Addressing Market Rumors via the LODR Amendment: Necessity of the Hour or a Regulatory Flaw?

In this article, the authors discuss the recent amendments to India’s securities regulations, particularly focusing on the introduction of mandatory verification of market rumors by top-listed companies. They examine the objectives behind this amendment, which aim to enhance transparency, market stability, and fairness. The authors also present concerns about the practicality and potential unintended consequences of requiring companies to confirm, deny, or clarify every piece of information reported in mainstream media, especially regarding rumors. They compare this approach to the United States’ stance on addressing rumors in the securities market, highlighting the challenges and complexities associated with the new Indian regulation. Ultimately, the article raises questions about the feasibility and effectiveness of the amendment and calls for a shift in mindset to successfully implement these changes. Continue reading Addressing Market Rumors via the LODR Amendment: Necessity of the Hour or a Regulatory Flaw?

The RMLNLU Law Review BlogSeptember 13, 2023September 13, 2023Leave a comment

Securities

Beyond the Status Quo: Rethinking SEBI’S MPS Norm vis-à-vis Fostering Ease of Doing Business in India

In this article, the authors delve into the challenges surrounding SEBI’s Minimum Public Shareholding (MPS) norm and propose comprehensive solutions. The MPS norm requires listed companies to maintain a minimum 25% shareholding in the hands of the public. However, the regime has faced issues such as ambiguity in defining “promoters” and “promoter groups,” allowing for manipulation. The authors suggest adopting a “Controlling Shareholder” concept and introducing more market-friendly approaches. Additionally, the article addresses the uniform approach for all companies and the lack of an effective enforcement mechanism, urging SEBI to review and revamp the framework to ensure transparency and ease of compliance. Continue reading Beyond the Status Quo: Rethinking SEBI’S MPS Norm vis-à-vis Fostering Ease of Doing Business in India

The RMLNLU Law Review BlogJuly 4, 2023July 16, 2023Leave a comment

Public Policy, Securities

PMLA: Turning safeguards on their Heads

In this post, the author has talked about the ever-prevailing issue of money laundering through the lens of the PMLA (Prevention of Money Laundering Act, 1992) by analysing the judgement given by the apex court in the case of Vijay Madanlal Chaudhary v Union of India and the court’s recent acceptance of a plea to review its judgement upholding the validity of these provisions that have been claimed to violate fundamental rights and liberties. Continue reading PMLA: Turning safeguards on their Heads

The RMLNLU Law Review BlogOctober 15, 20221 Comment

Finance & Banking, Information Technology, Posts, Public Policy, Securities, Tax

Cryptocurrency in India: To ban or not to ban

By: Aman Kumar Yadav Introduction Cryptocurrencies are digital representations of value that can be stored and transferred digitally. Simply put, it is a type of digital currency or a medium of exchange just like the US dollar. They function autonomously, unencumbered by traditional banking and government oversight. Countries have repeatedly attempted to implement measures to regulate Cryptocurrency or ban it altogether. This article analyzes India’s … Continue reading Cryptocurrency in India: To ban or not to ban

The RMLNLU Law Review BlogMarch 2, 2021April 26, 2021Leave a comment

Posts, Securities

Interpreting Regulation 23(1)(c) of the Takeover Code: Applicability of the Principle of Impossibility

In this post, the author points out the conundrum regarding the application of the principle of “impossibility to perform an open offer” in Regulation 23(1)(c) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 2011 as a requirement to grant a withdrawal of the takeover offer. The author further tries to strike a balance between the narrow and the wide interpretation of the Regulation. Continue reading Interpreting Regulation 23(1)(c) of the Takeover Code: Applicability of the Principle of Impossibility

The RMLNLU Law Review BlogApril 24, 2020April 26, 2021Leave a comment

Posts, Securities

Decoding the Amendment to the Indian Stamp Act, 1899

In the latest post, Aastha Agarwalla attempts to analyse the latest amendments to the Indian Stamp Act, 1899, by outlining their objectives, predicts the possible outcomes of the change in the stamp duty regime and concludes by appreciating the amendments in the light of a sluggish economy. Continue reading Decoding the Amendment to the Indian Stamp Act, 1899

The RMLNLU Law Review BlogOctober 22, 2019April 26, 2021Leave a comment

Posts, Securities

The Power of the Securities and Exchange Board of India to Remove a Director

In this post, Saket Agarwal discusses the need of the Securities and Exchange Board of India to attain the power of removing a director, which essentially rests under the provisions of the Companies Act, 2013. He further elaborates upon the clash of powers between SEBI and NCLT, and how this shall create adverse effects for the investors and shareholders at large. Continue reading The Power of the Securities and Exchange Board of India to Remove a Director

The RMLNLU Law Review BlogAugust 21, 2019April 26, 2021Leave a comment

Constitutional Law, Posts, Securities

Whatsapp Leak Case: A Struggle Between Right & Duty

By: Chitresh Baheti INTRODUCTION Reuters, on 16th November 2017, reported that the quarterly results of 12 giant MNCs[1] were being circulated on WhatsApp groups even before they were declared. This information was being circulated under the title ‘HOS: Heard on Street’.[2] This prompted the Indian security regulator board, SEBI, to carry forward investigations which came to be known as the WhatsApp Leak case.[3] SEBI conducted … Continue reading Whatsapp Leak Case: A Struggle Between Right & Duty

The RMLNLU Law Review BlogApril 29, 2018April 26, 2021