General Corporate Advisory

General Corporate Advisory

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Changes to the FDI Policy – A New Lease of Life to the ...

India opened up its economy in 1991 and has since considerably eased foreign direct investment (FDI) norms across various sectors of the economy, with a viewpoint of liberalizing the FDI regime in the country. Fast forward to 2019 and the current government, in order to further boost the economy and FDI inflows, has approved certain amendments to the existing FDI policy ("FDI Policy") of the country....
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Adducing Evidence Under Section 34 of the Arbitration A...

It has been well established that proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”) are summary in nature.The scope of enquiry in any proceedings under Section 34 of the Act has been restricted to consider whether any of the grounds mentioned in Section 34(2) or Section 13(5) or Section 16(6) are made out to set aside the award, the grounds for which are specific....
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Regulating the Unregulated: Stories of OTT Platforms in...

The scope of public internet that started back in the 1980s has grown over the decades. It allows a telecom subscriber to access almost all the services required for information, education and entertainment etc. It has altogether redefined the conventional marketplace. Even personalized services, such as a taxi ride can be accessed on a person’s fingertips. This growth has also brought about a fundamental shift in other spheres including telecom and TV. Earlier, networks used to be built around specific applications, say voice, internet or Pay TV. Voice, message and video content have now been reduced to mere bytes.There has been a rapid proliferation of voice, video and Over-the-top ("OTT") application services being delivered over networks....
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Binding non-signatories to an Arbitration through the g...

It has been well established that consent from parties is a prerequisite to an arbitration.This characteristic of an arbitration ensures that it is only the parties to an arbitration agreement that would be the parties between who arbitration shall commence against. However, over time we have seen different doctrines or legal theories developed such as the group of companies’doctrine, the concept of agency, the reliance theory, that have been used to make a non-signatory a party to an arbitration....
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Shell Companies in India

In the past few years, 'panama' and 'paradise', rather than signalling sunshine and rainbows, have been frequently evoked in the context of the 'shell corporations' which were incorporated in various off-shore tax havens. 'Shell companies' are simply an 'outer cover', 'a protective layer' that frequently have only a paper existence with no real assets, liabilities or operations. They therefore generate no economic activity but do impart separate corporate legal personality to the structure. Various news reports and ministry circulars emphasize the efforts being undertaken to curb the sprouting up and regulating of shell companies in India. However, despite the pro-active measures taken by the Government, sizeable issues remain in the operation, implementation and harmonisation of the same. ...
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Relaxation of end-use norms for External Commercial Bor...

External Commercial Borrowings (ECBs) are commercial loans raised by eligible resident entities from recognised non-resident entities which should always conform to the parameters prescribed by Reserve Bank of India (RBI) such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling etc.The ECB framework is governed by the regulations of the RBI framed under the Foreign Exchange Management Act, 1999 ("FEMA"), and the Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (the "MasterDirection")....
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Tracing the history of sedition in India

On July 03, 2019, the Ministry of Home Affairs through a written statement informed the Rajya Sabha that the present Government has no plans on amending the laws on sedition in the country so as to ensure that the Government has effective means to combat anti-national, secessionist and terrorist elements. In an election, where national security was a huge factor for the political parties, a stance that was taken by certain political parties was that they would like to amend the present sedition laws in our country[1], whereas, the ruling party’s stand was that they would like to toughen the existing sedition laws.[2]...
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Differential Voting Rights for Listed Companies in Indi...

In recent years, there has been increasing clamour and debate around implementing a framework for enabling issuance of shares with Differential Voting Rights (“DVRs”) where listed companies are concerned. In a move that is bound to significantly change the way certain transactions are structured, the Securities and Exchange Board of India (“SEBI”) approved the Framework for Issuance of Differential Voting Rights Shares (“Framework”) on June 27, 2019....
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Foreign Liabilities and Assets Information Reporting

The Reserve Bank of India (RBI) vide a 2012 circular, stipulated that Indian companies which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) in the soft form which can be duly filled-in, validated and sent by e-mail to the Reserve Bank by July 15 of every year. The coverage was enhanced to reporting of inward and outward foreign affiliate trade statistics (FATS) and reporting by the limited liability partnerships (LLPs) through the subsequent circulars....