Introduction
There are only a few sections in the Arbitration and Conciliation Act, 2016 (“Act”), in which Court’s reference or assistance is invited post commencement of arbitration and constitution of the arbitral tribunal.
MahaRERA: Update on procedure for transferring or assigning promoter’s rights and liabilities to a third party was laid down
Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Circular No. 11/2017 dated November 8, 2017, bearing reference no. MahaRERA/Secy/File No.27 / 491 /2017, prescribed procedure for transferring or assigning promoter’s rights and liabilities to a third party. The circular delineated the procedure in accordance with Section 15 of the Real Estate (Regulation and Development) Act, 2016 (“Act”), which states that, “the promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority”. Continue Reading MahaRERA: Update on procedure for transferring or assigning promoter’s rights and liabilities to a third party was laid down
Funds in GIFT City – FAQs & Structuring Insights
A. Introduction
Gujarat International Fin-Tec City (“GIFT City”) is being developed as a global financial and IT Services hub on the lines of globally benchmarked financial centres. It includes a Special Economic Zone having the status of an International Finance Services Centre (“IFSC”). The IFSC is set up to undertake financial services transactions that are currently carried out outside India by overseas financial institutions and overseas branches/ subsidiaries of Indian financial institutions. Continue Reading Funds in GIFT City – FAQs & Structuring Insights
Rights Issue – Is the Board’s Discretion to Allot Unsubscribed Shares Absolute?
Introduction
Rights issue, as the term denotes, is the recognition of an inherent right of an equity shareholder against dilution of his shareholding in the company. It is a pre-emptive right of the equity shareholder to subscribe to his proportionate share in all further issuance of equity shares.
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Extra-territorial application of India’s securities law – Has SEBI cast its net too wide?
“If a connection exists, it is for the Legislature to decide how far it should go in the exercise of its powers.[1]”
Introduction
The territorial application of laws made by Parliament is enshrined in Article 245 of the Constitution of India (“Constitution”). The universal presumption that laws made by a country are limited to its own territorial borders, is provided under Article 245(1) of the Constitution, which provides that “Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India.” However, Article 245(2) of the Constitution carves out a specific exception providing that a law made by Parliament, pursuant to Article 245(1), shall not be invalidated on the ground that such a law would have extra-territorial operation. Most countries have enacted extra-territorial laws with the US being the clear leader in this regard having enacted anti-corruption law, securities laws etc. which have extra-territorial application.
Supreme court draws lakshman rekha on powers of a court under section 34: No power to modify an award
- The Supreme Court handed down a significant judgment[1] on the scope of power of a Court hearing a challenge to an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”). The Supreme Court reiterated that there is no power under Section 34 to modify or vary an arbitral award.
Draft Consumer Protection (Direct Selling) Rules, 2021: A much awaited step towards regulating direct selling businesses
Unlike the erstwhile Consumer Protection Act, 1986, the Consumer Protection Act, 2019 (“CPA 2019”), has defined ‘direct selling’[1], and expressly included any person who buys products or avails services through direct selling or multi-level marketing within the definition of ‘consumer’. However, a framework for regulating direct selling under the CPA 2019 has not been put into place till now. With the recently released draft Consumer Protection (Direct Selling) Rules, 2021 (“Draft Rules”), the Department of Consumer Affairs has finally taken demonstrable steps towards formalising the regulatory framework for direct selling entities in India.
Safe Harbour Protection for E-Commerce platforms
In recent times, the debate around safe harbour protection has grabbed media attention on account of the recently notified Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“2021 Intermediary Rules”), and the ensuing spat between the Government and social media heavyweights like Twitter.
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Gatekeepers of Governance – The Statutory Auditor
Introduction
Recent amendments to the statutory framework under the Companies Act, 2013 (“the Act”), have cast focus on the ever-expanding statutory duties of the auditors of a company. The purpose of an audit is to enhance the degree of confidence of users of the financial statements. In this regard, Section 129 of the Act provides that the financial statements prepared by a company should comply with three prime conditions: Continue Reading Gatekeepers of Governance – The Statutory Auditor
Corporate Defamation: A Perspective on Analyst Reports
In 2008, Bank Atlantic, a Florida based bank, sued a prominent Wall Street analyst over a report on potential bank failures titled “Who’s Next?” The Bank stated that the analyst had defamed the bank by suggesting that it might fail. Bank Atlantic had previously sued ABC over a news report in 1991. In 2009, Hertz Global Holdings Inc., sued an analyst for defamation over a report that Hertz claimed, suggests that the world’s largest car rental company could go bankrupt.
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