Category: Bottom Line
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FPI To FDI Reclassification: SEBI, RBI Lay Down SOP
FPI To FDI Reclassification: SEBI, RBI Lay Down SOP November 22, 2024 Authors: Hrishikesh Anand & Payaswini Upadhyay What? SEBI, RBI clarify the process for reclassifying FPI investments as FDI Existing framework lacked detailed guidelines on such reclassification As per law, an investor cannot be an FPI and FDI in the same entity. FPI investments…
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Amendments To InvIT Voting Thresholds
Amendments To InvIT Voting Thresholds October 24, 2024 Authors: Anirudha Sapre & Payaswini Upadhyay What? SEBI amends the InvIT regulations, clarifies that all votes at a unitholder meeting will be calculated on a ‘present and voting’ basis Amendment also simplifies the language of the provisions that spell out the voting thresholds for ordinary unitholder resolutions…
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Paytm’s ESOP Scheme Stock Options To Founders Under SEBI Scanner
Paytm’s Esop Scheme Stock Options To Founders Under SEBI Scanner October 15, 2024 Authors: Shreejith R & Payaswini Upadhyay What? Just prior to its listing in 2021, Paytm called a shareholder vote to approve removal of its founder Vijay Shekhar Sharma as promoter Paytm then granted Sharma 21 million stock options – which it couldn’t…
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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…