India has received a good flow of investments in the form of Foreign Direct Investments (FDI). While most businesses have succeeded in India but a fair number have also lost money and for this reason or as a part of their global strategy, a call for closure of business in…

Voluntary liquidation is a process by which a company, which is otherwise financially viable, chooses to wind up its operations and dissolve its legal existence. Under the Insolvency and Bankruptcy Code (IBC), there are several safeguards in place to protect the rights of stakeholders during the voluntary liquidation process. A…

Overview In 2010, personal data belonging to millions of facebook users was collected without their consent by a British Consulting firm called “Cambridge Analytica”. It was revealed to have heavily influenced the US presidential elections in 2016 and Brexit in Britain. It gathered the attention of the whole world and…

Overview Restricted Stock Units (RSU) are a form of equity compensation given to the employees / directors of the company in lieu of any cash bonus. This is given free of cost by the company but with some restrictions. The grant of RSU is “restricted” because it is subject to…

The Overseas Investment framework before 22 Aug 2022 was not clear on some aspects and left room for multiple interpretations. With an aim to revamp the Overseas Investment framework, in attempt to simplify and liberalize the regulatory framework, the Government of India and RBI notified the Overseas Investment Rules and…

It is a general practice by foreign entities to compensate the employees / directors of their India entity (subsidiary / office) by way of Employee Stock Ownership Plan (ESOP). Prior to August 2022, the employees were permitted to acquire shares under ESOP and there was a reporting requirement of submission…

Maintaining the Registered office is very crucial aspect under the Companies Act, 2013 (“the Act”). It determines the territorial jurisdiction of regulators, and they are using the same for correspondence with the Company. The ministry has observed an increase in the number of companies formed with non-operational addresses. Additionally, it…

There was a general view prevailing in the industry that the reference and calculations of Late Submission Fee (LSF) in the RBI Notification are very complicated and unless an expert is engaged, it wasn’t possible for easy verification of accuracy of LSF mentioned in the approval letter of RBI. As…

RBI has made mandatory LEI registration for all cross border transactions such as capital or current account transactions of INR 50 crore and above, w.e.f  1st October, 2022. Previously, LEI registration was made compulsory for all RTGS and NEFT transactions of INR 50 crore and above, w. e. f. 1st…

Why the Government mandates a company to hold board meetings, a company where public is not interested? Even a One Person Company, a small company and a dormant company is required to hold couple of meetings through the year. On the other hand, there is no such requirement for an…