Unwritten contract restraining competition is anti-competitive
29 January, 2014
Unwritten contract between the two opposite parties that it will not allow the competition of informant with one of the opposite parties has been, prima facie, held as anti-competitive by the Competition Commission of India (CCI).
Evidence of agreement
According to CCI, arrangement or understanding between the opposite parties about clients amounted to an agreement under ...
Penalty for non-disclosure of share-holding pattern
27 January, 2014
Penalty for non-disclosure of share-holding pattern was at the center of disputes this month before the Securities Appellate Tribunal (SAT). While penalty in one of the disputes was upheld for non-disclosure under one provision even when there was disclosure under another set of provisions, the same was substantially reduced, in another case, when the company whose shares wer...
Pricing Guidelines for FDI instruments with optionality clauses
27 January, 2014
The Reserve Bank of India has laid down guidelines for buy-back of certain securities from investors residing outside India, who had been issued these securities under the Foreign Direct Investment (FDI) Scheme.
The guidelines issued on 9-1-2014 are part of the changes whereby RBI has allowed optionality clause in equity shares and compulsorily and mandatorily convertible ...
SC on powers of TRAI and TDSAT
17 December, 2013
The Supreme Court of India has held that exercise of power by the Telecom Regulatory Authority of India (TRAI) under Section 36(1) of the Telecom Regulatory Authority of India Act, 1997 is not controlled or limited by Section 36(2) or Sections 11, 12 and 13.
The Apex Court held that in exercise of power under Section 36(1), TRAI can make regulations which may empower it to...
Transmission Licence – Fee reimbursement from beneficiaries
17 December, 2013
The Electricity Appellate Tribunal has held that the transmission licensee, not paying any license fee prior to the amendment, is entitled to reimbursement of the said licence fee paid by it later and that the same can be directed to be passed through to the beneficiaries. It was held that licence fee cannot be allowed to be paid by the transmission licensee out of its profi...
Jurisdiction of Central Electricity Regulatory Commission
2 December, 2013
Central Electricity Regulatory Commission does not have jurisdiction to adjudicate a dispute between two licensees relating to charges for operation and maintenance of a part of inter-State transmission system which is owned by one of the licensees and operated and maintained by the other licensee for or on behalf of the former.
The Electricity Appellate Tribunal in one ...
Third party payments allowed for import and export transactions
15th November, 2013
Reserve Bank of India has allowed third party payments for import and export transactions. As per A.P. DIR Circular No. 70, dated 8-11-2013, such transactions shall be subject to the conditions such as availability of tripartite agreement, declaration in Export Declaration Form (EDF), mention in bill of entry and invoice, reporting of outstanding, etc. These third party pa...
New Companies Act comes into force
6th September, 2013
The Companies Bill 2012 received Presidential assent on 29th August 2013, after scores of amendments and years of debates and discussions, particularly on points like mandatory spending on corporate social responsibility (CSR), investor protection measures and one person company. Some of the important features in the new Act which replaces the (old) Companies Act of 1956 a...
CCI imposes penalty for near identical rates and quantity restrictions
14th August, 2013
Penalty at the rate of 5% of the average turnover was imposed by the Competition Commission of India (CCI) on various manufacturers of Polyester Blended Duck Ankle Boot Rubber Sole. Narrow range of difference in quoted prices, quantity restrictions by all the bidders barring one and limitations on order quantity per Direct Demanding Officer, were held, by the Commission, as ...
India moves forward for more FDI in specified sectors
24 July 2013
The policy of Foreign Direct Investment (FDI) in ten sectors, including telecom and defence has been further liberalized. As per reports, the decisions taken by the cabinet committee on 16-7-2013, indicate that the FDI limit in telecom sector will be 100% under approval route (FIPB) and 49% under automatic route.
Foreign investment in excess of 26% will be permitted in defence ...
Securities laws amended - Certain unlisted firms under SEBI purview
24 July 2013
Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996 have been amended by Securities Laws (Amendment) Ordinance, 2013. The amendments which make some changes in the authority of SEBI and the way it is enforced have come into effect from 18th of July, 2013 if not specified otherwise.
As per the amendments, ...
Enforceability of foreign arbitration awards in India
16 July 2013
The Supreme Court of India has held that enforcement of foreign award would be refused under Section 48(2)(b) of the Arbitration and Conciliation Act, 1996 only if such enforcement would be contrary to (i) fundamental policy of Indian law; or (2) the interests of India; or (3) justice or morality; and the enforcing court does not exercise appellate jurisdiction at the time of enf...
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