E-Newsline

October 2017

Anti-competitive Agreement: The Magnified Burden of Proof

On March 7, 2017 the Supreme Court (“SC”) delivered an important judgment in Competition Commission of India vs. Co-ordination Committee of Artists and Technicians of W. B. Film and Television and Ors. Read More

September 2017

Independent Directors: Long Way to Go

Over the years, the Securities and Exchange Board of India (“SEBI”) and Ministry of Corporate Affairs are continuously focusing on incorporating corporate governance principles into the regulatory framework governing listed companies. Read More

August 2017

E-Pharmacies: Prescribed to Succeed

E-pharmacies or online pharmacies have been a subject matter of debate in India for the last 3-4 years. Their offline counterparts have been lobbying to get a blanket ban on any online sale of drugs, whether prescription or over-the-counter. Read More

July 2017

The Excel Crop Case: Turnover vs. Relevant Turnover

Industrial manufacturing has grown with the rapid expansion of India’s production market over the past twenty years. Some manufacturing companies, especially in the chemical industry, derived a significant portion of their revenue from governmental bids. These bids are often called for from one of several government agencies, and are received from only a handful of companies. Read More

June 2017

People or Production? Divergent Priorities Reflected in the Blue Collar Termination Laws of India and Georgia

Under the Constitution of India, the labor and employment laws are categorized in the concurrent list, which means that both the Parliament and the individual State Legislatures share co-equal powers in enacting labor and employment legislation. Despite the potential for disparate legislation under this system, these laws have remained largely uniform. An essential characteristic is the critical distinction between white collar and blue collar workers. Read More

May 2017

Tata-Docomo settlement-strong signals

The Delhi High Court (“DHC”) delivered an important judgment in NTT Docomo Inc. vs. Tata Sons Ltd. in which it upheld an award delivered by an arbitral tribunal in London, directing Tata Sons Ltd. (“Tata”) to pay NTT Docomo (“Docomo”) INR 84.5 billion or about USD 1.34 billion as damages. The judgment is a significant one as it drives home the issue of an Indian company honouring its contractual obligations with a foreign company. Read More

April 2017

Draft Prepaid Payment Instruments Rules, 2017: An Analysis

The advent of demonetization has given a push towards a digitalized and cashless economy, promoting mobile wallets and electronic payments. With the accelerated use of electronic payment mechanisms and enormous personal and financial data shared on the applications, the central government has announced the draft Information Technology (Security of Prepaid Payment Instruments) Rules 2017 (“Draft PPI Rules”), under the Information Technology Act, 2000 (“IT Act”). Read More

March 2017      

Arbitration: An Emerging Litigation!  

In today’s business contracts, arbitral provisions are preferred due to various factors. These include desire for secrecy, inclination to shift to a system where industry experts can take decisions rather than traditional judicial officers and judges, possibility of flexible procedures, the leeway given to parties to settle a dispute without shaking the business relations. Equally, there has been an increasing perception too that arbitration may have become parallel to litigation since it has started becoming “informally formal,” expensive and potentially leads to prolonged advocacy. The Arbitration and Conciliation  Read More 

February 2017          

Privacy laws of digital India: Not enough to protect privacy

The concept of privacy is often considered synonymous with that of confidentiality, but that is not the case. With booming e-commerce, it won’t be wrong to say that “privacy” of individuals is not just about their privacy at home but applied in a much wider sense, including privacy of voice conversations, property, bank account, health records, passwords, photographs, business ideas, electronically transmitted communication etc.. In other words, privacy includes an individual’s “data.” Since the last few years, there has been an increasing traction in the field of data generation and processing, its storage and transfer and the pace at which incidents of data theft and intrusive Read More

January  2017   

Smart Cities: Need for a regulatory framework

The Smart Cities Mission (“Mission”) aims to develop 100 smart cities by 2020. It is one of the most ambitious programmes of the Indian government. To implement its objectives, the government introduced the Smart Cities Guidelines (“Guidelines”) in 2015.1 The Guidelines act as a comprehensive policy document that defines smart cities as cities that interconnect citizens, data, devices and objects to a centralised network infrastructure which will be utilised for urban planning, social Read More

December 2016

UBER-MERU COMPAT ORDER – A NEW BEGINNING FOR AGGREGATOR BASED RADIO TAXI SERVICES

The Competition Commission of India (“CCI”) has witnessed competition related issues pertaining to aggregator based radio taxi business across different states in India. Most of the issues pertain to various anti-competitive practices vis-à-vis predatory pricing, unfair conditions etc. One such case that has gained limelight recently is “Meru Travels Solutions Private Limited v. Competition Commission of India & Ors”, wherein Meru Travels Solutions Private Limited (“Informant” or “Meru”) alleged that Uber India Systems Pvt. Ltd. along with its affiliate companies (“Uber”) had engaged in an anti-competitive business model that was not in consonance with the Competition Act, 2002 (“Act”). Read more…

November 2016

CLASS ACTION SUITS: NOTIFIED YET AMBIGUOUS

On June 1, 2016, the Ministry of Corporate Affairs, notified section 245 of the Companies Act, 2013 (“CA 2013”), enlisting the provisions of class action suits in India. A class action suit is one where the shareholders of a company collectively institute a suit against the company. Read more…

October 2016

CROWDFUNDING IN INDIA – A TREND GONE WRONG?

In the wake of 2008 financial crisis and the increasing skepticism of financial institutions to fund nascent business ventures, crowdfunding emerged as a feasible method of raising funds for emerging & growth stage companies in different jurisdictions. Read more…

September 2016

CEMENT CARTEL CASES: LESSONS FOR INDIA’S COMPETITION LAW REGIME

India is the second largest producer of cement in the world, only after China.  The cement industry is a vital part of the Indian economy, employing millions of people directly or indirectly. The Competition Commission of India (“CCI”) has recently passed orders adjudicating allegations of anti-competitive agreements and abuse of dominance amongst the cement manufacturers under the Competition Act, 2002 (the “Act”) and imposed a penalty of more than INR 60 billion (USD 1.1 billion). Read more…

August 2016

KEY MANAGERIAL PERSONNEL: TO BE OR NOT TO BE

A lot has been written about the changes introduced in corporate India since the enactment of the Companies Act, 2013 (“CA 2013”) which came into force on April 1, 2014. As on date, most of the new law is in force barring a handful of provisions, where the old law continues to apply. Read more…

July 2016

NATIONAL COMPANY LAW TRIBUNAL: WILL IT LIVE UP TO ITS PROMISE?

In 1999, a committee constituted by the Government of India under Justice V. Balakrishna Eradi (“Committee”)  examined the existing laws on insolvency of companies and winding-up, with the aim of suggesting reforms to avoid delay involved in such proceedings. Read more…

June 2016

FDI REFORMS VERSION 2.0: REAL OR NOTIONAL

On June 7, 2016 the Department of Industrial Policy & Promotion (“DIPP”) under the Ministry of Commerce issued the consolidated foreign direct investment or FDI policy. On June 20, 2016, twenty-four months into its first term the government of India announced “radical” reforms through a issue of press release. Read more…

May 2016

EVOLVING ARBITRATION LAW: EXCLUSION OR INCLUSION OF PART I

On January 28, 2016, the Supreme Court of India gave its verdict in a case, which is actually a spin-off of the landmark case of Bharat Aluminium Company (“Balco”) vs. Kaiser Aluminium Technical Services INC. (“Kaiser”) (“Balco I”), which overruled Bhatia International vs. Bulk Trading SA.  Balco I laid down that Part I of the Arbitration and Conciliation Act, 1996 (the “Act”) does not apply to international commercial arbitrations held outside India, whereas Bhatia International held that Part I of the Act is also applicable to arbitrations outside India unless it  is excluded, impliedly or expressly, by agreement. Read more…

April 2016

INDIAN DEFENSE: IMPACT OF CHANGED REGULATIONS

Foreign Direct Investment or FDI means investment by a non-resident entity or person, who is resident outside India, in the capital of an Indian company. In recent years, foreign investors have raised numerous concerns on the low limits of foreign ownership and other restrictions imposed by the regulators in the highly sensitive defense sector. Read more…

March 2016

ONLINE TAXI AGGREGATOR SERVICES: CCI ON RELEVANT MARKET

Online taxi aggregators  have been in the spotlight for considerable time in the Indian start-up sector. Their business model is based on an online platform to connect customers and drivers for a share on each ride. They neither employ drivers nor own vehicles. An estimated 1.6 million vehicles in India run as taxis and aggregators provide a unique opportunity to the taxi drivers for making a living without actually being employees. Read more…

February 2016

SPECIAL VALUATION BRANCH CUSTOMS – ROLE, OPERATIONAL CHALLENGES AND REFORMS

The Special Valuation Branch (“SVB”) is a unit of the Indian custom authorities that investigates valuation of goods during imports between related parties. A special relationship between an Indian importer and a foreign supplier may impact the transaction price of the import and thereby affect the customs duty imposed on such transaction. SVB’s function is precisely to examine the impact of such relationship on the invoice value of the imported goods. Read more…

January 2016

THE EVER EXPANDING SCOPE OF PUBLIC POLICY

An arbitration clause is a sine qua non for companies while executing commercial contracts. Arbitration is expected to provide an easy and cost effective option for dispute resolution and, as a consequence, the Indian parliament passed the Arbitration and Conciliation Act of 1996 (“Act”) replacing the old 1940 law on arbitration. Read more…

December 2015

ESOPS: FAVORITE TOOL OF START-UPS!

Employee Stock Options or ESOPs have, over the years, become a key component of benefits given by India Inc., especially amongst the start-ups. Simply put, they are the options given by a company to its employees to own a certain number of shares in the company at a pre-determined price, but at a later date. Read more…

November 2015

THE CHANGING FACE OF COMMERCIAL DISPUTE RESOLUTION IN INDIA

In a historic move, on October 23, 2015, the President of India promulgated two ordinances which may have a far-reaching impact on the commercial dispute resolution system in India. This move comes in light of the government’s constant endeavors to forge an investor-friendly environment in India. Read more…

October 2015

NEW LISTING AND DISCLOSURE OBLIGATIONS: AN ANALYSIS

On September 2, 2015, SEBI notified the Listing Obligations and Disclosure Requirements Regulations, 2015 (“2015 Regulations”) with two-fold objectives: firstly, to align clauses of the listing agreement with Companies Act and secondly, to consolidate the conditions under different securities’ listing agreements in one single regulation. Read more…

September 2015

WORLD WIDE WEB – IN DANGER

Net neutrality has no set definition, but is predicated on the idea of keeping the web free and open.  It implies preventing broadband companies from blocking or deliberately slowing down legal content and preventing them from collecting a higher fee from content providers to enable them to reach consumers faster. Read more…

August 2015

CORPORATE CRIMINAL LIABILITY: REVISITING IRIDIUM

The complexity shrouding the issue of criminality of a corporation was settled by the Supreme Court (“SC”) in Iridium India Telecom Ltd. v Motorola Inc.  case.  In January 2015, it got an opportunity to decide criminal liability of corporate officers for the acts of a company and to examine the principle of alter ego. Read more…

July 2015

FROM REGRESSIVE TO PROGRESSIVE: THE CHANGING FACE OF ARBITRATION IN INDIA

The growth of international arbitration has helped in reducing the transaction costs of business through quick resolution of disputes. This has been possible because of minimal court interference, especially at the stage of enforcement of arbitral awards. In India, the Supreme Court delivered judgments which increased the scope of judicial interference in enforcement of foreign arbitral awards. Read more…

June 2015

ANTI-CORRUPTION: IF YOU ARE NOT PART OF THE SOLUTION; YOU ARE THE PROBLEM

Fighting corruption in India has entered a new phase. In recent times, newspapers are filled with reports and analyses of alleged acts of bribery common in India. Of course, fighting corruption has become a global priority particularly with the international reach of the anti-corruption laws and how damaging such behavior can be. Read more…

May 2015

CCI’S TAKE ON THE INDIAN E-COMMERCE MARKET: PROTECT COMPETITION, NOT COMPETITORS

With the recent surge in internet users given the improved access to smart phones, and the convenience of the world wide web at our fingertips, the e-commerce market in India is witnessing an unprecedented growth spurt. One of the most promising sectors of the Indian market, the annual revenue of the e-commerce sector is projected to cross USD 16 billion by the end of 2015. Read more…

April 2015

DELISTING MADE EASIER: SEBI AMENDS THE DELISTING NORMS

The Indian securities market regulator, Securities Exchange Board of India (“SEBI”) has overhauled the regulatory norms for voluntary delisting in India. Delisting of Indian companies is governed by the SEBI (Delisting of Equity Shares) Regulations, 2009 (“2009 Regulations”). SEBI had publicly announced the proposed changes to these regulations on November 19, 2014. However, the amendments have been notified only on March 24, 2015 with immediate effect. SEBI’s intent behind these changes has been two-fold i.e. to make the cumbersome delisting process easier for companies and to simultaneously align it with the investors’ interests. Read more…

March 2015

INDIA’S CONTROVERSIAL LAND ACQUISITION LAWS

On March 10, 2015, the controversial amendments to the land acquisition law were finally passed by the Lok Sabha  after facing severe criticism both from the opposition parties as well as from the government’s own allies. Read more…

February 2015

CHEQUE DISHONOR – SC REDEFINED JURISDICTION OF COURTS

The perplexity over jurisdiction of courts in cheque bouncing cases has finally been resolved by the three judge bench of the apex court in Dashrath Rupsingh Rathod v State of Maharashtra & Anr (“Dashrath”). The Supreme Court held that the complaints relating to dishonor of cheques must be filed only in the courts within whose territorial jurisdiction the drawee bank is situated. Read more…

January 2015

PRIVATE PLACEMENT OF SECURITIES: NEW LAWS, BETTER LAWS

Every company at some point needs to increase its share capital. When it decides to increase its capital, speed and fewer procedural requirements are two factors which are always of concern. This becomes even more crucial when foreign shareholders are involved and time has to be factored for potentially securing “internal” approvals at various levels for those investments by such foreign shareholders. Read more…

December 2014

INVESTOR PROTECTION MEASURES UNDER COMPANIES ACT, 2013 – LESSONS FROM THE PAST

“Indian Enron” revealed the inherent fallacy of the Companies Act, 1956 to prevent white-collar crimes and assure investor protection. The 2009 Satyam fall out contained important lessons for stakeholders of India Inc. and brought the urgency of investor protection to the forefront. Read more…

November 2014

E-GOVERNANCE UNDER THE COMPANIES ACT, 2013 – MOVE TOWARDS TRANSPARENCY IN MANAGEMENT

E–governance, in the context of companies, is commonly understood as technology driven governance by application of information and communication technology (“ICT”) for automation of process, which facilitates efficient functioning, transparency and accountability. Read more…

October 2014

DEPOSITS: BETTER BUT BITTER!

The Companies Act, 2013 (“2013 Act”) has replaced the erstwhile Companies Act, 1956 (“1956 Act”). Sections 73 to 76 under Chapter V of the 2013 Act, along with the Companies (Acceptance of Deposits) Rules, 2014 (“Deposit Rules”) provide the statutory framework and have significantly raised the benchmark for companies that wish to invite or accept deposits from the public. Read more…

September 2014

ORDER AGAINST 14 CAR MAKERS: CCI AGAIN SHOWS ITS MIGHT!

Keeping up with its reputation of imposing hefty penalties, on August 25, 2014, the Competition Commission of India (“CCI or Commission”) in its first order  on vertical agreements have found 14 automobile companies  (“OEMs”) guilty of anti-competitive conduct and imposed a staggering penalty of INR 25.4464 billion (US$ 424 million approx.).  Read more…

August 2014

FOREIGN PORTFOLIO INVESTMENT IN INDIA: SEBI CREATES A NEW CLASS OF INVESTORS

In order to harmonize the various available routes for foreign portfolio investment in India, the Indian securities market regulator i.e. Securities Exchange Board of India (“SEBI”) has introduced a new class of foreign investors in India known as the Foreign Portfolio Investors (“FPIs”). Read more…

July 2014

TIMING OF MERGER NOTIFICATION: THUMBS DOWN!

Timely consummation of global M&A transactions is of critical essence and, to this end, securing the necessary approvals (if needed) in due time and with no or less risks is critical to a successful closing. Under the competition regime in India, any person or enterprise, who or which proposes to enter into a combination  is obligated to notify the regulator, Competition Commission of India (“CCI”) and disclose its details “within thirty days of execution of any agreement or other document” for an acquisition. Read more…

June 2014

FDI IN B2C E-RETAIL

The last decade in India has seen a steady rise in e-commerce (e-retail, e-travel and e-classifieds) due to significant increase in the number of internet users, proliferation of internet-enabled devices, rising disposable incomes, and growing acceptability of online payments. Read more…

May 2014

ABUSE OF DOMINANT POSITION IN IPR LICENSE AGREEMENTS: ERICSSON-INTEX SPAT

An Indian mobile handset maker, Intex Technologies (India) Limited (“Intex”) filed a complaint with the Competition Commission of India (“CCI”) against the Swedish company, Telefonaktiebolaget LM Ericsson (“Ericsson”) in 2013 alleging abuse of dominance by Ericsson while negotiating a licensing agreement. Read more…

April 2014

BITCOINS – LEGAL OR ILLEGAL IN INDIA?

Bitcoin is a cryptographic, digital and experimental currency introduced in the digital world in 2008. It is referred to as a “peer-to-peer, electronic payment system”. Unlike the usual form of currency, it is in virtual form and can be used to make payments online as well as in physical stores. Read more…

March 2014

PRO-ARBITRATION TREND CONTINUES IN INDIA?

The beginning of new international arbitration friendly regime in India was marked when the Supreme Court of India (“Supreme Court”) handed down a landmark judgement Bharat Aluminium Company and Ors. v. Kaiser Aluminium Technical Services Inc. and Ors.  (“Balco”) overturning the law laid down by Bhatia International v. Bulk Trading S. A. and Anr   (“Bhatia International”). Read more…

February 2014

INDEPENDENT DIRECTORS UNDER COMPANIES ACT, 2013 – BOON OR BANE?

The Companies Act, 2013 (“Act”), sets to overhaul the provisions relating to independent directors entirely by conferring greater power and responsibility in the governance of a company. There are no explicit provisions for independent directors under Companies Act 1956 (“1956 Act”) and only clause 49 of the Listing Agreement  prescribed for the induction of independent directors  and made it mandatory for listed companies. Read more…

January 2014

MERGER REGIME UNDER THE COMPANIES ACT, 2013

Merger is a restructuring tool available to Indian conglomerates aiming to expand and diversify their businesses for various reasons whether it is to gain competitive advantage, reduce costs or unlock values. In commercial parlance, merger essentially means an arrangement whereby one or more existing companies merge their identity into another existing company or form a distinct new entity. Read more…

December 2013

DIRECTORS UNDER COMPANIES ACT, 2013- IS IT OLD WINE IN NEW BOTTLE?

The Companies Act, 2013 (“Act”) is enacted to gradually replace the old Act of 1956, with the objective to bring more accountability and good corporate governance. The Ministry of Corporate Affairs has notified ninety-eight sections of the Act which have come into effect from September 12, 2013 and repealed the corresponding sections of the 1956 Act. Read more…

November 2013

NEW LEGISLATIVE DEVELOPMENTS IN REAL ESTATE SECTOR

Contributing nearly 6% to India’s Gross Domestic Product, the real estate sector is a key industry of the Indian economy that also drives various other industries such as cement, steel, paints, building materials, consumer durables, retail, etc. Read more…

October 2013

THE COMPANIES ACT 2013-CHANGING INDIA INC….

On August 30, 2013, the Companies Act 2013 (“Act”) was finally notified thereby putting an end to a long wait for a comprehensive legislation that is expected to herald a new era in corporate governance and change the way India Inc. functions. Read more…

September 2013

ABUSE OF DOMINANCE: EVEN NON-PROFIT ORGANIZATIONS NOT EXEMPTED!

All enterprises in the markets need to adopt fair practices while doing business. A fair competition promotes efficiency, encourages innovation, facilitates better governance and ensures availability of goods at an affordable price. Read more…

August 2013

PREVENTING SEXUAL HARASSMENT IN THE WORKPLACE: STATUTORY PROTECTIONS FOR WOMEN IN INDIA

The 2001 National Census estimated that women constitute 31.6 percent of the workforce in India. As women continue to enter the workforce in greater numbers, the number of incidents of sexual harassment in the workplace may also rise. Read more…

July 2013

PERMANENT ESTABLISHMENTS: ATTRIBUTION OF BUSINESS PROFITS

In India, the taxability of any entity depends on its residential status. Pursuant to section 9 of the Income Tax Act, 1961 (“Act”), a resident taxpayer is subject to tax in India with respect to its global income. Read more…

June 2013

NO BACK-OUT ALLOWED ONCE A PUBLIC OFFER IS MADE!

Under the Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997  (“Takeover Code”), if an acquirer proposes to acquire 15% or more of the voting rights in a target company, it is required to make an open offer. Read more…

May 2013

NO PATENT TO ARTFUL CLAIMS: “INCREMENTAL INNOVATION” VERSUS “THERAPEUTIC EFFICACY”

The Supreme Court of India (“SC”) on April 1, 2013 rejected Novartis’ appeal  for patent protection for its blood-cancer treatment drug “Glivec”, which was held an “incremental innovation” not liable for protection. Read more…

April 2013

TERMINATION OF EMPLOYMENT DURING SECONDMENT

It would be correct to state that the world cannot ignore India, which has come to the center-stage as an investment destination and global companies want to be a part of its vibrant economy. As a result, many multinationals have established entities and, often, send their employees on secondments for a limited period to either oversee the operations, or train the local teams so that there is a uniformity of approach, or provide technical assistance, or provide opportunities to employees to develop skills etc. Read more…

March 2013

MANAGERIAL PAY – WHAT DOES INDIAN COMPANY LAW SAY?

Just as profits drive business, incentives drive the managers of business. Not surprisingly then, in a fiercely competitive corporate environment, managerial remuneration is an important piece in the management puzzle. Read more…

February 2013

DTAA VINDICATED: SIGN OF TIMES TO COME?

The interpretation and implementation of the provisions of a Double Tax Avoidance Agreement (“DTAA”) has been controversial since the Vodafone-Hutch deal in 2007. In that case, the Income Tax Department (“IT Department”) introduced retrospective amendments in order to tax transactions with an Indian nexus, which, foreign companies viewed as a retroactive measure in the path to greater liberalization and a deterrent to investing in India. Read more…

January 2013

PROPOSED AMENDMENTS IN THE COMPETITION ACT: A POSITIVE STEP FORWARD?

The Competition Commission of India (“CCI”) is an active regulatory body and, in a short span, has made its presence felt across a wide spectrum of industry. The substantive provisions of the Competition Act, 2002 (“Act”) pertaining to “anti-competitive agreements”  and “abuse of dominant position”  were implemented in 2009, while merger control became effective from June 01, 2011. Read more…

December 2012

INTERESTED DIRECTOR: NEED FOR DISCLOSURE

The directors of a company act as its agents and execute contracts and arrangements on behalf of the company. In the course of such transactions, it is likely that they may have some personal interest in the proposed transactions. Read more…

November 2012

ONLINE GAMING-AS GREY AS EVER!

A district court of Delhi (“Court”) recently expressed its opinion under order XXXVI of the Code of Civil Procedure, 1908 in the case of Gaussian Network Pvt. Ltd vs. Monica Lakhanpal and Ors. Read more…

October 2012

THE SEPTEMBER REFORMS – DECODING CHANGES TO THE FDI POLICY

On September 20, 2012, the Department of Industrial Policy and Promotion (“DIPP”) of the Ministry of Commerce and Industry introduced the much-awaited and significant economic reforms in various sectors, and increased the cap on foreign direct investment (“FDI”) in certain industries. Read more…

September 2012

RESTRICTING PARALLEL IMPORTS- TRADE MARK OWNER’S RIGHT OR UNFAIR COMPETITION?

Trade mark indicates source of origin of the goods as they have territorial rights attached to them. The trade of such goods is controlled by the owners of the trade mark or its assignees or licensees. Read more…

August 2012

CLINICAL TRIALS AND TRIBULATIONS

India has increasingly become a popular destination for conducting clinical trials for multi-national pharmaceutical companies. These companies test the efficacy and suitability of their drugs on Indian subjects before marketing them in India. Read more…

July 2012

HIVING A BUSINESS WITH HIGH DEBTS- RISK(S) POSED BY THIRD PARTY INTERVENTION

Often times in the course of due diligence exercises, quite fascinating facts and questions emerge whereby asset deals may come under the scanner for the most unexpected reasons. Read more…

June 2012

EARN-OUTS: TO HAVE OR NOT TO HAVE

The process of acquisition of a company, by means of shares or assets, is never a simple one. Structuring the transaction assumes paramount significance in either situation. And, there is never a baseline thumb rule because the goal posts of type of acquisition vary and, then, other subtleties apply which are linked with the nature of the business i.e. to say when the target is engaged in manufacturing or services. Read more…

May 2012

ALUMINIUM PHOSPHIDE ORDER: CCI AGAIN SHOWS ITS MIGHT

The Competition Commission of India (“CCI or Commission”) has been in constant news for the last one year or so. On one hand, it stepped into new regulatory role regarding M&A transactions under the CCI Combination Regulations, 2011 and on the other, it has been imposing hefty penalties for anti-competitive practices. Read more…

April 2012

“JOHN DOE” ARRIVES IN ALLIANCE WITH THE PRINCIPLE OF QUIA TIMET

A John Doe order is a type of injunction granted by courts in cases where an anonymous person (“John Doe” or “Ashok Kumar” as used in India) has committed or is likely to commit a breach of the rights of the plaintiff but cannot be identified at the time of filing of the suit. Read more…

March 2012

DE-REGISTRATION OF AIRCRAFTS – WHAT’S MISSING IN THE LAW

While India is one of the fastest growing markets in the aviation sector, the Indian aviation industry, particularly the scheduled airlines are facing huge losses primarily due to increasing fuel prices and the inability to raise airfares. Read more…

February 2012

HIRING EXPATRIATES IN INDIA – WHAT YOU MUST KNOW!

The opening of the Indian economy is a key contributor to its growth and success. Many foreign companies have established their operations either in the form of wholly-owned subsidiaries or JVs with Indian companies. Read more…

January 2012

THE INDIAN BROADCASTING SECTOR: A GIANT LEAP FOR MEDIA-KIND

One of the key sectors in India that has been experiencing a double digit growth rate is media. With an overall increase in per capita income, the demand for leisure and entertainment through different mediums has only increased. Read more…

December 2011

ARBITRATION CLAUSES AND “IMPLIED” EXCLUSION OF INDIAN COURTS

India is progressively opening its boundaries to foreign trade and both inbound and outbound investment and trade has increased. With the change in business dynamics, the need of a speedier method of dispute resolution was imperative. Read more…

November 2011

TOWARDS TRANSPARENCY IN PUBLIC PROCUREMENT

Government procurement in India has been an archaic and labyrinthine system of administrative procedures. This has led to decision making being restricted and subject to the personal knowledge, experience and outlook of the concerned official Read more…

October 2011

TRADE MARKS ENFORCEMENT: NEW DIMENSIONS!

In India, trade mark rights may be acquired through the usage1 in relation to goods or services, registration of such goods and services and their assignment/transmission. While the Indian judiciary frequently exhibits significant flexibility regarding protection, the enforcement of IP laws leaves much to be desired as it remains mostly inconsistent. The Trade Marks Act (“Act”) Read more…

September 2011

LICENSING NEW PRIVATE SECTOR BANKS: RBI PROVIDES NEW OPPORTUNITIES!

The economic growth of a country is quantified based on the stability, soundness and depth of its financial system and India is not an exception to this. The Reserve Bank of India (“RBI”) has made several Read more…

August 2011

AMENDMENT TO TAKEOVER REGULATIONS: SEBI WALKS A BALANCED PATH

The capital market regulator, Securities Exchange Board of India (“SEBI”), has been expressly mandated to regulate substantial acquisition of shares and takeover of companies in India. In its stride to do so, it came out with first set of regulations governing takeovers in 1994, which were overhauled in 1997 and notified as SEBI (Substantial Acquisition of Shares and Takeover Regulations), 1997 (“Takeover Regulations”). Read more…

July 2011

SETTING UP AN AERODROME IN INDIA: KNOW YOUR FUNDAMENTALS

The Directorate General of Civil Aviation (“DGCA”) has been assigned with the responsibility of licensing aerodromes in India in accordance with the regulatory provisions. The DGCA clearly prescribes that no aerodrome shall be used as a regular place for landing and departure Read more…

June 2011

TAX ON “SOFTWARE” – A WORK IN PROGRESS

An interesting outcome of the unprecedented growth in the IT sector has been the evolving law in the assessment of software as “goods” or “services” for the computation of tax leviable on it. In the past, the notion was that only “tangible” movable property amounted Read more…

May 2011

FIXING THE PRICE OF NON-SCHEDULED BULK DRUGS

The pricing of drugs, formulations and medical devices is carried out by the National Pharmaceutical Pricing Authority (“NPPA”) which is the primary agency in India that regulates the prices of drugs and pharmaceutical products under the Drug Pricing Control Read more…

April 2011

DREAD OF THE JUDICIARY-ENVIRONMENT LAW IN INDIA

The market opportunities have made India a preferred destination for foreign investors. The flip side of economic growth is that it has led to depletion of natural resources which triggered a debate as to which is dearer to the nation, environment or development. The present newsletter reviews Read more…

March 2011

MULTI-BRAND RETAILING IN INDIA: CURSE OR BOON?

India’s retail industry is divided into organized and unorganized sectors. Postliberalization, organized retail has grown exponentially and is a testament of the Indian middle class’s burgeoning purchasing power. Read more…

February 2011

NOT IN INDIA, BUT STILL PROTECTED

With globalization, IPR has emerged as a significant tool for socio-economic development and a key determinant of the economic relations between countries. Read more…

January 2011

SETTING UP BUSINESS IN INDIA: KNOW YOUR BASIC EMPLOYMENT LAW ISSUES

Regulation of employment matters in India is generally covered by both central and states’ laws. The relationship between an employer and employee is regulated by contract law. Generally speaking, the framework of Indian labor law differentiates between an employee and workman, the latter being equated to a blue-collar worker.Read more…

December 2010

SECURING SENSITIVE PERSONAL INFORMATION: BIGGEST PREDICAMENT FOR IT INDUSTRY

India is increasingly being regarded as the focal point of global IT outsourcing. The Indian IT and ITeS sector showcased a phenomenal growth during the past years despite the recent economic slump and is still considered as the most preferred outsourcing destination. Read more…

November 2010

CAUTION! ENHANCED JUDICIAL INTERFERENCE IN ARBITRATION

In the recent case of Lalit Kumar Modi v. The Board of Control for Cricket in India and others, the Bombay High Court (“Court”) made a deviation from the existing procedure for challenging the appointment of arbitrator(s). Read more…

October 2010

INDIA’S COMPETITION TUSSLE: SUPREME COURT PLAYS REFEREE

The recent decision of the Supreme Court of India (“SC”) in Competition Commission of India v. Steel Authority of India Ltd. and Anr., is of immense significance. Read more…

September 2010

RINGING IN THE VODAFONE JUDGMENT

August 2010  Read more…

THE HURDLES IN TECHNOLOGY TRANSFERS IN THE DEFENCE SECTOR

Majority of India’s present day weapons and war machinery is obsolete. India is looking to revamp its defence capabilities and consequently making the country one of the largest military spenders in the world. Read more…

July 2010

CHANGES IN THE TAKEOVER CODE: RAISING THE BAR OF INDIAN M&A

The market regulator, Securities Exchange Board of India (“SEBI”) introduced the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, commonly known as the Takeover Code, which established the fundamental rules for mergers and acquisitions. Read more…

June 2010

WHOSE COPYRIGHT IS RIGHT?

In determining how India should shape and modify its copyright policies, examining international, as well as individual nations’ policies, can provide guidance. Of course, India has its own Copyright Act, 1957 (“Act”), but its age demonstrates an ongoing need for modification. Read more…

May 2010

CONSOLIDATED FDI POLICY : A COMPILATION OR A FRESH CONSTRUCT

Since the liberalization of foreign investment regime in India, the Government of India has issued various press notes on foreign investment. In addition, various circulars and guidelines were issued under the Foreign Exchange Management Act, 1999 (“FEMA”), Reserve Bank of India (“RBI”) independent of government press notes. Read more…

April 2010

COPYRIGHT VERSUS PATENT – THE GREAT DEBATE

In India, software has traditionally been protected under Copyright Act, 1957 (“Act”) as software programme. Computer software, also known as computer programme, has a market value and is subject to fierce competition due to a shorter life circle and the potential danger of blatantly being copied or developed by reserve engineering. Read more…

March 2010

TERMINATION OF KEY MANAGEMENT PERSONNEL: JUDICIAL STAND AND PRACTICAL CONSIDERATIONS

Under the Indian legal regime, there is no specific legislation which governs the employer-employee relationship. As such the relationship between them is purely based on terms which have evolved from industry practices and customs… Read more…

February 2010

IMPACT OF THE INDIA-US NUCLEAR DEAL AND OPPORTUNITIES IN THE INDIAN MARKET : AN OVERVIEW

Any development that takes place after close to 34 years can be deemed historic, and truly so, one such historic moment is India’s global recognition as a nuclear power state. In September 2008, the Nuclear Suppliers’ Group (“NSG”) approved an India specific exemption and the India-US civilian nuclear deal was signed on October 11, 2008. Read more…

January 2010

SPECIAL ECONOMIC ZONES VERSUS SOFTWARE TECHNOLOGY PARKS – A CRITICAL ANALYSIS

The Special Economic Zones (“SEZ”) were introduced in India in 2000 in order to provide a level playing field to the domestic enterprises and manufacturers, so that they could compete with the global players. The SEZs are a separate, demarcated region governed by economic laws that are more liberal than the typical economic laws.

December 2009

PLUGGING LOOPHOLES IN THE TAKEOVER CODE: AN ANALYSIS OF THE RECENT AMENDMENTS

The Securities and Exchange Board of India (“SEBI”) notified certain amendments to the SEBI (Acquisition of Shares and Takeovers) Regulations, 1997 (“the takeovercode”) on November 06, 2009… Read more…

November 2009

SPIRITED IN TIMES OF GLOOM – THE INDIAN WINE INDUSTRY!

Wine industry in India which is still in a nascent stage is growing at a phenomenal rate. The wine consumption is expected to grow by 25-30% annually between 2009 and 2012… Read more…

October 2009

PROTECTING YOUR INDUSTRIAL DESIGN

Globalization & liberalization has flooded the Indian markets with a large variety of products. Consumers are offered numerous choices for a single product and, increasingly, the appearance of an article counts more than its utility or quality…   Read more…

September 2009

FOOD PACKAGING IN INDIA: CAVEAT VENDITOR

A package is a benchmark of safety standards and ensures that the food it contains is safe, harmless, wholesome, and nutritious to the consumer. To safeguard the interests of the consumer, packaging laws and regulations have been enacted with the concern of consumer protection and in recognition ofthe principle of caveat emptor.. Read more…

August 2009

RECENT AMENDMENTS IN THE INFORMATION TECHNOLOGY ACT, 2000

The Information Technology Act, 2000 (the “IT Act”) of India has recently undergone a major overhaul, only eight years after it came into force… Read more…

July 2009

BARRIERS TO INDIAN TRADE: AN OVERVIEW OF US TRADE REMEDIES AND THE CHANNELS OF RECOURSE FOR INDIAN PRODUCERS

The globalization of the world’s economy has increased dramatically in the past century. The most successful producers take advantage of lower labor and manufacturing costs in developing countries and favorable consumer markets in more developed countries. Read more…

June 2009

TO LITIGATE OR NOT: AN OVERVIEW OF KEY ISSUES IN INDIA

The Indian economic success story is wellknown. While not totally immune, even during the present troubled, tough recessionary times globally India and China are the two jurisdictions that continue to show growth, albeit reduced. One of the prime concern of corporations entering a foreign land relate to the judicial process, including the enfo Read more…

May 2009

FUNDAMENTALS OF CONSUMER PROTECTION IN INDIA

The Consumer Protection Act (“Act“) is a social welfare legislation which was enacted in 1986 as a result of a widespread and concerted consumer movement. The main object of the legislature in enacting the Act w Read more…

April 2009

CLINICAL TRIALS IN INDIA – A CASE OF TRIALS AND ERRORS!

Medical science has advanced tremendously over the years. Newer, better and effective drugs are frequently being introduced to fight the ever- increasing list of prevailing and newly discovered diseases. Interestingly, Read more…

March 2009

FOREIGN AWARDS UNDER THE JUDICIAL SCANNER

The Arbitration and Conciliation Act, 1996 (“the Act”) implemented UNCITRAL Model law on international commercial arbitration and added to the pro-arbitration legal regime in India. The basic intent was to have an expeditious a Read more…

February 2009

MERGERS AND ACQUISITIONS: VALUATION IN A RECESSIONARY WORLD

The present economic turmoil has not limited its impact to any specific country. Every business turf has been hit in some form or the other. Since July 30, 2008 till date, only five companies have filed their Red Herring Prospectus1 with the Securities and Exchange Board of India (“SEBI” )  Read more…

January 2009

LIMITED LIABILITY PARTNERSHIP – AN ALTERNATE CORPORATE VEHICLE

For those who have been awaiting the enactment of the Limited Liability Partnership (“LLP“) Bill, the wait appears to be finally over. After several years of consideration and recommendations, the LLP Bill, 2008

December 2008

TRADE SECRET PROTECTION: A COMPARATIVE ANALYSIS BETWEEN INDIA AND THE UNITED STATES

In today’s globally competitive market, it is crucial for a business to take the proper measures to protect its valuable trade secrets. Broadly defined, a trade secret is “[a] formula, process, device or other business information that Read more…

November 2008

STATUS OF INCOMPLETE NEGOTIABLE INSTRUMENTS

Under Indian law, a negotiable instrument means a transferable instrument. In business transactions, frequently a negotiable instrument is used to make payment of money. A negotiable instrument has several characteristics. But, the more Read more…

October 2008

COMMODITY FUTURES IN THE INDIAN FUTURES MARKET

Hedging involves taking one risk to offset another and there are many tools for hedging such as futures, forwards and swaps. Together these devices are termed as derivatives because their value is derived from the value of other assets. In India the Securities and Exchange Board of India (“SEBI”Read more…

September 2008

ENFORCEABILITY OF MEMORANDUM OF UNDERSTANDING

A Memorandum of Understanding (“MOU”) is the term given to a formal agreement between two or more parties expressing their determination to move forth in a common direction. Usually at the outset of a project or joint venture, Read more…

August 2008

ISSUE OF JURISDICTION IN CYBERSPACE AND APPLICABLE LAWS

Jurisdiction refers to the power of a government to exercise authority within a territory or restriction or the legal responsibility of a court to determine disputes. This principle of territoriality has been diminished by the digital technologies in the present era which has led to the evolution of almost  Read more…

July 2008

MODES OF ASSIGNMENT OF COPYRIGHT: CONTRACTUAL SAFEGUARDS

Copyright is a bundle of rights including rights of reproduction, communication to the public, adaptation and translation of the work. The owner of the copyright may assign the whole of these rights or some part of them to a third person for consideration which is termed as assignment. Read more…

June 2008

LIMITATION ON DIRECTORS: MAXIMUM NUMBER OF CONCURRENT DIRECTORSHIPS

A company’s directors are given a great deal of power regarding the affairs of the business. However, it is essential to note that this power is not unlimited. The Companies Act, 1956, (“Act”) includes several limitations on director power which help to harness the influence and control any particular Read more…

May 2008

REVISION IN EXTERNAL COMMERCIAL BORROWING (“ECB”) POLICY

By the notification (A.P. (DIR Series) Circular No.43) dated May 29, 2008, borrowers in the infrastructure sector have been allowed to avail ECB up to US$ 100 million under the approval route. Read more…

April 2008

INDIAN COMPETITION LAW MAY STIFLE M&A

Liberalization and opening up of Indian economy has not only opened new vistas for Indian companies, but has also led to increased competition from within and outside India. The focus of Monopolies & Restrictive Trade Practices Act, 1969 (“MRTP Act”) was on the control of monopolies and the prohibition of monopolistic and Read more…

March 2008

PREREQUISITES OF AN INITIAL PUBLIC OFFER

Initial Public Offer (“IPO”) is when a company makes a fresh issue of securities for the first time to the public. The requirements regarding the eligibility of companies to make an IPO are provided under the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 Read more…

February 2008

WINDING-UP BY TRIBUNALS-AN INSIGHT

Winding-up of a company is a mechanism envisaged under the Companies Act, 1956 (“the Act“) by which an Indian company is dissolved. The Act provides two modes for winding-up (a) voluntary winding-up, initiated by either the shareholders or creditors of a company; and (b) winding-up by an order Read more…

January 2008

GROWTH & OPPORTUNITIES IN INDIAN WINE MARKET

Indian wine market is on the threshold of its first major milestone i.e., crossing the one million cases mark in 2008. The buoyant Indian economy has already attracted global wine makers like E&J Gallo, Veuve Cliquot, Moet Hennessy, Diageo, Seagram (renamed Pernod Ricard India), etc to set shops in… Read more…

December 2007

NON-PROFIT ENTITIES: AN INDIAN PERSPECTIVE

Non-profit Entities (“NPE”) have never been thought of as competitive entities. Unlike business enterprises which focus on provision of products and services for a profit, the primary objective of non-profit entities is to support or to actively engage in activities of public or private interes   Read more…

November 2007

DIRECTOR’S LIABILITY: ACCOUNTABILITY ESSENTIAL FOR EFFECTIVENESS

a dynamic business world, the role of a director of a company holds immense significance. A director is an agent of the Company for the conduct of its business.
Read more…

October 2007

BANK GUARANTEES: AN EFFECTIVE TOOL TO HEDGE CONTRACTUAL RISK

Indian economy is booming and business intelligence is essential to minimize contractual risks. Commercial prudence is necessary to optimize business results. An instrument, which is widely used to minimize the risk involved in commercial contracts is a guarantee. Read more…

September 2007

ACQUISITION OF SHARES: ABUSE OF DOMINANCE IN MARKET

Since ancient times, the various political systems have disregarded the concentration of economic power. Legislations to curb this phenomenon have been put in practice by different governments in the garb of competition laws. Read more…

August 2007

VERDICT IS OUT – RELIEF FOR INDIAN BPOS!

Over the past few years, the outsourcing industry has transformed the way companies function, with many of them distinctly drawing the line between core and non-core operations to retain the former with themselves and divest the latter to an external entity. Read more…

July 2007

SECURITIZATION ACT: POWER OF BANKS TO RECOVER MONIES

Before the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“the Securitization Act”) was passed banks1 and Financial Institutions (“FIs”) were grappling with the growing number of Non- Performing Assets2 (“NPAs”Read more…

June 2007

FOREIGN TRADE POLICY – FOCUS ON EXPORTS

The trade policy of India has undergone a structural change in the liberalization era which began in 1991. The inward-looking, protectionist stance towards the economy (resulting in a dismal share of trade in the world economy) has been replaced by a regulatory openness which is bullish on business. Read more…

May 2007

RELATED PARTY TRANSACTIONS: STRIKING THE BALANCE

A company is an artificial juridical person not capable of taking its own decisions. The board of directors (“Board”) of a company primarily takes the decisions, though a few actions also require the approval of the members of the company.
Read more…

April 2007

STRUCTURING M&A TRANSACTION – SHARE VERSUS ASSET PURCHASE

Inorganic growth of business has spurred Indian and foreign companies on a buying spree. The factors that have propelled Mergers and Acquisitions (“M&A”) activity in India range from (a) liberalization of the Indian economy, including opening of various sectors for foreign investment, less Read more…

March 2007

MINORITY PROTECTION: MYTH OR A CAUSE FOR CONCERN

As the world focus shifts on the Indian market, there has been a flurry of activity to improve corporate governance in the last few years to provide comfort for foreign investors. Both the regulators as well as Indian companies are taking a greater interest in improving transparency in several aspects of Read more…

February 2007

RAISING FOREIGN CAPITAL THROUGH FCCB AND ADR/GDR

In recent times, there has been a continuous surge in the issue of Foreign Currency Convertible Bond (“FCCB“) and Global Depository Receipt (“GDR“) with companies such as Reliance Communications, Mahindra & Mahindra, Ranbaxy resorting to the FCCB route to meet their financing needs. Read more…

January 2007

RAISING MONEY: THE QIP WAY

Qualified Institutions Placement (QIP), which is recent in origin, is an option for the listed companies to raise money in India for their business requirements. Securities and Exchange Board of India (SEBI) introduced QIP1 from 8th May 2006. Since then this route has been gaining ground   Read more…

December 2006

CONTRACTING LABOUR CONTRACTS

Human resource and its management play a unique role in the success of any industry and organization, irrespective of its size. One cannot undermine the importance of any work force. There are plethora of labor laws in India which are largely pro-employee. It is often stated that rigid labor laws restRead more…

November 2006

E-FILING – THE NEW AGE CORPORATE FILING!

With the advent of computers and more specifically the internet, the world is just a click away! Thanks to this electronic medium, the global village is shrinking and the business barriers are dissolving. As Bill Gates has aptly stated, “Information technology and business are becoming inextricably interwoven Read more…

October 2006

DE-MERGERS – WAY TO EFFICIENT MANAGEMENT

Mergers and acquisitions are the key words in business world today. The media is filled with news of consolidation of business happening globally, and the figures are astronomical. But, another trend as opposed to mergers, also on the rise, is breaking the business into small undertakings in order to manage  Read more…

September 2006

ANTI-COMPETITIVE AGREEMENTS- AN INDIAN CONTEXT

An agreement that has the effect of substantially lessening or limiting access to the market is prohibited by competition law. Keeping in view the interests of the consumers and in order to bring an end to certain trade practices, prejudicial to public interest, the Indian government has, periodically, Read more…

August 2006

CORPORATE GOVERNANCE – A GLOBAL REQUIREMENT

In this era of globalization, Indian corporate sector is no longer limiting itself to India, but rather expanding far and wide carving a niche for itself in the emerged economies of the world. In this changing landscape, in order to enhance the confidence level of investors it is imperative that the legi Read more… 

July 2006

GROUNDS FOR CHALLENGING AN ARBITRAL AWARD

The Indian Arbitration and Conciliation Act 1996 (“the Act”) is based on the model law and rules framed by the United Nations Commission on International Trade Law (“UNCITRAL”). The purpose of the Act is to provide an Alternate Dispute Resolution (“ADR”) for speedier disposal of disputes between the parties Read more…

June 2006

EMPLOYEES STOCK OPTION SCHEME IN INDIA – A RETENTION TOOL?

Employees are the driving force of any organization and it is the employer’s prerogative to ensure that the employee’s interest and potential is recognized. In India, like in other countries, the Employee Stock Option Plan (ESOP) is an effective tool in the hands of the employer to give incentives to employe Read more…

May 2006

PIRACY – A CHALLENGE FOR THE ENTERTAINMENT INDUSTRY

The entertainment and media industry is one of the fastest growing businesses in India. It consists of many segments, such as, television, film entertainment, print media, radio, music, live entertainment, out-of home advertising and internet advertising. According to a FICCI-PWC report1, the entertainment Read more…

April 2006

DEMYSTIFYING TAKEOVER CODE

Indian capital markets are touching new skies every day as stock indices have touched those figures, which were considered to be a distant dream two years back. As on March 31, 2004, the Bombay Stock Exchange (BSE) Sensitive Index stood at 5,590.60 whereas on March 31, 2006, the same Read more…

March 2006

BUDGET 2006-2007- LITTLE LOST, LITTLE GAINED

This newsletter gives an overview of the key budgetary proposals for the year 2006-2007 which would affect the corporate sector and the common man. Read more…

February 2006

OVERVIEW OF THE MANAGEMENT PROVISIONS OF THE COMPANIES ACT, 1956

Let us consider a global merger of two foreign companies, Foreign Company ‘A’ (FC A) and Foreign Company ‘B’ (FC B). “Subsidiary” is a 100% subsidiary of FC B and owns a majority share capital of an Indian Company (IC). Pursuant to the consummation of the merger, there may or may not be a change in the management of IC… Read more…

January 2006

NBFC- SETTING NEW TRENDS IN FINANCING & FINANCIAL CONSULTING

Traditionally, financing in India was the exclusive realm of banks or small local money lenders who lent money on exorbitant rates of interests. But, with the individual having disposable income to dispense with, professional advice to offer and big multinational companies coming in look Read more…

December 2005

REAL ESTATE: THE NEW BUZZWORD IN FDI

The Indian economy threw open its gates after considerable forethought in the year 1991 with an object to open up a potential multi-billion dollar market to the world and to bring India at a platform where it could compete with the other emerging and emergent economies of the world. Read more…

November 2005

INDEPENDENT DIRECTORS

The above mentioned term has generated a great hype in corporate circles and has become a headache for a lot of entrepreneurs. The reason that the term is now splattered in the pink dailies and is a migraine to a fair number of promoters is the master circular1 (the Circular) from th Read more…

October 2005

ADR/GDR- A PASSAGE TO INTERNATIONAL FUNDING

The Indian economy is the second fastest growing economy in the world after China with a growth rate of 6.5%1. India seems to have become an investor’s haven with high returns on investments. Indian companies are recording higher profits and are gaining global recognition because of Read more…

September 2005

INDIA-SINGAPORE COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT 2005: A PROMISING ECONOMIC EFFORT

India’s recent economic growth has positioned it to provide key contributions in global economic matters. In the current economic scenario, the concept of regional trade has also grown and has become an important component in the new international order. The countries belong to one or more such trading arrangements and Asia Pacific region is no exc Read more…

August 2005

IMPACT OF BASEL II- AN INDIAN PERSPECTIVE

It is well recognized that the stability and soundness of financial system is the key factor to attaining progress, economic and political stability in developed and developing countries. An essential element in the health of any financial system is the soundness of its institutions, which function as key players in the payment system for the gover Read more…

July 2005

FDI IN DOMESTIC AVIATION: INDIAN SKIES FOR FOREIGN FLYERS

Indian aviation industry has come a long way since the day of its first commercial flight flown by French pilot Monseigneur Piguet on February 18, 1911 from Allahabad to Naini carrying airmails covering a distance of approximately 10 km1. Tatas, a famous business house in India, were the first private players to enter the filed of civil aviation le   Read more…

June 2005

COPYRIGHT LAW IN INDIA

Copyright, in essence, is an exclusive right to do, or authorize others to do, or restrain from doing certain acts. The first effort to recognize the copyright at international level was in the form of Berne Convention in 1886 and since then various bilateral and multilateral conventions have been signed to harmonize the copyright protection to ori Read more…

May 2005

TRADEMARK PROTECTION IN INDIA: AN OVERVIEW

Prior to 1940 there was no statutory law relating to trade marks in India. The law which was applicable was based on English common law. It is interesting to note that the first trade mark registered in United Kingdom under no.1 of 1876 consists of a red equilateral triangle in respect of alcohol beverages, which is still in force1. The Trade Marks Read more…

April 2005

YING AND YANG OF VALUE ADDED TAX (VAT)

VAT, a State subject as per Entry 541 of the State List of the Constitution, has since 1995 remained a constant matter under debate. With its introduction as on April 1, 2005, VAT has replaced the local sales tax payable by the seller. However, it has created a furor amongst traders, the ministry and the common man. The current article discusses an Read more…

March 2005

BUDGET 2005-2006: TAXING PROPOSALS- STRAINING THE INDUSTRY

The imposition of taxes by the Government often faces criticism for the obvious reason that it is construed as an added liability. The expectations of people are that there should be uniformity, clarity and rationalization of taxing statutes…   Read more…

March 2005

BUDGET 2005-2006: BUBBLING FOR GROWTH

The Economic Survey 2004-20051 reveals that there has been a steady growth as far as macro-economy is concerned. The country managed to face the tremors caused by deficient south-west monsoon, hike in international prices of crude oil and steel and last but not the least its first ever experience of the disaster caused by tsunami. The Gross Domesti Read Online..

February 2005

PROPOSED FOREIGN DIRECT INVESTMENT HIKE IN TELECOM

The Union Cabinet has agreed to raise the limit of Foreign Direct Investment (FDI) in the Telecom Sector to 74% from 49%. However, an official press note about this increase is still awaited. FDI will be allowed in basic, cellular, unified access services, STD, ISD, VSAT, public mobile radio trunk services, global mobile personal communication serv Read more…

January 2005

PATENT ORDINANCE A TSUNAMI OR BOOM FOR ECONOMY

Patent is a type of an Intellectual Property Right (IPR) which allows/awards exclusive manufacturing and marketing rights to the inventor pertaining to an object/product and/or means/process. These rights are granted by the government with the view to reward the inventor and to infuse and imbibe a spirit of invention. Since the right to patent lead Read more…

December 2004

DIRECTORS TYPES & ROLES

A company operates through its Directors1; all the Directors together constitute the ‘Board’. A Director is instrumental in ensuring appropriate decisions for the smooth running of the company as may be delegated by the Board from time to time. Directors may be appointed Read more…

November 2004

SECTION 4(7) REVEALED

Section 4(7) of the Companies Act, 1956 (the Act), in brief, can be defined as determining the holding-subsidiary relationship of two companies. Read more…

October 2004

RBI CIRCULAR NO. 16: A BOON FOR FDI

Transfer of shares/convertible debentures, through a private arrangement, by residents to non-residents1, and vice-versa required prior regulatory approval of the Foreign Investment Promotion Board (“FIPB”) and Reserve Bank of India (“RBI”). These appr Read more…

September 2004

EXTERNAL COMMERCIAL BORROWING GUIDELINES- AN OVERVIEW

The term External Commercial Borrowing (ECB) denotes the overseas sourcing of funds by companies in India. It provides extra financial support to the Indian companies and helps them meet their financial requirements. The Government of India has adopted a liberal approach towards ECBs… Read more…

August 2004

MERGERS & ACQUITIONS: SHORTCUT TO GROWTH

Basic essence of capitalization is to make profits. In a free market economy profit is the reflection of the success of the company. Growth of profit is directly related to the growth of business. The two fundamental approaches followed by businesses to grow are organic and inorganic… Read more…

July 2004

BUDGET 2004-2005 : HIGHLIGHTS

The annual budget for the year 2004-2005 was presented by the Finance Minister, Mr. P.Chidambaram this year on July 8, 2004. This newsletter covers key aspects of the budget that may be of interest to a foreign investor… Read more…

June 2004

AN UNCONDITIONAL TRIBUNAL?

The introduction of specialist tribunals in India has been a relatively recent development to the Indian Judiciary. Tribunals have been created to look over a wide variety of matters such as foreign exchange, labor disputes, and land reforms… Read more…

May 2004

(SECURITIZATION ACT)

To enable secured creditors to recover their money from defaulting debtors, Government of India (GOI) passed Securitization and Reconstruction of Financial Interest and Enforcement Act, Securitization Act, 2002… Read more…

April 2004

INSIDER TRADING IN INDIA- AN OVERVIEW

Insider Trading means dealing in the securities (shares, bonds, debentures etc.) of a company by a person who is well connected with the management of the company and who is reasonably expected to have access by virtue of such connection to price-sensitive information in respect of securities of the company… Read more…

March 2004

OUTSOURCING OF LEGAL SERVICES TO INDIA

Outsourcing is essentially contracting of business functions to professionals, essentially at a lower cost. By outsourcing non-core business operations to service providers, companies are increasingly able to focus on their core competencies and face the emerging competitive environment… Read more…

February 2004

CONSEQUENCES OF BREACH OF CONTRACT

The law of contracts in India is based on the common law. It has been codified and has been dealt with largely under the Indian Contract Act, 1872. Reliance is also placed on judicial precedence & other acts such as Sales of Goods Act, Negotiable Instruments Act, Specific Reliefs Act, etc… Read more…

January 2004

PATENT APPLICATIONS INDIA- AN OVERVIEW

The legislation governing the patents in India is the Patents Act, 1970 (the Act) as amended by the Patents (Amendment) Act, 1999 and the Patents (Amendment) Act, 2002 along with the Patents Rules 1972 as amended by the Patents (Amendment) Rules, 2002…