Tag Archives: Securities and Exchange Board of India

ILN Today Post

Compensation Agreements with Employees of Subsidiaries of Listed Indian Entities Within the Ambit of SEBI Listing Regulations

Earlier this year, the Securities and Exchange Board of India (“SEBI”) amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), to structure the unregulated compensation and profit sharing arrangements/agreements between shareholders/third parties with the employees, including the key managerial personnel, directors and promoters of listed investee companies (“Regulation 26(6)”). These arrangements were widely used by private equity investors to not only incentivize the promoters/key employees/directors but to accelerate the growth of the company and its consequent valuation to benefit the investors and other shareholders at large. But, from SEBI’s view point, these arrangements were a breeding ground for corporate governance issues and unfair trade practices. We have in our earlier article1, discussed the implications of the above SEBI amendment. While the Listing Regulations were amended to incorporate Regulation 26(6) vide its notification dated January 4, 2017, certain ambiguities related to interpretation of the Regulation 26(6) persist.

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ILN Today Post

SEBI (Alternative Investment Funds) Regulations – The Beginning of a New Era

After much hullaballoo, the Securities and Exchange Board of India (“SEBI”) released on May 21, 2012, the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) to regulate activities of collective investment funds including venture capital funds, private equity funds, hedge funds, etc. The AIF Regulations have repealed the Securities and Exchange Board of India (Venture Capital Fund) Regulations, 1996 (“VCF Regulations”).

The salient features of the AIF Regulations are discussed below:

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ILN Today Post

IRDA notifies the Issuance of Capital by Life Insurance Companies Regulations, 2011

The Insurance Regulatory and Development Authority (“IRDA”) on December 1, 2011 notified the IRDA (Issuance of Capital by Life Insurance Companies) Regulations, 2011 (the “Regulations”) for life insurance companies/firms to raise capital from the capital market via public offerings. The Regulations have been formulated in consultation with the Securities and Exchange Board of India (“SEBI”).It would appear that the Regulations were implemented to give effect to section 6AA of the Insurance Act, 1938 (“Insurance Act”) which requires promoters of Indian life insurance companies, holding more than 26% (twenty six percent) to divest the share capital in excess of 26% (twenty six percent), in a phased manner after a period of 10 (ten) years from the date of commencement of the business.
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