Key legal issues for tech start-ups in India

Hyderabad Tribunal rules that receipt of shares in a scheme of amalgamation is taxable

May 25, 2023

Download .pdf In a recent ruling, the Hyderabad Income Tax Appellate Tribunal (the “Tribunal”) has, in the Vertex Projects case, held that if shares are received in a scheme of amalgamation by an amalgamated company being less than the fair market value (“FMV”), then...

India’s Space Policy – The Government continues to push for more Private Sector participation

May 23, 2023

Download .pdf Indian Space Research Organization (“ISRO”) issued the Indian Space Policy - 2023 (the “Space Policy”) on April 20, 2023, after it received the approval of the Union Cabinet. The stated goal of the Space Policy is to be an overarching, composite...

SEBI allows LPs to choose the AIF investments they want to participate in

May 18, 2023

Download .pdf Introduction In a circular issued last month (the “Circular”), the Securities and Exchange Board of India (the “SEBI”) has allowed specific investors to excuse or exclude themselves from any particular investment being made by an alternative investment...

India’s Supreme Court rules on the maintainability of proceedings against auditors after their resignation

May 16, 2023

Download .pdf In a recent ruling, India’s Supreme Court has held that an enquiry or proceeding against an auditor of a company under Section 140(5) of the Companies Act, 2013 (the “Act”) does not terminate upon the resignation of the auditor, and the auditor, if found...

Gujarat High Court rules on stamp duty levy in M&A transactions

May 9, 2023

Download .pdf In a recent ruling, the Gujarat High Court (the “GHC”) has dealt with five different issues under the Gujarat Stamp Act, 1958 (the “GSA”) and has held that: In a composite scheme of arrangement where undertakings are transferred by way of a merger,...

Supreme Court rules on what constitutes management and control under Indian tax law

Apr 23, 2023

Download .pdf In a recent ruling, India’s Supreme Court (“SC”) has held that the term “management and control” of a company means where the head, seat and the directing power of the business affairs lie. It is not merely theoretical or de jure control and power,...