The Foreign Exchange Management (Non-Debt Instruments) Rules 2019 (NDI Rules) have been amended to permit foreign investment up to 74% for insurance companies in India. The amendment takes effect from 19 August 2021 and marks the completion of the liberalisation process for increasing the foreign investment limit for the sector from 49% to 74%.
The Competition Commission of India (CCI) in an order dated 13 August 2021 declined to initiate investigation into allegations of abuse of dominant position and anticompetitive vertical agreements against Siemens Healthcare Private Limited (Siemens).
On 9 August 2021, the Hon’ble Supreme Court of India (Supreme Court) allowed the Competition Commission of India (CCI) to proceed with its investigation into alleged anti-competitive practices by Amazon Seller Services Private Limited (Amazon) and Flipkart Internet Private Limited (Flipkart) (collectively “OPs”).
Grasim Industries Limited (Grasim) abused its dominance again by charging discriminatory prices, denying market access, and imposing supplementary obligations in the viscose staple fibre (VSF) market from 2017 to 2018, held the Competition Commission of India (CCI) on 6 August 2021. (Informant (Confidential) v Grasim Industries Limited (Case No. 51 of 2017, Case No. 54 of 2017, Case No. 56 of 2017).)
On 13 August 2021, the Taxation Laws (Amendment) Act 2021 (Act) received the Presidential assent, withdrawing retrospective effect of the much-controverted indirect transfer tax.
The Supreme Court in its recent decision in Dena Bank (now Bank of Baroda) v C. Shivakumar Reddy and Anr, (Civil Appeal 1650 of 2020) has inter alia held that a final judgement, decree and/or a recovery certificate passed/ issued by a court or tribunal would give rise to a fresh cause of action for a financial creditor to initiate proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The High Court of Madras (Madras HC) has struck down Part II Tamil Nadu Gaming and Police Laws (Amendment) Act of 2021 (Amendment) which had amended the Tamil Nadu Gaming Act 1930 (Act) that had banned all forms of online games with stakes as ultra vires the Constitution of India (Constitution).
SEBI on 6 August 2021 announced several policy changes which should be very positively factored by the financial sponsor community. Set out below is a snapshot of these announced changes, and we will keep you posted on when SEBI announces corresponding updates to the implementing regulations.
The Supreme Court of India (SC) in Orator Marketing Private Limited v Samtex Desinz Private Limited, Civil Appeal No. 2231 of 2021, judgment dated 26th July 2021 has held that an interest free term loan constitutes a financial debt under the Insolvency and Bankruptcy Code, 2016 (IBC).
