Insights
June 4, 2019

RBI RELEASES DRAFT GUIDELINES TO BETTER REGULATE INDIA’S SHADOW BANKS IN THE AFTERMATH OF THE IL&FS CRISIS

On May 24, 2019, the Reserve Bank of India (the “RBI”) released a draft liquidity risk management framework (the “Proposed Framework”), which is proposed to be made applicable to all non-deposit taking non-banking financial companies (“NBFCs”) with a minimum asset size of INR1 billion (US$14.42 million approximately), all deposit taking NBFCs and all systematically important…

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Banking and Finance
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May 20, 2019

INDIA’S SUPREME COURT ALLOWS REGISTERED TRADE UNIONS TO FILE APPLICATION AS OPERATIONAL CREDITORS ON BEHALF OF MEMBERS

In a recent ruling, the Supreme Court (the “SC”) resolved a long-standing dispute between JK Jute Mill Mazdoor Morcha (the “Union”) and Juggilal Kamlapat Jute Mills Company Limited (the “Debtor”) by allowing registered trade unions to initiate insolvency proceedings as operational creditors on behalf of their members under the Insolvency and Bankruptcy Code, 2016 (the “Code”). …

Tags:
Employment Law Insolvency and Restructuring
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April 29, 2019

AMENDMENTS TO INDIA’S INSIDER TRADING REGULATIONS COME INTO EFFECT

On December 31, 2018, the Securities and Exchange Board of India (the “SEBI”) introduced several changes to the SEBI (Prohibition of Insider Trading Regulations), 2015 (the “Regulations”), which became effective on April 1, 2019.  They were introduced pursuant to the report of the Committee on Fair Market Conduct which advocated for tighter norms to prevent…

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Corporate/M&A Securities Law
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March 25, 2019

INDIAN GOVERNMENT PROMULGATES AADHAR ORDINANCE – ATTEMPTS TO RESOLVE PRIVACY CONCERNS

Introduction On March 26, 2016, the Indian government introduced the Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the “Act”).  The Act’s objective was, inter alia, to provide good governance, and an efficient and transparent delivery of subsidies, benefits and services to individuals residing in India by assigning a 12-digit unique…

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Disputes and Arbitration
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March 12, 2019

NEW REPORTING REQUIREMENTS UNDER INDIA’S COMPANY LAW

Recently, the Indian government has introduced several new reporting obligations under the Companies Act, 2013 (the “Act”) for Indian companies in respect of their registered office address and dealings with micro and small enterprises (“MSEs”).  Additionally, the reporting requirements for significant beneficial ownership have been revised.  This update discusses the implications of the new reporting…

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Corporate/M&A
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January 23, 2019

INDIA’S EXTERNAL COMMERCIAL BORROWINGS REGIME SIMPLIFIED

The Reserve Bank of India (the “RBI”) has revised the external commercial borrowings (“ECB”) framework on a regular basis in a bid to make foreign borrowings a lucrative method of raising capital.  On December 17, 2018, the RBI replaced the erstwhile regulations on ECBs and notified the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018. …

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Banking and Finance
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January 21, 2019

DELHI HIGH COURT HOLDS THAT 24 GE GROUP ENTITIES HAVE A PE IN INDIA

Recently, the Delhi High Court (the “DHC”) upheld a judgement of the Delhi Bench of the Income-tax Appellate Tribunal (the “Delhi Tribunal”) in the case of GE Energy Parts, Inc. (the “Taxpayer”).  The DHC held that the liaison office established by the Taxpayer in New Delhi with the permission of the Reserve Bank of India…

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Tax
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January 16, 2019

CHANGES INTRODUCED BY THE COMPANY LAW ORDINANCE, 2018

In 2013, India adopted a new company law regime under the Companies Act, 2013 (the “Act”) and the rules there under, which have been amended from time-to-time. This update discusses the changes introduced by the Companies (Amendment) Ordinance Act, 2018 (the “Ordinance”) with effect from November 2, 2018.  As the Ordinance did not get approved…

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Corporate/M&A
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January 10, 2019

MAJMUDAR & PARTNERS IN 2018

Happy New Year to you. 2018 marked the 75th anniversary of Majmudar & Partners, and we celebrated it by launching our New York office.  This move has been well received by our clients and has added a new dimension to our growth. M&A in India The Indian M&A market crossed its all-time highs and saw…

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Testimonials
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December 27, 2018

RECENT UPDATES ON GAAR, ANGEL TAX AND TAX EXEMPT CONVERSIONS

Recent developments The Indian tax authorities have started invoking the general anti-avoidance rules (“GAAR”) under India’s Income-tax Act, 1961 (the “IT Act”).  In the last twelve (12) months, tax notices have been issued to many Indian subsidiaries of foreign companies to question transactions such as mergers, demergers, hive-offs, stock purchase transactions in Indian subsidiaries where…

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Tax
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