A distinct subset of social media influencers called “finfluencers” (short for “financial influencers”) has emerged in the recent past. According to the Advertising Standards Council of India (“ASCI”), “finfluencers” are individuals who disseminate information and advice on various financial topics, ranging from securities investment to personal finance and insurance, via social and digital media platforms.Continue Reading From Likes to Licenses: Regulating Finfluencers Amidst Stricter Norms
This post analyses the scope of the regulatory framework governing employee benefits by equity listed companies in India and the applicability of the SEBI (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021, to employee welfare trusts set up by promoters and share-linked but purely cash-based employee benefits.Continue Reading Regulatory framework governing employee benefits by equity listed companies
Pursuant to the recommendations of the Ministry of Finance, the Securities and Exchange Board of India (“SEBI”) constituted several groups to recommend simplification of various regulations specified by it and invited suggestions from market participants[1]. Post deliberations on the suggestions received, the Working Group for review of compliance requirements for Investment Advisers (“IAs”) and Research Analysts (“RAs”) submitted its recommendations to SEBI’s Intermediaries Advisory Committee (“IAC”). SEBI has now released a consultation paper dated August 6, 2024, on ‘Review of Regulatory Framework for Investment Advisers and Research Analysts’ (“Consultation Paper”)[2] incorporating the recommendations proposed by IAC.Continue Reading Revamping the Investment Advisers and Research Analysts Frameworks – the SEBI Way
Continue Reading FIG Paper (No. 37 – Series 1) | SEBI Proposes to Introduce ‘New Asset Class’
SEBI had, vide its Circular dated August 24, 2023 (“August Circular”), laid down norms for FPIs/investor groups with assets under management (“AUM”) exceeding INR 25,000 (twenty five thousand) crore (“Size-based Criteria”). These norms require furnishing granular details[1] of all their investors/stakeholders on a look-through basis to ascertain if the FPI is effectively domiciled in a Land Bordering Country (“LBC”) or not. Subsequently, SEBI in its consultation paper dated July 30, 2024, (“Consultation Paper”) has proposed to replace the Size based Criteria with a “risk-based criteria” depending upon the participation of investors from “land bordering countries”. In addition to providing an overview of the extant laws, this blog covers the roadblocks emerging from the August Circular, SEBI’s proposal in the Consultation Paper, and its implications.Continue Reading SEBI Proposes to Replace ‘Size Criteria’ for FPIs with ‘Risk-Based Approach’ for Granular Disclosure Requirement for Underlying Investors
The Government of India’s socialistic approach towards controlling managerial remuneration between 1960s and 1990s has been a painful chapter in the history of India’s company law. While the restriction applied only to those on the board of directors, the limits the then Department of Company Affairs had prescribed in its administrative guidelines under the Companies Act, 1956 in November 1969 was as low as INR 7,500 per month and further reduced to INR 5000 per month years later. Any payment beyond those limits required the Central Government’s approval, which was also a very cumbersome and time-consuming process. This led to the unhealthy practice of compensating Managing Directors and Executive Directors (“MD/EDs”) with cash reimbursements and many other inappropriate methods. Some MDs/ EDs also stepped down from the board to accept positions one level below the board. They were designated as presidents and vice presidents despite performing the role of the Managing Director.Continue Reading Managerial Remuneration – Should Promoters Be Disenfranchised?
From claiming phantom carbon credits to the mid-air opening of a plane door: recent instances highlight the need and role of robust corporate governance practices in preventing and identifying misconducts. Resultantly, thwarting potential regulatory actions.Continue Reading ESG Disclosures: A New Frontier in Combating Corporate Misconduct
The Securities Exchange Board of India (“SEBI”) has released a consultation paper on May 23, 2024[1] (“Consultation Paper”), wherein it has suggested modifications to certain aspects of the valuation framework for AIFs.Continue Reading Analysis of SEBI’s Consultation Paper on Valuation Framework for AIFs
The Securities Exchange Board of India (“SEBI”) has released updated Master Circulars for Investment Advisers (“IAs”) and Research Analysts (“RAs”) on May 21, 2024 (“Master Circulars”).Continue Reading SEBI Recognises Stock Exchanges as Supervisory and Administrative Body for Investment Advisers and Research Analysts
On March 20, 2024, the Insurance Regulatory and Development Authority of India (“IRDAI”) notified the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024 (“Registration and Capital Regulations”), which consolidated and rationalised the regulatory framework applicable on an Indian insurer in aspects, including listing on a stock exchange pursuant to an initial public offer (“IPO”) that may consist of a fresh issue of equity shares or an offer for sale. Our detailed analysis on the other aspects of Registration and Capital Regulations can be found here.Continue Reading IRDAI Regulatory Reform Series: Listing of Indian Insurance Companies on Stock Exchanges