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 […]
Can you buy / sell stocks after market hours?
Constant news flow and major corporate announcements after market hours make many wonder if they should buy/sell their stocks as soon as the market opens? For example – when a company reports really bad quarterly results or an extremely bad news surfaces post trading hours, far too often, investors wonder if they should sell their holding […]
Raising Equity Capital in India
When a company starts its business, it issues shares in proportion to the initial capital brought in by the promoters (i.e. those who start the business as a company). As the business of the company grows, the promoters often require more capital to meet the company’s growth objectives like capacity expansion, new product development, increase […]
Insider Trading and Stock tips in Indian Stock Markets
On the 24th of January 2014, as the markets opened for trade, Ranbaxy share price declined 20 % on news of U.S. Food & Drug Administration’s (USFDA) ban on the company from sending its drugs and ingredients into the United States (*from the company’s production facility in Punjab). It was a sudden and sharp fall and by […]
Offer Document-SEBI’s Publicity Restrictions
This is the part 2 of – this article on ICDR Regulations Let’s take the example of Confused Publicity Limited (“Issuer”). The Issuer is a media company primarily engaged in the business of writing about the lifestyle of the rich and famous and regularly features celebrity interviews in many of its magazines. Many of its clients are famous […]
ICDR Regulations-Marketing Guidelines for Issue of Securities
As more and more promoters look to raise money by divesting equity in their business, the disclosure standards and regulations for listing on the stock exchanges are becoming increasingly stringent. The Securities and Exchange Board of India (“SEBI”) formulated the Issue of Capital and Disclosure Requirements, Regulations, 2009 (“ICDR Regulations”), to promote the development of a healthy capital market […]