• Tax Law

    Base Erosion and Profit Shifting : Impact on India

    In June 2019, the Union Cabinet chaired by the Prime Minister ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.[i] Earlier, India and the US had signed an agreement for the exchange of country-by-country report in order to give massive relief to subsidiaries of US-headquartered companies in taxation-related matters. The filing of Country-by-Country (CbC) Report by the multinational companies placed a huge compliance burden on the subsidiary companies. Hence, the agreement signed between India and the US will enable both countries to automatically exchange CbC reports filed by the parent entities. This was part of the action plan adopted by the Organisation…

  • Securities Law

    Analysis of SEBI’s DVR Framework and Addressing Concerns

    A shareholder derives his power of voting in a company from Section 47 of the Companies Act 2013. With a general right to vote on every resolution, shareholders exert their ownership through voting on key corporate issues at the annual general meeting. These issues involve the appointment of the board of directors, issuing of securities etc. Certain restrictions can be placed on the voting rights of a shareholder by the articles of association of a company but generally, the shareholders have one vote per share in accordance with the principle of corporate governance. With the growth and increase in the scale of operation, a company needs more capital. Debt not…

  • Corporate & Commercial Law

    India’s Draft E-Commerce Policy: A Set-Back

    The e-commerce industry has been booming over the years and has facilitated the integration of markets across the world. It allows producers as well as buyers to access markets easily which were hitherto separated by time and distance. In India, it brings in a lot of Foreign Direct Investment (“FDI”) as the market-based model for e-commerce entities is allowed 100%  FDI. In May 2018, Walmart announced its intention to acquire 77% stake in Flipkart, which was approved by the Competition Commission of India (“CCI”) in August 2018, resulting in the biggest acquisition of an e-commerce company around the world. This decision was met with almost equal support and opposition. While…

  • Corporate & Commercial Law

    Legal Underpinnings of the US withdrawal of Generalized System of Preferences benefits to India

    The World Trade Organization (“WTO”) is an international organization which regulates the trade relations between its member nations. The WTO covers both multilateral as well as Plurilateral Agreements. These Agreements contain certain special provisions for the benefit of the developing nations in the form of special rights. These provisions give developed nations certain rights to treat the developing nations more favourably than other members of the WTO. These provisions are called “Special and differential treatment provisions”. One such benefit provided to the developing nations by the developed nations is the Generalized System of Preferences (“GSP”). The legal basis for the GSP is the Enabling Clause which allowed developing countries to…

  • Securities Law

    SEBI Proposes Pre-Deposit Appeals: What About Access to Justice?

    In an attempt to tackle frivolous appeals, the Securities and Exchange Board of India (“SEBI”) has proposed the introduction of a mandatory deposit of 10% of the penalty imposed by it, before an appeal from its orders/directions can be sought before the Securities Appellate Tribunal (“SAT”). This requirement would also stand, mutatis mutandis, in cases where SEBI has ordered for refunds, recovery, disgorgement or compounding against an entity. In this article, the author explores the jurisprudence behind “pre-deposit appeals”, its interplay with the fundamental right to access of justice, and its propriety, when applied to the peculiar jurisdictional realities of SEBI.   What is a Pre-Deposit Appeal? A pre-deposit appeal…

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