Indian startups – A booming revolution
By Sudish Sharma and Shikha Thakkar
Today, startups are identified as vital engines for economic growth and job genesis. With the support of the government and due to the colossal commercial potential for startups, India has moved up to the third position on the global list in respect of number of startups. The article in this issue of Corporate Amicus discusses few incentives taken by the Indian government to boost the Indian startups. It highlights the recently introduced Startup India Seed Fund Scheme for providing financial assistance to startups via the corpus of INR 945 Crore to be disbursed through selected incubators and the measures taken by the SEBI under the Innovators Growth Platform (‘IGP’) framework to extend support to the new-age national startups to access the capital markets. SEBI’s Consultation paper reviewing the IGP framework has also been summarised here for the purpose. A recent amendment in the Companies (Compromises, Arrangements and Amalgamations) Rules by the Ministry of Corporate Affairs, further simplifying the restructuring avenue for startups, also forms part of this article. According to the authors, the initiatives taken for startups by the Indian Government will accelerate the Indian economy by fuelling business of fresh entrepreneurs and will assist the startups to survive the present difficult times and thrive in future...
Notifications and Circulars
- One-Person Companies – Companies (Incorporation) Rules, 2014 amended
- SEBI relaxations in relation to procedural matters
- FCRA Charter issued for Banks and Chartered Accountants
- Decriminalisation of the Limited Liability Partnership Act, 2008 – Company Law Committee Report
- Fast track merger of startups – Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 amended
- Distinct transactions – Maharashtra Stamp (Amendment and Validation) Ordinance, 2021
- Corporate Social Responsibility (‘CSR’) Policy – Rules amended
Ratio decidendi
- Insolvency – NCLT cannot direct Operational Creditor to settle matter outside tribunal on the ground of ‘small due amount’ – NCLAT
- Consumer protection – Incorporation of one-sided terms in Builder Buyer’s Agreement constitutes an unfair trade practice – Supreme Court
- Arbitration – Validity of arbitration clause in an unstamped commercial contract – Matter referred to 5-Judge Bench of Supreme Court – Supreme Court
- Insider trading – SEBI Order in the matter of trading activities in scrip of Future Retail Limited – SEBI
News Nuggets
- Insolvency – IBC Section 10A suspends initiation of CIRP for defaults occurring after 25 March 2020 even though application is filed before 5 June 2020: Supreme Court
- No TDS on sale of assets by liquidator – Section 53 of IBC to have overriding effect on Section 194-IA of Income Tax Act
- Resolution plan is sacrosanct – Amount recovered before SCN to form part of principal
- Insolvency – Creditor when not a ‘financial creditor’
- Pre-packaged insolvency under IBC
- Scheme for condonation of delay for companies restored in Register of Companies in December 2020
- Master Circular on Depositories issued by SEBI
