We are happy to present the eleventh 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
- Downstream Investments by FOCCs: Practical Challenges and ConundrumsThe regulatory uncertainty surrounding downstream investments by foreign owned or controlled companies raises more than a few challenges in structuring transactions and leaves certain key aspects open to interpretation. This article highlights the resultant conundrums and industry views and makes a case for a comprehensive framework for FOCCs.
- Spotlighting the Need for Elaborate Set-off Provisions in Commercial ContractsThis article analyses the utility of set-off provisions in commercial contracts, especially in the context of insolvency, in light of a recent Supreme Court decision. It also provides key takeaways for ensuring the feasibility of set-off provisions and making them capable of withstanding judicial scrutiny.
TUNE IN
Our Partner, Clarence Anthony, speaks with Sandeep K. Rathod, Global General Counsel & Head of Compliance at Piramal Pharma Limited, about his M&A experience in pharmaceuticals and healthcare. Their discussion revolves around identifying legal risks and considerations in pharma M&A deals, including IP issues, confidentiality and privacy, and the structuring of in-house and external counsel teams for such deals. They also delve into the outlook for the pharma sector and elaborate on some emerging trends.
To watch this video, click here.
QUARTERLY MILESTONES
- Corporate
- Liberalisation of foreign investment in the space sector
- Direct listing of shares on international exchanges in GIFT-IFSC
- Central Processing Center established to ease the process of company registration
- Revised threshold for determining beneficial ownership in alternative investment funds
- Liquidation process amended to allow for increased stakeholder involvement
- Dispute Resolution
- Supreme Court clarifies that the standard of ‘public policy’ in the context of enforcement of foreign arbitral awards would be synonymous with international best practices
- Supreme Court overrules its earlier decision to hold that there would be no automatic vacation of stay orders granted in civil or criminal trials
- Punjab and Haryana High Court holds that a ‘stay’ on an FIR is not a bar to the registration of an enforcement case information report with the enforcement directorate
- Labour and Employment
- New rules in Karnataka mandating gratuity insurance
- Madras High Court places the safety of a larger group of people above an individual’s right to not get vaccinated
- Calcutta High Court holds that calling an unknown lady ‘darling’ is a sexually coloured remark
- Amendment in the rate of employees’ contributions to the Labour Welfare Fund in Maharashtra
- New conditions for employing women in night shifts in Rajasthan and Haryana
- Financial Regulatory Regime
- Certain foreign portfolio investors exempted from the additional granular disclosure norms
- Timelines for disclosure of material changes by foreign portfolio investors proposed to be relaxed
- Framework for qualified stock broker expanded to include more brokers to boost investors’ trust in the market
- Forex derivative contracts involving the Indian rupee to be offered only for hedging contracted exposure
- Fintech
- RBI introduces omnibus framework for self-regulation by regulated entities
- Credit card holders provided with the flexibility to choose the card network
- Clarifications for card issuers on issuance, co-branding and data utilisation
- Framework governing the Bharat Bill Payment System revamped
- Consumer Protection and Advertising
- ASCI issues guidelines to curb greenwashing
- Advisory issued against the advertisement and endorsement of betting and gambling
- Technology and Telecommunication
- Liberalisation of foreign investment in the space sector
- Requirement to periodically destroy records of interception directions extended to all competent authorities
- Advisory to intermediaries on the deployment of artificial intelligence technologies
- Indian Cyber Crime Coordination Centre tasked with notifying intermediaries of unlawful activities committed using computer resources under their control
- All machine-to-machine service providers to be required to register with the Department of Telecommunication
- Direct Tax
- Supreme Court holds that the discount offered by a telecom company to SIM card distributors is not ‘commission‘ for the purposes of withholding tax provisions
- Ministry of Finance notifies lower tax rate for royalty income and fees for technical services under the India-Spain tax treaty by invoking the most favoured nation clause
- Indirect Tax
- Supreme Court affirms imposition of penalty under Section 112(a) of the Customs Act, 1962 on foreign exporter for abetting improper import of goods into India
- Madras High Court holds that input tax credit cannot be denied merely because the registration of the supplier was cancelled with retrospective effect
- Madras High Court quashes interest demand where tax has been deposited in the electronic cash ledger within prescribed time but GSTR-3B return has not been filed
- Madras High Court holds that export status is not affected due to receipt of consideration through a payment intermediary
- Karnataka High Court holds that service tax is not leviable on expenses incurred by venture capital funds
- Guidelines for GST field formations to maintain ease of doing business while engaging in investigation with regular taxpayers
- International Trade Quarterly Milestones
- Delhi High Court directs trade authorities to consider representations of importers regarding anti-dumping duty imposed on the import of industrial laser machines
- Clarification on ‘further information’ to be provided by importers in certain cases of information mismatch under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020
- Increase in trade remedy actions by India on imports from certain countries
- Asset Management and Funds
- SEBI approves proposals empowering AIFs with ability to create encumbrance on holdings, extend tenure for unliquidated assets and conduct enhanced due diligence
- Guidelines for AIFs for holding investments in dematerialised form
- AIFs mandated to appoint a custodian with the obligation to report the investments under custody
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