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…

Have you ever come across a case where a notice has been issued by the Enforcement Directorate or any regulatory authority for violation of foreign exchange laws or any other law(s) to a Company that has been struck off or dissolved?  Can any inquiry or investigation be initiated against a…

In recent times the domestic financial markets are witnessing outflows of overseas investment and the country’s current account deficit is widening as a result of rising crude oil prices and the current geopolitical situation. The Reserve Bank of India (RBI) vide its press release number 2022-2023/481 dated June 6, 2022…

The Voluntary Liquidation Regulations provides that the liquidator shall endeavour to complete the liquidation process of the corporate person within twelve months from the liquidation commencement date. As on 31st December, 2021, 1105 voluntary liquidation processes have been initiated; out of which only 546 voluntary liquidation cases have been completed…

A non-resident individual or entity, holding an investment in an Indian entity by way of equity instruments on repatriation basis may choose to divest its holding by transferring its shares to another person. A transfer of equity instrument can be effectuated by way of sale or by way of gift.…