x

April 2017

Corporate Amicus: February 2017

Article

Stamp Duty issues in slump sale transactions

Slump sale is a commonly used method of business acquisition and in order to give effect to the transaction, the parties typically enter into a Business Transfer Agreement (BTA). Considering various provisions of the Indian Stamp Act and Stamp Acts of the States of Maharashtra and Karnataka, the author is of the view that given the complexities involved in the determination of stamp duty on the instrument of transfer, the parties should approach the relevant stamp authority for adjudication of stamp duty and seek the opinion of the District Officer with respect to the determination of the duty chargeable on the instrument. According to the author, it is always necessary and beneficial for the parties to treat stamp duty aspects very carefully to avoid any penalties.

 

Notifications & Circulars

  • SEBI issues Guidance note on Board evaluation covering key issues in pre-evaluation, evaluation and post-evaluation stages
  • SEBI bans secret profit sharing agreements - SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 amended
  • SEBI eases norms for angle investors - Regulations 19E and 19F of the SEBI (Alternative Investment Funds) Regulations, 2012 amended with the aim to encourage alternative modes of investment in India
  • Start-ups allowed to issue convertible notes to foreign investors - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, amended
  • Allotment of shares to the ESOP Trust - SEBI issues informal guidance
  • Banks permitted to issue prepaid instruments to entities other than listed corporate entities - Master Circular on issuance of Prepaid Instruments amended
  • SEBI revises mergers and acquisitions guidelines for unlisted companies with listed companies

 

Ratio decidendi

  • Bequest under Indian Succession Act supersedes nomination made under provisions of Companies Act and bye-laws under Depositories Act – Bombay High Court
  • Claims of secured creditors hold precedence over the claims of unsecured creditors – Bombay High Court
  • Action for winding up of a company cannot be exercised against a solvent company, if liability of the company is disputed - Karnataka High Court
  • Arbitration - Challenge to enforcement of an arbitral award where arbitration proceeding commenced prior to October 23, 2015 would be governed by the un-amended Arbitration Act – Delhi High Court

 

February, 2017/Issue-65 February, 2017/Issue-65

Browse articles