Impact of Extraterritorial Applicability of PDP Bill, 2019 on Banking Sector

By Yamini Jain and Gaurav Karwa

Introduction

Deriving its essence from Article 3(2) of the General Data Protection Regulations (GDPR), Section 2(A) of the Personal Data Protection Bill, 2019 [PDPB] makes a provision of its extraterritorial application over data fiduciaries and data principals present beyond the territory of India. Section 2(A)(b) of PDPB makes an extraordinary provision pertaining to its applicability on all such data fiduciaries incorporated under the laws of India and brings all their foreign branches within its purview. In this light, understanding the impact of the extra-territorial application of the PDPB on multinational banks based in India that process sensitive personal data becomes particularly important. In this article, the authors aim to highlight various issues and problems arising out of extraterritorial application on multinational organizations and particularly those related to  the banking sector. The authors explain the distinct meaning of the extra-territorial application of the PDPB, whether such application is in conflict with other laws, and other major issues in data localization, cloud servers, etc.

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To Transfer or Not to Transfer: An analysis of the Supreme Court’s decision in Action Ispat and Power Pvt Ltd v. Shyam Metallics and Energy Ltd

By Rukmini Mukherjee, lawyer based out of New Delhi and currently pursuing her LLM from Jindal Global Law School

The legal conundrum governing the position of at what stage winding up petitions pending before the High Courts (“ Company Court”) are to be transferred to the National Company Law Tribunals (“NCLTs”) have undergone various judicial pronouncements, debates and legislative amendments. The question of at what stage can a winding up petition be transferred has been recently dealt with by the Hon’ble Supreme Court in Action Ispat And Power Pvt. Ltd. Versus Shyam Metalics And Energy Ltd. This post will analyze this judgment in light of the provisions relating to winding up under the Companies Act 2013 to highlight how the same does not quite fit in within that framework.

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Franklin Templeton Case study

By Shivanjali Shukla, Student at Jindal Global Law School

Mutual fund investments are subject to market risks. Please read the offer document carefully before investing.”

Introduction

Franklin Templeton is one of the leading mutual fund houses in the country and a premier organization for global investment management. On 24th April, the company announced that it would be winding up six debt schemes. The schemes which were announced to be wrapped up are: Franklin India low duration fund, dynamic accrual fund, credit risk fund, short term income plan, ultra-short bond fund and income opportunities fund. These schemes consisted of investor’s assets worth around INR 30000 crore. The schemes which were wound up by the company were credit risk funds. Credit risk funds are basically those kinds of funds which lend 65% or more to the low-credit quality debt securities. People who have low credit rating, try to compensate by agreeing to pay a higher rate of interest in comparison to those people who have a decent credit rating. However, since they have low credit ratings, the chances of defaulting are very high, thus this creates huge risk for the lenders.

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