In April 2014, the Indian government introduced a detailed corporate social responsibility (“CSR”) regime as a part of the then newly introduced Companies Act, 2013 (the “Act”). As per Section 135 of the Act, CSR obligations apply to all companies, who, in the preceding financial year have a: net worth of at least INR5 billion…
Recently, in the case of Technip France SA, the Authority for Advance Rulings (the “AAR”) dealt with the issue of taxability in India of an offshore supply of equipment and provision of offshore services. The AAR held that the payment for the offshore supply was not taxable in India, as the delivery and title of…
Recently, in Ireo Grace Realtech Private Limited v. Abhishek Khanna and Ors. (C.A. 5785 of 2019), India’s Supreme Court (the “SC”) examined the binding value of oppressive and one-sided contracts, and the recourse for affected parties under Indian consumer protection laws.
DISCLOSING THE FINANCIAL IMPACT OF THE COVID-19 PANDEMIC – WILL THE SEC RULING CHANGE THE REGULATOR’S APPROACH IN INDIA?
Enforcement action in the US In March 2020, the Securities Exchange Commission (the “SEC”) formed a Coronavirus Steering Committee to actively oversee the monitoring of COVID-19-related misconduct by listed entities. On December 4, 2020, the SEC issued its first enforcement order against a listed entity for making misleading disclosures about the financial impact of the…
Introduction India’s Union Budget (the “Budget”) was announced today (February 1, 2021), and the Finance Bill, 2021 (the “Finance Bill”) was tabled in Parliament. The Finance Bill will be discussed in Parliament before its enactment, and therefore, it is likely that the Finance Bill may be amended because of these discussions. Once enacted, unless specified…
India’s pharmaceutical and life sciences industry plays a pivotal role on the world stage, fulfilling over 50% of the global demand for vaccines, 40% of demand for generic drugs in the USA and 25% of all medicine in the UK.
Recently, in the case of Dholi Spintex Pvt Ltd v. Louis Dreyfus Company India Pvt Ltd, the Delhi High Court (DHC) held that two Indian parties can agree to a foreign law governing the arbitration. In this case, the DHC relied on GMR Energy Limited vs. Doosan Power System India Ltd. & Ors. and Reliance…
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.
India’s Central Board of Direct Taxes has issued Circular 17/2020 dated September 29, 2020 (effective October 1, 2020) (the “CBDT Circular”), providing important clarifications in respect of withholding tax on e-commerce transactions and tax collection at source on the sale of goods under the Income-tax Act, 1961 (the “IT Act”).
INITIATION OF INSOLVENCY PROCEEDINGS AGAINST PERSONAL GUARANTORS: INDIAN COURTS FREEZE ANIL AMBANI’S ASSETS
On November 15, 2019, the Indian government notified the commencement of Part III of the Insolvency and Bankruptcy Code, 2016 (IBC), which provides for the insolvency resolution process for individuals and partnership firms. The relevant provisions in so far as they relate to personal guarantors of corporate debtors came into force on December 1, 2019. Pursuant to this notification, creditors are now permitted to initiate insolvency proceedings against a personal guarantor of a corporate debtor if the guarantor fails to honour its obligations despite a demand being raised.
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