Insights
July 10, 2015

BORROWERS BEWARE – BANKS CAN NOW TAKE OVER COMPANIES TO RECOVER THEIR DEBT

Introduction To address various issues surrounding distressed assets in the banking system, on February 26, 2014, the Reserve Bank of India (the “RBI”) issued the Framework for Revitalising Distressed Assets in the Economy (the “Framework”). The Framework, inter alia, requires lenders to compulsorily form a Joint Lenders Forum (the “JLF”) if the principal or interest…

Tags:
Banking and Finance, Insolvency and Restructuring
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July 2, 2015

PRIVATE COMPANIES CAN NOW BREATHE EASIER IN INDIA

Introduction On June 5, 2015, the Ministry of Corporate Affairs, Government of India (the “MCA”) issued a notification (the “Notification”), which significantly reduces the compliance requirements for private companies under the Companies Act, 2013 (the “Act”). With these changes, corporate governance of private companies will become easier.  This update discusses the key changes. Key exemptions…

Tags:
Corporate/M&A, Private Equity and Venture Capital
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June 5, 2015

IMPORTANT CHANGES TO INDIA’S COMPANY LAW

Introduction On August 29, 2013, the Companies Act, 2013 (the “2013 Act”) received the assent of the President of India.  Since then, 282 sections of the 2013 Act have been brought into force in three (3) phases.  Further, between March 27 and March 31, 2014, twenty-one (21) new rules were notified under the 2013 Act…

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Corporate/M&A
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May 21, 2015

CLARIFICATIONS TO INDIA’S FOREIGN DIRECT INVESTMENT POLICY

Introduction On May 12, 2015, the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India (the “DIPP”) issued the consolidated foreign direct investment policy circular of 2015 (the “FDI Policy 2015”). The circular on consolidated foreign direct investment policy is updated by the DIPP every year and captures all the…

Tags:
Corporate/M&A, Foreign Investment
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April 29, 2015

SHOULD FOREIGN PORTFOLIO INVESTORS BE WORRIED ABOUT MAT?

Background Minimum Alternate Tax (“MAT”) is a tax levied under the Income-tax Act, 1961 (“IT Act”) on the book profit of a company where the overall tax paid by the company is less than 18.5% of the book profit.  Generally speaking, in the case of non-resident entities who do not have a permanent establishment in…

Tags:
Foreign Investment, Private Equity and Venture Capital, Tax
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April 2, 2015

CRITIQUE OF THE UNDISCLOSED FOREIGN INCOME AND ASSETS (IMPOSITION OF TAX) BILL, 2015

In his budget speech on February 28, 2015, the Finance Minister (“FM”) made it clear that black (unaccounted) money was eating into the Indian economy and this problem would have to be tackled forcefully.  While the FM acknowledged that there were limitations under the Income-tax Act, 1961 (the “IT Act”) to deal with black money,…

Tags:
Tax
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March 26, 2015

INDIA’S SUPREME COURT UPHOLDS THE RIGHT TO FREEDOM OF SPEECH AND EXPRESSION

Introduction On March 24, 2015, the Hon’ble Supreme Court of India (the “SC”) pronounced its judgment on constitutional validity of Sections 66A, 69A and 79 of the Information Technology Act, 2000 (the “IT Act”) and the Information Technology (Intermediary Guidelines) Rules, 2011 (the “Intermediary Rules”). The SC declared Section 66A of the IT Act to…

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Disputes and Arbitration, Technology, Telecommunication and Media
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March 13, 2015

INDIA – KEY CHANGES AFFECTING FOREIGN INVESTMENT IN THE INSURANCE SECTOR

Introduction On December 26, 2014, the President of India promulgated the Insurance Laws (Amendment) Ordinance, 2014 (the “Ordinance”) to amend the Insurance Act, 1938 (the “Act”), the General Insurance Business (Nationalisation) Act, 1972, and the Insurance Regulatory and Development Authority Act, 1999. On March 12, 2015, the Rajya Sabha (the upper house of the Parliament)…

Tags:
Foreign Investment, Insurance Law
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March 5, 2015

SALIENT FEATURES OF THE INCOME TAX PROPOSALS IN INDIA’S BUDGET FOR 2015-16

India’s Union Budget (“Budget”) was announced on February 28, 2015, and the Finance Bill, 2015 (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, 2015, unless specified otherwise. Announced in the backdrop of high expectations, the…

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Tax
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February 27, 2015

PROPOSED AMENDMENTS TO INDIA’S ARBITRATION LAW: WILL IT HAVE THE DESIRED EFFECT?

Introduction The Arbitration and Conciliation Act, 1996 (the “Act”), was enacted by the Parliament of India to consolidate and amend the law relating to domestic arbitration and enforcement of foreign awards. One of the main objectives of the Act was to minimise the supervisory role of courts in the arbitration process.  However, in our view,…

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Disputes and Arbitration
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