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Showing posts from September, 2014

SEBI’s relaxation in Governance Norms proved to be a breather for listed entities

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In a step towards addressing the practical concerns that the listed entities were facing in ensuring compliance with Corporate Governance norms, the Capital Market Regulator, SEBI has rolled out amendments in the revised Corporate Governance Norms that were proposed to be effective from October 1, 2014 with the basic premise of promoting interest of varied stakeholders on one hand and aligning the provisions of extant Clause 49 of the Listing Agreement with the Companies Act, 2013 on the other. 
Ms. Anjali Aggarwal
Vice President
+919971673336
anjali@indiacp.com The diluted version of the norms aims to intensify the corporate governance framework for listed companies in India and would simplify the practical concerns that are being faced by listed entities in adherence to the revised Corporate Governance norms that were floated on April 17, 2014. 
Key amendments are outlined as follows:

Stock Options to Foreign Employees

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It is rightly said that inculcating a feeling among the Employees that management is not just concerned about their value addition to the organization but is very well concerned in accretion of their personal wealth, would not just create a sense of belongingness among Employees but would enhance their overall productivity.

Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com With the emergence of concept of border less world, enhanced financial integration, global business presence and easy mobility of workforce, balancing sustainable growth and a pool of talent thereby ensuring same or better footing to its Employees what it counterparts are offering (whether in India or abroad) has become critical. Therefore, to address the concerns of Brain drain and Organization’s growth,there is a need to contemplate new incentive plans that align the need of both Employees (domestic and global) and the Organization for their mutual growth and advancement.

Regulatory Framework of Non- Banking Financial Companies in India

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NBFCs are the companies which are engaged in the business of providing finance through loans and/or investments in other companies. As per the provisions of Section 45I of the RBI Act, a company registered under the Companies Act, 1956 or any other corresponding legislation for the time being in force, which is engaged in the business of acquisition of
Mr. Pankaj Singla
Sr. Associate
+919971508320
pankaj@indiacp.com shares/ bonds/ debentures/ securities or other marketable securities like leasing, hire-purchase, insurance business, chit business, loans and advances is considered as an NBFC. Similarly, a company engaged in the business of receiving deposits under a scheme or arrangement of lump sum or instalments (by way of contributions or any other manner) is also included within the ambit of the NBFCs.

Foreign Investment in Rail Infrastructure

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Press Note No. 8 (2014 Series) In terms of the FDI Policy, foreign investment is prohibited in railway transport, except Mass Rapid Transport System (“MRTS”).

Mr. Pankaj Singla
Sr. Associate
+919971508320
pankaj@indiacp.com The Government of India, vide notification S.O. 2113(E) dated August 22nd, 2014, has amended the list of industries reserved for public sector and has allowed domestic as well as foreign investment in rail infrastructure. Accordingly, DIPP vide Press Note no. 8 (2014 Series) dated August 27th, 2014, has amended Para 6.1 of the FDI Policy and permitted flow of foreign investment in the railway transport sector in construction, operation and maintenance of: