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Showing posts from August, 2013

SEBI Tightens the Noose for Preferential Allotments

With a view to enhance transparency, ensure adequate audit trail and to plug the entities misusing the private placement route to garner funds, the Capital Market Regulator, SEBI vide its notification dated 26th August, 2013, has made certain amendments in the Chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

SEBI’s initiative is surely a welcoming step that aims at aligning private placement norms applicable on listed companies with the new Companies Bill on one hand and to cork regulatory loopholes and protect investors’ interest on the other.

RBI Updates: Overseas Direct Investment and Liberalized Remittance Scheme

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Considering the present economic scenario and downsizing the value of the Rupee against internationally recognized currencies, the Reserve Bank of India has come out with some measures to rationalize the regulations governing the 'Overseas Direct Investment' and 'Liberalized Remittance Scheme for Resident Individuals' with immediate effect vide circular no. 23 and 24 dated 14th August, 2013. 1. Overseas Direct Investments (Circular No. 23) Mr. Abhishek Bansal
Sr. Associate
+919873191956
abhishek@indiacp.com As per the extant provisions of FEMA 1999 on overseas direct investments, an Indian Party is allowed to invest overseas in all its Joint Ventures (JVs) and/ or Wholly Owned Subsidiaries (WOSs) abroad engaged in bonafide business activity to the extent of 400% of its net worth as on the date of the last audited balance sheet under the Automatic Route.

SEBI updates: Registered AIF and Amendment in Buyback of Securities Regulations

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SEBI notifies conditions for registered Alternative lnvestment Funds intending to change their category On 21st May 2012, SEBI had notified the Alternative Investment Fund (AIF) Regulations thereby bringing all privately pooled investment funds under one roof (except Mutual Funds and Collective Investment Schemes). The said Regulations demarcate AIFs into three categories with all the categories having different investment purposes, type of schemes and benefits.
Ms. Deepika Vijay Sawhney
Partner
++919818316936
deepika@indiacp.com With respect to these very fresh Regulations, SEBI had recently on 29th July 2013 notified certain operational, prudential and reporting norms with respect to AIFs which answered a lot of questions with respect to the AIF Regulations thus bringing more clarity in regards to a certain aspects. Keeping in line with its efforts to fine tune the AIF Regulations, SEBI has come out with some further clarification vide its circular dated 07th August 2013.

Phantom Stocks : Contemporary Variation of ESOP

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For any Organization-be it a Start up or a long existing one, the buzzword these days is “Employee Retention”. High employee turnover keeps the CEOs/HR Heads on their toes and they keep wondering how to Award, Reward and Retain their human asset.

Ms. Anjali Aggarwal
Vice President
+919971673336
anjali@indiacp.com In such a scenario, Employee Stock Option Plan (ESOP) have emerged as a handy tool for employee retention. ESOP give the employee a right to buy a specific number of company's shares at a fixed price within a certain period of time. Employees\ who is granted stock options expect to gain by disposing off their shares at a higher price than at what they were granted.

SEBI Directions w.r.t. Alternate Investment Funds

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SEBI as on 21st May 2012 had notified SEBI (Alternate Investment Funds) Regulations 2012, wherein any privately pooled investment vehicle collecting fund from Investors are needed to get registered as Alternate Investment Funds under any one of three Categories that is Category I, II or III. Out of the prescribed categories, Category III Alternative Investment Funds are allowed to employ diverse and complex trading strategies and to engage in leverage or borrow funds subject to consent from the investors in the fund and a limit as specified by SEBI. Also, as per the regulations, the Category III AIFs shall are to be regulated by directions issued by the Board from time to time regarding aspects like operational standards, business rules, prudential requirements, restrictions on redemption and conflict of interests.
Ms. Deepika Vijay Sawhney
Partner
++919818316936
deepika@indiacp.com Keeping in line with this and in continuance of its efforts to protect the interest of investors in the Ind…