Greetings to all on behalf of the entire team of SB Partners.
In the last six months we saw numerous changes in the areas of Banking and Finance, Capital Markets and Corporate Laws, Foreign Exchange and Insolvency and Bankruptcy Laws of India.
The main highlight was the Insolvency and Bankruptcy Code Ordinance, 2018 which gave a big relief to home buyers by recognizing their status as ‘financial creditors’. This would give them due representation in the Committee of Creditors and make them an integral part of the decision-making process. The Ordinance also provided relief to Micro, Small and Medium Sector Enterprises (“MSMEs”) by allowing the promotor of such MSMEs to bid for his enterprise undergoing Corporate Insolvency Resolution Process.
The other notable developments were in the area of Capital Markets. Securities and Exchange Board of India (“SEBI”) amended the Alternative Investment Funds (“AIFs”) Regulations and increased the maximum investment limit by AIFs in venture capital undertakings from Rs. 5 Crores to Rs. 10 Crores. The minimum corpus size required for an AIF has also been reduced from Rs. 10 crores to Rs. 5 crores.
In addition to the foregoing, this issue of ‘Lex Novus’ also focuses on other key regulatory developments in Corporate Laws. The Ministry of Corporate Affairs (“MCA”) amended rules relating to meetings of board of directors of the company and allowed the directors to participate through audio-visual means in a board meeting discussing matters like approval of annual financial statements etc., provided that there is a quorum present in such meeting through physical presence of directors.
We hope you find this edition of Lex Novus informative and insightful.
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