Articles and Updates

• Siddharth Hariani -

The notification issued by the Securities and Exchange Board of India (SEBI) on 3 October 2013 provided much needed clarity on the validity of contracts relating to right of first refusal, tag-along and drag-along rights, and options to buy or sell securities contained in shareholders agreements or articles of association of companies. A criticism leveled at this notification was that it only addressed the validity of such contractual rights in the domestic context, and did not validate these contractual rights

• Sawant Singh -

On 6 November, the Reserve Bank of India (RBI) issued its much awaited framework for the presence of foreign banks in India. The framework envisages that foreign banks will be present in India preferably through wholly owned subsidiaries (WOS) rather than branches, and such WOS will enjoy “near national treatment”.

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The Supreme Court ordered status quo as it existed on the date of the order passed by the single judge of the Delhi High Court, thereby granting Star an interim injunction against Akuate and its fellow defendants duringthe pendency of an appeal before the apex court of the country. With the final ruling being expected at the end of the year, there is much anticipation that this would be a watershed decision for the Indian media and entertainment industry.

• Siddharth Hariani -

With the issuance on 3 October of a notification under the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India (SEBI) provided much needed clarity on the validity of contracts relating to the right of first refusal, tag-along and drag-along rights, and options to buy or sell securities (collectively referred to as “contractual rights”) contained in shareholders’ agreements or articles of association of companies.

• Siddharth Hariani -

Af ter much vaci l lat ion, the Companies Act, 2013, has finally been enacted by the Indian parliament to replace the Companies Act,1956, which was increasingly being viewed as archaic and out of step withthe requirements of the corporate world.