Articles and Updates

AIF REGULATIONS RAISE THE BAR.
  • Siddharth Hariani - 06-01-2012

In what has otherwise been a quiet year for reforms, the Securities and Exchange Board of India (SEBI) has created a buzz by notifying the SEBI (Alternative Investment Funds) Regulations, 2012, (AIF Regulations).

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VALIDATION OF OPTIONS PROVIDED TO NON-RESIDENTS
  • Siddharth Hariani - 06-01-2012

The notification issued by the Securities and Exchange Board of India (SEBI) on 3 October 2013 provided much needed clarity on the validity of contracts relating to right of first refusal, tag-along and drag-along rights, and options to buy or sell securities contained in shareholders agreements or articles of association of companies. A criticism leveled at this notification was that it only addressed the validity of such contractual rights in the domestic context, and did not validate these contractual rights

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A LOOK AT SEBI NOTIFICATION ALLOWING CONTRACTUAL RIGHTS
  • Siddharth Hariani - 06-01-2012

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.

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COMPANIES ACT 2013: CHANGING OF THE GUARD
  • Siddharth Hariani - 06-01-2012

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.

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DRAWING THE LINE BETWEEN PROFIT AND ACCOUNTABILITY.
  • Siddharth Hariani - 06-01-2012

A silver lining of the recent global financial crisis has been the subsequent introspection on market structures and institutions, and how their interplay could impact systemic stability. In 2010, India’s securities regulator, the Securities and Exchange Board of India (SEBI), received the report of the Bimal Jalan Committee (chaired by a former governor of the Reserve Bank of India), which reviewed ownership and governance of market infrastructure institutions such as stock exchanges and clearing corporation

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LIFE INSURERS’ IPO NORMS: RIGHT STEP AT WRONG TIME.
  • Siddharth Hariani - 06-01-2012

To describe 2011 as a forgettable year for the life insurance segment of the insurance industry would be an understatement. The run-up to 2010 saw the life insurance segment piggyback successfully on unit-linked insurance plans (ULIPs) so as to achieve a robust growth of 40-50%.

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RULING ON PASSIVE BUYBACK A BOON FOR MARKET PLAYERS.
  • Siddharth Hariani - 06-01-2012

The year 2011 has witnessed a dramatic overhaul of the regulations governing the acquisition and takeover of listed companies. While a dampened capital market has left players with a lot to desire in terms of suitable opportunities to test the provisions of the revised Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations (takeover code) of 2011, as the year drew to an end the Securities Appellate Tribunal (SAT) has gone on to give market players and SEBI some addit

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BIG MONEY AND EASING TARGET FOREIGN INVESTORS.
  • Siddharth Hariani - 06-01-2012

Among the various factors which have contributed to the Indian growth story, infusion of funds from foreign investors would rank near the top. To fulfil the country’s much-touted potential as an economic superpower in the years to come, regulatory focus in the recent past has been on streamlining the procedure for such inflows.

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PRIVATE EQUITY INVESTORS FACE AN EXIT CONUNDRUM.
  • Siddharth Hariani - 06-01-2012

Foreign private equity investments have made a considerable contribution to India’s economic growth. Through their role of providing “enabling capital” – funds injected into a company at a critical juncture – private equity investors often facilitate the development of a company’s product line, finance its capital expenditure, boost its scale of operations and aid the diversification of its business activity.

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