Month: August 2024

foreign investment in india

Foreign Investment in India from Bordering Countries: A Case for Review

Insights | August 29, 2024 | Practice Area: ,

Press Note No. 3 (2020 Series) (“PN3”) was introduced with the primary objective of “curbing opportunistic takeovers and acquisitions of Indian companies due to the COVID-19 pandemic.” However, the circumstances that prompted introduction of PN3 have changed significantly. There is a need to reflect on PN3’s impact on India’s FDI landscape. This note discusses certain key issues in relation to PN3 and the way forward for foreign investments from China and other countries that share land border with India.

investing in ai

Investing in AI in India (Part 2): Tracking the Regulatory Landscape

Insights | August 28, 2024 | Practice Area: , , , ,

Prospective investors in Indian artificial intelligence (“AI”) companies should familiarize themselves with the Indian government’s initiatives in AI regulation and the direction of future regulation. This note, the second of a multi-part series on investing in the Indian AI sector, outlines some of the key developments in AI in the country. However, it is important to keep in mind that India’s approach to AI governance may change in the future, given the rapidly evolving nature of technology as well as the country’s dynamic regulatory trajectory, including with respect to data, intermediary liability, digital technologies, telecommunications and digital competition, as discussed in this note.

new data protection law

The Implications of India’s New Data Protection Law on Internal Investigations

Insights | August 21, 2024 | Practice Area: , ,

Internal investigations may need to be carried out in India by employers in relation to a wide range of issues and/or situations. In case of Indian subsidiaries of MNCs, investigations may be carried out for the purpose of satisfying compliance requirements under law(s) applicable to the parent entity, like the Foreign Corrupt Practices Act of 1977 of the US or the UK’s Bribery Act 2010.
In the course of such internal investigations, large amounts of personal data related to accused persons and other relevant individuals may need to be processed by the employer – either by itself or through its advisors and agents. Accordingly, an informed assessment of the rights of such individuals, as well as the obligations of the employer and its advisors/agents, becomes crucial from the perspective of applicable data protection law.
This note specifically discusses the processing of personal data in the context of internal investigations, including with respect to allegations or suspicions of economic and criminal offences. While necessary rules under the Digital Personal Data Protection Act, 2023 are yet to be notified, provisions of this new law, as published in August 2023, indicate key considerations for employers (each of which is likely to be treated as a “data fiduciary”), including with respect to consent, legitimate use and potential exemptions.

esg considerations

Climate Change and ESG Considerations in India’s AI-Driven Future

Insights | August 14, 2024 | Practice Area: , , ,

As AI continues to transform industries in crucial ways, the training of large AI models remains highly energy- and resource-intensive, resulting in significant emissions and waste.
For countries and companies which have ambitious net-zero goals, balancing AI ambitions with existing decarbonization strategies is important. As India accelerates its journey towards becoming a global economic powerhouse, it may want to address the environmental implications of increased AI deployment, including by regulating AI with the aim of making increased adoption sustainable. Where companies are concerned, investing in ‘green AI’ will not only benefit the environment but may also enhance their ESG profiles. Going forward, the integration of climate considerations into AI policy is likely to become an important element of responsible AI development.

related party transactions

Related Party Transactions: Recent SEBI Scrutiny

Insights | August 13, 2024 | Practice Area: , ,

The Securities and Exchange Board of India (“SEBI”) has been continuously calibrating the disclosure requirements applicable to Indian listed companies to increase transparency and accessibility of information to investors. Provisions regulating related party transactions (“RPTs”), and appropriate disclosure of such transactions, are a step in that direction. This note discusses two recent SEBI actions against listed companies related to RPTs and highlights the need for listed companies to have a comprehensive policy on RPTs that suitably addresses any perceived gaps or ambiguities.

Clean Energy: Issue 2 of 2024

Quarterly Roundups | August 12, 2024 | Practice Area: , ,

Pursuant to significant regulatory developments in the period between January and March 2024, as discussed in our previous clean energy quarterly update (Issue 1 of 2024), Issue 2 tracks and analyzes key regulatory developments between the months of April and June 2024, including in respect of the approved/revised list of manufacturers and models (related to solar photovoltaic modules and wind turbine models, respectively), rooftop solar projects, the optimal utilization of power generating stations, the National Green Hydrogen Mission, the determination of fees and charges to be collected by regional load dispatch centers, deviation settlement, EV charging infrastructure, quality control standards for electrical equipment, biomass utilization, the electricity grid code, and renewable energy tariff determination.

In addition, Issue 2 of 2024 tracks and discusses key regulatory developments across states, such as those with respect to open access (including green energy open access), consumer rights, resource adequacy, renewable purchase obligations, peer-to-peer energy transactions, and battery energy storage systems. 

Direct Tax Vivad se Vishwas Scheme

Direct Tax Vivad se Vishwas Scheme, 2024

Insights | August 12, 2024 | Practice Area:

The pendency of litigation under the Income-tax Act, 1961 has been rising due to two key factors: increasing number of appeals and slow disposal of such appeals. To address this growing backlog and to build on the success of the previous Vivad se Vishwas Scheme, 2020, the government has proposed the Direct Tax Vivad se Vishwas Scheme, 2024 (“VSV Scheme, 2024”). This note provides an overview of the VSV Scheme 2024.

SEBI framework for disclosure of KPIs

Regulatory Spotlight on Disclosure of Key Performance Indicators

Insights | August 8, 2024 | Practice Area: ,

The Securities and Exchange Board of India (“SEBI”) has increased its scrutiny of key performance indicators (“KPIs”) included in offer documents. Its focus is aimed at enhancing the transparency of pricing and the disclosure of performance, allowing IPO investors to obtain a clearer understanding of an issuer and its business. Given the focus on KPI disclosures, IPO-bound companies (regardless of the industry) must devote sufficient attention to identifying KPIs relevant to their business and understanding regulatory expectations in this regard.
This note provides an overview of the SEBI framework for disclosure of KPIs in offer documents.