Engaging Contract Labour: The prerequisites and the pitfalls
By Neeraj Dubey
Companies engage contract labour to keep the head count low and for the scalability and flexibility it provides in management of workforce. Though employment of contract labour in India has attracted debates, it has become a significant and growing form of employment, engaged in ...
Resale price maintenance in e-commerce – CCI initiates investigation
The CCI has in 2014 initiated two investigations into the alleged imposition of minimum resale price maintenance (RPM). The first one was against Hyundai Motor India Ltd (‘Hyundai Case’) and I had written on the legal standard adopted by the Competition Commission of India to initiate investigations in the said case. Subsequently, the CCI directed the Director General (DG) to invest...
Tackling Joint Ventures – Issues and Challenges
By Ronak Ajmera
The business rationale for a joint venture (JV) ranges from pure play financing of business operations to longer strategic partnerships for sharing of technical/business knowhow. To a large extent, the issues which need to be resolved between potential JV partners depend on the deal commercials and nature of the proposed ...
CCI fines parties for gun jumping
By Abir Roy
The Competition Act, 2002 (“Act”) read with the attendant Combination Regulations provide for a mandatory notification of the transaction to the Competition Commission of India (“CCI”) provided that threshold limits provided under the Act are met (“combination&rdquo...
An economic perspective on environmental jurisprudence in India
By Smita Bhatia
Over the past few decades, the Supreme Court of India has taken environmental degradation very seriously. The Supreme Court has proactively incorporated advanced legal principles such as polluter pays, precautionary principles, absolute liability and public trust-doctrine to revive India’s environmental laws. The environmental juris...
How to train your dragon – Discretion in SEBI’s penalty orders
By Uma Lohray
This article seeks to question the penal powers of the Securities and Exchange Board of India (SEBI), regulator of the Indian securities market. SEBI has been vested with powers to impose heavy penalties on companies indulging in activities that hamper investor interests and securities market. Despite that it enjoys t...
The Proposed Watchdog Merger
By Barnik Ghosh
While the budget 2015 is being heralded as anywhere between good to excellent, a particular portion of the budget speech caught many a fancy as Mr. Jaitley, Finance Minister announced “I also propose to merge the Forwards Markets Commission with SEBI to strengthen regulation of commodity forward markets and reduce wild speculation. Enabling legislation, amending the...
Holding-subsidiary loans prohibition - Respite under company law
By Dinesh Babu Eedi
On 2nd December, 2014, the Union Cabinet, approved the Companies (Amendment) Bill, 2014 (‘Amendment Bill’) for introduction in Parliament (Lok Sabha) to make certain amendments in the Companies Act, 2013 (‘2013 Act’). The 2013 Act was brought into force partly on 12th September, 2013, and on 1st April, 2014, of 470 Sections of the 2013 Act, 283 Sections and 22 s...
Insider Trading Regulations, 2014 – An Overview
By Rohit Subramanian
The malfeasance of insider trading has attracted the attention of regulators from jurisdictions across the world, especially in the light of discovery of massive frauds, both in the Indian and international capital markets. The lacunae in the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (the “existing regulations”) has had a de...
An overview of Real Estate Investment Trusts in India
By Kritika Krishnamurthy
Real estate is the second largest employer after agriculture and is slated to grow at 30% over the next decade. The Indian real estate market size is expected to touch $180 billion by 2020[see end note 1]. The sector has attracted a host of major Indian businesses in the last few years but continues to remain largely unorganized and poorly regulated with no technical...
Responsibilities of independent director - A magic bullet or unnecessary appendage?
By Devaditya Chakravarti and Varun Chablani
The recently enacted Companies Act, 2013 (“Act”), has not only ushered in a new legislative framework but has also put in a place a new paradigm of corporate governance with detailed provisions as to appointment of independent directors. In the past few months, this model has been further bolstered by the clarifications issued by the Securities and ...
Recent FDI reforms in India
By Sonia Abrol
Foreign funding is important to bridge the huge fund gap of investment in infrastructure in India, which in turn will spur economic growth. According to a recent report, the inflow of foreign direct investment (“FDI”) was US $ 28 billion in 2013, an increase of 17% over the previous year. The services sector attracted the highest FDI inflows in FY14 with US$ 2.25 billion, follo...