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If you are a corporate law enthusiast, you would know how important/relevant is the knowledge of Company law. The major chunk of functioning of law firms dealing with the corporate side of law rests on company law and thus it becomes imperative for any law student, lawyers or anyone seeking to work in corporate law to gain theoretical & practical knowledge on company law. In order to become a corporate lawyer, you must first have a strong understanding of company law practice. This...

Consumption Of Fake Information Is Injurious To Health: Progressive Steps Towards Ad Regulation In India

The year 2020-21 bore witness to a significant number of changes relating to almost every aspect of human life and the advertising ecosystem was no exception. There was a major shift from print media to digital media: the pandemic accelerated the process of digitizing the print media, opening the floodgates to a stream of advertisements with questionable and deceptive claims. Influencers marketing came into its own. According to the TAM Agency report on TV advertising[1], as the number of...

Regulation Of Online Bond Platforms ("OBP")

Under the Indian Companies Act, 2013, a public company can issue debt instruments either through a public issue or private placement[1]. While public issues are done on the stock exchanges, private placements are done on electronic book provider platforms ("EBP"). Over recent years, the issue of debt securities through private platforms on the EBP have grown in leaps and bounds. To put it in perspective, in the financial year 2021-2022, 1,405 issue of listed debt securities were done...

Supreme Court To Hear SEBI's Challenge Against SAT Order Granting Relief To NDTV Promoters Prannoy Roy & Radhika Roy After Two Weeks

The Supreme Court on Monday(November) adjourned the hearing of the Securities and Exchange Board of India's challenge against the Securities Appellate Tribunal's order that reduced penalties imposed on NDTV promoters Prannoy Roy, Radhika Roy for allegedly concealing price sensitive information from shareholders. On July 20, the SAT at Mumbai had set aside the findings of the SEBI which held the Roys to be liable for committing fraud on its investors by non-disclosure of a loan agreement...

Right To Free Speech & Trade Not Violated: P&H HC Upholds SEBI's License Requirement For Analysts Sharing Stock-Related Info On Social Media

The Punjab and Haryana High Court has held that a requirement by the Securities & Exchange Board of India (SEBI) for its Research Analysts to obtain a license for sharing stock-related recommendations on social media is not violative of their Constitutional right to free speech and trade.A Division Bench of Justices Ramchandra Rao and Harminder Singh Madaan held the requirement is in line with International Organizations of Security Commissions' (IOSCO's) objectives and principles of...

SEBI Circular On Standardisation Of Procedure For Debenture Trustees Has Retroactive Application : Supreme Court

The Supreme Court bench comprising Justice Dhananjaya Y Chandrachud, Justice Surya Kant and Justice A S Bopanna allowed retroactive application of SEBI Circular on Standardisation of procedure to be followed by Debenture Trustee(s) in case of default by issuers of listed debt securities. Accordingly, the shareholders of Reliance Commercial Finance Ltd are required carry out a voting process based on the SEBI guidelines and not just the Debenture Trust Deeds signed by the shareholders in...

Frivolous Criminal Actions Against Large Corporations May Give Rise To Adverse Economic Consequences For Country: Supreme Court In Reliance vs SEBI

The Supreme Court of India held that initiation of criminal action in commercial transactions, should take place with a lot of circumspection. The bench stated that initiating frivolous criminal actions against large corporations would give rise to adverse economic consequences for India in the long run. Thus, it was opined that the Regulator must be cautious in initiating such an action and carefully weigh each factor. The Court made these observations while considering a petition filed by...

SAT Sets Aside SEBI Findings Of Fraud Against NDTV Promoters; Reduces Penalties Imposed For Non-Disclosure Of Loan Agreement

The Securities Appellate Tribunal at Mumbai has set aside the findings of the Securities and Exchange Board of India which held NDTV promoters Prannoy Roy and Radhika Roy liable for committing fraud on its investors by non-disclosure of a loan agreement with Vishvapradhan Commercial Pvt Ltd.The SAT also reversed the SEBI finding that the the promoters had ceded control to VCPL over NDTV through the loan agreement. SEBI had held that under the garb of a loan agreement, VCPL had...

Patna HC Directs For Personal Presence Of Sahara Group Chief Subrata Roy To Explain Group's Plan To Return Investors' Money

The Patna high court earlier this week directed Sahara India Group Head Subrato Roy to remain personally present before the Court on May 11 and to come up with a plan for the return of the investment of the investors.The Bench of Justice Sandeep Kumar issued this order in 3 anticipatory bail applications after it came across certain cases of cheating committed by Non-Banking Financial Companies.The case in briefNow, during the course of the hearing of these matters, it came to the Court's...

Insider Trading Can't Be Presumed Due To Proximity Between Parties; Onus To Prove Is On SEBI : Supreme Court

The Supreme Court has held that insider trading cannot be presumed merely on the basis of proximity between the parties. The Court held 'communication' of Unpublished Price Sensitive Information under Regulation 3(1) of the SEBI (Prohibition of Insider Trading), 2015 ought to be proved by producing cogent materials, like, letters, emails, witnesses etc. and not be deemed owing to the alleged proximity between the parties. The Court further held that the onus is on the SEBI to prove such...

SEBI v SAT : Supreme Court Stays Order Of Securities Appellate Tribunal Imposing Rs 8 Lakhs Cost On SEBI

The Supreme Court on Wednesday stayed the award of costs of 8 lakh imposed on Securities and Exchange Board of India (SEBI) by the Securities Appellate Tribunal (SAT).A Bench comprising Justice DY Chandrachud and Justice Surya Kant issued notice in SEBI's civil appeal filed challenging the order passed by SAT. The issue arose from an order passed by SEBI's Whole Time Member (WTM) directing certain entities to disgorge the unlawful gains earned through stock market fraud. The SAT held that SEBI's...

Investor Or Creditor? – The SEBI V. IBC Battle

The Insolvency and Bankruptcy Code ("IBC") was introduced in India in order to consolidate laws relating to reorganisation and insolvency resolution. However, the revolutionary legislation has been at odds with some of the pre-existing or contemporary financial legislations such as the Prevention of Money Laundering Act, 2002 ("PMLA"), the Maharashtra Relief Undertakings (Special Provisions Act), 1958 the Real Estate (Regulation and Development) Act, 2016 and most recently the novice law...