We are happy to present the eighth issue of our e-magazine – Trilegal Quarterly Roundup.
If you would like to navigate to the magazine directly, click here. If you would like to read a brief summary of what this issue features, please continue reading below and use the hyperlinks provided to access individual features.
INSIGHTS
- Key Employment Law Considerations in Business TransfersThe approach towards employee transfers or redundancies, structuring of pay and benefits, etc., can be complex and often be the subject matter of heavy negotiations between parties in case of transfer of business undertakings. This is further complicated by conflicting judicial precedents. These FAQs discuss key employment related considerations associated with business sales or acquisitions in the private sector in India.
- Arbitrator’s Dilemma: Dignified Exit or Jurisdictional ChallengesArbitrator disclosures under the new arbitral regime in India (Arbitration and Conciliation Act, 1996, along with amendments made to it in 2015 and 2019), are aimed at promoting fairness and transparency in arbitration proceedings. This article explores the legal framework and guidance on such disclosures. It also analyses the mechanism for challenging an arbitrator’s mandate in India, and positions adopted by Indian and foreign courts and arbitral institutions while deciding such challenges.
TUNE IN
Our Partner, Akshay Jaitly, and Ajay Shah, economist and Co-founder – XKDR Forum, discuss the rise of the Indian ‘Firm’ and its role as a key driver of economic growth.
To watch this video, click here.
QUARTERLY MILESTONES
- Corporate
- Enhanced corporate governance standards prescribed for listed entities
- Definite timelines introduced for fast-track mergers
- Certain categories of investors exempted from the applicability of the angel tax provision
- Dispute Resolution
- Supreme Court clarifies the scope of adjudicating authority’s power to decide on a financial creditor’s insolvency application when debt and default have been established
- Supreme Court holds unstamped or insufficiently stamped arbitration agreements unenforceable
- Delhi High Court holds arbitral award to be unenforceable against a third-party funder who is a non-party to the arbitration proceedings or award
- Jharkhand High Court holds that a resolution professional falls within the definition of a ‘public servant’ and can be proceeded against under the Prevention of Corruption Act, 1988
- Labour and Employment
- Delhi High Court rules that a victim can raise sexual harassment complaint even if the delinquent employee is from a different office
- Telangana government renews permission for establishments to remain open on all 365 days
- Maharashtra government exempts female employees earning up to INR 25,000 from depositing professional tax
- Chhattisgarh government notifies the Rights of Persons with Disabilities Rules, 2023
- Technology and Telecommunication
- India revamps space policy to enable private participation in the satellite sector
- Karnataka High Court holds that blocking orders issued by MEITY can be account specific and need not be tweet/content specific
- Insurance entities are subject to new cybersecurity compliance and audit requirements
- Telecom service providers are now required to deploy artificial intelligence-based tools to filter spam communications
- Media and Gaming
- ASCI releases guidelines to combat ‘dark patterns’ in online advertising
- New Tamil Nadu Gaming Act classifies rummy and poker as games of chance and introduces a registration framework for providers of local online games
- Fintech
- Fintechs can enter into default loss guarantee arrangements in digital lending transactions up to 5% of the loan portfolio
- NBFCs outsourcing IT services subject to new risk-based compliances
- RBI permits regulated lending entities to deploy Aadhaar OTP based e-KYC for updating details in non-face-to-face mode and access the Central Know Your Customer Registry for due diligence; prescribes compliances for Video based Customer Identification Process
- Financial Regulatory Regime
- Foreign Portfolio Investors fulfilling certain criteria will now have to make additional disclosures of ownership, economic interest, and control
- Alternate eligibility criteria introduced for sponsoring a mutual fund, easing the entry of private equity funds
- New regulatory framework notified for providing execution-only services in mutual funds
- Stringent advertisement code issued for investment advisers and research analysts
- Banking and Finance
- SEBI approves amendments to provisions for listing and delisting of non-convertible debentures
- RBI issues framework for acceptance of green deposits by regulated entities
- Capital Markets
- Amendments to the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018:
- Codification of ‘hard underwriting’ provisions
- Pension funds sponsored by associates of lead managers allowed to invest in public issues as anchor investors
- SEBI prescribes enhanced corporate governance standards for listed entities
- Legal Entity Identifier code is now mandatory for entities that have listed or propose to list debt securities
- Direct Tax
- Exemption from angel tax provision for:
- Recognised start-ups
- Consideration received from exempted investors
- Proposed amendments to angel tax valuation rule:
- New valuation methods for equity shares issued to non-resident investors
- Date of valuation report deemed to be the valuation date, if issuance of shares is within 90 days of the date of the valuation report
- Safe harbour limit of up to 10% for equity shares
- Price matching principle introduced
- Indirect Tax
- Service tax on import of Engineering Design and Drawings
- Service tax on User Development Fees collected by airport developers from passengers
- Mandatory fulfilment of pre-import condition to avail IGST exemption in respect of goods imported under the Advance Authorisation Scheme
- Doctrine of legitimate expectation in respect of statutory exemptions
- Intellectual Property
- Computer programs that demonstrate technical contribution are eligible for patent protection
- Criteria for patent-ineligible ‘business methods’ clarified; computer programs producing a technical effect would be patentable
- Appeal from a trademark rectification order by a high court will lie before its appellate bench
- Author remains the owner of a screenplay, even when commissioned by a producer
- Authors of underlying works of a sound recording are entitled to independently seek royalties for the use and communication of the sound recording
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