Articles

Introduction to the concept of Anti-Dilution An investor’s decision to invest in a company is, usually, driven by the company’s futurepotential. If it is subsequently found that the company has failed to meet its expectedpotential, a valuation dip occurs. This often leads to a down round which refers to theissuance of shares at a lower […]

A. INTRODUCTION TO FINTECH COMPANIESFinTech is a colloquial term that refers to technology-driven start-ups that are challenging traditionalbanking techniques and established financial players. Despite the absence of a universally accepteddefinition, the Financial Stability Board of the Bureau of Indian Standards (BIS) defined FinTech as“technologically enabled financial innovation that could result in new business models, applications,processes, […]

Introduction Directorate of Enforcement (ED) is a specialized body tasked with implementing two crucial financial laws –Prevention of Money Laundering Act, 2002 (PMLA) and Foreign Exchange Management Act, 1999 (FEMA). ED exercises mainly two functions under the relevant laws: – conduct an investigation for violations of the FEMA provisions and money laundering offences under the […]

A. Introduction Alternate dispute resolution methods have lured many away from litigation. Arbitration, being one among them, is cost-effective, flexible and less time-consuming compared to the long procedure one has to go through in the regular court proceedings. It has changed the approach to legal practice in India. A number of amendments have been made […]

INTRODUCTION The object behind the formation of the Directorate of Enforcement was to create a body capable of enforcing the provisions of two special fiscal laws, i.e., the Foreign Exchange Management Act, 1999 (FEMA) and the Prevention of Money Laundering Act, 2002 (PMLA). The Directorate recruits’ officers through two mediums, i.e., directly or from other […]

When a company is created which results towards investment by more than one person into the company, a shareholders’ agreement is essential. Generally, the shareholders enter into such agreement during the registration of the company, however when it comes to the upcoming/new investors, the existing and the new investors may enter into and execute a fresh […]

INTRODUCTION India does not have a specific statute dealing with franchise matters. The Finance Act, defined the term franchise, which has now been repealed, owing to the introduction of the Goods and Services Tax. The Finance Act had defined a franchise, in the context of service tax, to mean an agreement by which the franchisee […]

“Lease rentals arising out of the use and occupation of a cold storage unit which is for a Commercial Purpose is an ‘Operational Debt’ as envisaged under Section 5 (21) of the Code.”[1] This was the National Company Law Appellate Tribunal’s (‘NCLAT’) holding in the case of Anup Sushil Dubey v. National Agricultural Co-operative Marketing Federation of […]

A demerger is a reorganisation plan in which a single company is separated into two or more organisations, each of which is legally registered as a separate corporate entity and operates independently. The term demerger is not defined under the Companies Act of 1956 or the Companies Act of 2013, however Section 2(19AA) of the […]

INTRODUCTION Bonus issue and split of shares are ways of rewarding the shareholders. Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are the company’s accumulated earnings which are not given out in the form of dividends but are converted […]