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FDI-Interpreatation and Implementation [Press Note 3 (2021 Series)]-

by Abhishek Bansal I Partner, Laxmi Sinha I Senior Associate

The principal rules governing the framework related to Foreign Investments in India, Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 lays down the list of sectors along with applicable entry route and sectoral cap for receiving the capital investments in an Indian entity from persons resident outside India. These rules expressly provide that any sector which is not mentioned in the sectoral list and which is not prohibited is eligible to receive 100% foreign investment under the automatic route. However, foreign investments in financial sectors, other than those in the prescribed list, are under the approval route category. This booklet provides a comprehensive review of all the sectors along with the FDI-linked performance conditions in the updated and simplest form for a better understanding.

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Vehicle Scrappage Policy April 2021

by Abhishek Bansal | Partner, Pavish Singhla | Senior Associate , Malvika Agarwal | Intern

The Ministry of Transport and Highways (“Ministry”) notified the draft Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 dated March 15, 2021 (the “RVSF Rules”) in furtherance of comprehensive vehicle scrapping and incentive policies. The RVSF Rules, though presently a draft set of legislation, shall come into force upon its finalization and subsequent notification by the central government. Nevertheless, the RVSF Rules, in their present form, provides a credible framework to comprehend the direction and the manner through which the comprehensive goal of overhauling the vehicle scrapping and incentivization concerning vehicles in India shall be achieved. The RVSF Rules are one of many notifications, some of the others being various notifications towards amending Central Motor Vehicles Rules, 1989 (“CMVR”), intending to achieve the aforesaid larger goal.

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Investor Protection Rights vis-à-vis Founders’ Rights
-Investment Agreements-

by Abhishek Bansal, Founding Partner ([email protected], +919873191956) I Pavish Singhla, Senior Associate ([email protected])

India’s start-up sector is snowballing with new start-ups setting up every other day with novel business ideas. Also being witnessed is the considerable public investments and listing of the start-ups that have turned into a unicorn in a short span.

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-Waiver under Contract Act- When Effective-
Doctrine of Promissory Estoppel

by Abhishek Bansal I Partner, Pavish Singhla I Senior Associate

The term ‘Waiver’ in general usage means to renounce any right or claim. It is a conscious informed decision that a party takes with respect to the renunciation of any right or claim that some other party is obliged to perform. Black’s Law Dictionary defined Waiver to mean the voluntary relinquishment or abandonment - express or implied - of a legal right or advantage;…The party alleged to have waived a right must have had both knowledge of the existing right and the intention of forgoing it. Accordingly, essential elements of a Waiver shall include

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-Doctrine of Severability- How Operates?-

by Abhishek Bansal I Partner, Pavish Singhla I Senior Associate

Severability Clause, or Separability Clause, a boilerplate clause often finds its little space in the last pages of a contract. This clause, since bearing considerable implications, is never overlooked by the parties to a contract. The Severability Clause is based on the ‘Doctrine of Severability’ or ‘Doctrine of Separability’, in according to which, in the event, any provision of a contract is rendered illegal or void, and therefore, not enforceable, the remaining provisions shall be severed and enforced independent of the unenforceable provision, provided such severance does not adversely affect the effectuation of the intention of parties to such contract.

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Returns by NBFC
Non-Deposit Taking – Systematically Important and Non-Systematically Important NBFC

by Abhishek Bansal I Partner, Laxmi Sinha I Senior Associate

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Comparison Chart
Non-Deposit Taking – Systematically Important and Non-Systematically Important NBFC

by Abhishek Bansal I Partner, Laxmi Sinha I Senior Associate

This chart seeks to outline the differences between a Non-Deposit Taking – Systematically Important NBFC (NBFC ND-SI) and Non-Deposit Taking – Non-Systematically Important NBFC (NBFC ND-NSI). For the said purpose, the criteria for deciding the status of systematically important NBFC is imperative and hence, the same is mentioned below

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MCA Relaxation To Hold Annual General Meeting Via VC/OAVM Amid COVID-19, And Arbitrary Relief To Only A Class Of Companies

by Kirti Dureja, Associate Partner

In view of the continuing restrictions on the movement of persons at several places in the country, Ministry of Corporate Affairs (MCA) now vide its circular dated 5th May, 20201 (“Circular-3”)has allowed companies to conduct their annual general meetings (AGM’s) through video conferencing (VC) or other audiovisual means (OAVM), during the calendar year 2020, subject to the fulfillment of the certain requirements. Earlier, MCA has provided provision for holding extraordinary general meetings (EGMs) through VC or OAVM facility upto 30th June, 2020 vide circular dated 8th April, 20202 (“Circular-1”) and 13th April, 20203 (“Circular-2”).

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Online Stores Considered As Start Of Business Activities; Insurance Intermediaries Under 100% Automatic Route; FPI Divestment Incase Of Excess Holding

by Abhishek Bansal,Partner I Laxmi Sinha, Senior Associate

Foreign investments in India have always been regulated since the beginning. Supervision on such investments has seen a phase of liberal view as opposed to restricted view applicable in the earlier years. Hence, with a constant need to align the rules to accommodate the changing cross border investments trend, the Ministry of Finance (“MoF”) has come up with the second amendment on the recently notified Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (“Principal Rules”) vide issue of notified Foreign Exchange Management (Non-Debt Instruments) (Second Amendment) Rules, 2020 (“Amendment Rules”) on April 27, 2020

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RBI DIRECTIVES Amid COVID-19

by Abhishek Bansa, Partner l Laxmi Sinha, Senior Associate

During this difficult time of global crises owing to COVID – 191 (“C-19”) pandemic, our Government has duly recognized the tough times Indian businesses are facing all over the nation and hence, Reserve Bank of India in consultation with the Government of India, and the Government of India itself has prescribed certain measures in order to liberalize the developmental and regulatory policies applicable on them. These measures are expected to mitigate the numerous disruptions on account of the C-19 pandemic and to ensure the continuity of viable businesses.

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Investments From China Require Government Approval- Fair Dealing Is A Key

by Abhishek Bansal,Partner I Laxmi Sinha, Senior Associate

The unequivocal lockdown declared by the Government of India towards the end of March 2020 is primarily considered to be the most potential and effective preventive measure against COVID-19. However, everything has its own cost and in the present case, where India is undergoing economic slowdown, which may make many Indian corporates an easy target for acquisition by foreign entities

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Employment In Times Of COVID-19 Pandemic APRIL 2020

by Pankaj Singla, Partner

The COVID -19 pandemic has caused disruption of business and life in the entire world and India is not immune to it either. The governments across the globe have taken several measures, some of which are unprecedented, in order to minimise the impact of this pandemic.

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COVID-19 Vis-A-Vis EXTENSION OF LIMITATION

by Govind Rishi, Partner | Pavish Singhla, Senior Associate

In its endeavour to contain COVID-19 pandemic, the government has promoting the idea of social distancing and issuing directions and taking other preventive and mitigating measures. Resultingly, with limited physical movement , accessibility of legal forums including the registry for the purposes of filing of proceedings (including petitions/applications/suits/appeals/all other proceedings) across India has become difficult for the litigants. Hence, Hon’ble Supreme Court acknowledging the unprecedented situation, , has taken suo moto cognizance and vide order dated March 23, 20201(“Order”) has extended the period of limitation for all the proceedings with effect from March 15, 2020 till further orders.

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COMPANIES FRESH START SCHEME 2020 | RE-SET OF CORPORATE COMPLIANCE STRUCTURE

by Kirti Dureja, Associate Partner

During this difficult time, with a view to boost the economy and as a reform to promote ease of doing business, the government of India has been making tremendous efforts in clearing backlogs/disputes/appeals under direct and indirect taxes which has resulted in the launched settlement schemes under direct tax (vivaad se vishwas scheme) & indirect tax (sabka vishwas scheme).

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FAQs - COVID-19 Vis-À-Vis Force Majeure APRIL 2020

by Abhishek Bansal,Partner I Pavish Singhla, Senior Associate

1. What is meant by the term ‘force majeure’?
Force Majeure is defined to mean “superior force” or “an event or effect that can be neither anticipated nor controlled”. Force Majeure events may include events such as floods, war, terrorism, earthquakes, other natural calamities or other events that may neither be anticipated nor controlled.

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COVID-19 Vis-A-Vis IMPACT ON PERFORMANCE OF CONTRACTS

by Abhishek Bansa, Partner l Pavish Singhla, Senior Associate

The unforeseen pandemic COVID-191 has brought an extensive disruptive effect on the businesses, the world over. The rapid momentum of proliferation of COVID-19 and its lethal consequences has forced the nations globally to take unprecedented steps towards containing the outbreak and to recover from the pandamic, including the complete cessation of not only the international air traffic but also the domestic traffic within.