EXIT RIGHTS
-Share Subscription and Shareholders Agreement-

Supplemental to our previous writing on ‘Investor Protection Rights - Share Subscription and Shareholders Agreement’ , this article focusses on various ‘Exit Rights’ sought and negotiated by the Investors while making investments, where such Exit Rights are aimed towards providing an exit opportunity to such an Investor in either of the following manners:

“EMERGENCE OF THE POSH ACT & ITS FEATURES VIZ-A-VIZ VISHAKA GUIDELINES"

India is rapidly progressing in its developmental goals and more women are joining the workforce, resulting in the sexual harassment of women at the workplace is becoming increasingly prevalent in India. Sexual harassment at the workplace is an extension of violence in everyday life and is discriminatory and exploitative, as it affects women’s right to life and livelihood.

“LARGE CORPORATE ENTITIES TO RAISE FUNDS THROUGH ISSUE OF DEBT SECURITIES UNDER SEBI (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008”

In order to uplift the bond/ debt market in India and to reduce the over-reliance burden on the banks for corporate funding, the Indian capital market regulator, Securities Exchange Board of India (“SEBI”) has initiated to diversify the borrowings of Indian corporates, to consider mandating the Large Corporate entities (hereinafter known as “the LCs”) (as defined below), through raising about one-fourth of the incremental financing needs by the issuance of debt securities

“MSME BENEFITS, AND STIMULUS RELIEF PACKAGE AMIDST COVID-19: PAVING WAY TOWARDS GROWTH & OPPORTUNITIES”

MSME stands for Micro, Small and Medium Enterprises, which is playing a vital role in the economic growth with minimal investment, not only in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. The MSME sector has emerged as a highly vibrant & dynamic sector of the Indian economy over the last five decades.

“COVID-19 PANDEMIC: SEBI MEASURES TO EASE COMPLIANCE NORMS”

The capital market regulator, SEBI has taken various measures to ease the compliance norms for the Indian listed entities to contain the COVID-19 outbreak, considering the various challenges faced by them during the lockdown period. This article consolidates all the extensions/ relaxations/ exemptions granted by SEBI till 13th April 2020.

-Doctrine of Severability- How Operates?-

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.

Investor Protection Rights vis-A -vis Founders Rights
-Investment Agreements-

Indias 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.

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

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

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

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

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”).

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

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

Employment In Times Of COVID-19 Pandemic APRIL 2020

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.

COVID-19 Vis-A-Vis EXTENSION OF LIMITATION

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.

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

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).

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

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.