Author Archive for: Staff
Entries by Staff
SEBI revisits the concept of Promoter and Promoter Group
Proposes shift from ‘promoter’ to ‘persons in control’ Ajay Kumar K V | Manager (corplaw@vinodkothari.com) Introduction The capital market watchdog, Securities and Exchange Board of India (‘SEBI’) has come out with a consultation paper on changing the concept of company ‘promoters’, and moving towards the idea of ‘person in control’. The proposal has come in […]
Gov’s Attempt to Make Slump Sale ‘Fair’
-Yutika Lohia ( finserv@vinodkothari.com ) Introduction The income tax laws of the country has been witnessing dynamic changes over the years. The tax authorities are understanding the bottlenecks within their current tax system and proposing changes to mobilize revenue, promote investments and also to cope up with the present gaps. On the other hand, with such […]
Assessing the Viability of a Gold Spot Exchange in India
-Megha Mittal (mittal@vinodkothari.com) The Securities and Exchange Board of India (‘SEBI’) has issued a consultation paper dated 19th May, 2021, on proposed framework for Gold Exchange in India and draft SEBI (Vault Managers) Regulations, 2021 (‘Consultation Paper’), thereby seeking public comments on the framework for operationalising gold exchange and the regulation of intermediaries inter-alia Vault […]
Inter-se Ranking of Creditors – Not Equal, but Equitable
-Megha Mittal, Associate and Prachi Bhatia, Legal Intern (resolution@vinodkothari.com) Insolvency laws, globally, have propagated the principle of equitable distribution as the very essence of liquidation/ bankruptcy processes; and while, “equitable distribution” is often colloquially read as “equal distribution” the two terms hold significantly different connotations, more so in liquidation processes – an ‘equitable distribution’ simply means […]
MCA circular on excess spent done by contribution to PM-Cares
-raises more questions than it settles. Nitu Poddar, Senior Associate ( corplaw@vinodkothari.com ) Setting off excess-spent on CSR Pursuant to Rule 7(3) of the CSR Rules, 2014, a company is allowed to take benefit of the excess amount (more than the requirement under section 135(5) spent by it on CSR activities upto three succeeding financial […]
‘Material Subsidiary’ under LODR Regulations: Understanding the metrics of materiality
Barsha Dikshit | corplaw@vinodkothari.com Himanshu Dubey | corplaw@vinodkothari.com The term ‘subsidiary’ or ‘subsidiary company’ as defined under the Companies Act, 2013[1] (‘Act’) refer to a company in which a holding company controls the composition of the Board of directors or may exercise at least 51% of the total voting power either on its own or […]
Impairment in case of Lease Transactions
– Abhirup Ghosh (abhirup@vinodkothari.com) Background Like all assets, leased assets also undergo impairment. IAS 36 is the relevant standard for impairment of assets, however, IFRS 9 deals with impairment of financial assets, as well as lease receivables. Therefore, even though lease transactions are governed by IFRS 16, for impairment of leased assets, one has to […]
AIF Second Amendment Regulations, 2021 – Regulated Steps towards Liberalised Investment
-Megha Mittal (mittal@vinodkothari.com) Amidst the various concerns addressed in the Board Meeting dated 25th March, 2021,[1] the Securities and Exchange of Board of India (‘SEBI’) extensively dealt with several issues identified with respect to Alternative Investment Funds (‘AIFs’), inter-alia a green signal to AIFs for investing in units of other AIFs; ambiguity regarding the scope of […]