On 18 April 2020, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, by way of Press Note No.3 (2020 Series) (PN3), announced a critical change to the Consolidated Foreign Direct Investment Policy to curb opportunistic takeover of stressed and strategic assets, or Indian entities in light of the impact of COVID 19 pandemic.
The role of a Chairman of the Board of Directors appears to have an inherent conflict with that of a Managing Director (MD) / Chief Executive Officer (CEO).
Agreeing with their colleagues of the Madras High Court, the judiciary in Karnataka has come to the rescue of the real money gaming sector – giving this industry some much needed impetus by striking down a recent state law that “banned” online games of skill played for cash. A division bench comprising Chief Justice Ritu Raj Awasthi and Justice Krishna S.
Since it was made effective in 2009, the Limited Liability Partnership Act, 2008 (LLP Act) has proven to be a business vehicle of choice for partnerships, entrepreneurs, and body corporates alike. Its relevance, especially in the micro, small and medium enterprises sector may be attributed to two primary factors, namely, the benefits of limited liability (versus a partnership) and the flexibility in administration and reduced reporting norms (versus a company incorporated under the Companies Act 2013).
Related Parties (RP(s)) and Related Party Transactions (RPTs) form the cornerstone of most discussions involving corporate governance. Both the Ministry of Corporate Affairs (MCA) and the Securities Exchange Board of India (SEBI) have periodically discussed facets and parameters relating to RPs and RPTs, evident from the formation of committees such as the 2017 Kotak Committee on Corporate Governance and the ‘Report of the Working Group on Related Party Transactions’ dated 22 January 2020 (WG).
The Securities and Exchange Board of India (SEBI) has issued circulars dated 16 November 2021 (Ref: SEBI/HO/CFD/DIL2/CIR/P/2021/0000000657) and 18 November 2021 (Ref: SEBI/HO/CFD/DIL2/CIR/P/2021/0000000659 (hereinafter together referred to as “2021 Amendment Circulars”), amending certain provisions of the SEBI Master Circular dated 22 December 2020 (Ref: SEBI/HO/CFD/DIL1/CIR/P/2020/249) (Master Circular), which is a compilation of operational circulars issued by SEBI dealing with schemes of arrangement by listed entities.
In the past few decades, non-banking financial companies (NBFCs) have played a very critical role in the growth of the Indian financial services landscape. The NBFC eco-system has efficiently supported the formal banking system by providing access to credit and other financial services to various sections of the Indian industry. Over the years, the Reserve Bank of India (RBI) has also closely regulated the operations of NBFCs, and has been rationalizing the applicability of stricter regulations based on their asset size.
