Company Law - Corporate Law Reporter

Application for interim relief in a Foreign Seated International Commercial Arbitration, not maintainable under Section 9

CLR Editorial Notes: A Constitutional Bench of the Supreme Court in September 2012 has delivered a landmark judgment in Bharat Aluminium Co v Kaiser Aluminium Technical Services Inc which overrules the doctrine laid down by the Supreme Court in Bhatia International v Bulk Trading S.A. (Bhatia International). In Bhatia International, the Supreme Court had held that Part I of… Read More

Negative Covenants in an Agreement can be enforced only during the Pendency of the Contract and not beyond

CLR Editorial Notes: The Appellant/plaintiff has in the present case appealed against the order of a single bench judge. The suit was filed for the enforcement of the Non-Disclosure agreement which restricts the respondent from quoting directly to the appellant's customers, after the termination of the agreement. The two bench judge upheld the order of the… Read More

U/s 73(1) of the Companies Act, organizations have to make an application for SE listing before issuing OFCDs

CLR Editorial Notes: This refers to the OFCD subscription offer made by Sahara Group and the subsequent litigation by SEBI in lieu of non-compliance and intentional bypass of SEBI Guidelines. The Sahara Companies, issued that the invitation/offer to subscribe to the OFCDs 3 crore persons (expressed as 30 million persons by the SAT), through 10 lakh… Read More

SEBI Issues Guidelines for Enabling Partial Two-Way Fungibility of Indian Depository Receipts

To All Stock Exchanges All Depositories All Registered Merchant Bankers All Registered Registrars to an Issue/STA All Registered Custodians Dear Sir/Madam, Sub: Guidelines for Enabling Partial Two-Way Fungibility of Indian Depository Receipts (IDRs) 1. Securities and Exchange Board of India (SEBI), vide circular No. CIR/CFD/DIL/10/2012 dated August 28, 2012, has prescribed the framework for redemption… Read More

SEBI Chairman inaugurates Local Office at Hyderabad

Shri U.K.Sinha, Chairman, Securities and Exchange Board of India inaugurated the Local Office of SEBI in Hyderabad, today. The Local Offices primarily deal with investor education, grievances redressal and other related issues. Shri T.S. Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA), Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI, Shri Bibhab Dutta, Chief Commissioner… Read More

Effect of Budget 2013-14 amendments under Service Tax on ˜Restaurants™

Applicability : As per Notification no. 25/2012 dated 20th June 2012 under Service Tax regulations, Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the… Read More

Concept of Private Listed Company

Well any literate will take the above title as contradictory and absurd as there can be no such company which is privately held and still a publicly traded company. I want to assure our readers that the title is not my creativity, but what is proposed by Companies Bill, 2012 (herein after referred as Bill).… Read More

Takeover Regulation – Making and Withdrawing Voluntary Open Offer

INTRODUCTION Efficient and smooth functioning takeover market plays an important role in economic development of the country. Takeover market serves as a monitor for managers of a public company, who are endowed with the duty of efficient working of the company, and inefficient working of public company, will be faced with the reduction in value… Read More

Executive Compensation in India

INTRODUCTION Issues of Corporate Governance, having gained stronghold in the developed nations of the West, have largely invaded the Indian Corporate Sector in the past decade. In present times, it has in fact reached a stature when Good corporate governance practices are a sine qua non for sustainable business that aims at generating long term value to… Read More

Importance of Prospectus as a Tool for Investor Protection in India

INTRODUCTION The definition of ˜prospectus™ in the Indian Companies Act, 1956 (the Act) was based on the definition found in the English Companies Act [Section 455(1)].[1] It then underwent amendment in 1960 following the recommendation of the Companies Act Amendment Committee of 1957 and also in 1974.[2] The current definition as per Section 2(36) stands… Read More

Central Government declares some companies as “Nidhis”

MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 15th February, 2013 G.S.R. 87(E).-In exercise of the powers conferred by sub-sections (1) and (2) of Section 620A of the Companies Act, 1956 (1 of 1956), the Central Government hereby,- (i) declares the following companies to be Nidhis Sl. No. Name of the Company… Read More

IRDA Guidelines pertaining to Agents

Circular no. IRDA/CAGTS/GDL/028/02/2013, dated 15-2-2013 Dated 15-2-2013 MCA Guidelines pertaining to Agents Reference is invited to the Circular No. IRDA/CAD/GDL/AGN/052/03/2011 dated 25th March, 2011 wherein the Authority has allowed special dispensation to Standalone Health Insurance Companies to avail the services of General Insurance Agents of other Companies to distribute their products. In continuation to the… Read More

MCA 21 fees relaxation modules being tested

The MCA has issued Circular No.3 dated 08/02/2013 on ˜relaxation of additional fees and extension of last date in filing of various forms™ and Circular No.5 dated 12/02/2013 on ˜filing of Balance Sheet and P&L Account in XBRL mode™. The changes required to be made at Back Office for implementing the circulars are being tested/validated… Read More