Corporate and Commercial

Guide to Special Situations and Distressed Investments in India

Although the security enforcement landscape in India has historically posed a number of challenges, the market in India in evolving.

The Chennai Bench of the National Company Law Tribunal (NCLT) had sanctioned a merger of Real Image LLP, a limited liability partnership  incorporated under the provisions of the Limited Liability Partnership Act, 2008, together with all its assets and liabilities, rights, title and interest in the immovable properties, on a going concern basis to Qube Cinema Technologies Private Limited a company incorporated under the provisions of Companies Act, 2013 (2013 Act) pursuant to provisions of section 230-232 of the Act.

On 11 December 2019, the Government of India introduced the Code on Social Security, 2019 (Code) in the Lok Sabha. The Code proposes to consolidate the law on social security in India and replace the following extant statutes:

Mergers and Acquisitions (“M&As”) have gained substantial importance in today’s corporate world. Some factors that play a role in facilitating M&As are government policies and regulations, economic conditions and stability, liquidity in the corporate sector, and so on.  As one of the top investment destinations with a high return potential, investors across the globe have been closely tracking M&A opportunities in India.

On 7 June 2019, the Reserve Bank of India (RBI) issued a new prudential framework for resolution of stressed assets (7 June Circular) which, amongst others, directs banks to take  a preliminary review of borrowers within 30 Days of default. 

The Central Government, vide notification dated 17 October 2019 had notified the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) in supersession of the Foreign Exchange Management (Transfer  and Issue of Security by a Person Resident outside India) Regulations, 2017 (Old FEMA 20) and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018. Our earlier update on the NDI Rules is available here.

The Securities and Exchange Board of India (SEBI) has recently imposed a monetary penalty on the merchant banker to the open offer (Merchant Banker) made to the public shareholders of Medicamen Biotech Limited (Target Company).

The clarification introduced in the manufacturing sector is expected to give the necessary impetus to the ‘Make in India’ drive of the government. 

Hong Kong Authorities should consider putting in place an appropriate mechanism that would allow litigation funding and at the same time prevent any abuse of its use; otherwise, Hong Kong could lack ‘sex appeal’ as hub for international commercial disputes. An appropriate conclusion seems to be a quote from a learned practitioner: ‘The future for arbitration practitioners is bright, and the future for third-party funders, especially for third-party funding law firms, is even brighter.