We are happy to present the ninth 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
- Revitalising Family Trust Structures: Strategies for a Modern EraWhile trusts have long played a crucial role in the preservation and distribution of family wealth, contemporary circumstances present unique challenges. These include a lack of adaptability, intricate regulatory and tax issues, evolving family dynamics, and an escalating call for transparency. This article examines these hurdles and explores possible solutions to revitalise the efficacy and relevance of antiquated trusts in the realm of estate and succession planning.
- Case for Non-Exclusive Administrative Assignment of Spacecomm Spectrum over AuctionThe Government of India has proposed to auction spacecomm spectrum on an exclusive basis. Industry bodies, however, prefer spacecomm spectrum to be assigned administratively on a non-exclusive basis. This article explores the technical and legal nuances of this issue to make the case that administrative assignment of spacecomm spectrum will be both lawful and in public interest.
QUARTERLY MILESTONES
- Corporate
- Additional disclosure requirements and compliances for certain foreign portfolio investors
- Streamlining the corporate insolvency resolution process
- Consultation paper for restricting association of registered entities and intermediaries with ‘finfluencers’
- Extended runway for virtual extraordinary general meetings and annual general meetings
- Limited Liability Partnerships Amnesty Scheme, 2023 for delayed filings of certain forms
- Proposed changes to the treatment of wilful and large defaulters
- Dispute Resolution
- Supreme Court clarifies that under IBC, creditors hold priority over government dues
- High Courts clarify the fate of unstamped arbitration agreements in petitions under Section 11 of the Arbitration and Conciliation Act, 1996
- Delhi High Court holds that an unstamped or insufficiently stamped arbitration agreement is not a ground to set aside an arbitral award
- Financial Regulatory Regime
- Beneficial ownership threshold for partnership firms reduced to 10%
- Enhanced accountability for trustees of asset management companies of mutual funds; core responsibilities set out
- Resolution of investors’ disputes through online dispute resolution mechanism
- Redressal of investor grievances through the SEBI complaint redressal platform and linking it to the online dispute resolution platform
- Additional disclosure requirements and compliances for foreign portfolio investors
- Regulated entities to give personal loan borrowers the option to switch from floating rate to fixed rate regime at the time of resetting interest rates
- Capital Markets
- Disclosure requirements for public issue and private placement of non-convertible securities aligned
- Mandatory listing of non-convertible debt securities by listed entities
- Mandatory disclosure of material agreements by listed entities
- Reduction in timelines for listing of equity shares pursuant to a public issue from T+6 to T+3 days
- Amendments to frameworks for Real Estate Investment Trusts and Infrastructure Investment Trusts
- Fintech
- Platforms facilitating payments between payers and beneficiaries may now be required to comply with the requirements of the Prevention of Money Laundering Act, 2002, and its rules
- RBI introduces improvements to the Unified Payments Interface framework by increasing the upper limit for offline payments and facilitating transactions through pre-sanctioned credit lines
- The central government releases the Financial Intelligence Unit of India registration process for virtual digital asset service providers under the Prevention of Money Laundering Act, 2002
- Advertising and Consumer Protection
- Advertising guidelines to regulate influencers, including financial and health influencers
- Advertising guidelines for advertisements for charitable causes to reduce donor distress and increase transparency of funds-flow
- Central government proscribes online advertising of betting and gambling in a bid to curb money laundering
- Technology and Telecommunication
- Restrictions imposed on the import of laptops, tablets and other specified computer systems, from 1 November 2023
- Digital Personal Data Protection Act, 2023 passed by the Parliament
- Amendments to the Unified License, the Unified License (Virtual Network Operators) and the Unified Access Service License agreements to restrict licensees from entering into exclusive contracts with any person or public entity
- Subscriber verification process streamlined for telecom licensees
- Asset Management and Funds
- Resolution of investors’ disputes through online dispute resolution mechanism
- Redressal of investor grievances through SEBI complaint redressal platform and linking it to online dispute resolution platform
- Reduced time limit for overseas investments by alternative investment funds and venture capital funds
- Enhanced reporting format for alternative investment funds
- Indirect Tax
- GST imposable at the rate of 28% on ‘online money gaming’
- Import license to become mandatory for laptops, tablets, servers, etc.
- Kerala High Court holds that input tax credit cannot be denied only on the basis of non-reflection of the amount in inward supply statements of recipients
- Andhra Pradesh High Court upholds the constitutional validity of the time limitation for claiming input tax credit under the GST regime
- The activity of holding shares in a subsidiary is not subject to GST
- Intellectual Property
- The Bombay High Court holds that statutory licensing of literary and musical works and sound recordings under Indian copyright law does not extend to internet-based offerings
- Parliament enacts the Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalising certain intellectual property offences and establishing a mechanism for adjudication of fines
- Parliament enacts the Biodiversity Amendment Act, 2023 strengthening the provisions for access to biological resources
- Delhi High Court holds that the Patents Act prevails over the Competition Act in cases involving the enforcement of patentee’s right
- Banking and Finance
- Disclosure requirements for public issue and private placement of non-convertible securities aligned
- Proposal to bring flexibility in framework for ‘large corporates’ for issue of debt securities
- Penal charges in loan accounts to be used as a credit discipline tool rather than a credit enhancement tool
- Factoring transaction with seller of receivables, on a recourse basis, is classified as a ‘financial debt’ under IBC
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