Articles and Updates

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The Supreme Court ordered status quo as it existed on the date of the order passed by the single judge of the Delhi High Court, thereby granting Star an interim injunction against Akuate and its fellow defendants duringthe pendency of an appeal before the apex court of the country. With the final ruling being expected at the end of the year, there is much anticipation that this would be a watershed decision for the Indian media and entertainment industry.

• Siddharth Hariani -

With the issuance on 3 October of a notification under the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India (SEBI) provided much needed clarity on the validity of contracts relating to the right of first refusal, tag-along and drag-along rights, and options to buy or sell securities (collectively referred to as “contractual rights”) contained in shareholders’ agreements or articles of association of companies.

• Siddharth Hariani -

Af ter much vaci l lat ion, the Companies Act, 2013, has finally been enacted by the Indian parliament to replace the Companies Act,1956, which was increasingly being viewed as archaic and out of step withthe requirements of the corporate world.

• Sawant Singh -

New rules in the European Union are forcing European banks in India to reconsider their clearing operations based out of India. In response to the financial crisis, the EU adopted the European Market Infrastructure Regulation (EMIR) in August 2012 to increase transparency in the “over-thecounter” (OTC) derivatives market and to mitigate systemic risk by reducing operational as well as counterparty credit risk. Once fully implemented, the EMIR will require certain classes of derivatives to be centrally cleare

• Sawant Singh -

By rest ructur ing distressed accounts instead of classifying them as non-performing assets (NPAs), banks skirt around the requirement to provide for NPAs by setting aside a specific portion of their capital to make up for losses that could arise from a potential default. However, the rules of the game changed significantly with the issuance by the Reserve Bank of India (RBI) of a circular dated 30 May, which introduced several changes to the prudential guidelines on restructuring of advances by banks and other