Virtual Stock Market and Gambling Laws in India
A few days back I received a very interesting business plan – Create a gaming zone where game numbers will move based on F&O prices, a virtual stock market of sorts – where everything at the front end of the gaming studio will be integrated to real time stock prices. Without getting into much detail […]
Is Startup Investing Killing the Stock Markets?
Starting up to raise money is the new thing. Up until a decade back, people tried to raise money to start-up. What’s changed? Two main reasons why startup investing is at an all time high: [1] Returns Generated: Startups which succeeded in past delivered unbelievable returns (think about the value created by Facebook and Zomato); [2] Lack of avenues […]
Advantages of Forming a Company Over Proprietorship
One of the most critical decisions you will face as a business owner is whether to incorporate (i.e. form a private limited company) or to operate your small business as a proprietor. You should consider three aspects before answering this question: Number of stakeholders. At what stage is your business? What are your long term […]
Majority of Minority Rule: Public Shareholder Approval Requirement for Listed Company Mergers
The rule that minority shareholders must approve the merger does not come from the Companies Act. It comes from a SEBI circular of February 2013. Accordingly – The special resolution approving the scheme of arrangement (merger) shall be acted upon only if the votes cast by public shareholders in favour of the proposal amount to at least […]
Earning Fixed Rate of Interest in Stock Markets
The fact that money lying in trading accounts does not earn any interest income is often a big problem for those who trade in multiple trading accounts, particularly asset managers, stock-brokers and their authorized persons who may not be able to transfer funds between client accounts and their trading account on a short notice. This […]
How to Improve Business Performance?
Today’s question comes from Vijay who is the promoter of a Kolkata based company which he plans to take public over the next 3 years. His question dealt with improving business communication to reach more people. In today’s post I will talk about steps which every modern business should take to keep pace with changing […]
Draft Red Herring Prospectus (DRHP) and the IPO Procedure in India
I have long been convinced that not more than 0.1% of retail investors look at the (Draft Red Herring) Prospectus (the DRHP) before applying for shares in an IPO. As a lawyer (and an Attorney) who spent 6 years drafting these documents, this has never been a happy realisation. I wrote things which nobody liked to read. This […]
Promoter under ICDR Regulations And Company’s Act – Legal provisions
I cannot count the number of times I have spotted people confusing between directors, promoters and management. Even read articles in national newspapers with the wrong classification. I believe that there are 2 reasons for this. First, often the same person(s) act in all these capacities. Second, mostly these articles are written by journalists and […]
Venture Capital Firms in India
Yesterday I had written an article on Hedge funds in India. I received a few comments about how hedge funds differ from venture capital firms in India. The most basic difference: The manager of the hedge fund has complete authority in terms of how and where he wants to deploy the money collected from investors. In comparison […]
Demystifying Hedge Funds in India
In 2014, hedge funds invested millions of dollars into Indian start ups. This trend is likely to continue and higher investments are likely in 2015 and beyond. Whether you are someone who wants to understand the basics of hedge funds (i.e. how they are different from other forms of investments) or you are someone who […]