The Ancillary Business Conundrum
A. Introduction: As most are already aware, foreign direct invest (“FDI”) into certain sectors are regulated. Under the extant foreign direct investment policy of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India (“FDI Policy”) up to 100 % FDI into some sectors is permissible without any government approval
Read MoreMinistry Of Corporate Affairs Eases Deposit Rules – To Help Start-Ups Raise Further Capital
A. Introduction: Any money received by a company including start-ups from any person by way of deposit or loan or in any other form, is considered to be a ‘deposit’ under the Companies Act, 2013 (Act) subject to certain exceptions as set out in the Act read with the Companies (Acceptance of Deposits) Rules, 2014
Read MoreApplicability Of Limitation Act, 1963 Over Insolvency Proceedings Under The Insolvency And Bankruptcy Code, 2016
A. Introduction: Babulal VardharjiGurjar Vs. Veer GurjarAluminium Industries Private Limited &Anr. [Judgment dated August 14, 2020 in Civil Appeal No. 6347 of 2019] The application of the law of limitation on insolvency proceedings was clarified by the legislature by insertion of Section 238A and subsequent judgment of the Supreme Court in the case B.K. Educational
Read MoreThe ‘Long Lease’ Model – A Primer On Acquiring Private Agricultural Land For Solar Projects In Rajasthan, India
A. What is the Issue?: (i) The Indian state of Rajasthan – with abundantly available land, sunlight and an enabling policy framework, is a preferred destination for project developers in the solar power sector. Ostensibly, Rajasthan’s Solar Policy 2019 (“SolarPolicy”) exempts project developers from the regulatory rigours of acquiring agricultural land. This includes exempting developers
Read MorePhantom Stock Options – An Alternative Employee Incentive
A. Introduction: Share-based incentives are a popular tool used by companies to combat attrition and encourage performance. While employee stock option plans (“ESOPs”) and general employee benefits schemes have traditionally been in vogue, stock appreciation rights (“SARs”) which lend itself to a greater degree of customization, are slowly gaining momentum. Phantom stock options (“PSO/s”) are
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