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Choosing the right sectors
Infrastructure, pharmaceuticals and education present attractive opportunities for private equity investment. Yashojit Mitra and Archana Khosla of Economic Laws Practice explain why
A few years ago, Indian real estate was the preferred investment sector of the...
Funds in flux
Regulatory obstacles and systemic turbulence disrupt the dealflow, yet India retains its allure to private equity investors
Alfred Romann reports
One of the many paradoxes of India is that widespread optimism about the country’s future growth...
Deals of the year, part two
China Business Law Journal presents the second half of our selection of significant transactions from last year, and the domestic and international law firms behind them. By George W Russell and Raymond Yang
Following a...
Calculated risk examples in business law
Especially when just over five years ago, you had already bought 100 others that are still being delivered. But this is India, and the buyer in question – budget airline IndiGo – knows it...
A spoonful of sugar
Clever structuring sweetened Abbott’s acquisition of a division of Piramal. Yet, the success of the deal may prompt new FDI caps in the pharmaceutical sector
Raghavendra Verma reports from New Delhi
In May 2010,...
IPOs in the insurance sector: myriad factors at play
Initial public offerings or IPOs in the Indian insurance sector have garnered much interest over the last couple of years. The spark that ignited this interest can be traced to Reliance Life Insurance Company...
Deals of the Year 2010
India Business Law Journal showcases 50 of the most significant transactions, court cases and IP enforcement actions of 2010 and reveals the law firms that guided them
George W Russell reports
The international financial crash that...
Conversion terms of convertible instruments
Compulsorily convertible instruments have been the preferred investment route for private equity and strategic investments entering India, as they offer protection from equity risks. In the absence of specific regulatory prohibition and a pro-foreign...
Circulars, notes and orders
Steps are finally being taken to simplify the process through which businesses are notified of regulatory changes
Rebecca Abraham reports
When the government recently tightened rules on foreign direct investment (FDI) in real estate – saying...
Circular 2 – clarity, concision and key changes
True to its word, the Department of Industrial Policy and Promotion ushered in the second half of the financial year with a new edition of the consolidated foreign direct investment (FDI) policy in India...
Structuring JV and acquisition agreements
Nidhi Khadria and Arun Madhu of Phoenix Legal highlight regulatory changes that will affect the drafting of M&A contracts
In late 2009, the Indian securities market regulator tasked a group of industry experts with the...
The art of the deal
A revival of inbound and outbound mergers and acquisitions is adding colour to India Inc
By George W Russell
India-related merger and acquisition deals totalled US$44.2 billion in the first three quarters of 2010, a 24.5% increase...
Foreign lawyers go native
This year has seen a succession of high-profile lawyers move from international law firms to PRC firms. But why have they moved, and what have they found? And what does having PRC and international...
Legal Market Report & Directory of Indian Law Firms 2010
Indian law firms are grappling with a flood of new legislation as they attempt to capitalize on the resurgent economy
By Vandana Chatlani
In recent weeks resurgent monsoon rains have brought chaos to India’s capital city...
Regulatory changes without bite
Close on the heels of the new consolidated FDI policy (which this column discussed last month), comes yet another regulatory change that is impacting deal-making in India with foreign money. The Reserve Bank of...
Foreign investment through convertible securities
Foreign investors invest in Indian companies through equity shares or securities that are fully and mandatorily convertible into equity shares within a specified time period. These convertible securities include compulsorily convertible preference shares (CCPS)...
Sharing the spoils or spoiling the shares?
Heightened risk aversion and financial prudence on the part of investors may drive a revival of joint ventures. Vandana Chatlani investigates the risks and rewards of joint venturing
To many foreign investors, India’s proverbial legal...
Big bang or big gamble?
India’s new securities rules may trigger a boom in share offerings, but have sparked fears over the liquidity of the market. They have also prompted mixed reactions from listed companies and their legal advisers
George W...
Salans promotes Liu in China partner push
Salans has announced that it intends to double the number of its China-based partners this year. As part of its ambitions to grow its China capabilities, it has promoted its senior associate, Liu Wei,...
The foreign direct investment fuddle
April is normally a time when transactional lawyers look forward to breathing easy and recovering from year-end closings and attendant hectic times of March. But this new financial year, the government has kept us...
Foreign investment in the broadcasting sector
The broadcasting sector in India includes FM radio services, cable networks, direct-to-home (DTH) broadcasting services and uplinking news and non-news channels. The Telecom Regulatory Authority of India (TRAI) categorizes services in the broadcasting sector...
The key to success
Opening an Indian office has never been easier for multinational and foreign-domiciled companies. New rules have further expedited the process and created greater transparency
George W Russell reports from Bangalore
Even the most innovative multinational companies...
Opportunity beckons in Latin America
Latin America is firmly on Chinese companies’ mental map. But what will they find when they get there? China Business Law Journal offers an analysis of the latest state of play, followed by a unique...
Foreign investment in Indian retail
The Indian retail market is ranked as one of the most attractive retail destinations globally. Press Note 3 of 2006 permits up to 51% foreign investment in an Indian company in the retail sector...
Foreign investment in 3G mobile services
Foreign direct investment (FDI) in the telecommunications sector in India has experienced a substantial increase in the recent past and a further growth is expected following the auction of spectrum to support third generation...
Investing in India through convertible instruments
There are certain issues an overseas investor should take into account when structuring an investment in an unlisted Indian company through instruments that are compulsorily convertible into equity shares of the company.
Foreign direct investment...
India in 2010
Business and legal professionals gaze into their crystal balls and share their predictions for the year ahead
India Business Law Journal invited senior lawyers, corporate counsel and a risk and security expert to predict the...
Investors may escape lock-in
Foreign direct investment (FDI) in the real estate sector may no longer be subject to the statutory three-year lock-in period. The Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry...
Making hay while the sun shines
As China emerges from the economic downturn, the rules of the game have changed. Law firms are adapting to the new environment, and in-house counsel are under pressure to do more work in-house By...
Affordable housing key to real estate recovery
People in India swear by the success of the real estate sector, and understandably so, for it is the country’s second largest employer and contributes to approximately 5% to its GDP. The sector received...
‘Promoter’ does not imply acquisition of control
In a recent adjudication order the Securities and Exchange Board of India (SEBI) held that the disclosure of acquirers as “promoters” in terms of regulation 8(2) of the SEBI (Substantial Acquisition of Shares and...
Bullish about India
French company Vétoquinol has bucked the market by acquiring a major animal healthcare business in India. The deal involved complex intellectual property and licensing agreements, careful tax structuring and tough negotiations
Rahul R Mahajan reports...
Make India investor friendly
Dear Madam,
This is with reference to the Cover story titled Law enforcement published in India Business Law Journal’s July/August 2009 edition. The cover story rightly expresses concern over the enforcement regime and its impact...
FCEBs: A new way to borrow overseas
Indian corporations can raise foreign currency debt either by commercial loans from non-resident lenders through the external commercial borrowings (ECBs) route, or by issuing foreign currency convertible bonds (FCCBs), convertible into equity shares of...
Power games
Buoyed by spiralling demand and recent bilateral agreements, India’s power and defence sectors are primed for growth. Regulatory roadblocks and political tussles continue to frustrate investors, but the long-term opportunities are immense. Alfred Romann reports
India’s...
Steering the deal through
Outbound investments from India to the US face scrutiny on national security grounds. A thorough understanding of the review process and early consultation with regulators are crucial in achieving a successful outcome. Mark Plotkin, David...
The education sector in India
In India, foreign direct investment (FDI) can be made in some sectors under the automatic route (where no prior approval is required), and in other sectors with the prior approval of the Foreign Investment...
Forging international partnerships
In India, partnership firms are a common vehicle for undertaking business activities on a small or medium scale. However, the existing legal framework for partnership firms is not as sophisticated as it is for...
National security exceptions to foreign investment
Foreign investment in India is governed by the applicable foreign investment policy of the government of India, read together with the Foreign Exchange Management Act, 1999 (FEMA), as amended, and regulations and notifications issued...
Investment opportunities in US financial services assets
The Public-Private Investment Program (PPIP) that was announced on 23 March by the US Treasury Department (UST) presents significant opportunities for private investors looking to take advantage of current market uncertainty. The PPIP encourages...
New roadmap for foreign banks in India?
Recent turmoil in the global financial market may force the Reserve Bank of India (RBI) to rethink its roadmap for foreign banks, announced on 28 February 2005. The roadmap proposed a two-pronged approach to...
NBFCs: Can banks still benefit from regulatory arbitrage?
Until recently, non-banking financial companies (NBFCs) were less-stringently regulated than banks by the Reserve Bank of India (RBI), and were thus considered an arbitrage boon in disguise by the financial services sector. NBFCs became...
Indirect foreign investment policy in a state of flux
The Department of Industrial Promotion and Policy (DIPP) has issued fresh guidelines for foreign investments in sectors with caps, such as defence production, civil aviation, broadcasting, insurance and telecoms, which require approval from the...
On with the show
The financial crisis has not brought the curtain down on India’s entertainment sector. Recent reforms have stimulated foreign investment. Opportunities beckon … Gowree Gokhale, Khushboo Baxi and Ranjana Adhikari report from Mumbai
India’s media and entertainment...
The desperate search for liquidity
India is implementing regulatory changes to tackle the credit crunch. How will the moves help cash-strapped corporations restructure their debt portfolios and access new sources of funding? Karan Singh and Ameya Khandge report
India escaped the...
Private sector set to play growing role in insurance
For nearly four and a half decades after India’s independence, the insurance sector was monopolized by the state. Life insurance was nationalized in 1956 and the Life Insurance Corporation of India was set up...
Healthy capital cushion points to future growth
Any discussion of outbound investment from India must begin with the effects of the 60 hours in Mumbai last month. The psychological effect of such a devastating event and its commercial impact is all...
3, 2, 1 … lift off for nuclear power
The recently concluded Indo-US nuclear deal could potentially herald a new era in India’s rapidly growing power sector. The so-called 123 Agreement between India and the US enables access to reliable and uninterrupted nuclear...
Opening the vault
India’s banking sector is on the verge of a second wave of liberalization. Coming amid a global financial crisis, how will domestic and international banks – and their legal advisers – respond to the challenge? Barney...
Deals of the Year 2008
At the end of a tumultuous year, India Business Law Journal celebrates the top transactional achievements of 2008 and the law firms that made them happen. Chris Crowe reports from London
India’s transactional clout was drastically reined...
Shipping and logistics crucial areas for India
The Indian peninsula is strategically located between cargo movements, to and from the European Middle East in the West and the Pacific Asia rim in the East. India has 7,517 kilometres of coastline studded...
Coming full circle: Novel financing structures needed
Historically there have been restrictions on financing by banks. Presently, the Reserve Bank of India (RBI) has capped banks’ credit exposure limits at 15% of their capital funds, in the case of a single...
Retail boom ignites demand for improved logistics
The Indian retail sector can be broadly classified into organized and unorganized retail. The former has only just taken off with the advent of professionally managed departmental stores and malls, however, the bulk of...
Liberalization key factor in soaring success of aviation
After independence, the aviation sector in India was exclusively run as a government monopoly. With the liberalization of the aviation sector, the industry has witnessed a transformation with the entry of privately owned full-service...
India’s telecom network takes a paradigm stride
The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. The sector has undergone a crucial metamorphosis with significant policy reforms.
Telecommunications is driving growth at a...
‘Blended’ legal solutions
Dear Sir,
Your recent article Jewels in the crown (IBLJ volume 2, issue 1) on the best foreign law firms for India-related work was both interesting and informative. Thank you for listing Berwin Leighton Paisner...
India’s telecom network makes a paradigm shift
The Indian telecom network is the eighth largest in the world and the second-largest among emerging economies.
The sector has undergone a crucial metamorphosis with significant policy reforms.
Telecommunications is driving growth at a feverish pace....
Integrating and optimizing logistics activities
Supply chain management (SCM) encompasses the planning and management of all activities, involved in sourcing, procurement, and conversion; and all logistics management activities which means having the right thing, at the right place, at...
Balanced policies propel pharma sector growth
The pharmaceutical industry in India, with its rich scientific talent pool, low costs of production, research and development (R&D), and an increasing balance of trade and research capabilities, supported by an intellectual property protection...
Free trade and warehousing zones offer myriad benefits
One of the prerequisites of providing total integrated logistics solutions is well equipped warehousing. The necessity to store perishable goods generates a need for convenient and ample warehousing.
The management of warehouses is crucial for...
Revised guidelines clarify telecoms investment policy
The telecom sector in India has shown impressive growth over the past decade. Observers charting the country’s progress in the sector have found that India has the fastest growth in the number of telecom...
Good times ahead
Dear Sir,
I must compliment India Business Law Journal on its coverage of the Indian real estate sector (April 2008). Indeed, India’s real estate market is currently a cynosure to all foreign investors and will...
Setting up shop
Despite a restrictive regulatory regime and deep political sensitivities, now is the time for foreign retailers to establish a foothold in India
Ben Frumin in New Delhi explains
Against the colossal backdrop of a Bollywood film...
Airline industry is growing but it could still use a lift
As in the case of Indian sea ports, there is a mismatch between the growing freight and passenger market and the infrastructure constraints in India’s domestic and international airports.
With annual passenger growth of 20%...
Private industry gears up for bigger role in defence sector
In a landmark policy change, the defence industry was thrown open to the private sector in May 2001 (Press Note 4 of 2001 Series). The government allowed 100% equity with a maximum 26% foreign...
Financing gambling operations not easy
Foreign direct investment (FDI) has been recognized as an important instrument for advancing India’s foreign exchange resources, its technological base and for globalizing the Indian economy. Gambling (gaming), lottery business and betting are not...
Buying land in India: From concept to completion
Sumes Dewan tells the story of Astra Infra to illustrate how innovative structures may overcome the hurdles associated with acquiring land
In March 2005, significant liberalizations to India’s real estate sector were set forth by...
The road to REITs and REMFs
Gautam Mehra of PricewaterhouseCoopers evaluates recent moves to introduce collective investment schemes into Indian real estate
Since April 2004, India’s real estate market has been open to investment by institutional investors and high net worth...
Defying the laws of economics
Despite the sub-prime crisis in the US and a restrictive regulatory regime at home, Indian real estate continues to boom. Can it last? Alfred Romann reports
Nandan Nelivigi, a New York-based partner at White & Case,...
Legislative and regulatory update – April 2008
The budget
India’s latest budget, unveiled by Finance Minister P Chidambaram on 29 February, includes a number of tax provisions that impact businesses and individuals.
The budget had been expected to include significant changes to the...
Reform’s unstoppable march
As elections loom, a shaky coalition government going slow on reform is no surprise. But the fact that it is still trying bodes well for India
One conclusion that India-watchers may glean from this month’s...
Fighting for funds
Market turbulence has forced many Indian corporates to re-evaluate their domestic and international capital-raising strategies. But in spite of the difficulties, there is no shortage of investors willing to gamble on India, Chris Crowe reports...
The best is yet to come
India has made huge strides in reforming its economy. Serious challenges persist but there is also great cause for optimism, writes Vijaya Sampath, group general counsel at Bharti Enterprises
After decades of the “Hindu”...
Legislative and regulatory update – March 2008
Foreign investment
In January, the government proposed the liberalization of foreign direct investment (FDI) in certain key economic sectors.
The ceiling on foreign investment in public sector petroleum refining has been raised from 26% to 49%...
Building the future
Foreign investors are flocking back to India’s once-pariah infrastructure sector. They must tread carefully, but this time the opportunities are real, Ben Frumin reports from New Delhi
One minute. That’s all it took on 15 January...
Third party logistics gains momentum
Third party logistics (3PL), or logistics outsourcing, refers to outsourcing transportation, warehousing and other logistics related activities to a 3PL service provider that were originally performed in-house.
Logistics outsourcing is used for the logistics activities...
The turbulent tale of Project Windstorm
In the first of a two-part series, Bob Nelson uses a fictional case study to illustrate the broad strategic considerations that are necessary when developing and financing an infrastructure project in India
In the 1990s,...
Easing norms in the insurance sector
Gross foreign direct investment (FDI) inflows during April 2007 totalled US$1.6 billion as compared with US$700 million a year ago.
This large year-on-year hike speaks well of the efforts and policies of the government of...
India in 2008
Shardul Thacker previews the regulatory changes that foreign and domestic businesses may witness during the coming year
India’s fast-moving economy hinges, to a large degree, on timely legislative reform and regulatory development. Authorities must stay...
Continuing liberalization increases India’s appeal
In recognition of the important role of foreign direct investment (FDI) in driving economic growth, the Government of India initiated numerous economic and financial reforms in 1991, transforming the nature of the Indian economy...
Foreign direct investment expands retail trade
The retail trade sector in India has undergone significant transformation from small, unorganized family-owned retail units to organized retailing pursuant to the influx of international retailers in domestic markets.
Organized retail trade, predominantly concentrated in...
Legislative and regulatory update – September 2007
Intellectual property
In a landmark decision on 6 August the Chennai High Court rejected Swiss firm Novartis AG’s challenge of a key provision of the 2005 patent law. Dismissing Novartis’ petition, the bench observed...
Taking aim
New money is targeting India from surprising directions
George W Russell investigates
Globalization is just a word. But when it takes the form of surging foreign direct investment (FDI) into India from sources better known...
Legislative and regulatory update – July/August 2007
Securities
An Airports Economic Regulatory Authority (AERA) could be created in the near future after the Union Cabinet approved in May the passing of the AERA Bill, 2007. Under the bill, the authority would review...
Foreign VC funds may wish to register with SEBI
The Indian media are flooded daily with explosive figures earned by venture capital investors. Increasingly, new domestic and offshore funds are being formed with a specific India and industry focus. One avenue open to...
Development of India’s logistics industry
India is the ninth largest retail market in the world. Although this sector is still dominated by small retail players, recent times have seen large domestic and global firms launch retail projects that are...