Valuation Requirements Under Companies Act 2013
The Companies Act 2013, a landmark legislation in India, outlines various provisions and regulations governing the functioning of companies. Among these, valuation requirements play a crucial role in different scenarios such as preferential issue of further shares, non-cash transactions, compromise or arrangements, purchase of minority shareholding, and the submission of reports by Company Liquidators. In […]
Understanding Various Financial Instruments under the Companies Act, 2013:
Introduction: A critical facet of a company’s structure revolves around the issuance of diverse financial instruments, each crafted to serve distinct purposes. In this exploration, we will take a high-level dive into the varied instruments outlined under the Companies Act, 2013. Equity Shares: Purpose: Represents ownership with voting rights and dividends based on company profitability. […]
Decoding Main Board IPO Regulatory Nuances in India
Embarking on a Main Board IPO in India demands a meticulous understanding of intricacies. Here’s a high-level guide to comprehend the complexities: 1. Valuation: Conducting thorough financial scrutiny and market analysis to anticipate IPO valuation. 2. Existing Investors / Shareholders: Understanding the role of existing investors/shareholders in the entire process. 3. OFS vs Primary: Analyzing […]
Retaining Talent: Unlocking Employee Incentives for Organizational Success
Introduction: In the dynamic landscape of job opportunities and heightened competition, companies face the ongoing challenge of retaining their valuable talent. In this article, we explore effective means to keep employees motivated and engaged through tailored incentive programs, focusing on Employee Stock Options (ESOP), Sweat Equity, and Phantom Stocks. Employee Stock Options (ESOP): ESOPs serve […]
Demystifying Startup Equity Investment Terms:
In this article, we aim to delve into key concepts, shedding light on the language that shapes the startup investment landscape. 1. Premoney Valuation: Premoney valuation, the estimated value of a company before external funding, sets the stage for investment negotiations. If a startup is valued at $5 million before a funding round, its premoney […]
Navigating Global Expansion: Legal Framework for Flipping Corporate Structures
In the dynamic landscape of global business, the growth of companies often leads founders to contemplate flipping their structures, establishing holding companies outside India for easier access to global investors and overseas listings. This strategic move involves various considerations, necessitating a comprehensive understanding of legal frameworks and potential implications. This article explores key facets surrounding […]
Navigating the Crucial Phases of a Comprehensive Fundraising Transaction.
Embarking on fundraising involves strategic considerations across key stages for success. Let’s explore these phases: 1. Termsheet: The foundation is laid with the termsheet, a preliminary, non-binding document outlining fundamental terms like valuation, investment amount, and governance structures. It sets the stage for negotiations and provides a blueprint for subsequent steps. 2. Due Diligence: Legal […]
Navigating Convertible Notes for Start-up Funding
Introduction: In the volatile landscape of start-ups, where failure is a common thread, innovative financing instruments become essential. One such tool gaining popularity is the convertible note, offering a unique approach to fundraising without immediate equity sacrifice. This article delves into the nuances of convertible notes, their benefits, legal considerations under the Companies Act, 2013, […]
Analysis of SEBI’s recent regulation framework which aims to incentivize Large Corporates for strengthening its debt market
In the dynamic landscape of financial regulations, the Securities Exchange Board of India (“SEBI”) has recently undertaken a revision in its framework governing the fund-raising endeavors of large corporates through the issuance of debt securities. This pivotal adjustment, outlined in a recent notification, seeks to impose regulatory oversight on listed entities categorized as ‘Large Corporates’ […]
Digital Lending by Fintech Companies – Recent Updates
Introduction The term, ‘Fintech’ is an umbrella term to denote technological innovation in the field of financial services, and the term is derived from the combination of both the word “finance” and “technology.” According to Financial Stability Board, “Fintech is technologically enabled financial innovation that could result in new business models, applications, processes, or products […]
