Author: admin
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ICICI Securities Delisting: What really are the issues?
ICICI Bank is delisting ICICI Securities through the first court driven delisting in India Reverse book building process avoided – taking a specific exemption under Regulation 37 intended for companies in ‘same line of business’ – why did SEBI grant the exemption? ….
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RBI Norms on Corporate Bonds -What does it mean for Private credit?
RBI Norms on Corporate Bonds -What does it mean for Private credit? Shanaya Shah What? Banks can now hold corporate bonds under the Held to Maturity (HTM) basket No mark to market requirement, akin to government bonds Celling of up to 23% banks’ exposure to HTM bonds now removed Sales from HTM capped at 5%,…
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Shadow trading – a new chapter in Insider Trading? Learnings from US SEC
In a novel case of Shadow Trading, California District Court held that MNPI about one company could count as MNPI for another company if they are economically linked What is Shadow Trading? What is the concept of economically linked entities? How is international jurisprudence…
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RBI eases restrictions on Bank investments into AIF – Why and what next?
‘Evergreening’ of loans by banks, NBFCs, etc. through fund structures shut down through 2 circulars – Banking entities can no longer indefinitely extend loan tenures by transferring their loan exposures to AIFs In RBI’s first circular, banks having indirect exposure to a borrower through an AIF required to either liquidate their…
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Group Captive Upheld –Stage Set for C&I Secondaries
Fetters on captive open access removed – group open access now has clear, consistent standards. ‘Captive User’ benefit not limited only to those who establish/ set up the plant but also to those who acquire later – providing much needed relief for secondary buyers of C&I assets.
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Public M&A: New Delisting Norms – What is the Excitement Really About?
SEBI’s Consultation Paper proposes a comprehensive review of counter-offer mechanism, counter-offer price discovery mechanism, fixed price mechanism, floor price and reference date Fixed price delisting, largely regarded as a welcome move, fails to excite us and appears lackluster against the present reverse book building mechanism due to absence of a counter-offer mechanism
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Public M&A: Does SEBI’s Market Rumour Proposal Offer the Much-Needed Price Protection?
In June 2023, SEBI introduced “rumour verification requirements” requiring listed companies to address market rumours; trigger for “materiality” pegged to “expected impact”on turnover, net worth, or value of profit/loss after tax SEBI’s December 2023 Consultation Paper now proposes to (a) peg materiality…
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Public M&A: Are Warrants attractive price protection instruments?
Recent SEBI informal guidance to Paramount clarifies ambiguity on holding periods for warrantsThough warrants could be listed, listed warrants are almost non-existentUnlisted warrants cannot be transferred (no matter how long they’ve been held for)Shares received upon conversion of warrants are locked-in for 6 months, but unlike other convertibles, the…
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Public M&A: Do List Cos Really Need Omnibus RPT Approvals?
There seems to be an overlap between regular RPT approvals and omnibus approval routecreating ambiguity on what type of approvals must be procured for long term related partycontracts?Listed companies often enter into long term contracts with…
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C&I Green Open Access-play: The next big investment destination for infra funds?
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C&I market significantly untapped – accounts for just 6% of the total renewable power purchases Captive open access the most preferred route – i.e. procuring power for captive consumption from private renewable players using govt. transmission facilities. C&I consumer perspective – low investment, significant cost savings,