The COVID-19 pandemic has caused widespread economic uncertainty globally, and coupled with the US-China trade war, has caused countries to adopt protectionist measures. While the regulations introduced by India, the US, the UK, and the European Union have taken different forms, the underlying concern is uniform – save homegrown companies, especially in strategic sectors, from being acquired by state-backed investors from other countries.
The first Human Immunodeficiency Virus (“HIV”) infection was detected in India in 1986, and currently, India has about 2.3 million people living with Acquired Immunodeficiency Syndrome (“AIDS”). AIDS is not only life-threatening but, unfortunately, also results in the discrimination and stigmatization of the affected individuals and their families. This has far-reaching economic and societal consequences. Due to the lack of knowledge of the disease, affected individuals are often deprived of livelihood opportunities or face ostracism at the workplace.
On November 20, 2020, the internal working group of the Reserve Bank of India (RBI) released its report listing out some recommendations for changes to banking license requirements and the corporate structure of private sector banks in India.
in India, mergers rarely involve a cash consideration and are usually pure share swaps given the tax neutrality available for pure share swap transactions in India. However, mergers comprise only a fraction of the M&A activity in India as companies usually prefer the ease of share purchase or asset purchase transactions.
On September 17, 2020, the Indian government issued a press note to inter alia liberalize the cap for foreign direct investment (“FDI”) in the defence sector from 49% to 74% under the automatic route and to revise certain conditions for FDI in this sector. Additionally, on September 30, 2020, the Indian government rolled out the revised Defense Acquisition Procedure 2020 (the “DAP 2020”) to replace the erstwhile Defence Procurement Procedure 2016 (“DPP 2016”). The DAP 2020 is the latest iteration of India’s defence procurement policy that seeks to promote domestic manufacturing through offset obligations in defence contracts. In this note, we have discussed the key changes under the FDI regime for the defence sector as well as the DAP 2020.
N. Raja Sujith, Partner at Majmudar & Partners, and Sinjini Majmudar, Associate at Majmudar & Partners have authored a concise update describing in detail