Ayushi Choudhary and Pushpam Raj Pandey, law students, Dr. Ram Manohar Lohiya National Law University
With the outbreak of COVID-19, the Indian Government adopted certain protectionist measures to save the Indian industries from predatory capital investments. As seen in the past, the agenda behind amendments in the Foreign Direct Investment Policy (“FDI Policy”) has been to promote the ease of doing business by liberalizing the policies and making India “an investor-friendly nation”. However, amidst these unprecedented times, the Government opted for a bold move and released a press note on April 17, 2020(“Press Note 3”) to amend the consolidated FDI Policy of 2017. This came into effect on April 23, 2020 via a press release with the aim of regulating the opportunistic takeover of the Indian companies from astute business organizations.
Continue reading “Government Resolutions to regulate Chinese Markets in India”
Nitya Jain, Institute of Law Nirma University
The unprecedented surge in the global digital market has made data a valuable asset for individuals, corporations and Governments. Cross-border data flows have shrunk the world, allowing people across the globe to have the same user experience on the Internet. However, the explosion in the volume of data has generated as much a threat to its misuse as it created opportunities for companies. Today few global big shot organizations dominate the digital economy and their model is centered around data. Greater access to data provides a greater digital capital to a corporation, granting it an advantage over its competitors. Owing to this disadvantage faced by the domestic and small scale organizations, most jurisdictions impose conditions on when and how data can be transferred, and consequently some resort to physical data localization requirements. A study by Mckinsey Global Institute found that in 2014 the direct impact of cross-border data flows had raised world GDP by 3 percent (worth about $2.2 trillion in 2014), which exceeded the contribution of trade in traditional goods in that year.
Continue reading “Restrictions on Cross Border Data Exchange in India: A Good Move?”
Dr. Akshaya Kamalnath, Lecturer Auckland University of Technology
India’s regulatory intervention with regard to corporate diversity has focused exclusively on board gender diversity. It has required companies to have atleast one woman on its board. The relevant section of the Companies Act, 2013 is extracted below:
Continue reading “CORPORATE GENDER DIVERSITY IN INDIA – LOOKING BEYOND THE BOARD”
Ashutosh Choudhary & Gaurav Baheti are students at the National Law University, Odisha.
The nationwide lockdown enforced all over India due to the outbreak of Covid-19 pandemic is turning out to be a curse for the Indian economy. The uncertainty and distress created for corporate persons in businesses and the financial market of the Indian economy have severely disrupted the financial operations at large scales which may lead corporate entities into liquidation.[i] The Indian government has come up with several reforms to rescue corporate persons from economic distress in the current Covid-19 times from being pushed into insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“Code”) for such defaults owing to the current time which might lead them into liquidation.[ii]
Continue reading “IBC (Amendment) Ordinance, 2020: Hanging Sword On Personal Guarantors To Corporate Debtors”
By Shubham Dimri, Law Graduate, Gujarat National Law University, Gandhinagar
The NSE IFSC and BSE’s INX have started offering rupee linked derivatives on their platforms after receiving the approval from the Reserve Bank of India(RBI) and the Securities and Exchange Board of India(SEBI) early this year. This expands the bouquet of financial products offered in IFSC along with allowing for hedging of currency rate risk to prospective participants. The process of developing IFSC into a place, where rupee derivatives are traded, received a boost after the Task Force on Offshore Rupee Markets recommended that to prevent exchange rate shocks, currency rupee derivatives are needed to be brought within the ambit of domestic regulators. This was necessitated by the fact that non-deliverable forwards contracts in Rupee traded in foreign exchanges had a higher value and volume turnover than domestic exchanges which impacted the domestic macro-economic scenario. Following this recommendation, RBI and SEBI have framed rules for the segment in GIFT IFSC to start the process of developing the currency derivative market.
Continue reading “Rupee Linked Derivatives in IFSC: A New Beginning”
Aditya Singh Chauhan, National Law University, Jodhpur
There is an increase in the number of freezing orders, whereby the tax authorities recover the amount due directly from the bank account of the tax payer. This is due to the overwhelming amount of tax defaults, and increase in the pressure on the tax department. One such provision that allows the tax authorities to issue freezing orders – section 132(9B) of the Income-tax Act, 1961 (“Act”) – was introduced by the Finance Act, 2017 to ensure that the revenue’s stake over the assessee’s assets is not unfairly misappropriated. Such orders, however, are intrusive and have severe consequences on the business and reputation of the tax payer. The situation becomes more indiscriminate when such orders are issued against the foreign assets of the companies that are resident in India.
Continue reading “Defining Contours of Freezing Orders Issued U/S 132(9B) of the Income Tax Act”
Ashuthosh V., Law student, Institute of Law, Nirma University
A Shareholder meeting is a meeting between the management of the company and the owners and shareholders of the company. During the meeting, decisions are made concerning the day-to-day operations of the company. The purpose is to ensure that the shareholders are provided with an opportunity to discuss and deliberate upon affairs concerning the company. In a pre-Covid-19 situation, shareholder meetings were conducted in a physical venue and in accordance with the procedures under Section 96 of the Companies Act, 2013 (hereinafter “the Act”). It must be held at least once in a financial year, but not more than 15 months from the date of the previous one.
Continue reading “Virtual Shareholder Meetings: The Future of Shareholder Meetings Post Covid-19”
Nayan Mittal, Law Graduate, Symbiosis Law School, Pune
Recently, in the case of In Re: Cartelization in Industrial and Automotive Bearings (“Automotive Bearings Case”) the Competition Commission of India (“the Commission” or “CCI”) held that the discussion with respect to a commercially sensitive price related information amongst the competitors points out to cartelization under the Competition Act, 2002 (“Competition Act”). This decision marks a noted departure from the exiting approach established in Re: Cartelization in Flashlights Market in India(“Flashlights Case”) wherein it was held that discussion on commercially sensitive information is not anti-competitive even if it is meant to increase prices and the parties must actually act upon the information in order to constitute a violation. The present article analyses the changing standard of proof requirement with respect to commercially sensitive information in the Commission’s decisional practice.
Continue reading “Analyzing the Changing Standard of Proof with respect to Commercially Sensitive Information in Cartel Cases”
Aastha Agarwalla, Law Student, Campus Law Centre, Faculty of Law, University of Delhi
The Ministry of Finance, through a notification dated 19th March 2020, (hereinafter, “Amendment”) introduced a significant development in the legal framework of Differential Voting Rights (DVR), especially in shares having Superior Voting Rights (SR), by amending the Securities Contracts (Regulation) Rules, 1957 (hereinafter, “SCRA Rules”).The Amendment provides that in case a company seeks to list its ordinary equity shares for offering to the public, then it shall be mandatorily required to list its shares having SR on the same recognized stock exchange.
Continue reading “MANDATORY LISTING OF SHARES HAVING SUPERIOR VOTING RIGHTS: A STEP FORWARD?”
Ojasvi Sharma, final year law student, Nirma University
Arbitrability of disputes has always been a big fuss amongst the scholars. No law or act in India prescribes the subject matter of disputes which could be resolved through arbitration. Albeit, § 2(3) of the Arbitration & Conciliation Act, 1996 [“A & C Act”] clarifies that Part-I shall not affect the operation of any other laws in the country and certain disputes may not be submitted for resolution through arbitration. The issue of arbitrability of disputes relating to Competition law is contestable. The dubitable proposition is ‘whether a competition law dispute arising out of a contractual agreement between two parties could be submitted to an arbitral tribunal’. In other words, whether a dispute resolution mechanism primarily focused to address private parties’ concerns and is very much confidential could resolve an issue arising out of Competition law, which is of ‘Public Nature’ or includes ‘Public Interest’.
Continue reading “Arbitrability of Antitrust Disputes: A case against the orthodox approach of the Indian Courts”