Tag: Securities Regulation
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Stoneridge: US Supreme Court Limits Scope of Securities Law Suits
[Posted by Umakanth Varottil] BackgroundA significant decision in the area of securities laws was handed two days ago by the US Supreme Court in the case of Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc. In its judgment (available here), the court (by a 5:3 majority) held that private actions for securities fraud (under Section 10(b)…
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Simplifying Corporate Bond Issuances
[Posted by Umakanth Varottil] Continuing with the spate of regulatory announcements by SEBI over the turn of the new year, it yesterday issued a press release proposing simplification of the primary issuance process for corporate bonds. It has released a consultative paper on the “Draft SEBI (Issue and Listing of Debt Securities) Regulations, 2008” for…
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Insider Trading and Short Swing Profits
[Posted by Umakanth Varottil] SEBI yesterday issued a Consultative Paper on introduction of ‘Short Swing Profit’ regulations in India. Under this proposal, any insider would be compelled to surrender profits to the company that are derived from a transaction involving the purchase and sale of securities by the insider within a period of six months.…
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REITs on the Anvil
[Posted by Umakanth Varottil] Real estate investment trusts (REITs) are similar to mutual funds. However, unlike mutual funds that usually hold securities, the underlying assets held by REITs are constituted by real estate properties. Investors in REITs can participate in returns from these real estate investments. The last couple of years have seen a boom…
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Promoters’ Contribution; SEBI Ruling in the Reliance Power Case
[Posted by Umakanth Varottil] In its order passed yesterday, the Securities and Exchange Board of India (SEBI) ruled that shares acquired by the promoters of Reliance Power Limited (RPL) pursuant to a scheme of amalgamation approved by the High Court of Bombay would be eligible for computation of promoters’ contribution under the SEBI (Disclosure and…