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Commercial Dispute Resolution in India
Ad Hoc Arbitration: A Comprehensive Guide
Tax Implications in Shareholders’ Agreements
Legal Due Diligence Guide in India
Decoding Fintech Regulations in India
Overview of Banking Regulation Act, 1949
Ultimate Guide to Share Purchase Agreements
Complete Guide to Anti-Dilution Clauses
Term Sheets in India: Complete Guide (2024)
What is Information Utility Under IBC | Complete Guide
The Insolvency and Bankruptcy Code, 2016 (IBC) revolutionized India’s insolvency regime by introducing Information Utility (IUs). These entities play a crucial role in addressing information asymmetry, a major obstacle to efficient insolvency resolution. This comprehensive guide delves into the intricacies of information utilities under IBC, exploring their legal framework, operational
Jurisdiction in International Law | Complete Guide
Understanding jurisdiction in international law is paramount for understanding the complexities of global legal interactions. This comprehensive guide delves into the core principles governing jurisdiction, its implications for India, and its practical application for general counsels, law students, and lawyers dealing with international legal issues. Introduction: The Foundation of International
Process of Allotment of Shares Under Company Law in India
Understanding Allotment of Shares and its Significance Understanding the process of allotment of shares under company law is fundamental to corporate finance and governance in India. Governed primarily by the Companies Act, 2013, this process is crucial for establishing a company’s capital structure and shareholder relationships. This article provides a
Statutes Affecting Jurisdiction of Courts in India
Understanding the statutes affecting the jurisdiction of courts in India is fundamental for legal practitioners, law students, and anyone exploring the complexities of the Indian legal system. Jurisdiction, the power of a court to hear and decide a case, is determined by a complex interplay of constitutional provisions and various
Share Buyback Law in India | Guidelines | Amendments (2024)
Understanding the intricacies of share buyback law in India is paramount for corporate business owners, high-scale investors, and legal professionals alike. Share buybacks, the repurchase of a company’s own shares from the open market or existing shareholders, represent a powerful financial tool with significant implications for a company’s capital structure,
ESG Compliance in India: A Comprehensive Guide for Businesses
Introduction The significance of Environmental, Social, and Governance (ESG) compliance in India is rapidly increasing as businesses recognize the need for sustainable practices. ESG regulations serve as a framework for companies to adopt ethical and responsible behaviors that not only protect the environment but also enhance social welfare and corporate
Construction Contracts in India: A Comprehensive Guide
Introduction: The Importance of Robust Construction Contracts in India Construction projects in India, while offering significant opportunities, are complex undertakings. A robust contract serves as the project’s roadmap and rulebook, minimizing disputes and protecting the interests of all stakeholders. Without a clear, legally sound agreement, misunderstandings and disagreements are almost
Impact of New Labour Codes on Employers in India
Introduction India’s business landscape has been significantly reshaped by the introduction of four new labour codes: the Code on Wages, 2019; the Code on Social Security, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; and the Industrial Relations Code, 2020. These codes, replacing approximately 29 existing statutes, aim
Commercial Dispute Resolution in India
Understanding Commercial Dispute Resolution in India and the Commercial Court System What is a Commercial Dispute Under Indian Law? Under the Commercial Courts Act, 2015, a commercial dispute is defined as a dispute arising from ordinary transactions of merchants, bankers, financiers, and traders. This includes disputes related to mercantile documents,
Essential Elements of Arbitration Agreement in India
Understanding Arbitration Agreements in India Definition and Legal Framework An arbitration agreement is a contract between parties to submit present or future disputes to arbitration instead of litigation. In India, arbitration agreements are governed by the Arbitration and Conciliation Act, 1996 (as amended). Section 7 of the Act defines an
Arbitration Agreements in India: A Comprehensive Guide
Introduction Resolving commercial disputes in India can be challenging. However, a carefully crafted arbitration agreement offers a more efficient and cost-effective alternative to lengthy court proceedings. This comprehensive guide examines the essential aspects of arbitration agreements in India, providing a clear understanding of how to draft effective clauses, enforce agreements,
Ad Hoc Arbitration: A Comprehensive Guide
Introduction Ad hoc arbitration is a form of dispute resolution that offers parties a high degree of control and flexibility. Unlike institutional arbitration, where a third-party organization manages the process, ad hoc arbitration allows parties to tailor the proceedings to their specific needs. This makes it an attractive option for
Appointment of Arbitrators in India | Complete Guide
Introduction Resolving commercial disputes through arbitration is a widely accepted and preferred method in India. Arbitration offers a faster and more flexible alternative to traditional court proceedings, allowing parties to tailor the process to their specific needs. At the heart of this process are arbitrators, individuals chosen to act as
Enforcement of Foreign Arbitral Awards in India: A Guide
Introduction The enforcement of foreign arbitral awards in India is a critical aspect of international trade and investment. It refers to the process by which a foreign arbitral award, made in a country other than India, can be recognized and enforced by Indian courts. This topic is of paramount importance
Arbitrability of Disputes in India: Complete Guide
Introduction The arbitrability of disputes under Indian Arbitration law is a crucial concept for businesses and individuals entering into contracts. It determines whether a dispute can be resolved through arbitration, a faster and more flexible alternative to traditional court proceedings. While India’s legal framework generally encourages arbitration, certain disputes are deemed non-arbitrable
Seat vs. Venue of Arbitration in India | Difference | Cases
Introduction Navigating the world of arbitration in India can be complex, especially when it comes to understanding the distinction between the seat vs. venue of arbitration. These two concepts are often confused, but they have significant legal and practical implications for parties involved in arbitration proceedings. This comprehensive guide will
Franchise Laws in India: A Comprehensive Guide
What is Franchising and What are Franchise Laws in India? Franchising is a popular business model in India where a franchise agreement allows an individual or entity (the franchisee) to operate a business using the established brand name, trademarks, and business systems of another company (the franchisor). This arrangement enables
Private Equity Investments in India – Regulatory Overview
Introduction Private Equity (PE) investments represent a critical component of India’s financial landscape, offering a vital source of capital for companies across various stages of their lifecycle, from early-stage startups to well-established entities. PE firms typically invest in companies with high growth potential, providing not only capital but also strategic
Tax Implications in Shareholders’ Agreements
Introduction A shareholders’ agreement, from a tax perspective, involves several critical considerations under the Income Tax Act, 1961 and related regulations. These considerations can significantly influence the financial outcomes for both the shareholders and the corporation involved. Specifically, the tax implications of these agreements in India hinge on various factors such
Ultimate Guide to Liquidation Preferences in India
Understanding Liquidation Preferences Liquidation preferences represent a pivotal aspect of investment agreements, serving as a safety net for financial backers in the volatile ecosystem of venture capital and startup finance in India. These provisions prioritize investors over other equity holders in receiving payouts from the company’s assets during liquidation events,
Unveiling the Legal Framework of Venture Capital in India
Introduction Venture capital (VC) has emerged as a pivotal force in fuelling India’s economic growth, especially in the startup ecosystem. VC funds play a crucial role in providing the necessary capital, mentorship, and resources to innovative startups that have the potential for high growth but are too risky for traditional
Legal Due Diligence Guide in India
Introduction Legal due diligence helps in identifying legal obstacles that could derail a transaction, evaluating the legal risks associated with the business, ensuring compliance with laws and regulations, and safeguarding against future legal challenges. In the context of mergers and acquisitions (M&A), investments, or other commercial transactions, legal due diligence
Guide to SEBI Regulations in M&A Deals in India
Introduction Mergers and Acquisitions (M&A) in India are governed by a comprehensive legal framework, designed to ensure fair play, protect stakeholders’ interests, and maintain market integrity. At the heart of this regulatory environment is the Securities and Exchange Board of India (SEBI), which plays a pivotal role in overseeing and
Understanding Competition Law in India: A Comprehensive Guide
Comprehensive Guide to Competition Law in India The Competition Act, 2002, marked a significant shift in the approach toward regulation of competition in India, moving from prohibitions of monopolies to promoting and sustaining competition. This Act was enacted to prevent practices having an adverse effect on competition, to promote and
Case Analysis: V.B. Rangaraj v. V.B. Gopalakrishnan
Impact of V.B. Rangaraj v. V.B. Gopalakrishnan on Shareholders’ Agreements and Articles of Association The landmark Supreme Court case of V.B. Rangaraj v. V.B. Gopalakrishnan, AIR 1992 SC 453 tackled the crucial question of whether shareholders have the liberty to enter into agreements that deviate from or conflict with the
Non-Disclosure Agreements (NDAs): Protecting Confidential Information
Introduction A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between parties agreeing to share specific information for certain purposes while restricting access to or disclosure of the same information to others. NDAs can be unilateral, where only one party is bound to the confidentiality
Drafting Effective Arbitration Clauses in Contracts
Introduction The legislative framework governing arbitration in India has undergone significant evolution, marked by the enactment and subsequent amendments of the Arbitration and Conciliation Act, 1996 (the Act). This piece of legislation, inspired by the UNCITRAL Model Law on International Commercial Arbitration, 1985, represents a paradigm shift towards making India
Abuse of Dominant Position: Provisions and Case Studies
Understanding Abuse of Dominant Position Critical for Businesses Abuse of dominant position is a fundamental concept in antitrust law that prohibits companies with significant market power from engaging in conduct that harms competition. In India, Section 4 of the Competition Act, 2002 prohibits enterprises or groups from abusing their dominant
Decoding Fintech Regulations in India
Key Regulatory Bodies Overseeing Fintech in India Reserve Bank of India (RBI) As the central banking institution, the RBI is pivotal in regulating the financial sector, including fintech. The RBI oversees banks, non-banking financial companies (NBFCs), and various payment service providers. In January 2022, the RBI established a specialized Fintech
Foreign Exchange Management Act (FEMA) Regulations for Cross-Border Transactions
Introduction The Foreign Exchange Management Act (FEMA) enacted by the Parliament of India in 1999 was to consolidate and amend the laws relating to foreign exchange. It replaced the earlier Foreign Exchange Regulation Act (FERA), 1973, which was deemed more restrictive and not in line with India’s post-liberalization policies. FEMA serves
Regulatory Framework for Non-Banking Financial Companies (NBFCs)
Introduction Non-Banking Financial Companies, or (NBFCs), are financial institutions that provide banking services without meeting the legal definition of a bank. They are registered under the Companies Act, 2013 and operate under the regulatory purview of the Reserve Bank of India (RBI) as per the provisions of Chapter III-B of
Alternative Investment Funds (AIFs) in India – Legal Framework
Introduction Alternative Investment Funds (AIFs) in India are defined under Regulation 2(1)(b) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (SEBI (AIF) Regulations). They encompass privately pooled investment vehicles which collect funds from sophisticated investors, both Indian and foreign, for investing it in accordance with
Prudential Norms for Banks: Capital Adequacy, Asset Classification, and Provisioning
How Prudential Norms Shape the Framework for Sustainable Banking Prudential norms by the Reserve Bank of India (RBI) are established under the guidance and provisions of the Banking Regulation Act, 1949, and the Reserve Bank of India Act, 1934. These norms encompass a wide array of regulations covering capital adequacy,
Insolvency and Bankruptcy Code for Corporate Debtors
Key Components of the Insolvency and Bankruptcy Code for Corporate Debtors The Insolvency and Bankruptcy Code, 2016 (IBC), was introduced by the Government of India as a landmark legislation to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a
Overview of Banking Regulation Act, 1949
Understanding the Banking Regulation Act, 1949 The Banking Regulation Act, 1949, stands as a cornerstone in the Indian legal framework, primarily aimed at regulating the banking sector in India. The Act empowers the Reserve Bank of India (RBI) with extensive regulatory and supervisory powers over banking companies. It includes provisions
IP Due Diligence in India: Complete Checklist (2024)
Introduction Intellectual Property Due Diligence in India involves a meticulous examination of the intellectual property assets owned, licensed, or utilized by an entity. This assessment is crucial for uncovering the existence, validity, enforceability, and scope of these assets. Indian legislation, primarily the Patents Act, 1970, the Trademarks Act, 1999 and
Share Purchase Agreements and Investor Benefits
Introduction Share Purchase Agreements (SPAs) serves as the backbone for transactions involving the sale and acquisition of shares in companies. These agreements are crucial for both domestic and international investors looking to navigate the Indian market, offering a structured approach to mergers, acquisitions, and investment strategies. The significance of SPAs
Ultimate Guide to Share Purchase Agreements
What is a Share Purchase Agreement? A Share Purchase Agreement (SPA) is a contract between a buyer and a seller for the sale and purchase of company shares. It outlines terms for the transaction, including share valuation, payment conditions, and both parties’ obligations. In India, SPAs must consider the Companies
Right of First Refusal (ROFR) in Shareholders’ Agreements
Introduction to Right of First Refusal The Right of First Refusal (ROFR) is a contractual right that enables a party (the holder) to enter a business transaction with another party (the grantor) before any third party can. This right is typically exercised when the grantor intends to sell an asset,
Right of First Offer (ROFO) Clauses in Shareholders’ Agreement
Introduction Right of First Offer (ROFO) is a contractual agreement clause commonly employed in business transactions, especially in mergers and acquisitions, shareholder agreements, and real estate transactions. ROFO grants a party the right to make the first bid to purchase a specific asset before the seller can offer it to
