Articles

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 […]

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 […]

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 […]

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, […]

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’ […]

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 […]

Introduction The Ministry of Corporate Affairs has officially announced The Limited Liability Partnership (Third Amendment) Rules, 2023 (“Amendment Rules”)[i], on October 27, 2023, with an aim to bring certain key developments in the existing regulations pertaining to the Limited Liability Partnerships (“LLP”) in India. Key developments introduced by this Amendment Rules are as follows: Rule […]

Introduction The Securities Exchange Board of India (“SEBI”) introduced the concept of a Social Stock Exchange (as defined below) on July 25, 2022, by amending the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”), SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (“LODR Regulations”), and SEBI (Alternative Investment Fund) Regulations, 2012 (“AIF […]

Introduction The concept of a social venture fund (“SVF”) was primarily defined and discussed under the Securities Exchange Board of India (Alternative Investment Fund) Regulations, 2012 (“AIF Regulations”). The SVF framework had been established by SEBI (Securities Exchange Board of India) to help bridge the gap between social welfare and opportunities for stakeholders to effectively […]

To promote the growth of BPO (as defined below), the central government introduced the India BPO Promotion Scheme (“Scheme”), as envisaged under the Digital India Programme, which sought to incentivize the establishment of seats with respect to BPO or IT Enabled Services (“ITeS”) across the country. However, as per Clause 3 of the Scheme, the […]