Listen to this post
SAT’s Verdict in FCRPL & others V. SEBI: Setting the dust on interpretation of generally available information in Insider Trading Cases

Introduction:

For any information to be classified as unpublished price sensitive information (“UPSI”), it should primarily satisfy the following three criteria, (1) It should relate to the company or its securities, directly or indirectly, (2) It should not be generally available, and (3) There should be a likelihood of the information materially affecting the price of the securities. Generally available information is information available in the public domain (on a non-discriminatory basis). Basis this, the Securities and Exchange Board of India (“SEBI”) analyses and identifies whether information can be termed as UPSI and classifies whether trades conducted by Insiders[1] are in violation of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“2015 PIT Regulations”).

Continue Reading SAT’s Verdict in FCRPL & others V. SEBI: Settling the dust on interpretation of Generally Available Information in Insider Trading Cases
Listen to this post
Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court

INTRODUCTION

In a recent judgement of Pavana Dibbur v. The Directorate of Enforcement[1], the Hon’ble Supreme Court has held that the offence of criminal conspiracy punishable under Section 120B of the Indian Penal Code, 1860 (“IPC”), will be attributed as a scheduled offence under the Prevention of Money Laundering Act, 2002 (“PMLA / Act”), only if the alleged criminal conspiracy is associated with committing of a scheduled offence, i.e. an offence specifically included in the Schedule to the PMLA. The Hon’ble Court held that if the offence of alleged criminal conspiracy is related to any other offence, which does not form a part of the Schedule to the PMLA, then the alleged criminal conspiracy by itself shall not be considered as a “scheduled offence” under the regime of the PMLA and hence, no person can be held liable and be prosecuted for it.[2]

Continue Reading Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court
Listen to this post
‘Quasi-judicial’ role of liquidators in treating disputed claims under the IBC

The Insolvency and Bankruptcy Code, 2016 (“IBC”) is silent on the treatment of a disputed or contingent claim, which is pending adjudication before a judicial or quasi-judicial body, giving rise to a contentious issue. The decision of the Hon’ble Supreme Court in Committee of Creditors of Essar Steel Limited v. Satish Kumar Gupta[1] brought some clarity vis-à-vis the status of the contingent/ disputed claims for the corporate insolvency resolution process (“CIRP”). The Hon’ble Supreme Court in Essar Steel (supra) upheld a resolution plan, wherein a contingent claim pending adjudication was accorded a notional value of INR 1/-. Subsequently, it became an accepted norm for Resolution Professionals (“RP”) to admit claims that are sub-judice, at a notional value of INR 1/. Though this answers the question of how undisputed claims must be treated by the RP, the Essar judgment also leaves a few issues open to interpretation. 

Continue Reading ‘Quasi-judicial’ role of liquidators in treating disputed claims under the IBC
Listen to this post
Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate

Background:

In the realm of law enforcement, transparency and accountability are indispensable pillars upholding the democratic values of a society. The Directorate of Enforcement (“ED”), tasked with investigating and prosecuting economic offenses, plays a vital role in maintaining financial integrity. However, concerns surrounding the lack of transparency in some of the arrests made by the ED have been raised.

Continue Reading Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate
Listen to this post
Extension of Mandate of Arbitral Tribunal under Section 29A(4) of the Arbitration and Conciliation Act, 1996: A Primer for Practitioners

INTRODUCTION

Section 29A of the Arbitration and Conciliation Act, 1996 (“Act”), inserted vide theAmending Act of 2015 (w.e.f. 23.10.2015), was meant to introduce time limit for completion of arbitration proceedings. It prescribed a statutory period of 12 (twelve) months from the date the arbitral tribunal enters upon reference. Thereafter, vide the Amending Act of 2019 (w.e.f. 30.08.2019), the prescribed time limit was modified, and the Act required arbitration proceedings to be completed within 12 (twelve) months from the date of completion of pleadings. Further, sub-section (3) of Section 29A of the Act allows an extension of 6 (six) months by mutual consent of the parties for passing the award. Similarly, sub-section (4) of Section 29A of the Act provides that in the event the award is not passed in terms of Section 29A(1) or within the extended period of Section 29A(3), the parties can make an application to the court for extension of mandate of the arbitral tribunal.

Continue Reading Extension of Mandate of Arbitral Tribunal under Section 29A(4) of the Arbitration and Conciliation Act, 1996: A Primer for Practitioners
Listen to this post
Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate

Background:

In the realm of law enforcement, transparency and accountability are indispensable pillars upholding the democratic values of a society. The Directorate of Enforcement (“ED”), tasked with investigating and prosecuting economic offenses, plays a vital role in maintaining financial integrity. However, concerns surrounding the lack of transparency in some of the arrests made by the ED have been raised.

Continue Reading Ensuring Transparency: The Imperative of Mandatory Furnishing of Written Grounds of Arrest by the Enforcement Directorate
Listen to this post
‘Party’ and ‘witness’ on an equal footing for the purpose of adducing evidence in civil suit: Supreme Court clarifies

Introduction

The Hon’ble Supreme Court, vide its recent judgment in Mohammed Abdul Wahid v. Nilofer & Anr.,[1] adjudicated inter alia upon whether the Code of Civil Procedure, 1908 (“CPC”) makes a distinction between a ‘party to a suit’ and a ‘witness in a suit’ through its adopted phraseology? More specifically, whether a party to a suit i.e. a plaintiff or a defendant may be equated to a witness when interpreting the provisions of Order VII Rule 14 [Production of document on which plaintiff sues or relies]; Order VIII Rule 1A(4)(a) [Duty of Defendant to produce documents upon which relief is claimed or relied upon by him]; and Order XIII Rule 1(3)(a) [Original Documents to be produced at or before the settlement of issues] of the CPC?

Continue Reading ‘Party’ and ‘witness’ on an equal footing for the purpose of adducing evidence in civil suit: Supreme Court clarifies
Listen to this post
No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions

Introduction

The modification or withdrawal of Resolution Plans under the Insolvency and Bankruptcy Code, 2016 (“Code / IBC”) had always been a contentious subject, with the National Company Law Tribunal (“Adjudicating Authority / NCLT”) and National Company Law Appellate Tribunal (“NCLAT”) taking conflicting views in the past.

Continue Reading No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions
Listen to this post
truth or illusion? - Criminal Liability of Digital Intermediaries in the age of deepfakes

Introduction

A deepfake connotes a highly realistic synthetic media of a real person, generated by an Artificial Intelligence. While a parallel can be drawn between photo-alteration technology and deepfakes, the latter is inherently disingenuous because it makes it difficult to ascertain doctoring. The gravity of leaving this technology unregulated is severe because it can be used to disseminate misinformation with drastic political, reputational and financial implications.

Continue Reading Truth or Illusion? – Criminal Liability of Digital Intermediaries in the age of Deepfakes
Listen to this post
The Turning Tides of US Sanctions: India Caught in the Middle

Secondary Sanctions & Countermeasures

The recent escalation of United States (“US”) sanctions against Russia seems to have significant consequences for the Indian market. India has strong economic relationships with both the countries. At the moment, however, India seems to be caught between a ‘rock and a hard place’.[1] The country finds itself in a tricky minefield and it has to now balance its financial interests, along with its obligations to the international community.

Continue Reading The Turning Tides of US Sanctions: India Caught in the Middle