Regulatory Overview for Overseas Direct Investments

A. INTRODUCTION: Direct Investment outside India means investment by way of contribution to the capital or subscription to the Memorandum of Association of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange, by setting up a Joint Venture (JV) […]

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Regulatory Overview for External Commercial Borrowings

REGULATORY OVERVIEW FOR EXTERNAL COMMERCIAL BORROWINGS A. INTRODUCTION: External Commercial Borrowings (ECB’s) are commercial loans raised by eligible resident entities from recognized non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters given below apply in totality and not on a standalone basis. ECB […]

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Ease of Doing Business: Company Vs. LLP

Ease of Doing Business- Company Vs. LLPA. INTRODUCTION: At the point when entrepreneurs start their new business, there is a typical disarray between which type of entity they should choose which will be best suited for their business. One must have basic information on what are the pros and cons of these organizations. In this […]

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Oppression and Mismanagement under Companies Act, 2013

Oppression and Mismanagement under Companies Act, 2013 A. INTRODUCTION: It is a known fact that the management of a company is completely based on the majority rule, however, at the same time the interests of the minority can’t be completely neglected. While discussing with regard to majority and minority, let us be clear that we […]

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Enforceability of SHA over AOA

Enforceability of SHA over AOA A. INTRODUCTION: A Shareholder’s Agreement (“SHA”) is an agreement between the company and the shareholders which describes the rights and obligations of the shareholders of the company. It also describes as to how a company should be operated. It also provides for the details with respect to information of the […]

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Laws Governing Sports in India

A. INTRODUCTION: Sports activities were invented by the man as a means to meet socially with others, to display skills and physical prowess and to entertain and has now become an integral part of human life since the time immemorial and necessary component of human development, good health, and the spirit of friendly competition. Sport […]

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Liquidation Preference-Investment Agreements

Liquidation Preference-Investment Agreements A. INTRODUCTION: A liquidation preference clause is usually incorporated in investment agreements with a view to protecting the investment made by the investors in companies, upon the occurrence of certain events. A liquidation preference, in general terms, means the order in which payments shall be made during the event of corporate liquidation. […]

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Blanket Suspension of IBC- Will Hurt Genuinely Affected Lenders

Since the outbreak of the COVID-19 pandemic in India, there has been call-out in relation to whether the government of India would alter the operation of the Insolvency and Bankruptcy Code, 2016 (“IBC”). On March 24, 2020, the Union Finance Minister announced that the central government is considering the suspension of Sections 7, 9 and […]

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Strategic Negotiation of a Franchise Agreement

A. INTRODUCTION: A franchise is a form of business in which a company which has developed a product or service (the franchisor) enters into a contractual relationship with other entities (franchisees) which usually operates under the franchisor’s trade name and guidance in exchange for a consideration. The concerned parties enter into a franchise agreement which […]

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Term Sheet- Capital Raise

A. INTRODUCTION: A term sheet is an intention to complete a transaction. It is a non-binding document that lays down the basic terms and conditions of the proposed investment. It is usually entered into between parties before they enter into a definitive agreement which would govern the terms of their investment. The parties should ensure […]

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