Old Rules applicable to CRZ-II areas of Mumbai will soon be obsolete - Development control rules 1967

The Coastal Regulation Zone Notification dated January 18, 2019 (“CRZ 2019”), requires the respective Coastal Zone Management Plans (“CZMPs”) framed under the Coastal Regulation Zone Notification dated January 6, 2011 (“CRZ 2011”) to be revised or updated as per CRZ 2019, before being submitted to the Ministry of Environment, Forests and Climate Change (“MOEFCC”). CRZ 2019 says that until and unless the CZMPs are so revised or updated, the provisions under CRZ 2011 will continue to be followed[1].  Accordingly, suggestions/ comments on the draft revised/ updated CZMPs of Mumbai city and Mumbai Suburban District under CRZ 2019 were invited for a period of 45 days commencing from January 16, 2020.[2] After district level hearings have been conducted[3] and based on the suggestions and objections received, the CZMPs will be revised and approval of the MOEFCC shall be obtained.[4] This has specific implications for construction projects in CRZ-II areas of Mumbai.

Continue Reading Farewell to DCR 1967: Old Rules applicable to CRZ-II areas of Mumbai will soon be obsolete

Open Market for Buy-Back of Securities - SEBI

The Securities and Exchange Board of India (“SEBI”) introduced the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (the “SEBI Regulations”) with effect from September 11, 2018, which govern buy-backs undertaken by a listed company.

A listed company’s shares and other specified securities can be bought back using any of the following methods: Continue Reading Open Market for Buy-Backs: Key Considerations

KARNATAKA-GOVERNMENT’S-LEGISLATIVE-ATTEMPT-TO-TACKLE-COVID-19-OUTBREAK

The Karnataka Government is reported to have notified the Karnataka Epidemic Diseases, COVID-19 Regulations, 2020 (“COVID Regulations”), on March 11, 2020, late evening, as an attempt to contain the outbreak and spread of coronavirus, COVID-19, which was incidentally declared as a ‘pandemic’ by the World Health Organisation the same day. Issued with immediate effect and for a period of 1 (one) year from its notification, the COVID Regulations empower the district administration to put in place containment measures and also ensure the public takes special measures to prevent the outbreak and spread of the potentially fatal disease, as fears around its ramifications have reached a feverish high worldwide.

Continue Reading Karnataka Government’s Legislative Attempt To Tackle Covid-19 Outbreak

Jaypee Judgement – Assessing it’s impact on the Indian financing landscape

Background

On February 26, 2020, the Hon’ble Supreme Court delivered its judgment in the Jaypee matter, bringing to a close the long drawn litigation between two sets of competing creditor claims i.e. those advanced by certain creditors of Jaypee Infratech Limited (JIL) and those of its holding company, Jaiprakash Associates Limited (JAL).

In its ruling, the Supreme Court addressed two key issues: Continue Reading The `Jaypee Judgement’ – Assessing it’s impact on the Indian financing landscape

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Growing commercial leasing

In keeping with the trend in real estate space, both local and foreign corporates have accepted the norm of leasing spaces to conduct their business activities in India. In metro cities, demand for commercial spaces have led to time renewal of existing lease/license as well as spike in request for additional space. The demand for leasing of residential spaces, in comparison, has been as robust.

What does one keep in mind while leasing a commercial space and how important is the role of a legal advisor and other service providers in relation to such an acquisition? We have tried to sum up some of the key factor contributing to the development of this leasing sector and some of the sector specific services required. Continue Reading Growing commercial leasing, what to keep in mind.

Cryptocurrency in India

On March 4, 2020, the Supreme Court of India (“Court”) in Internet and Mobile Association of India v. Reserve Bank of India[1] (“Judgement”) set aside the circular issued by the Reserve Bank of India (“RBI”) on April 6, 2018 (“Circular”)[2]. This Judgment marks the second occasion, in recent times, when the Supreme Court has reversed a policy decision of the RBI [3]. The Circular had restricted all entities regulated by the RBI, including nationalised banks, scheduled commercial banks, NBFCs, cooperative banks, payment system operators and other intermediaries (“Regulated Entities”) from dealing in or providing services for facilitating ‘any person or entity dealing with, or settling’ virtual currencies.

Thus, while the Circular did not expressly proscribe peer-to-peer trading in virtual currencies, it severely restricted the conversion of virtual currency into fiat currencies and impaired the ability of businesses which dealt with virtual currencies to access financial services in India. Continue Reading Virtual Currencies in India: A New Dawn

SEBI General Order 2020

 

Markets regulator Securities and Exchange Board of India (Sebi) has recently issued a General Order on issuing observations on offer documents when there are pending regulatory actions, superseding a 2006 general order on the same subject. The General Order 1 of 2020, which was issued on February 5, 2020, sets out the circumstances under which SEBI can withhold observations on draft offer documents (companies cannot launch issues until SEBI provides observations).

We discuss the SEBI order, its implications, and whether this is a step in the right direction for a disclosure-oriented securities regime. Continue Reading SEBI General Order 2020: What it means for cos, investors & overall capital markets’ efficiency

 Post-Listing Frameworks for REITs

REIT IT RIGHT

An eight-part series covering the commercial and legal considerations of REIT listings in India. The previous parts can be accessed here – Part 1, Part 2, Part 3, Part 4 .

Investor protection forms the bedrock of securities laws frameworks around the world with securities regulators putting in place meticulous and stringent governance, reporting as well as compliance frameworks for listed entities. The Indian securities regulator  has also prescribed a labyrinthine set of laws for post-listing reporting and corporate governance compliances by listed companies.

In stark contrast, however, the present regulatory framework for Real Estate Investment Trusts (REITs) in India offers limited guidance on post-listing compliances by listed REITs, mandating few compliances (mainly in relation to financial reporting, annual and half-yearly disclosures and investor grievances) and remaining silent on the applicability of a vast number of other obligations (including in relation to prevention of insider trading, takeovers and acquisitions, open offers etc.) which are typically applicable to listed companies. Continue Reading Part V – Post-Listing Frameworks for REITs – A Giant Jigsaw with many a Missing Piece

UEFA shows Manchester City the Red Card - Why Indian Football should take note

Manchester City Football Club (“MCFC”) was banned from participating in club competitions of the Union des Associations Européenes de Football (“UEFA”) for the next two seasons, on February 14, 2020. A fine of EUR 30 million was also imposed on the grounds of having committed serious breaches of UEFA Club Licensing and Financial Fair Play Regulations (“UEFA Regulations”), and because of failure to cooperate with the investigation. The Adjudicatory Chamber of the UEFA Club Financial Control Body (“CFCB”) has found that MCFC overstated its sponsorship revenue in its accounts submitted to UEFA between 2012 and 2016.[1] Continue Reading UEFA shows Manchester City the Red Card: Why Indian Football should take note

e-commerce platforms allowed to list products of direct selling entities without their consent

E-commerce websites such as Amazon, Flipkart, Snapdeal and 1MG (“Online Platforms”) can now breathe a sigh of relief. The Division Bench of the Delhi High Court (‘Division Bench’), in a recent judgment in Amazon Seller Services Pvt. Ltd. v. Amway India Enterprises Pvt. Ltd. & Others[1], allowed e-commerce websites/ platforms/ mobile applications to list products of direct selling entities like Amway, Modicare and Oriflame (“Direct Selling Entities”) without their consent.

In July 2019, a single-judge (“Single Judge”) bench of the Court had, in Amway India Enterprises Pvt. Ltd. v. 1MG Technologies Pvt. Ltd. & Another[2], restrained such online platforms from displaying, advertising, offering for sale, selling, facilitating repackaging of any products of Direct Selling Entities, without their written permission/ consent. The Single Judge had also directed Direct Selling Entities to give notice to the concerned Online Platforms to take down relevant listings if they found their products being displayed on such platforms without their consent. Accordingly, the Online Platforms would then have to take down the said listings within 36 hours. Continue Reading ‘BUY NOW’ or ‘REMOVE FROM CART’? – Delhi HC allows e-commerce platforms to list products of direct selling entities without their consent