BUSINESS
Sebi’s settlement scheme is good but also raises troubling questions
A new ‘attractive’ settlement scheme seeks to resolve several cases of alleged manipulative trading. While it may be well-intentioned, does it set a wrong precedent?
BUSINESS
Draining the digital lending swamp is not an easy task
The RBI has taken the first step of putting together guidelines but co-ordination among regulators and arms of government critical to rein in unscrupulous operators
BUSINESS
Who controls a company – the elusive concept has finally received some certainty
The question of who is in ‘control’ of company has been a subject of litigation for a long time. Finally, thanks to a recent ruling of SAT and, earlier, of the Supreme Court, we are back to square one, albeit now with some certainty
BUSINESS
Supreme Court’s ruling on PMLA misses the woods for the trees
While meticulously examining and holding valid individual provisions of PMLA, the Supreme Court has, it is submitted respectfully, missed the total picture, and that the sum of the parts is many times the total of the individual provision
BUSINESS
Supreme Court allows some discretion in corporate insolvency proceedings
The Court has rightly refused to take a mechanistic view of the Insolvency and Bankruptcy Code and, allowing discretion in very exceptional cases, has stopped apparently healthy companies being pushed into insolvency proceedings which may disastrously end up being self-fulfilling
BUSINESS
SEBI’s insider trading rules for mutual funds are good but not enough
The proposed regulations use the existing, time-tested framework for listed entities with appropriate changes. But a fresh look by an expert committee would have been better
BUSINESS
Laws on pledge of shares need to be simplified
Chasing multiple objectives, SEBI has made multiple and overlapping provisions relating to encumbrances on shares. This has been followed by a series of patchwork of amendments resulting in ambiguity and litigation
BUSINESS
Deposit protection laws in India are susceptible to abuse
Multiple laws and authorities now govern raising deposits and provide for wide coverage and strict punishments. A fair question is whether this is legislative overreach
BUSINESS
Front running – tip of the iceberg?
It is quite likely that even the increased number of front running cases caught is merely a small part of the number of actual offences. The profits are too easy and too large and the methods available to commit the act too sophisticated to draw any comfort
BUSINESS
The unduly wide net cast by the Money Laundering law
The very tough anti-money laundering was enacted to combat heinous crimes such as drug trafficking and terrorism finance. But over the years, sundry and lesser evils have been added which makes the law near draconian and needs to be thoroughly revisited
BUSINESS
Supreme Court ruling lays down the law on pledge of dematerialised shares
The Supreme Court ruling resolves tricky questions of law that could have implications even for other digital assets
BUSINESS
Supreme Court on GST -- reading between the lines
There was a lot more the Court held in favour of the government’s stand than what it held against
BUSINESS
Sebi should clear the air on who can recommend model portfolios
A recent case has raised questions on where the job of a research analyst ends and where the job of other intermediaries begins. The big unanswered question: who can recommend a model portfolio?
BUSINESS
Does front running need better regulation?
Front running is possibly rampant with huge stakes and causes direct loss to investors and credibility of markets. The single short sub-clause of SEBI Regulations that presently regulates front running is not enough to curb it
BUSINESS
SC decision a harsh reality check on corporate governance provisions
Provisions of law relating to corporate governance are to be interpreted by the letter of the law, not by an undefined, elusive spirit
BUSINESS
Supreme Court raises the bar for proof in insider trading cases
A recent Supreme Court decision where it reversed SEBI’s order of disgorgement of about Rs 8.30 crore of alleged insider trading profits and penalty raises disturbing questions
BUSINESS
No country for hostile takeovers: Why Indian promoters breathe easy
Hostile takeovers are rare in India due to high promoter holdings in companies and potential legal hurdles. Yet, things may be changing
BUSINESS
Companies Act makeover will make it more contemporary
A committee has proposed changes that will allow companies to issue fractional shares, RSUs/SARs, shares at a discount but caution is required on matters such as allowing SPACs
BUSINESS
SEBI must adopt clear guidelines to calculate penalty for frauds
SEBI must implement the recommendations of the Dave Committee which would result in transparency in the levy of penalty, disgorgement, etc. This would not only be just but also act as deterrent for future fraudsters
MARKETS
Supreme Court's landmark decision boosts transparency in securities law violation cases
A person accused of serious charges such as fraud, etc. cannot be denied the copy of the investigation report of SEBI
BUSINESS
Can SEBI act against errant auditors?
Auditors claim SEBI has no jurisdiction over them. But that has not stopped SEBI from hauling auditors over the coals when cases of fraud emerge at listed companies. Who is right?
BUSINESS
Splitting chairman and MD posts does not make sense for most Indian companies
A fundamental feature of Indian companies is dominance and control of promoter families. In this context, the independent directors should be strengthened more by giving them substantial powers individually and collectively
BUSINESS
Sebi’s Dish TV order is unreasonably harsh on individual directors
Steps such as freezing demat accounts of individual directors, even of independent directors, will damage their confidence
BUSINESS
SEBI’s new provision against spreading misinformation will have chilling effect
The intention of the new law is to curb spread of misinformation by market manipulators, particularly those indulging in what is termed as ‘pump and dump’ practice. But the wording of the revised clause is so wide that it has the prospect of even stifling genuine discussions, analysis and possibly even casual recommendations amongst friends
