Understanding the LLP Significant Beneficial Owners Rules 2023

By Burgeon Law / Company Setup, Start-Ups / February 8, 2024 March 7, 2024

Understanding the LLP Significant Beneficial Owner Rules 2023 The Ministry of Corporate Affairs on November 9, 2023, has notified the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 (“SBO Rules”). The SBO Rules now obligate LLPs to ascertain whether an individual qualifies as an Significant Beneficial Owner (“SBO”). Up until now, only companies were subjected …

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Navigating Restriction on the Transfer of Promoters Shares

By Burgeon Law / Corporate and Commercial, Funds, Investments / February 8, 2024 May 9, 2024

Safeguarding Investments: Navigating Restriction on the Transfer of Promoters Shares In the dynamic landscape of investments and corporate governance, the ownership of shares by a company’s promoters holds significant sway over business trajectories. Investors keen on ensuring stability and long-term growth must carefully navigate the intricacies of promoter stability and share transferability concerns. Unrestricted transferability …

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Nominees or Legal Heir, Who Has The Legal Right Over Shares?

By Burgeon Law / Investments / February 8, 2024 March 7, 2024

In a significant ruling on December 14, 2023, in the case of Shakti Yezdani v. Jayanand Jayant Salgaonkar (Civil Appeal No. 7107 of 2017), the Hon’ble Supreme Court (“Supreme Court”) has cleared the air on a critical subject. The ruling pertains to whether the rights of a nominee under the Companies Act, 1956 (Section 109A …

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Amendment to the Legal Framework on Social Stock Exchange

By Burgeon Law / Compliance / February 8, 2024 March 7, 2024

Recently, Securities and Exchange Board of India (“SEBI”), in exercise of its powers under Section 11(1) of the Securities and Exchange Board of India Act, 1992, amended the framework for the Social Stock Exchange (“SSE”), via its circular dated: December 28, 2023 (“Circular”), thereby amending the provisions under the Securities and Exchange Board of India …

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Investigations in Public Interests and Into Ownership Under Companies Act: An Overview

Investigations in Public Interests and Ownership Under Companies Act

By Burgeon Law / Company Setup, Compliance, Corporate Secretarial, Start-Ups / February 8, 2024 February 9, 2024

Background Recently, the Ministry of Corporate Affairs (“MCA”) launched an investigation into the affairs of Hero MotoCorp Limited under Section 210(1)(c) read with Section 216 of the Companies Act, 2013 (“2013 Act”). This development makes it germane to understand what these powers entail and the consequences thereof. Necessary In Public Interest Section 210(1)(c) of the …

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Governing The Startups: Towards A More Sustainable Growth

By Burgeon Law / Start-Ups / February 8, 2024 March 7, 2024

The Current Picture India has the third largest startup-ecosystem in the world with more than 100 unicorns till 2023. The funding environment for early stage Startups, especially seed and Series A investment continues to be vibrant in India, despite there being a decline in funding for growth-stage and late-stage Startups primarily due to the global …

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Preventing Fraud in the Indian Startup Ecosystem

By Burgeon Law / Data Privacy, Start-Ups / February 8, 2024 March 7, 2024

How The Indian Startup Ecosystem Can Take Proactive Steps To Prevent Siphoning of fund & Fraud? In recent years, the Indian startup ecosystem has seen tremendous growth. Several companies have emerged as unicorns and industry leaders, backed by both Indian and international venture capital and private equity firms. However, the ‘Blitzsclaling’ (termed by LinkedIn cofounder …

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Direct International Listing Enabled for Indian Firms via GIFT City

By Burgeon Law / Corporate Secretarial / February 8, 2024 March 7, 2024

Indian Companies Permitted Direct Listing on International Exchanges Gift The Ministry of Finance (“MOF”), in exercise of its powers under Sections 46 (2) (aa) and 46 (2) (ab) of the Foreign Exchange Management Act, 1999 (“FEMA Act”) has amended the provisions of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (“FEMA Rules”), …

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RBI Notification On Evergreening

By Burgeon Law / Compliance / February 8, 2024 March 7, 2024

Introduction The Reserve Bank of India (“RBI”) on December 19, 2023 released a circular (RBI/2023- 24/90) (“Circular”), addressing the practice of “evergreening”. Evergreening refers to a practice where Regulated Entities (“REs”) circumvent the direct exposure to the debtor company by making investments in units of Alternative Investment Funds (“AIFs”) which in turn makes investment in …

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European Union Artificial Intelligence Act

By Burgeon Law / Artificial Intelligence, Data Privacy / February 8, 2024 March 7, 2024

Introduction Businesses are moving towards Artificial Intelligence (“AI”) enabled services/product delivery. This move towards AI underscores the importance of regulating the field of AI development to ensure public interest and at the same time promote innovation within the space. Governments across the world are taking and (in some cases) have taken a proactive role in …

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