case as it involves the crucial question of what differentiates a public offering from a private placement of securities under Indian company law and securities regulation. Newspaper reports (here, here and here) indicate…

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  • Rule 10b-5 and the “Maker” of a statement: Janus Capital v. First Derivative

    Last week, in a 5-4 verdict, the US Supreme Court once again narrowly interpreted Rule 10b-5, this time holding that only the “maker” of a false statement could incur 10b-5 liability: “maker” in this context being defined as “person or entity with ultimate authority over the statement.” The case, Janus Capital Group Inc. v. First…

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  • SEBI’s Further Order in the Sahara Case

    SEBI yesterday issued a detailed and well-reasoned order in the case involving the offering of optionally fully convertible debentures (OFCDs) by two Sahara companies. It found that the Sahara companies had offered OFCDs to millions of investors in the garb of a ‘private offering” without complying with the requirements applicable to a public offering of securities.…

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