Corporate Professionals Blog

Right investment is all about spotting the right opportunity. Locations where big infrastructure and industrial projects come up see rapid growth and ensure good returns. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com As a dream project of Prime Minister Narendra Modi, Gujarat International Financial Tec City (GIFT) is designed for Greenfield development as a hub for the global financial services sector. The GIFT master plan facilitates Multi Services Special economic Zone (SEZ) with International Financial Services Centre (IFSC) status, Domestic Finance Centre and associated Social infrastructure. GIFT SEZ Limited has been formed for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ. It is pertinent to note that the primary focus of the Multi Services SEZ will be on financial services.

We all are aware that in today’s era of globalization, Employee retention has become a buzzword and accordingly ‘ESOPs’ i.e, Employee Stock Option Plans has emerged as one of the most important tools to encourage, attract and retain employees. Earlier, when the Companies Act, 1956, was formulated, the concept of rewarding Employees through Stock Options Route was not recognized by the Indian market and was first introduced in early 90s when Indian IT Companies were facing the problem of poaching and brain drain. With the passage of time, ESOPs have gained importance not only in IT sector but in other sectors as well. Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com Considering the increased recognition and upward trend, lawmakers have also acknowledged the ESOPs and accordingly chalked down specific provisions for the same to ensure transparency in the process of rewarding employees.

The Hon’ble Finance Minister Shri. Arun Jaitley on 10.07.2014 presented the Union Budget 2014 and mentioned that slowdown in Indian economy has to be seen in the context of slowing global economic growth. He admitted there are green shoots of recovery seen in the global economy but mandate of “sab ka saath, sab ka vikaas” to be followed in order to leave no stone unturned in creating a vibrant India. Mr. Chander Sawhney Vice President +9810557353 chander@indiacp.com The central theme now is “minimum government, maximum governance” with emphasis on women, children, minorities, backward classes and disabled persons. Impetus has also been given to create opportunities for youth for skill development. Health, Education, Rural, Manufacturing, Infrastructure and affordable housing have been kept on the priority list. Capital Markets initiatives like liberalization of ADR, GDR regime, introduction of uniform KYC norms, one single operating DMAT account has also been touched upon.

This post discusses the concept of deposits as provided under Chapter V of the Companies Act, 2013 (hereinafter the Act of 2013) and the Companies (Acceptance of Deposits) Rules, 2014 (“Deposits Rules”), and how these may have an impact on the companies post the enactment. Mr. Abhishek Bansal Sr. Associate +919873191956 abhishek@indiacp.com Chapter V of the Act of 2013 (sections 73 to 76), except for section 75 and provisions relating to, or involving the National Company Law Tribunal, have been notified and came into effect from 1 April 2014. The Deposits Rules have been legislated thereunder to provide for the details relating to the acceptance and treatments of deposits under the Act of 2013.

SEBI at its Board Meeting, has approved the proposal to review the existing regulatory framework on Employee Stock Option Scheme (ESOS) and Employee Stock Purchase Scheme (ESPS) for listed entities and frame regulations for Employee Benefit Schemes involving shares of the company, replacing the existing SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 . Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com The proposed Regulations will, inter alia, cover all Employee Benefit Schemes which, directly or indirectly, deal in shares of the company. SEBI has intended to address the following issues through Regulations: 1. Composition of Trusts, 2. Secondary market acquisitions under Schemes and 3. Enhanced disclosures and better enforceability.

The Securities Exchange Board of India (“SEBI”) vide its circular dated June 19, 2014 has come up with additional guidelines/clarification on disclosure and reporting norms for registered Alternative Investment Funds (“AIFs”) under the SEBI (Alternative Investment Funds) Regulations, 2012 (“Regulations”). The modifications/addition made in the AIF Regulations are mentioned herein below: Ms. Deepika Vijay Sawhney Partner +919818316936 deepika@indiacp.com 1. Submission of information to SEBI under sub-regulation (1) of Regulation (3) of AIF Regulations The SEBI vide this circular has relaxed the reporting timing for the amount of leverage to the end of next working day, instead of the same day.