Automobile sector in India has been growing at a rapid pace, contributing to over 7% of India’s total Gross Domestic Product[1]. With annual sales exceeding 20 million passenger vehicles the mandatory vehicle insurance requirement has led to a commensurate increase in motor insurance business sales. This sector now constitutes 45% of the overall business of general insurance in India.[2]
Continue Reading Forceful selling of Insurance by Automobile Dealers : Call for Regulation![FIG Paper No. [29], Data Law Series [3]: Implications of Digital Personal Data Protection Act, 2023 for Foreign Banks in India](https://corporate.cyrilamarchandblogs.com/wp-content/uploads/sites/857/2024/01/Blog-Image-8-655x374.png)
The Digital Personal Data Protection Act, 2023 (“DPDP Act”) is India’s foray into the global regulatory movement on personal data rights. In designing the DPDP Act, there has been a strong focus on simplicity, brevity, and standardisation. We note a marked effort to align with data regulation across the world, most significantly, the European Union’s General Data Protection Regulation (“GDPR”). While principally similar, the Indian regime has peculiarities for which financial services entities will have to prepare themselves.
Continue Reading FIG Paper No. 30, Data Law Series 4: Implications of Digital Personal Data Protection Act, 2023 for Foreign Banks in India
In Starpharma Pvt Ltd v. The Assistant Controller of Patents and Designs [Mad HC, (T) CMA (PT) No.22 of 2023, Decided: 12th October 2023], the Madras HC adjudicated on issues relating to Sections 57 and 59 of the Patents Act 1970. Section 57[1] allows amendment of applications, any specifications and any document subject to Section 59[2] of the Act. Section 59 states the following for amendment of an application for a patent or the complete specification or any document relating thereto:
Continue Reading Madras High Court allows amendment of “method of treatment” claims to product claims
The year 2023 saw 85 public takeovers implemented through the tender offer route under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations). The number of takeovers were only slightly below the number of takeovers in CY22 (93 in all). The aggregate transaction size (i.e. the aggregate size of the negotiated deal and tender offer) of takeovers announced in CY23 was ₹274.27 billion, 77% lower than that of the takeovers announced in CY22, which was ₹1,180 billion. Primarily, the deal activity in CY23 was driven by domestic acquirers. Foreigners executed only three deals in this space (including only one deal by a PE player), which was substantially lower than CY22 (being 11 ).
Continue Reading Public Takeovers in India: Flashback 2023
Granting of inter-corporate loans, making investments and provisions for guarantees was previously regulated by Sections 370 and 372 of the Companies Act, 1956 (the“1956 Act”), which mandated prior Central Government approval (along with compliance with certain other stringent guidelines prescribed by the Ministry of Corporate Affairs) for giving loans/ guarantee/ security in excess of the limits prescribed under the said sections. This position was subsequently changed with the enactment of Section 372A of the 1956 Act (by the Companies (Amendment) Act, 1999), which replaced the need to obtain prior government approval with a self-regulatory mechanism, which mandated prior shareholder approval by a special resolution before granting inter-corporate loans, guarantees or securities beyond the limits prescribed therein..
Continue Reading Key issues under Section 186 for a corporate lawyer
Recent concerns with mis-advertising have led to various pro-consumer measures in India. This includes overhauling the consumer laws and attaching liability to platforms, sellers and advertisers (including influencers and celebrities) for misleading ads and malpractices.
The latest pro-consumer measure is the regulation of dark pattern practices, by way of notification of ‘Guidelines for Prevention and Regulation of Dark Patterns, 2023’ (“Guidelines”).
Continue Reading Dark Side of Advertising: Decoding Dark Patterns for Platforms and Endorsers
Nearly five years after a landmark Supreme Court ruling, which reiterated that information privacy is a fundamental right enshrined in the Constitution, India finally enacted its Digital Personal Data Protection Act, 2023 (the “DPDPA” or “Act”), on August 11, 2023.
Continue Reading Comparing Global Privacy Regimes Under GDPR, DPDPA and US Data Protection Laws
On September 14, 2023, the Insurance Regulatory and Development Authority of India (“IRDAI”) set up an inter-disciplinary standing committee on cyber security, tasked with regularly reviewing the threats inherent in the existing or emerging technologies and suggest appropriate changes to the IRDAI Information and Cyber Security framework to further strengthen the insurance industry’s cyber security posture and resilience.[1] This is in furtherance to the IRDAI having notified the Information and Cyber Security Guidelines on April 24, 2023 (“CS Guidelines 2023”).
Continue Reading Primer on IRDAI Information and Cyber Security Guidelines 2023
The Central Consumer Protection Authority (“CCPA”) notified Guidelines for Prevention and Regulation of Dark Patterns, 2023 (“Guidelines”), under Section 18 of the Consumer Protection Act 2019 (“COPRA”), on November 30, 2023.
Continue Reading Dark Pattern Guidelines: Illuminating Or Illusory?
The Business Judgment Rule is a legal presumption evolved by Delaware courts. It was thereafter adopted by most commonwealth countries. The presumption is that while making business decisions, Directors of a company act in good faith, on an informed basis and in the honest belief that the action is in the best interest of the company. If the above conditions are satisfied, the Board of Directors will not suffer a legal liability from a bad business decision. The rationale being that in an inherently risky global business environment, the Board should be allowed to take business risks without the constant fear of lawsuits.
Continue Reading The Business Judgment Rule: The Indian context