Listen to this post

Data Protection Bill 2022

The Ministry of Electronics and Information Technology (“MEITY”) has released a draft of the Digital Personal Data Protection Bill, 2022 (“The Bill”) for public consultations along with an explanatory note for each provision and the underlying principles that guide the drafting[1]. The public consultations are open till December 17, 2022[2].  This is Part II of our analysis on the Bill.  Click here to read Part I of this post

Continue Reading The Digital Personal Data Protection Bill, 2022 – Part II

Listen to this post

Data Protection Bill

The Ministry of Electronics and Information Technology (“MEITY”) has released a draft of the Digital Personal Data Protection Bill, 2022 (“The Bill”) for public consultations along with an explanatory note for each provision and the underlying principles that guide the drafting[1]. The public consultations are open till December 17, 2022[2].

Continue Reading The Digital Personal Data Protection Bill, 2022 – Part I

Listen to this post

AIF

Introduction

To enhance the standardisation of the application process, SEBI, on November 3, 2022, published ‘FAQs for grant of registration as alternative investment fund’[1] (“FAQs”). The FAQs are guidelines for submission of the application for seeking registration as an Alternative Investment Fund (“AIF”). In addition to the information, documents and undertakings mandated under the First Schedule of the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”), an applicant will now be required to submit information, documents and undertakings, as reproduced in this article. Thus, the application form will now constitute the following, (a) information as specified under the First Schedule of the AIF Regulations; and (b) other information as specified in the FAQs.

Continue Reading SEBI prescribes additional requirements for registering AIFs

Listen to this post

Insider Trading Regime

Introduction

Across jurisdictions, the mischief of insider trading is sought to be curbed and punished by the market regulators since any securities market of repute would measure its success, among other variables, based on the integrity and fairness of transactions conducted on its platform. As such, the prohibition of insider trading stems from the moral imperative, which demands that there is no information asymmetry between insiders and other shareholders while dealing in listed securities. This effectively translates into restraint being exercised by insiders i.e. the persons who have access to the unpublished price sensitive information in relation to the listed securities in which they deal.

Continue Reading Winds of Change – The Recent Judicial and Legislative Developments in Insider Trading Regime

Listen to this post

LODR Disclosure Regime

The Securities and Exchange Board of India (SEBI) has recently issued a consultation paper on review of the disclosure requirements as applicable to listed companies. Regulation 30 of the Listing Obligations and Disclosure Requirements (LODR) Regulations prescribe the material events or information that is to be duly disclosed by listed companies to the stock exchanges. It is divided into two parts – Para A contains events that are deemed material, and Para B contains items that are to be disclosed basis application of the materiality policy of the respective companies. SEBI has indicated several reasons for review of the current regime – including investor complaints on asymmetrical disclosure of information and company complaints on lack of uniform guidance.

Continue Reading SEBI’s recent proposal on tweaking the LODR Disclosure Regime – More Spill and Tell

Listen to this post

SEBI

In October 2022, the Securities and Exchange Board of India (“SEBI”) introduced several amendments to various chapters of its Operational Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper, dated August 10, 2021 (“Operational Circular”), in response to certain representations received by it from various market participants. These modifications appear to be in line with SEBI’s continued efforts to improve the accessibility, fairness, and transparency of the debt securities market.

Continue Reading Changes to SEBI’s framework on non-convertible debt securities: A Snapshot

Listen to this post

Startup

Introduction

With nearly 82,000 start-ups and 107 unicorns, India is a significant player in the start-up ecosystem, putting it on the third spot globally.[1] In recognition of the value such start-ups add to a nation’s economy in terms of capital formation and employment opportunities, the Government of India (“GoI”) has launched multiple schemes such as Fund of Funds for Start-ups[2], Start-up India Seed Fund Scheme[3], etc. The GoI has committed funds to the extent of INR 7,385 crore for the start-ups at various stages under these schemes.

Continue Reading Incentives for Start-Ups in Gujarat

Listen to this post

Mediation in India

Introduction:

As per the latest statistics available on the National Judicial Data Grid, impending cases before the District & Taluka Courts[1] stand at over 40 million, the backlog waiting to be heard at various High Courts[2] is close to 5.9 million, and the pending case inventory before the Hon’ble Supreme Court of India[3] totals approximately 71,000.

Continue Reading Analysis: Mediation in India

Listen to this post

Legal Regime of Negotiable Instruments

Introduction

Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”), ascribes criminal liability for dishonour of a cheque. The purpose of the provision has been held by the Hon’ble Supreme Court to be the promotion of efficacy of banking operations and to ensure credibility in transacting business through cheques.[i] Since a large number of such transactions and cheque payments are done by companies, the very same intent appears to be captured in Section 141 of the NI Act, which extends vicarious criminal liability on officers associated with the company or firm. The law on Section 141 of the NI Act has been clarified and elaborated upon from time to time. However, the broad principle guiding the extent of liability remains the involvement of the director concerned in the day-to-day business affairs of the company. This is, however, not a straight-jacket formula, and the nuances determining the extent of liability need to be examined closely.

Continue Reading Directors’ Vicarious Liability under Current Legal Regime of Negotiable Instruments Act: An Analysis of Evolving Judicial Precedents