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Gaming Rules

Days after “online gaming” was formally brought under the purview of the Ministry of Electronics and Information Technology (“MEITY”) through the Government of India (Allocation of Business) Rules, 1961[1], MEITY has proposed amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“2021 Rules”), to create a novel co-regulatory framework to govern the operations of online gaming intermediaries (“Draft Gaming Rules”). The Ministry has invited public comments on the Draft Gaming Rules till January 17, 2023.[2]

Continue Reading Draft Rules for Online Gaming: The Beginning of an Enabling Framework?
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Product Liability

1. Product Liability under the Consumer Protection Act, 2019: An Overview

By Bishwajit Dubey, Surabhi Khattar & Ashutosh Singh

‘Product Liability’ has been defined for the first time under the Consumer Protection Act, 2019 (“2019 Act”). As per the 2019 Act, product liability means the responsibility of a product manufacturer or product seller, or product service provider, to compensate for any harm caused to a consumer by a defective product manufactured or sold or by deficiency in services in relation to the product.

Continue Reading Our Top 10 Blogs of 2022
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Background

The Parliament took 16 years to implement the directions issued by the Supreme Court of India in 1997, in the landmark case of Visakha vs. State of Rajasthan[1] (“Visakha Guidelines”) to enact a law for the prevention of sexual harassment of women at the workplace. The enactment of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“Act”) and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 (“Rules”) was very late, but better so than never.

Continue Reading POSH Act – Implementational Challenges
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Nomination and Remuneration Committee

Background

The regulatory architecture under the Companies Act, 2013 (“Act”), and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”), envisages a key role for the Nomination and Remuneration Committee of the Board of Directors (“NRC”) – in ensuring that the company attracts and retains the best talent – and there is transparency in the process of appointment/ re-appointment and payment of remuneration to directors, key managerial personnel (“KMPs”) and senior management[1].

Continue Reading Gatekeepers of Governance – Nomination and Remuneration Committee
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Context

The regulatory architecture under the Companies Act, 2013 (“Act”), and the SEBI (LODR) Regulations, 2015 (“LODR”), places independent directors (“IDs”) at the forefront of India’s quest for better corporate governance. Given that approximately 75% of listed companies in India are promoter-controlled, the MCA and SEBI have envisaged that the IDs will play a key role in safeguarding minority shareholders’ interest.

Continue Reading Gatekeepers of Governance – Independent Directors
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Insurance Laws

Introduction

The Government of India, through the Department of Financial Services (Ministry of Finance) (“DFS”), is proposing extensive amendments to the Insurance Act, 1938 (the “Act”), with a view to enhance insurance penetration, improve efficiency, and enable product innovation and diversification[1]. The DFS published an office memorandum dated November 29, 2022 (“DFS Memorandum”), setting out the proposed amendments to the Act and commencing a process of public consultation on the proposed amendments until December 15, 2022. The Insurance Laws (Amendment) Bill, 2022 (the “Amendment Bill”), is seen to be catering to the long-standing demands of the industry and seeks to improve some of the fundamental tenets of the Act.

Continue Reading The Insurance Laws (Amendment) Bill, 2022 – Charting a new course
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Gift City

On October 11, 2022, the International Financial Services Centres Authority (“Authority”) notified the International Financial Services Centres Authority (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulation, 2022 (“IBC-OEC Regulation”), permitting foreign universities and educational institutions to open a branch in Gujarat International Financial Tec-City (“GIFT City”) in Gandhinagar, Gujarat. This stems from the proposal to allow the entry of foreign universities and institutions in GIFT during the FY 23 Union Budget announcements.

Continue Reading Gift City: Foreign Universities’ Gateway to India?

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Arbitration Act and FEMA

The judgments of the Delhi HC in Cruz City and SRM Exploration, discussed in Part 1, appears to ignore the earlier decision of the SC in Dropti Devi v Union of India[1], where the SC held (in the context of prosecution under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act) that the legislative objectives of FERA and FEMA are identical, namely, preservation of the foreign exchange resources of the country.

Continue Reading Legislative gap between the Arbitration Act and FEMA: Should Parliament step in? – Part II

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Unending woes of realty sector - High Interest Rates

The real estate sector in the past few years has witnessed massive financial crisis with several real estate companies going bankrupt and many others undergoing corporate insolvency resolution process. While the reasons are manifold, one could see steady recovery despite inflation worries and expensive capital. The recent Supreme Court judgment in recalling its past orders delivered in the matter, relating to insolvency of Amrapali Group of Companies (“Amrapali Group”), have now posed a new challenge to the realty business in NOIDA and Greater NOIDA region. The Supreme Court has held that real estate developers in these regions will have to pay interest amount on outstanding lease premium and other dues to Noida and Greater Noida Authorities (“Authorities”) at rates that have been agreed upon under the contract entered into between them and the reduced interest rates will not be applicable to them. Continue Reading Unending woes of realty: ‘high interest rates on dues continue to apply’, says SC

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Arbitration Act and FEMA

Background

India is one of the few countries that still has exchange controls and does not have full capital account convertibility.

The Foreign Exchange Management Act, 1999 (“FEMA”), empowers the Reserve Bank of India (“RBI”) to frame regulations, master directions and issue circulars for the enforcement of the FEMA (“FEMA Regulatory Regime”). The FEMA Regulatory Regime contemplates prior RBI approval for certain categories of capital account transactions between residents and non-residents.

The enforcement of international arbitration awards in India, where there is going to be a remittance of foreign exchange from a resident to a non-resident, would invariably have FEMA implications. FEMA implications may also arise in situations where the foreign award provides for transfer of shares between residents and non-residents. If the foreign award is not in conformity with the FEMA Regulatory Regime, in such a situation, can the court, where the enforcement action is filed, decline enforcement on the ground that the foreign award would be contrary to the country’s ‘public policy’.

Continue Reading Legislative gap between the Arbitration Act and FEMA: Should Parliament step in? – Part I