About Independent Directors in India
SEBI defines an independent director as someone who does not have any material or financial relationship with the company or its directors. They should in no way get influenced by the management and should be able to take unbiased decisions/judgments. The idea is to have a check on the decisions of the management and other directors to make sure […]
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 […]
Shareholder Activism in India
Shareholder Activism – What is? Any act of the shareholder(s) of a company which results in either influencing or changing the behavior and / or decision of the company, either through its management or otherwise. Issues on shareholder activism and corporate governance have been a point of debate in the United States and Europe for many years. […]
Marketing of Financial Services
Marketing of financial services and products is probably the most regulated field in India. Despite this, potential customers regularly get convinced about buying investment products which are inconsistent with their needs and future plans. In this article, I will discuss the problem of (i) Unsolicited marketing of financial services and products, and (ii) Regulations regarding […]
How Share Market is Used to Convert Black Money Into White
In a country like India with a shadow economy the size of ~ 25% of GDP (total unaccounted money within India is estimated between Rs. 10 – 15 lakh crore by various accounts), it is not surprising that newer methods are constantly being evolved to make use of black money in the real economy. Not […]
How do you hire a lawyer in India without any reference?
Naturally, anyone in legal trouble would want to know the past record of a lawyer before making a decision to hire him. Unfortunately, if you want to hire a lawyer in India, you will have to rely on some uncommon old school ways to find one. The cumulative effect of the Advocates Act, the Rules […]
Getting Legal Opinion in India
It’s about being on the right side of the law when conducting business. I have come across lots of businesses, who unknowingly violated regulations, resulting in significant legal costs and in a few cases, plunged the business into a total mess. This cannot be you. If you are a young business, it is all the […]
NRI Investment in Indian Shares – Documentary Requirements
Sometime back I wrote an article on how resident Indian’s can invest in shares of companies listed on foreign stock exchanges. Likewise, many overseas investors would like to invest in shares of companies listed on the Indian stock exchanges. In this article, I will focus on how Non Resident Indians (i.e. NRI’s) can invest in […]
Corruption in private sector to be criminalized
With a view to check corruption in the private sector, the Government of India has proposed to make bribery in private sector a criminal offence. To this end, the Government has proposed to amend the Indian Penal Code, 1860 to criminalize both giving as well as receipt of bribes in the private sector. For this […]