By Arijit Chakravarty Outbound investments by Indian Companies have grown over the years. These investments are made in jurisdictions having benefits by way of low tax rate, simple regulatory regime, strategic location and business advantage and other beneficial criteria. Often the investments are structured as SPVs. In the context of such outbound investments by Indian entities, the concept of POEM becomes relevant, which would go to determine the residential status in India of such SPVs. In this context, while the draft guidelines for determining POEM of a company was issued around December 2015, the Central Board of Direct Taxes (CBDT) […]

By Satyajit Gupta & Rodrigo Ferraz de Camargo Background Brazil is the world’s fifth largest country and with an estimated population of 200 million, it is also the world’s fifth most populous country after China, India, USA and Indonesia. Brazil is a member of BRICS[1], an association of five major emerging national economies. Generally speaking, Brazil was a relatively closed economy in the 1970s and 1980s. However, similar to India, liberalization took place in the 1990s, resulting in the lifting of trade barriers and protective practices and the local manufacturers are now more competitive internationally. Brazil has rich biodiversity and abundant […]

The Union Budget 2017-18 (“Budget“), presented by the FM for the banking and financial service sector has been a departure from the conventional practice. Yet, this was not entirely unexpected considering several other startling policy/regulatory initiatives and reforms, such as the ground breaking reforms in restructuring, long-pending implementation of the Insolvency and Bankruptcy Code, amendments in the SARFAESI and Debt Recovery Tribunal Acts and of course the demonetization that the sector has already witnessed in the year 2016-17. The statement of the FM prior to unveiling of the budget “The current Financial Year is not a conventional year as many […]

By Rahul Arora & Abhinav Mishra The EPC market size in India has witnessed continued expansion over the past lustrum. Much akin to other financially stable countries requiring substantial infrastructure development, the Indian sub-continent has always provided a host of investment and participation opportunities to engineering, construction and supply-side players across the globe, especially with the government’s growing interest in the development of renewable energy. Under the budget of 2017-18, a rather voluminous inflow of investments has been allocated to the infrastructure sector. Expectedly therefore, the Engineering Procurement Construction (EPC) vertical of the sector is poised to gain from this […]

Aniket Prasoon & Abhishek Kumar The Central Electricity Regulatory Commission by its order dated October 14, 2016 has rejected NTPC’s prayer to grant a separate trading licence. However, it has allowed NTPC to utilize the trading licence already granted to its wholly owned subsidiary – NTPC Vidyut Vyapar Nigam Limited. Set out below is a summary of the order, our analysis and observations on the same. Brief Background NTPC Vidyut Vyapar Nigam Limited (NVVN) was designated as the nodal agency since 2010 under the Jawaharlal Nehru National Solar Mission (JNNSM), now called as National Solar Mission (NSM), for buying power from […]

 – Shradha Sachdev (With inputs from Satyajit Gupta) Introduction Traditionally, India has had a bank-dominated financial services sector. However, the importance of non-banking financial companies (NBFCs) has been recognized, not only as a supplement to mainstream banking in meeting the increasing financial needs of the corporate sector but also for delivering credit to the unorganized sector and to small local borrowers. The RBI Act broadly defines a NBFC as a financial institution that is into lending or investment or collecting monies under any scheme or arrangement but does not include any institutions which carry on agricultural activity, industrial activity, trading and purchase […]

by Sharath Chandrasekhar The peer to peer (“P2P”) lending sector, which currently remains largely unregulated, has undergone substantial growth and has eased the process of financing by facilitating borrowers and lenders (primarily individuals) to connect with each other conveniently on virtual platforms (“P2P Platforms”). P2P Platforms offer an avenue for financing which is distinct from conventional methods like bank financing, by doing away with snags such as complicated application and appraisal processes. However, this sector is presently hampered due to certain legal stipulations that restrict the transfer of the funds relating to the P2P lending transactions through electronic modes, which […]

In this edition of The Viewpoint, the team from Advaita Legal shares their thoughts on the demand and recovery provisions contemplated under the Goods and Services Bill of 2016.  Introduction: This note focuses on the provisions dealing with the demands and recovery provisions which are encapsulated under Chapter XIV. We have dealt with the relevant sections in the aforesaid chapter and compared the same with the corresponding provisions (if any) stipulated under the Finance Act, 1994 (“Finance Act”) and a sample VAT legislation [we have used the Delhi Value Added Tax Act, 2004 (“Delhi VAT Act”) as the sample for […]

Promoters of Indian listed companies have generally been viewed with a jaundiced eye, if and when a material decision is taken at their behest, with respect to their company. The recent notification of provisions in relation to dissenting shareholders, by way of insertion of chapter VI-A in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 appear to further and, in a way, institutionalize this perception. These provisions require the promoters or persons in control of the listed company to provide shareholders who vote against a proposed variation in fund raising objects or contracts entered into by the company […]

Introduction When a Court restrains a party to a suit or proceeding before it from instituting or prosecuting a case in another Court including a foreign Court, it is known as an anti-suit injunction. Anti-suit injunction is specie of injunctions and is governed by the principles governing grant of injunction, an equitable relief, by a Court. Of the various forms of provisional relief in the context of international litigation, none has sparked as much interest and controversy as the international anti-suit injunction.[1] It is a common ground that the Courts in India have power to issue an anti-suit injunction to […]