December 2012
FAILURE TO HONOUR DUES UNDER DERIVATIVE CONTRACTS AMOUNTS TO ‘WILFUL DEFAULT’
The Supreme Court, in decision of far reaching consequence (Kotak Mahindra Bank v. Hindustan National Glass & Industries Limited), has held that failure to honour payment obligations under a derivatives contract would amount to “wilful default” and will attract the provisions of the Master Circular on “Wilful Defaulters” dated July 2, 2012 issued by the RBI
November 2012
NON-COMPETE FEE, WHY SO TAXING?
The Delhi High Court in Sharp Business System Vs. CIT has ruled that non-compete fee paid is capital expenditure and cannot be claimed as a deduction under the head business expenditure
November 2012 & December 2012
KEY FEATURES OF THE BANKING LAWS (AMENDMENT) BILL, 2012
The Banking Laws (Amendment) Bill (“Bill”), inter alia, confers additional statutory rights upon the Reserve Bank of India (“RBI”), India's central bank. Such rights include powers to (a) supersede the Board of Directors of a banking company and to appoint an administrator, (b) call for information and to inspect associated enterprises of a banking company
October 2012
Trademark not infringed by sale of goods lawfully acquired
The Delhi High Court in a landmark decision in Kapil Wadhwa vs. Samsung Electronics Company Ltd., has held that branded goods lawfully acquired abroad and resold in India will not amount to infringement of the trademark
October 2012
REGULATORY AND CASELAW UPDATES
Downstream investments by NBFCs with large FDI component made easier by RBI; SEBI lays down qualitative criteria to reject offer documents, Supreme Court restrains rivals of Bharat Matrimony from displaying infringing “adwords”; Third parties can also be restrained from using confidential information: Karnataka High Court
September 2012
FDI SHOWERS – WHEN IT RAINS, IT POURS
DIPP notified various reforms allowing foreign investment based on certain conditions in Single-brand product retail trade, Multi-brand retail trading, Civil aviation, Broadcasting sector, Power exchanges
BHATIA INTERNATIONAL OVERRULED
Supreme Court overturns Bhatia International on applicability of Part I of the Arbitration Act to international commercial arbitrations held outside India
September 2012
MANUFACTURE – THE ROOT TO RETAIL
India's retail sector is highly regulated. Though the Government has permitted foreign direct investment (“FDI”) in both multi-brand and single brand retail, strict and tough riders have been imposed upon FDI in these sectors. These riders include conditions on the sourcing of raw material, ownership of the brand name etc. Further, online retailing in any form by companies with FDI, is specifically prohibited in both multi-brand and
single brand retail
August 2012
REGULATORY & CASE LAW UPDATES
RBI extends scheme for buy-back of FCCBs and modifies the NBFC-MFI regulations; SEBI allows partial fungibility for IDRs; Service Tax on services of Directors of companies to be under reverse charge method; Delhi High Court holds that AAR has no jurisdiction to entertain a plea for advance ruling if the return has already been filed, Supreme Court holds that goodwill is an asset on which depreciation can be claimed under the IT Act
July 2012
ENFORCEABILITY OF PUT OPTIONS
Recently there have been a number of media reports that the regulators of the Indian capital market, specifically the Securities Exchange Board of India (“SEBI”) and Reserve Bank of India (“RBI”), are objecting to 'Put Options'. These news reports are based on views taken by SEBI and RBI regarding certain recent commercial transactions being carried out
June 2012
ISSUE OF SHARES WITH DIFFERENTIAL RIGHTS IN INDIA
In light of the recent Initial Public Offering of Facebook, Inc., wherein the dual-class share structure was used, (i.e., issuance of one class of shares carrying certain rights (as to voting, dividend) which are superior to the existing class of issued shares), the debate on the validity and issuance of shares with differential rights in the Indian context has been revived
May 2012
REGULATION OF ALTERNATE INVESTMENT FUNDS (AIF)
The SEBI (Venture Capital Funds) Regulations, 1996 (“VCF Regulations”), which presently governs the venture capital funds (“VCFs”) in India now stands repealed as the SEBI has notified SEBI (Alternate investment Fund) Regulations, 2012 (“AIF Regulations”) on 21st May 2012 with the view to allow raising of capital from a number of high net worth investors and investing their funds in accordance
April 2012
Relief to Manufacturers and Dealers
Declarations under the Standards of Weights and Measures Act not applicable to goods sold to industrial consumers
March 2012 & April 2012
SERVICE TAX PROVISIONS INTRODUCED BY FINANCE BILL, 2012
The Finance Bill, 2012 as proposed by the Finance Minister, Shri Pranab Mukherjee has made a major change in the 18 year old Service Tax structure. The transition involves a shift from taxation of the 119 service-specific descriptions to an entirely new regime whereby all services will be taxed unless they are covered by any of the entries in the
proposed 'negative list' or which are otherwise
February 2012
INVESTMENT BY QUALIFIED FOREIGN INVESTORS IN INDIAN EQUITY MARKET
The Securities and Exchange Board of India (“SEBI”), in exercise of its powers conferred upon it under Section 11 (1) of the SEBI Act, 1992, has issued a circular dated 13th January 2012 permitting Qualified Foreign Investors (“QFIs”) to directly invest in the Indian equity market in order to widen the class of investors, attract more foreign funds funds, reduce market volatility and to deepen
January 2012
100% FDI in single brand retail
DIPP approves 100% FDI in “single brand retail”
Investments by Qualified Foreign Investors in Indian Equity Market
Central Government allows qualified foreign investors (“QFIs”) to directly invest in the Indian equity market
January 2012
IRDA GUIDELINES FOR WEB AGGREGATORS
The Insurance Regulatory Development Authority (“IRDA/Authority”), in exercise of its powers conferred upon it under Section 14(1) of the IRDA Act, 1999 has issued IRDA Guidelines for Web Aggregators ('Guidelines') on 21st
November 2011 for Web Aggregators to protect the interests of the policyholders and to regulate, promote and ensure the orderly growth of the insurance industry