We have been witnessing poor auto sales this year primarily due to the transition from BS-IV to BS-VI but it would not be incorrect to state that the number of vehicles has almost doubled in the last decade and the sector has witnessed a 10% growth rate.
The Companies Act 2013 (the 2013 Act) provides for a statutory cause of action to any person who has subscribed for securities of a company offered through a prospectus and has suffered losses by relying on any statement in the prospectus that was untrue or misleading or owing to omission of any matter in the prospectus. However, rarely has any such litigation been initiated in the recent past.
The external commercial borrowing (“ECB”) regime is one of the central pillars of India’s exchange control regime and it tightly regulates loans between international lenders and Indian borrowers. Historically, a number of these requirements presented difficulties for international lenders. On 16 January 2019, the Reserve Bank of India (“RBI”) announced certain changes to the ECB regime. The impact of these changes on international debt funds and broker-dealers is summarised below.
In a much-anticipated order, the Indian Supreme Court on 25 January 2019 upheld the constitutional validity of the Insolvency and Bankruptcy Code, 2016 (IBC or Code) while ruling on several key aspects of the law. These have imminent implications for both pre-IBC as well as post-IBC restructuring and debt trading transactions
The Reserve Bank of India (“RBI”) issued a statement on 7 February 2019 containing certain proposed regulatory policy measures for the deepening of the financial markets in India. The RBI has indicated that it proposes to amend the current regulations governing external commercial borrowings (“ECB”) by Indian companies (“ECB Regulations”) and investments by foreign portfolio investors (“FPIs”) in corporate debt. The key highlights for international debt funds are set out below.
On 25 January 2019, the Supreme Court of India (Supreme Court) delivered its judgment (Judgment) in Swiss Ribbons Pvt. Ltd. v. Union of India (Swiss Ribbons). This has been eagerly awaited by the market as the matter consolidated multiple petitions challenging the constitutional validity of various provisions of the Insolvency and Bankruptcy Code, 2016 (Code) before multiple high courts in India between April 2018 and November 2018.
Participation by international lenders and debt funds in the Indian market is tightly regulated by Reserve Bank of India’s (“RBI”) external commercial borrowing (“ECB”) regime. These restrictions have limited secondary debt trading to defined channels and limited the end use of ECB loans.
At first glance, the legal framework governing Indian public M&A transactions may appear to be similar to that in England and Wales. The company law foundation is similar to that in England and Wales.
The manner of filing a complaint has also been eased to permit the consumers to file a complaint even electronically. The 2019 Act is being hailed by some as an all-inclusive legal regime that will help bolster consumer confidence.
On 1 November 2019, the Insurance Regulatory and Development Authority of India (IRDAI) notified the IRDAI (Insurance Intermediaries) (Amendment) Regulations 2019 (Intermediaries Regulations).
