MANDATORY LISTING OF SHARES HAVING SUPERIOR VOTING RIGHTS: A STEP FORWARD?

Aastha Agarwalla, Law Student, Campus Law Centre, Faculty of Law, University of Delhi

Prefatory

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?”

Arbitrability of Antitrust Disputes: A case against the orthodox approach of the Indian Courts

Ojasvi Sharma, final year law student, Nirma University

Introduction

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”

Forward Markets in India and the Saga of Electricity

Rahul Jajoo, Advocate, Supreme Court of India

Introduction

Forward markets pertaining to commodities in India have been recognized as a way to deal in derivative markets [1] since independence. It was however only in 1952 that the government of India decided to regulate the regime of forward markets and hence, the Forward Contracts Regulation Act, 1952 (“FCRA”) was enacted. The object and purpose of the FCRA was “An Act to provide for the regulation of certain matters relating to forward contracts, the prohibition of options in goods and for matters connected therewith.”

Continue reading “Forward Markets in India and the Saga of Electricity”

Streamlining The “Rights Issue” Process: Temporary Relaxations Amid The Pandemic

Divyansh Nayar, 4th year, National Law University, Odisha

Introduction

The industrial undertakings are in dire need of funds for various purposes during the period of this economic collapse at the heels of COVID- 19 Pandemic. In order to attenuate the capital adequacy requirement, the Securities and Exchange Board of India (‘SEBI’) allowed relaxations in the rights issue process that seem to ease out the stringent requirements that debilitate the facility of raising funds by companies. Through a series of circulars, SEBI streamlined the process in order to cater to the need of the market and promote the influx of capital in the market. This article lays down the scheme of relaxations proffered and emphasizes on the capital requirement of the market

Continue reading “Streamlining The “Rights Issue” Process: Temporary Relaxations Amid The Pandemic”

COVID-19 AND STOCK MARKET CRASH: SHOULD SEBI BAN SHORT-SELLING?

Tanuj Agarwal, Institue of Law, Nirma University

Introduction

Covid-19 pandemic has raised serious apprehensions surrounding health and safety causing a lockdown in India.  The pandemic has caused a worldwide recession and has spooked investors’ sentiment. Prior to the coronavirus outbreak, the Indian stock market was in full positive swing as Sensex and Nifty had reached their all-time intraday peak of 42,273.87 and 12,430.50 respectively in January, 2020. Even after attaining such progress, the Indian stock market is witnessing the most difficult period for the past few months. The stock market has observed lower circuit levels after 12 years on March 13, 2020. Afterward, the equity index discerning a continuous downfall. On March 19, 2020, Sensex crashed below 27,000 and Nifty breached the level of 7,900, thereby attained their five-year closing low levels. Consequently, an approximate downfall of 37% is evident in both the equity indices within a period of just 2 months. The stock market has seen a considerable collapse due to high market volatility. This downfall has degraded the financial market and faded the interest of investors and corporates. Thereby, the concern is whether such a market downturn can be controlled by restricting short-selling.

Continue reading “COVID-19 AND STOCK MARKET CRASH: SHOULD SEBI BAN SHORT-SELLING?”

Is Covid-19 a Force Majeure Event? : A Global Scenario

Nitya Jain, 4th year law student, Nirma University

Introduction

The world position at a standstill, for an unforeseeable force disrupts lives across boundaries. Covid – 19 has emerged as a pandemic whose expiration is still a blurry vision. As a retort to the deadly virus, the governments of various nations have put strict travel restrictions with almost nil movements of goods and people, leading to severe disruptions in the supply chains all over the world. Consequently, various contracts are being assailed or tend to be violated because of late or no delivery. This article assembles and then, analyses the answers of various governments to the question – Whether Covid -19 pandemic can amount to a force majeure event, excusing parties of their contractual obligations for time being?

Continue reading “Is Covid-19 a Force Majeure Event? : A Global Scenario”

Enhancing Dispute Resolution Through DLT: A Case For Regulatory Framework Of “Smart” Contracts

Urmil Shah, 3rd year law student, Auro University Surat

Introduction

There has been quite deliberations on distributed ledger technology and its application with smart contracts on utilizing it as a mode of dispute resolution, from a conflict management standpoint. Although, smart contracts provide endless potential to assist disputing management, particularly in the field of international arbitration due to its delocalized nature; however, the compliance of such contracts with the domestic legal regime of states is imperative to ascertain the validity, from legal certainty standpoint.

Continue reading “Enhancing Dispute Resolution Through DLT: A Case For Regulatory Framework Of “Smart” Contracts”

Covid-19 and the Extent Of Contracts Enforceability: Impact on Commercial Contracts

Shubham Gupta, 4th year law student, Nirma University

Introduction

With an unprecedented turn of events in the wake of COVID -19, the enforceability of contracts have become a major lookout. Giants such as Inox Leisure Ltd., PVR, Cinepolis are invoking the Force Majeure [“FM Clause”] in their contracts for subduing the rental obligations to their landlords.[1] COVID-19 has caused serious market disruptions and financial dislocations. The basic assumption is that there is a fundamental change in market circumstances due to the uncertainty of an outbreak, and there is a persisting problem until the extenuation of the disease.

Continue reading “Covid-19 and the Extent Of Contracts Enforceability: Impact on Commercial Contracts”

Extraterritorial Compliance with Corporate Governance Norms

Shubham Gupta, 4th year law student, Nirma University

*Originally published on India Corp Law

The Securities and Exchange Board of India (SEBI) has elucidated its position with the respect to the extra-territorial application of its corporate governance norms. In a recent informal guidance in the matter of KCP Limited, SEBI interpreted regulation 24(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). The provision stipulates that an independent director of a listed company is to be appointed on the board of directors of an unlisted material subsidiary, whether incorporated in India or not. SEBI found that the provision needs to be adhered to extra-territorially if a foreign subsidiary’s home jurisdiction does not prohibit the compliance thereof. This post seeks to analyze the regulator’s approach towards the extra-territorial application of corporate governance norms.

Continue reading “Extraterritorial Compliance with Corporate Governance Norms”

Tracking the Data Protection Regime in India

Abhishek Tripathy, a 4th year student at the Institute of Law, Nirma University

Introduction

The Personal Data Protection Bill, 2019 as introduced in Lok Sabha has been referred to a Joint Parliamentary Committee of both the Houses, under the Chairperson of Smt. Meenakshi Lekhi for further evaluation. It has to be noted that this bill is not the same as the Draft Personal Data Protection Bill, 2018 which was made public by the Srikrishna Committee last year. The bill which is most likely to be placed in the winter session is expected to have certain changes especially with regards to the data localization norms. The bill will mark the way for a new data protection regime in India.

Continue reading “Tracking the Data Protection Regime in India”