Category: Shreejith R
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Ambiguity with thin cap norms: Private credit players risk significant tax leakage
Accurate reading of thin capitalization norms is highly relevant to maximize IRRs, especially in asset heavy sectors Currently, norms interpreted such that sometimes the entire interest paid to foreign related parties is disallowed for the target (as expense)…
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How to Negotiate Key Person Provisions – A Lawyer’s Guide
The occurrence of a key person event should not trigger a domino effect across other funds managed by the sponsor The ‘time and attention’ requirement should be drafted so as to avoid inadvertent foot faults The question of whether or not a key person event has occurred should not be the subject of a long-drawn…
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EduInfra – Emergence of a new asset class
EduInfra offers a promising 10 – 11% entry cap rate for annuity investors with rental escalations in the region of 3 – 5% Infrastructure classification allows for tax optimal exit through InvITs Seller awareness needed – operators slowly moving towards asset light models; depth, but potential…
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Unexplored Strategies in the Fortis Saga: Public shareholders and IHH Healthcare exposed to significant collateral damage?
Latest SC judgement uncovers Daiichi’s new approach – Fortis, IHH and, public shareholders under the gun for liabilities of Fortis’ erstwhile promoters Public shareholders will need to brace for impact and be proactive – else risk getting the short end of the stick Legal sanctity of the ‘theory of attribution’ possibly misplaced in the Fortis…
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SEBI orders public disclosure at M&A negotiation stage: Compromises deal certainty and amplifies directors’ liabilities
Listed companies forced to publicly disclose deal details pending finalization of negotiations Investors bereft of price and deal certainty, may even face reputational damage Directors of listed companies may be liable for market manipulation and exposed to litigation if they publicly disclose a deal which then falls through…
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Revamped Overseas Investment Regime (Part I) – A Rational Overhaul
Round tripping no longer illegitimate – doors open for externalisation and de-SPAC transactions Definitional clarity on direct investments and portfolio investments Indian GPs get a glidepath to setup offshore pooling structures…