• Securities Law

    SEBI’s Settlement Regulations 2018: Balancing Efficacy and Pragmatism

    The Securities and Exchange Board of India (“SEBI”) has introduced the SEBI (Settlement Proceedings) Regulations, 2018 (“2018 Regulations”) to replace the extant SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 (“2014 Regulations”). The 2018 Regulations have have come into force from 1stJanuary 2019 and are meant to add to and evolve the SEBI’s settlement framework so as to improve the existing processes and also act as an enabler for ease of doing business in the growing securities market. This article seeks to analyze the substantial developments brought forth by the 2018 Regulations.   Background SEBI had first put forth a consent mechanism for the settlement of offences under securities law in…

  • Financial & Insolvency Law

    Bombay HC: Criminal Proceedings not Precluded by Moratorium Under IBC

    The Hon’ble High Court of Bombay in the case of Tayal Cotton (Pvt.) Ltd. Vs. State of Maharashtra has held that the moratorium stipulated under Section 14 of the Insolvency and Bankruptcy Code, 2016 (“Code”) does not bar the initiation or continuance of any criminal proceedings against the Corporate Debtor. This Article seeks to analyze the decision and set out the reasoning of the Hon’ble Court behind the same.   Moratorium Order Explained Under the Code, where an application for the initiation of Corporate Insolvency Resolution Process (“CIRP”) is admitted by the NCLT, a moratorium order is affected with regard to the Corporate Debtor under Section 13 of the Code. Moreover, under Section…

  • Corporate & Commercial Law

    Sections 143A & 148 of the NI Act: A Definitive Analysis of the 2018 Amendment

    The Negotiable Instruments Act, 1881 has played a substantial role in the Indian commercial landscape and has given rightful sanction against defaulters of the due process of trade who engage in disingenuous activites that causes unlawful losses to rightful recipients through cheque dishonour.  The Act, being a pre-independence legislation, was enacted with the intent to define and amend the law relating to promissory notes, bills of exchange and cheques in India. Though the Act has been successful in introducing a substantial measure to tackle cases of cheque dishonours, pendency of cases, loopholes in the law, inadequacy of provisions and uncertainty of process have led to dwindling results in pursuing cases of…

  • Arbitration Law

    Supreme Court Re-iterates, Court Cannot Remand Matter Back to The Arbitral Tribunal Under Section 34

    The Hon’ble Supreme Court of India has, in the case of Radha Chemicals v. Union of India held that in deciding a challenge to an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“Act”), the Court has no jurisdiction to remand the matter back to the arbitral tribunal for “fresh consideration”. This buttresses the practices developed to this effect by various high courts that have many a times erroneously treated arbitral proceedings in the same manner as civil suits.   Facts of the Case In this case, the Appellant, M/s Radha Chemicals was a supplier of goods to the Union of India. When the disputes arose, the Appellant…

  • Competition Law

    Combination Regulation: What Constitutes Gun Jumping Post Exemption From the 30-Day Notice period?

    The Competition Commission of India (“CCI”) as a third of its duties under the Competition Act, 2002, upholds the mandate of regulation of combinations so as to ensure that any acquisitions and mergers do not have appreciable adverse effect on competition in India. The Indian combination regulation regime comprises of the Competition Act, 2002 (“Act”) and the CCI (Procedure in Regard to the Transaction of Business Relating to Combinations) Regulations, 2011 (“Combination Regulations”). This article seeks to analyze the nature of gun-jumping as an offence and comment upon the present position of law as to what constitutes gun jumping today.   Combination Regulation – Introduction Section 5 of the Act…

  • Arbitration Law

    Arbitration and Conciliation (Amendment) Bill, 2018: Yet Another Paradigm Shift

    The Arbitration and Conciliation Act, 1996 (“ACA”) has played a monumental role in raising the standard and accessibility of dispute resolution in India to the point where it forms part of wide ranging agreements, commercial or not, as the first means of resolving dispute between parties. What may go unnoticed is the relative frequency with which the ACA has seen amendments to its core stipulations, in the pursuit of establishing a holistic arbitration regime in India. One such substantial development comes in the form of the Arbitration and Conciliation (Amendment) Bill, 2018 (“Bill”) which seeks to usher the ACA in to the age of institutional arbitration, in a development that will…

  • Securities Law

    SEBI’s Test of Fit and Proper Person: Dynamic Market, Dynamic Law

    The Securities and Exchange Board of India (“SEBI”), as the primary regulator of the securities market in India strives to create order and fairness in one of the fastest moving, complex, and ever fluctuating markets that is filled with the one of the most conniving bad elements. Yet, more or less, SEBI has performed its function to the letter of its preamble, that is, protecting the investor’s interests and promoting the healthy development of the securities market. This has, partly been achieved by enforcing an effective regime of stringent and dynamic provisions. The point of analysis in this Article is one such dynamic power in the hands of SEBI, that…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part V: The Impact and Criticism of RBI’s New NPA Regime]

    The Impact The Notification has not done away with the conciliatory means to be employed by the lenders to course correct the stressed account upon default, it has only been rebranded in the wide ambit of a ‘Resolution Plan’ which encompasses, in essence, all of the tools under the previous regime[1]. The major change in the regime however is the stipulation of pursuing the debt in default under the Insolvency and Bankruptcy Code, 2016, where there is failure in the implementation of the Resolution Plan. The notification is only an exercise in the implementation of the statutory power that has been bestowed upon the RBI[2]. The Notification makes the RBI’s…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part IV: Understanding RBI’s New NPA Regime]

    In the past, banks have played both victim and perpetrator under the scheme of the Joint Lenders Forum while they plead for more power to be vested them the in the forum, at the same time, the bank executives are the ones that have led the mismanagement of the accounts and have also engaged in underhanded deals that empower the creation and sustenance of the substantial NPAs as was revealed in the midst of various scandals like the Videocon[1], Nirav Modi[2], Mehul Choksi[3]and Vijay Mallaya[4]scandals, that have been the cause of great national embarrassment and financial loss. RBI vide its Notification dated 12thFebruary 2018 had set a deadline of 27thAugust,…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part III: RBI’s First Attempt at an IBC backed NPA Resolution Framework and the 12 Mega-Defaulters]

    With the enactment of the Banking Regulation (Amendment) Act, 2017, RBI has been vested with the power to direct banks to initiate Corporate Insolvency Resolution Process against any borrower who has defaulted on any payment under §§ 35AA and 35AB of the BR Act. The Provisions are reproduced here-under: [Part II of this series can be found here] “35AA. The Central Government may, by order, authorise the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016. 35AB. (1) Without prejudice to the provisions of section 35A, the Reserve…

css.php