Decoding SEBI's Proposal On Restricted Return InvITs: Target Audience, Benefits & Global Appeal
What's been missing in India's InvIT landscape? A product that acts as a true bond proxy, some might say. Well, SEBI's proposed Restricted Return InvITs delivers just that. This new product offers risk-averse investors a safe, fixed return, with the downside protected and the upside capped. But it's not just for investors- sponsors stand to gain too. Any returns beyond the promised payout go straight to them, and if returns dip below expectations, sponsors will have to step in to cover the shortfall. In this episode of Resolüt Audio, host Payaswini Upadhyay speaks to Ruchir Sinha to examine the proposals, explore how sponsor-investor agreements could evolve and who the target investors are for this product.
Public Market Trades in India: The FPI-FDI Problem
Navigating India's Foreign Portfolio Investor (FPI) and Foreign Direct Investment (FDI) regime can be quite complex, especially in public market transactions. The recent shift from an investor-centric regime, which focused on the nature of the investing entity rather than the quantum of the investment, to an investment-based regime, where the investment type determines FPI or FDI status, has only added a layer of confusion. Questions frequently arise: Can an FPI subscribe to preferential allotments below 10%? Can FDIs participate in IPO rounds? And what happens in cases like Zomato's – is it possible for the same entity to invest through both FPI and FDI routes in one company? In this episode of Resolüt Audio, host Payaswini Upadhyay speaks with Samaahith Addoor on some of the crucial FPI-FDI nuances for public market investments.
Denial of tax treaty benefits
In the second episode of Resolüt Audio, host Ruchir Sinha speaks with Anandu Unnikrishnan on the key case laws underpinning the Income Tax Department’s recent notices against offshore funds. They examine the material facts and circumstances in each of these cases and lay out practise-based mitigants that offshore investors can adopt. They also examine critical questions surrounding the morality of taxation, the scope for interpretation in tax law, and the need for caution as tax authority continue to gain broad-reaching powers.
Private Credit: Supreme Court holds that ownership of pledged shares remains with pledgor despite transfer to pledgee
Resolüt Audio is our initiative to present to you our analysis on legal and tax issues in a simple and de-jargonized manner through free-flowing conversations.In the first episode of Resolüt Audio, host Raina talks with Ruchir on the recent Supreme Court Judgement in the PTC India case.They talk about the regulation of pledged dematerialized shares and the implications of the PTC judgement while providing a broad overview on the law of pledge and the challenges of reconciling the statutory requirements to dematerialized shares. Their analysis of the PTC India can be accessed here: https://bit.ly/3AFsrwn