Knowledge Repository

Corporate

With the onset of the third wave of the pandemic, the preceding quarter saw only a few notable regulatory developments including permission granted to FPIs to invest in debt securities of InVITs and REITs, introduction of special situation funds by SEBI and Legal Entity Identifier becoming mandatory for resident entities.

Dispute Resolution

With courts resuming a degree of normalcy in the last quarter of 2021, the Supreme Court of India delivered some important insolvency judgments. It also pronounced an interesting decision on raising new grounds to set aside an arbitral award at the appellate stage, which could impact proceedings challenging arbitral awards under the Arbitration Act, 1996.

Technology, Media and Telecommunications

The past quarter witnessed several regulatory and legislative developments in the data privacy, fintech and cryptocurrency space. Given that many of these developments are in the public consultation phase, it will be interesting to see how these draft policies evolve over time.

Labour and Employment

The previous quarter witnessed numerous developments in employment and labour laws with the Supreme Court opining on prevention of sexual harassment and service conditions at workplace, various States finalising rules under the Labour Codes and measures geared to deal with the Omicron variant of Covid-19.

Banking and Finance

In the last quarter, the RBI continued its reformative approach and introduced several regulatory changes. It tightened the norms for debt profiling by lending institutions. It also introduced procedural changes necessary to align with the discontinuance of LIBOR. On the judicial front, several interesting decisions under the IBC were pronounced.

Financial Regulatory Regime

The previous quarter witnessed some important legal and regulatory developments in the financial services space with the RBI issuing the Digital Lending Report, which sets the background for how digital lending and the increasingly popular ‘buy now, pay later’ model may come to be regulated in India. SEBI and the Stock Exchanges also took steps towards streamlining the regulatory framework around settlement procedures and businesses that a stock broking entity may undertake.

Energy and Infrastructure

The past quarter witnessed several regulatory and legislative developments in the energy and infrastructure space such as the introduction of the Punjab Renewable Energy Security, Reform, Termination and Redetermination of Power Tariff Bill, 2021 and issue of the Ministry of Power’s rules regarding must-run status of renewable power plants and change in law provisions.

White Collar Crimes Investigations

The last quarter saw several sanctions imposed by multilateral development banks against corrupt and fraudulent activities by companies. Domestically, High Courts rendered important judgments on the classification of accounts as ‘fraud account’ by lenders post forensic audits, and on the jurisdiction of the Enforcement Directorate over money-laundering offences committed by a company undergoing insolvency proceedings.

Direct Tax

The Indian income tax framework saw some interesting developments such as the introduction of a new faceless appeal scheme, notification of rules for withdrawal of retrospective applicability of indirect transfer tax provisions and announcement of an agreement between India and US on certain contested tax issues.

Indirect Tax

The previous quarter saw interesting developments in indirect tax, specifically under the GST regime. In this update, we discuss some of the key developments that businesses should watch out for.

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