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Background – The need for a new law The Indian legal framework for insolvency resolution, debt recovery and restructuring of stressed assets was ineffective in ensuring satisfactory repair of credit default mainly due to the fact that insolvency and debt recovery were governed by different overlapping statutes having conflicting objectives. The laws governing debt recovery…

Introduction On May 19, 2016, the Securities and Exchange Board of India (the “SEBI”), in its board meeting, specified certain additional measures to enhance transparency and control over the issuance of offshore derivative instruments (“P-Notes”).  These measures will come into effect through appropriate amendments in the existing regulations. Background The SEBI (Foreign Portfolio Investors) Regulations,…

Introduction Under the bilateral double taxation avoidance agreement between India and Mauritius (the “Mauritius DTAA”), any capital gain arising from the sale of shares can be taxed only in Mauritius and not in India.  India has been attempting to renegotiate the Mauritius DTAA over the past decade to check round-tripping of funds and treaty abuse….

Introduction After much deliberation in the Indian Parliament, on March 25, 2016, the Real Estate (Regulation and Development) Act, 2016 (the “Act”) was enacted.  The Act seeks to regulate the real estate sector, and pave the way for speedier dispute resolution between property consumers and real estate developers.  The provisions of the Act will be…

Introduction On April 11, 2016, the Reserve Bank of India (the “RBI”) flagged off the Unified Payment Interface (“UPI”) system, which will be a channel that will enable multiple bank accounts to be accessed through a single mobile application (“APP”).  The launch of the UPI system will revolutionize India’s financial sector. This update discusses the…

Introduction The Indian government has implemented a host of reforms to liberalize India’s foreign direct investment (“FDI”) regime.  Last week, the Indian government issued guidelines clarifying the FDI policy in the e-commerce sector, and has also further liberalized FDI in the insurance and pension sectors. This update discusses these recent changes announced by the Indian…

Introduction In India, the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “Takeover Regulations”) adopt a mandatory tender offer regime for acquisition of listed companies in order to provide a level playing field to the public shareholders.  The acquisition of a substantial shareholding stake and the acquisition of control are treated equally and…

Introduction India’s Union Budget (the “Budget”) was announced on February 29, 2016, and the Finance Bill, 2016 (the “Finance Bill”) was tabled in Parliament.  Most of the income tax proposals in the Finance Bill will be effective from the financial year commencing on April 1, 2016, unless specified otherwise.  The Finance Bill will be discussed…

Introduction On October 23, 2015, when the Indian Parliament was in recess, the President of India promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2015 (the “Arbitration Ordinance”). The Arbitration Ordinance temporarily amended the Arbitration and Conciliation Act, 1996 (the “Arbitration Act”) as regards certain key provisions.  However, upon the Parliament resuming business, the Government of…

Introduction In 2015, Indian securities regulations underwent many changes with the Securities and Exchange Board of India (the “SEBI”) playing an active role in making the markets more efficient and investor friendly.  This update highlights some of the important changes implemented last year. New insider trading regulations Previously, insider trading was regulated under the SEBI…