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Climate Finance

Climate change is one of the defining challenges of our times. It is a classic example of  a ‘collective action problem’  – one requiring collaborative action between individuals, groups and nations, but where such coordinated action is difficult on account of misaligned incentives. Climate change is likely to result in physical and transition risks that could have implications on stability of the overall financial system as well as the physical safety and financial soundness of banks, financial institutions. Given the potential implications of climate change on monetary policy as well as financial stability, addressing it should be part of the mandate of central banks and financial regulators.

Continue Reading Climate Finance for Regulated Entities – Upcoming Trends
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Introduction

The Securities and Exchange Board of India (“SEBI”) vide its circular dated February 05, 2020, had introduced certain disclosure standards by way of a private placement memorandum (“PPM”) template that all SEBI registered Alternative Investment Funds (“AIFs”) were expected to adhere to. The PPM template inter-alia provided for disclosures under the term “Excuse and Exclusion” and “Direct Plan for investors and constituents of fees that may be charged by the AIFs”.Despite the PPM template, SEBI observed certain disclosure-related inconsistencies and lack of transparency. SEBI by way of circulars dated April 10, 2023, updated the regulatory framework by way of new guidelines to bring in consistency related to disclosures in the PPM.

Continue Reading SEBI Codifies Norms for Excuse and Exclusion and Direct Plan for Investors
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Mergers & Acquisitions

Introduction

While some Indian corporates have been bold acquirers in big-ticket overseas acquisitions, such transactions are rare, often complex, and risky. Indian acquirers have typically used internal accruals or resorted to overseas debt to finance offshore acquisitions due to regulatory restrictions preventing them from using their stock as consideration for the acquisition. Recent liberalisations in the overseas investment framework suggest that this constraint may be going away. While these regulatory changes may provide additional structuring options for cross-border M&A/ restructuring, decisions of certain tribunals on these (relatively recent) amendments may play spoilsport.

Continue Reading Cross-Border Demergers: Navigating muddy waters
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Criminal Law

Introduction

The powers of revision serve to provide an important avenue to an accused or the prosecution seeking to remedy any patent defect in the finding of a trial court through different stages of a criminal trial. However, a key stakeholder in a criminal trial, as has been recognized by the Supreme Court of India, from time to time is also the complainant,[1] who may also be the victim of the alleged criminal act. It would, therefore, not be out of place to assess the role that a complainant/informant plays in revisionary proceedings before a superior court. It is this aspect that forms the subject matter of the present blog. In an effort to situate the role of a complainant in criminal revision proceedings, in the following segments, we discuss: (i) the scope and powers of a revision court; (ii) the locus standi of a complainant/informant; (iii) the circumstances whereunder a complainant/informant is permitted to intervene in revision proceedings and the extent of such intervention and (iv) nuances surrounding  a revision application which has already been preferred by the State.

Continue Reading Intervention in Criminal Revision Petitions by the Complainant
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On April 6, 2023, India introduced a new legal regime for operators of online games by introducing  amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“Intermediary Rules”) (amendments are referred to as “Gaming Amendments”).

Continue Reading The Online Gaming Intermediaries Regulations: What is New?
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Mergers & Acquisitions

Context

Convergence of the Indian Accounting Standards (“Ind AS”) with the International Financial Reporting Standards (“IFRS”) can be regarded as the most significant milestone in the Indian accounting paradigm, which has fundamentally altered the rules for the preparation and interpretation of financial statements (“FS”) as also the ground rules for structuring M&A deals.

Continue Reading How crucial is knowledge of Ind AS while negotiating an M&A deal?
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Banks and Financial Institution

Introduction

The Hon’ble Supreme Court of India (“Hon’ble SC”) in its recent judgment dated March 27, 2023, in State Bank of India & Ors. v. Rajesh Agarwal & Ors.[i], has conclusively decided on the question of whether the principles of natural justice should be read into the provisions of the Reserve Bank of India (“RBI”) (Fraud Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016[ii] (“Master Directions on Frauds”). The question, which has been pending before various High Courts and was raised before the Hon’ble SC in numerous appeals, has now been answered in the affirmative by the Hon’ble SC by holding that the principles of natural justice, particularly the rule of audi alteram partem, has to be necessarily read into the Master Directions on Frauds to save it from vice of arbitrariness as classification of an account as fraud entails serious civil consequences for the borrowers.

Continue Reading Principles of Natural Justice Prevail: Supreme Court Reads Rule of Audi Alteram Partem into Master Directions on Frauds
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Financial Statement

Context

The cardinal principle of company law, as enshrined under Section 129(1) of the Companies Act, 2013 (“Companies Act”), is that the financial statements (“FS”) should give a ‘true and fair view’ of the state of affairs of the company, comply with the accounting standards notified under Section 133, and also be in the form provided for different classes of companies under Schedule III.

Continue Reading Non-compliance with Accounting Standards – Will it amount to an FUTP Offence?
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Analysing Bharat Serums and Vaccines Limited v. Union of India & Ors. judgement

Price regulation of non-scheduled formulations has always been a contentious issue. While the Government can set prices of drug formulations that are listed on the National List of Essential Medicines (“NLEM”) – Scheduled Formulations, the Government can at best monitor prices of drug formulations that are not listed on the NLEM – Non-scheduled Formulations.

The Delhi High Court in its recent judgment in the matter of Bharat Serums and Vaccines Limited v. Union of India & Ors. provided much needed clarity on paragraph 20 Drugs (Price Control) Order, 2013 (“DPCO 2013”), which regulated the pricing of non-scheduled formulations and drugs, focusing on the legal implications ensuing from the breach thereof.

Continue Reading Analysing Bharat Serums and Vaccines Limited v. Union of India & Ors. judgement