Pre-Packaged Insolvency Resolution Process Framework – A Leap Forward
1. Introduction Covid-19 related stress severely impacted all aspects of the Indian economy including the nascent insolvency regime under the Insolvency and Bankruptcy Code, 2016 (“Code”). The financial stability report (“FSR”) of December 2020 released by the Reserve Bank of India (“RBI”) predicts a sharp rise in the gross non-performing assets of banks by September …
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Changes for Listed Debt Securities easier participation into Debt Resolutions of Indian Corporates a
Introduction The SEBI (Issue and Listing of Debt Securities) Regulations, 2008 (“Debt Regulations”) provide the framework for issue and listing of debt securities in India (“NCDs”). SEBI as a proactive guardian of the capital markets has taken measures to assist market investors in debentures having a framework which integrates into any debt resolution process where …
Indian Takeover Code – Extent of Disclosure on ‘Encumbrance’ in Structured Debt Transactions
Introduction Pursuant to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SAST’), shares taken by way of encumbrance are treated as an acquisition. The scope of the term encumbrance was sharply brought into light by a recent adjudication order by Securities and Exchange Board of India (‘SEBI’) involving 2 promoter entities of Yes …
Ease of Foreign Portfolio Investor Flow of Capital into India through Mauritius
Recent changes in investment laws have been made by the Securities and Exchange Board of India (“SEBI”), which regulates capital markets, in order to incentivise foreign portfolio investors (“FPIs”) to increase their investments in India. SEBI has enabled the Government to determine additional countries, other than Financial Action Task Force (“FATF”) member countries, where FPIs …
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Stricter Foreign Direct Investment from Neighbouring Countries – Future Challenges
Introduction The Government of India has a comprehensive policy framework on foreign direct investment (“FDI”) in the circular on consolidated FDI policy issued by the Department of Industrial Policy and Promotion (“DIPP”), Ministry of Commerce & Industry, Government of India (“FDI Policy”) which permits offshore investment under the: (i) automatic route (i.e. without government approval) …
Arrest of Vessels for unpaid Bunker Supplies in the Gujarat High Court – A Change in the Law
Introduction The recent judgment of Dan Bunkering Pte. Ltd v. Best Excellence Corporation Ltd (Civil Application No.1 of 2019 in Admiralty Suit no.8 of 2019) 21 August 2020 has upturned admiralty law in Gujarat. Those familiar with vessel arrests in India may know that the Gujarat High Court had for over two decades permitted bunker …
Put Options and Enforcement of Foreign Awards in India
Introduction In another instance of the Indian judiciary’s pro-arbitration approach, the Bombay High Court in a recent judgement enforced a SIAC award arising out of a dispute relating to a shareholder agreement. The Court rejected public policy objections to enforcement relating to inadequacy of stamp duty and alleged violations of exchange control regulations.
India’s Embrace of Online Courts
Past attempts by the Indian judiciary to digitise cases have not met with much success. The lockdowns following Covid 19 have given a renewed and urgent impetus for virtual justice in India. Recent virtual hearings by the Bombay High Court during the lock- down period met with universal admiration with clamours that this process become …
FORCE MAJEURE AND FRUSTRATION OF CONTRACTS DURING COVID-19
INTRODUCTION The unprecedented upheaval caused by COVID-19 has affected normal performance of contractual duties. Logistical issues, health and safety risks and governmental decreed ‘lock-downs’ for extended periods of time have up-ended life and commercial activity on an unparalleled scale. A post-Covid world is beset by delays, payment defaults and a failure or refusal to perform …
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India’s Embrace of Online Courts
Introduction Past attempts by the Indian judiciary to digitise cases have not met with much success. The lockdowns following Covid 19 have given a renewed and urgent impetus for virtual justice in India. Recent virtual hearings by the Bombay High Court during the lock- down period met with universal admiration with clamours that this process …