Category: Bottom Line
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Should Holding Companies Like Tata Sons Be Forced to List?
Should Holding Companies Like Tata Sons Be Forced to List? August 14, 2024 Author: Sharia Shoaib What? RBI’s Scale Based Regulations (SBR) classified Tata Sons, a core investment company (CIC) in the upper layer of Non-Banking Financial Companies (NBFC-UL) in September 2022, subjecting it to the mandatory listing requirement by September 2025 SBR for NBFCs…
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SEBI Reaffirms Its Linde Order: Non-Cash Deal Terms Must Be Valued
SEBI Reaffirms Its Linde Order: Non-Cash Deal Terms Must Be Valued July 30, 2024 Authors: Shreejith R & Payaswini Upadhyay What? SEBI reiterates its order against Linde India; finds the company in violation of related party provisions under the Listing Regulations Linde had entered into a joint venture with Praxair, its unlisted associate. They also…
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Chevron Deference Struck Down: End of Regulator as Judge, Jury and Executioner?
Chevron Deference Struck Down: End of Regulator as Judge, Jury and Executioner? July 11, 2004 Authors: Sidharth Kumar & Shivam Yadav What? The United States Supreme Court has struck down a doctrine of administrative law known as “Chevron deference” in Loper Bright v. Raimondo, by a majority of 6-3 The doctrine held that federal courts…
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IPO-Bound Companies: SEBI Sees Private Equity’s POV
IPO-Bound Companies: SEBI Sees Private Equity’s POV June 27, 2024 Authors: Anirudha Sapre & Payaswini Upadhyay What? SEBI, in an advisory to merchant banks, has allowed for investor protection rights of a shareholder (such as board seat, veto, pre-emptive rights etc) to continue till the company is listed SEBI’s earlier advisory [dated May 29] required…
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Indian HNI investments into offshore funds – RBI addresses industry concerns
Indian HNI investments into offshore funds – RBI addresses industry concerns June 12, 2024 Author: Aditya Jain & Shivam Yadav What? Indian individuals can now invest in offshore investment funds setup as companies or partnerships, which though unregulated themselves are managed by a regulated investment manager as per the RBI circular dated June 07, 2024…
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RBIs draft lending norms – how big will the impact be on infra projects?
RBIs draft lending norms – how big will the impact be on infra projects? June 7, 2024 Author: Aditya Jain What? On May 3rd, 2024 RBI released ‘stricter’ draft norms for banks, NBFCs and FIs lending to under-construction projects Provisioning requirements proposed to be increased from 0.4% to 5% during construction phase for standard assets…
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AIFs Subjected To Beneficial Ownership Threshold Of 10% – Implications?
AIFs Subjected To Beneficial Ownership Threshold Of 10% – Implications? Shivam Yadav What? Since Jan 2024, foreign investors in AIFs have been required to comply with ‘beneficial ownership’ (BO) norms under AML law (PMLA) requiring disclosure of the ultimate natural person investing more than 10% in the foreign investor or exercising control This moves away…
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SEBI’s New Price Protection Regime – Is Deal Making Really Safeguarded?
SEBI’s New Price Protection Regime – Is Deal Making Really Safeguarded? Shreyas Bhushan What? SEBI’s 2023 consultation paper re: market rumour verification offered 2 price protections for public M&A: (A) insulate deal making from post-verification price fluctuations for 60-180 days; and (B) price protection only for 1 day after rumour verification SEBI has now adopted…
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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%,…