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No cartelization by asbestos cement sheet manufacturers

18 March, 2014 Competition Commission of India has on 11-2-2014 in Suo-Motu Case No. 1 of 2012, held that there is no evidence to suggest cartelization by asbestos cement sheet (ACS) manufacturers and the provisions of Section 3(3) read with Section 3(1) of the Competition Act, 2003 have not been contravened. Discussing the findings of the Director General (DG), the Commission held that there...

Employees seconded to liaison office in India - FEMA not applicable

19 February, 2014 Delhi High Court has held that expatriate employees of the Head Office (HO) of foreign company, posted in India with the Liaison Office (LO) in India, continue to be employees of the HO. The court negated the findings of the Appellate Tribunal that employees of the HO, seconded to the LO, are its "borrowed employees". In the present case, these deputed employees continued to...

Competition law – Penalty on employee

19 February, 2014 The Competition Appellate Tribunal (COMPAT) has upheld personal penalty on employees of the company after noting that the persons were involved in the process of taking coordinated action together with other producers/directors in boycotting multiplexes for release of films. Employees’ contention that they did not do anything in their.  personal capacity and that CCI shoul...

Third party payments for export/import transactions – Conditions relaxed

19 Februray, 2014 The Reserve Bank of India has liberalized norms for third party payments in foreign trade transactions. AD Category banks may now not insist that a ‘firm irrevocable order backed by a tripartite agreement should be in place’ for undertaking remittance in cases where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned...

Unwritten contract restraining competition is anti-competitive

29 January, 2014 Unwritten contract between the two opposite parties that it will not allow the competition of informant with one of the opposite parties has been, prima facie, held as anti-competitive by the Competition Commission of India (CCI). Evidence of agreement According to CCI, arrangement or understanding between the opposite parties about clients amounted to an agreement under ...

Penalty for non-disclosure of share-holding pattern

27 January, 2014 Penalty for non-disclosure of share-holding pattern was at the center of disputes this month before the Securities Appellate Tribunal (SAT). While penalty in one of the disputes was upheld for non-disclosure under one provision even when there was disclosure under another set of provisions, the same was substantially reduced, in another case, when the company whose shares wer...

Pricing Guidelines for FDI instruments with optionality clauses

27 January, 2014 The Reserve Bank of India has laid down guidelines for buy-back of certain securities from investors residing outside India, who had been issued these securities under the Foreign Direct Investment (FDI) Scheme. The guidelines issued on 9-1-2014 are part of the changes whereby RBI has allowed optionality clause in equity shares and compulsorily and mandatorily convertible ...

SC on powers of TRAI and TDSAT

17 December, 2013 The Supreme Court of India has held that exercise of power by the Telecom Regulatory Authority of India (TRAI) under Section 36(1) of the Telecom Regulatory Authority of India Act, 1997 is not controlled or limited by Section 36(2) or Sections 11, 12 and 13. The Apex Court held that in exercise of power under Section 36(1), TRAI can make regulations which may empower it to...

Transmission Licence – Fee reimbursement from beneficiaries

17 December, 2013 The Electricity Appellate Tribunal has held that the transmission licensee, not paying any license fee prior to the amendment, is entitled to reimbursement of the said licence fee paid by it later and that the same can be directed to be passed through to the beneficiaries. It was held that licence fee cannot be allowed to be paid by the transmission licensee out of its profi...

Jurisdiction of Central Electricity Regulatory Commission

2 December, 2013 Central Electricity Regulatory Commission does not have jurisdiction to adjudicate a dispute between two licensees relating to charges for operation and maintenance of a part of inter-State transmission system which is owned by one of the licensees and operated and maintained by the other licensee for or on behalf of the former.   The Electricity Appellate Tribunal in one ...

Third party payments allowed for import and export transactions

15th November, 2013 Reserve Bank of India has allowed third party payments for import and export transactions. As per A.P. DIR Circular No. 70, dated 8-11-2013, such transactions shall be subject to the conditions such as availability of tripartite agreement, declaration in Export Declaration Form (EDF), mention in bill of entry and invoice, reporting of outstanding, etc. These third party pa...

New Companies Act comes into force

6th September, 2013 The Companies Bill 2012 received Presidential assent on 29th August 2013, after scores of amendments and years of debates and discussions, particularly on points like mandatory spending on corporate social responsibility (CSR), investor protection measures and one person company. Some of the important features in the new Act which replaces the (old) Companies Act of 1956 a...

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