Summary of the Insolvency and Bankruptcy Code, 2016

DSK Legal

15The Insolvency and Bankruptcy Code (“Insolvency Code”), had been introduced in the Lok Sabha on December 21, 2015. The Insolvency Code was then referred by both Houses of Parliament for further deliberation to a Joint Committee of both Houses of Parliament (“JPC”). The Report of the JPC was placed before both Houses of Parliament on […]

Stamp Duty Saga - Section 30-A of Maharashtra Stamp Act

As the banking system continues to deal with the increase in defaults, it becomes imperative and puts the spotlight back on the underlying documentation to be used for enforcement. It is common knowledge that bank and financial institutions are mindful as to whether a document through which their rights flow are adequately stamped or not. […]

Protocol Amending the India Mauritius Tax Treaty

The Viewpoint Bar and Bench

India and Mauritius have recently signed a Protocol revising the tax treaty between them to enable India to impose tax on capital gains derived by a Mauritius resident on transfer of shares of an Indian Company. The curtain finally came down on the protracted negotiations between India and Mauritius as the two countries signed a […]

Revised Norms on FDI in Asset Reconstruction Companies - A Game Changer?

The Department of Industrial Policy & Promotion, vide a press note dated 6th May 2016 (the “Press Note”) has allowed 100% foreign direct investment (“FDI”) under automatic route in Asset Reconstruction Companies (the “ARCs”), subject to certain key conditions. This FYI provides a brief overview of the changes and their impact. To download the full article, […]

Investment advisory and banks - The future

Traditionally banking function in India is considered as taking deposits and providing loans. This is substantially enhanced and banks today provide various products and services such as selling of insurance products, mutual funds, acting as financial consultants etc. These activities are generally monitored by a bank internally by implementing stringent policies to avoid conflict of […]

Insolvency and Bankruptcy Code, 2016

The Government has formulated a plan to refurbish the prevailing bankruptcy laws and replace them with one that will facilitate stress-free and time-bound closure of businesses. The draft legislation, since the report issued in November 2015 by a panel headed by former law secretary Mr. T.K. Viswanathan, has gone through various changes, including changes recommended […]

Masala Bonds - Rupee Denominated Bonds issued overseas

The Reserve Bank of India (“RBI”) in September 2015 issued guidelines for issuance of Indian Rupee denominated bonds (“RDBs”) overseas (“Guidelines”) which has been recently enhanced. RDBs have ushered a new era for debt-raising by Indian companies, and will integrate financial markets in India further with the rest of the world. Allowing companies to issue […]

Budget 2016: Good times ahead for bond markets?

While the Indian corporate bond market has become more active in the private placement segment in the past few years, the mar- ket’s overall development has been ad hoc. This situation seems set for a much needed change, with the Reserve Bank of India (RBI) under its current governor, Raghuram Rajan, actively promoting the migration […]

Earn-outs in M&A- Part I (Pitfalls to avoid: the Seller's perspective)

DSK Legal

Background Very simply put, earn-out transactions are those transactions where the acquirer acquires a business but holds back a part of the purchase consideration, the payment of which is dependent on the performance of the business acquired. The seller continues to manage the operations of the business and the amount of consideration payable is contingent […]