Insights
July 12, 2018

NEW ANNUAL KYC CHECK REQUIREMENT FOR INDIVIDUALS HOLDING DIRECTOR IDENTIFICATION NUMBER

In 2006, the Indian government introduced the concept of a director identification number (“DIN”), and consequently, an individual could be appointed as a director of a company only if he or she had obtained a DIN.  A DIN is allotted by the Ministry of Corporate Affairs upon receipt of an application in a prescribed form…

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Corporate/M&A
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June 29, 2018

IMPACT OF THE NEW REPORTING REQUIREMENTS UNDER INDIA’S FOREIGN INVESTMENT REGULATIONS AND COMPANY LAW

Consolidated reporting form for foreign investment transactions On June 7, 2018, the Reserve Bank of India (the “RBI”) released a circular (the “Circular”) changing the reporting formats in all transactions involving issuance, or transfer of shares of Indian companies to foreign investors or vice versa.  Formerly, this was done by filing the Forms FC-GPR and…

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Corporate/M&A, Foreign Investment
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June 19, 2018

NEW LEGISLATION APPLICABLE TO SHOPS AND ESTABLISHMENTS IN MAHARASHTRA

In India, each State has its own Shops and Establishments law which regulates the working conditions of employees engaged in shops and commercial establishments, other than in factories.  On December 19, 2017, the new Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service Act), 2017 (“New Shops Act”) was made effective, which replaced…

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Employment Law
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April 21, 2018

A YEAR ON, THE RESERVE BANK OF INDIA NOTIFIES REGULATIONS ON CROSS BORDER MERGERS

The Companies Act, 1956 permitted inbound mergers, i.e., merger of a foreign company into an Indian company.  Even then, there were no foreign exchange regulations on inbound mergers.  A key change that was introduced by the Companies Act, 2013 (the “Companies Act”) was to enable outbound mergers as well, i.e., merger of an Indian company…

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Corporate/M&A, Foreign Investment, Tax
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March 31, 2018

FIXED TERM EMPLOYMENT PERMITTED UNDER INDIA’S INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

Introduction On March 16, 2018, the Ministry of Labour and Employment notified the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (the “Amendment Act”), which amends the Industrial Employment (Standing Orders) Act, 1946 (the “Act”) and the Industrial Employment (Standing Orders) Central Rules, 1946 (the “Rules”) to allow fixed term employment for all sectors.  Further,…

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Employment Law
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February 2, 2018

INDIA’S BUDGET 2018-19 – KEY HIGHLIGHTS

Introduction India’s Union Budget (the “Budget”) was announced on February 1, 2018, and the Finance Bill, 2018 (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, 2018, unless specified otherwise. The Finance Bill will be discussed…

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Tax
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January 25, 2018

LIBERALIZATION OF INDIA’S FOREIGN DIRECT INVESTMENT POLICY – AN UPDATE

Introduction On January 10, 2018, the Indian government approved a number of amendments to India’s Foreign Direct Investment Policy (the “FDI Policy”) with a view to further improve the ease of doing business in India.  The reforms cover single brand retail trading, civil aviation, construction development, power exchanges and the medical devices sector.  In addition,…

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Corporate/M&A, Foreign Investment
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January 17, 2018

IMPORTANT REFORMS TO INDIA’S COMPANY LAW REGIME

India’s Companies Act, 2013 Over the last five (5) years, India has adopted a new company law regime under the Companies Act, 2013 (the “Act”) and the rules thereunder.  Since its implementation, the Act has been amended once in 2015, and various clarifications and amendments have been issued to the rules by the Indian government….

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Corporate/M&A
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December 19, 2017

PRIVATE EQUITY INVESTMENTS IN INDIAN INSURANCE COMPANIES NOW PERMITTED

Introduction On December 5, 2017, the Insurance Regulatory and Development Authority of India (the “IRDAI”) issued the IRDAI (Investment by Private Equity Fund or Alternate Investment Fund in Indian Insurance Companies) Guidelines, 2017 (the “PE Investment Guidelines”). The PE Investment Guidelines provide the framework for investments by private equity funds either as an investor or…

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Private Equity and Venture Capital
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November 27, 2017

THE IMPACT OF INDIA’S 18/25 CAP ON INDEMNITIES IN CROSS-BORDER M&A TRANSACTIONS

It is commonplace in global M&A deals for buyers and sellers to strongly negotiate the seller’s indemnity obligations, and many a times, unsatisfactory seller indemnities result in deals not going through.  Effective May 20, 2016, the Reserve Bank of India (the “RBI”) amended India’s foreign exchange regulations (the “FEMA Regulations”), and imposed a requirement to…

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Corporate/M&A, Foreign Investment
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