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New Game; New Rules- Navigating the Direct Listing Scheme
[By RS Sanjanaa & Sahil Agarwal] The authors are students of Symbiosis Law School, Pune and Government Law College, Mumbai respectively. [I.] Introduction The Indian Government has allowed public companies to directly list and issue their equity shares on international exchanges. This move is aimed at bolstering the Indian economy by allowing companies (especially…
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Supplier Secrecy, Buyer Company’s Woes: The Chronicles of Delayed Payments under the MSMED Act
[By Rajan Thakkar & Manasvi Verma] The authors are students of Gujarat National Law University, Gandhinagar. Introduction Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 imposes a liability on the buyer companies to make the payment to their suppliers within the period mentioned under Section 15[i] of the Act and upon failure of…
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The Conundrum of the Legal Standing of Nominees of Deceased Shareholders in the Context of Succession: Shakti Yezdani v. Jayanand Jayant Salgaonkar
[By Devanshi Shukla] The author is a student of MNLU Aurangabad. Introduction Nomination as a process involves selecting another person as a legal nominee or representative by a person during his lifetime in respect of specific assets or properties. In the recent case of Shakti Yezdani & Anr. v. Jayanand Jayant Salgaonkar & Ors,…
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Lifting Or Piercing The Corporate Veil: Clarifying The Two-Step Examination
[By Arunoday Rai] The author is a student of National Law School of India University. Introduction The doctrine of lifting or piercing the corporate veil is fundamental to the company law. This doctrine acts as an exception to the concept of a company being a separate juristic entity. It allows the court to treat the…
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Decoding MCA’s move allowing Direct Listing of Indian Securities on Foreign Exchange
[By Anand Vardhan & Piyush Raj Jain] The authors are students of Gujarat National Law University. Introduction The Ministry of Corporate Affairs has enforced section 5 of The Companies (Amendment) Act, 2020, through a notification dated 30th October, 2023 . This has led to an addition to section 23 of The Companies Act…
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Unveiling the Shadows: Legal Implications of “Accustomed to Act” with relation to Shadow Directors
[By Divyansh Bhatnagar & K Prashant Agrawal] The authors are students of Damodaram Sanjivayya National Law University. Introduction The concepts of Related Party and Shadow Director and the implications of the phraseology “any person in whose advice, directions, or instruction the Board of Directors of a Company is accustomed to act” involves jurisprudence of…
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Balancing Autonomy and Oversight – SEBI’s Prudential Norms for Clearing Corporations
[By Tamanna Das Patnaik] The author is a student of National Law University, Odisha. Introduction Financial Market Infrastructures (FMIs) play a vital role in the economy. They serve as coordinating mechanisms and bring a network of counterparties together for the efficient operation of financial markets. Clearing Corporations (CCs) are one such important category of…
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Reconsidering Related Party Regulations: Critical Analysis of SEBI (LODR) Regulations 2021
[By Chaitanya Gupta] The author is a student of Jindal Global Law School. Introduction Related parties are important to corporate transactions because the parties have a pre-existing special relationship. Such transactions include business deals, series of contracts, etc. These relationships that exist prior to the transaction may appear in the form of parent-affiliate companies,…
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Layering Labyrinth of Overseas Investment and Companies Rules: An Interpretative Solution
[By Akshita Bhansali & Niharika Agarwal] The authors are students of Gujarat National Law University. Background In the backdrop of several tax evasion and money laundering cases, upon the recommendations of the Joint Parliamentary Committee on Stock Market Scam, the Ministry of Finance introduced the Companies (Restriction on Number of Layers) Rules, 2017 (“Layering…