Corporate Two far-reaching legal developments that will impact the transaction restructurings were published this month, following a Securities and Exchange Board of India (SEBI) circular amending clause 24 of the Equity Listing Agreement and a Delhi High Court decision imposing stamp duty on court approved schemes of amalgamation.
Tax The Authority for Advance Ruling (AAR) has reiterated that sharing of profits and not income would be the determining factor in finding the existence of an Association of Persons (AOR) for the purpose of taxation, while holding that a consortium cannot be treated as an AOR.
Corporate The Union Minister of Commerce & Industry has released a new foreign direct investment (FDI) policy framework to rescind all previous FDI Press Notes and consolidate all FEMA, RBI Circular and Press Note regulations into one consolidated document.
Regulatory The Supreme Court has held that the legislative functions of a regulatory commission are beyond the jurisdiction of the quasi-judicial powers of its appellate tribunal and should be dealt with via judicial review.
Corporate
Khaitan & Co has won a landmark order from the Authority for Advance Rulings (AAR) for the firm's client E*trade Mauritius (ETM) to obtain tax exemptions under the India-Mauritius Tax Treaty on capital gains accrued from a sale of shares it held in an IL&FS investment.
Constitutional law
Non-governmental organisations (NGO) Greenpeace and others are seeking lawyers to support the opinion of former attorney general Soli Sorabjee that the Civil Nuclear Liability Bill is unconstitutional.
Constitutional law The Bombay High Court has held in a recent land mark judgment on the cost of imported wines that state governments are not required to comply with the understanding between nations under international treaties unless the legislature enacts a law to reflect the principles agreed under such treaties.
Corporate In a decision that could have major adverse consequences in the practice of corporate law the Bombay High Court on 15 February 2010 has effectively declared that transfer restriction clauses like rights of first refusal, tag along and drag along rights, or put and call options in joint venture agreements and shareholder agreements of public companies are void.
Competition Law
Ranjit Walia & Co-briefed senior counsel J F Pochkhanawalla celebrates victory against “galaxy of senior advocates and law firms” in CCI Rs 54 crore fuel surcharge price fixing order against airlines...
Corporate
The third consolidated policy circular on the foreign direct investment (FDI) made effective today has scrapped press note 1 and introduced other directives to further streamline FDI investments in India a year after the Government first announced policy overhauls.
Corporate
The government is mulling making Corporate Social Responsibility (CSR) voluntary rather than mandatory with the objective of invigorating spirit of “intent” over “legislation” in the new Companies Bill which is awaiting parliamentary approval.
Competition Law
The Competition Commission of India (CCI) has heard 80 cases relating to allegedly anti-competitive agreements and dominant positions of enterprises, as 50 cases were transferred from the erstwhile Monopolies and Restrictive Trade Practices Commission (MRTPC), said corporate affairs minister Salman Khurshid in the Rajya Sabha yesterday.
Competition Law
The Competition Commission of India (CCI) wants full ratification of its merger control powers under both section 5 and 6 of the Competition Act, which has languished unapproved for months. The CCI chairman Dhanendra Kumar said at a meeting that the CCI would like to give its consent for most M&A transactions within 30 days of filing, which was only possible if the government ratified both sections 5 and 6 of the Competition Act, according to the Financial Express and other papers. Section 5 states that an Indian company with a turnover of over Rs 3,000 crore can not acquire another company without the CCI’s prior notification and approval. Section 6 voids amalgamations which adversely and appreciably affect competition within a relevant market. Already in February Kumar said he was looking forward to speedy notification of the merger control guidelines.
Kumar also added that the CCI had received 118 cases to date, of which 24 had been dismissed after finding no violation of competition law and five were in the final stage of determination.
Competition Law
The Competition Commission of India (CCI) is looking into investigating the Commonwealth Games for its award of key contracts, according to the the Financial Express. Unnamed sources told the Financial Express that several contracts were awarded to private players without conducting a fair tendering process. “There are serious competition violations. We are collecting all information on the bidding process following which we will take a decision on whether to conduct a suo moto probe into it or not,” a senior CCI official told the paper, which contravened sections 3 and 4 of the Competition Act 2002.