Insights
November 9, 2016

INDIA DEMONETIZES INR500 AND INR1000 NOTES – MOVING TOWARDS A CASHLESS ECONOMY

Major Reform In a big bang reform, effective midnight of November 9, 2016, the Indian government has banned INR500 and INR1000 currency notes (the “Banned Notes”).  The decision has been taken to root out fake currency and cash (black) money, and eliminate corruption, terror funding and money laundering, which has been hurting India’s economy for decades….

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Corporate/M&A, Tax
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October 17, 2016

COMPANY LAW UPDATE: SIMPLIFIED PROCESS FOR INCORPORATING COMPANIES

Introduction In the last couple of years, the Indian government has taken many initiatives to ease the process of incorporating a company in India and reduce the time frame to establish a business in India.  On October 1, 2016, the Ministry of Corporate Affairs of the Government of India (the “MCA”) amended the Companies (Incorporation)…

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Corporate/M&A
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September 16, 2016

INDIA – SECURITIES LAW UPDATE

This update discusses the implications of a recent cautionary notice issued by the Securities and Exchange Board of India (the “SEBI”) in respect of equity funding websites catering to the capital requirements of Indian start-ups. Further, this update also discusses an informal guidance order issued by the SEBI to HDFC Bank Limited (“HDFC Bank”) in…

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Corporate/M&A
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September 7, 2016

INDIAN TAX BENEFITS ON AMALGAMATIONS APPLIED TO FOREIGN COMPANIES – AN IMPORTANT DEVELOPMENT

Introduction  In a recent ruling in the case of Banca Sella SpA (AAR No. 1130 of 2011 dated August 17, 2016), India’s Authority for Advance Rulings (“AAR”) has held that, although the Indian branch office (“IBO”) of a foreign company is a capital asset for tax purposes, the transfer of a branch office in a…

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Corporate/M&A, Tax
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September 1, 2016

DOES THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015 APPLY TO COURT PROCEEDINGS FILED BEFORE ITS COMMENCEMENT?

Introduction  Recently, in three (3) identical matters (two (2) of which were filed by the Board of Control for Cricket in India (“BCCI”) against Rendezvous Sports World and Kochi Cricket Private Limited, respectively,) where the award-debtors sought to dismiss the applications to enforce the arbitral awards under the Arbitration and Conciliation Act, 1996 (the “Arbitration…

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Disputes and Arbitration
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July 28, 2016

THE INDIAN REAL ESTATE SECTOR: AN OVERVIEW

Introduction  The real estate sector is the driving force behind the growth of the Indian economy.  It is the second largest employment generator and GDP contributor in the country.  In the most generic sense, real estate business means buying and selling of properties (residential and commercial), which consist of land, buildings, natural resources attached, etc….

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Corporate/M&A
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July 15, 2016

INDIA – IMPORTANT CORPORATE TAX UPDATES

Introduction Reducing tax litigation has been a key focus area for the Modi government.  Several initiatives have been taken by the Central Board of Direct Taxes (the “CBDT”) in the recent past to significantly reduce disputes and provide relief to taxpayers involved in tedious litigation with the revenue authorities. The CBDT has also issued several…

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Tax
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June 24, 2016

INDIA – FOREIGN INVESTMENT UPDATE

Introduction India’s foreign investment regime has been liberalized significantly in the last couple of years.  On June 20, 2016, the Indian government announced a host of reforms to further liberalize foreign investment in the defence, pharmaceuticals, retail trading, civil aviation and broadcasting carriage services sectors, as also in private security agencies, and the Department of…

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Foreign Investment
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June 17, 2016

INDIAN MERGER CONTROL THRESHOLDS REVISED

Introduction The Competition Act, 2002 (the “Act’) read with the Competition Commission of India (Procedure in Regard to the Transaction of Business relating to Combinations) Regulations, 2011 deal with the merger control regime in India.  Recently, the Indian government has issued notifications to revise the de minimis and merger control thresholds, and has extended certain…

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Competition, Corporate/M&A
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June 15, 2016

INDIA – CROSS-BORDER M&A UPDATE

Introduction M&A transactions often include escrow and indemnification provisions. Recently, the Reserve Bank of India (the “RBI”) has amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, permitting parties to defer the payment of a certain portion of the consideration and open escrow accounts (to deposit…

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Corporate/M&A, Foreign Investment
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