General Corporate Archives

The Legal Framework for Nuclear Energy in India: The Way Ahead

Insights | March 17, 2025 | Practice Area: Clean Energy, General Corporate, Mergers and Acquisitions, Private Equity, Projects; Infrastructure and Energy, Regulatory

Despite significant progress made by India with respect to renewable energy, its nuclear power capacity remains relatively small. Recognizing the necessity of nuclear energy deployment to achieve net-zero targets, including the advantages that such deployment offers over renewable sources of power, the Indian government has renewed its focus on the nuclear sector in the budget announced on February 1, 2025, including through permitting private and foreign investment in the sector.
However, India’s plans to promote private/foreign investment in the nuclear sector require certain changes to the existing legal regime, including with respect to civil nuclear liability. In that regard, the government appears keen to introduce necessary legislative amendments soon. This note aims to discuss current challenges and potential modifications with respect to such laws.

FPI Investments in the Indian Debt Markets: An Overview

Insights | February 13, 2025 | Practice Area: Banking and Finance, General Corporate, InvITs, Regulatory, REITs and Business Trusts

Investments in debt securities in India by non-residents require compliance with an array of Indian foreign exchange and securities regulations. Overseas investors intending to invest in debt instruments in India typically do so either under the Reserve Bank of India’s (“RBI”) framework for external commercial borrowings (“ECB”) or through the route available for foreign portfolio investors (“FPI”) registered with the Securities and Exchange Board of India (“SEBI”). In recent years, the FPI route has become a popular option for overseas investors looking to invest in India’s debt markets on a regular basis as it allows for greater flexibility in terms of interest, repayment terms, security cover and end use of funds in comparison to the ECB route. According to data from the National Securities Depository, FPI investments in the Indian debt markets stood at INR 1.1 trillion in 2024.
In January 2025, the RBI issued Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (“Master Direction”), which, inter alia, consolidates a number of the circulars and directions issued by the RBI on investments in debt instruments by non-resident investors, including FPIs. This note analyzes the key regulatory aspects governing FPI investments in corporate debt securities, particular in light of the Master Direction.

Namaste Korea: January 2025 Edition

Namaste Korea | February 11, 2025 | Practice Area: General Corporate, Litigation and Arbitration

Welcome to the third edition of the “Namaste Korea” newsletter. This newsletter provides an overview of the latest business/trade news and developments in Indian law and practice which are relevant to Korean businesses and other organizations with India-related interests. The newsletter also includes sector-specific updates, including in automotive, manufacturing, telecom, technology, electronics and gaming.

Greenwashing: An Overview

Insights | January 22, 2025 | Practice Area: Clean Energy, Corporate Governance and ESG, General Corporate, Regulatory

Companies are responding to rising global demands for environmentally safe products and sustainable practices. However, unverified and unsubstantiated claims in relation to sustainability records and climate change commitments can lead to allegations of ‘greenwashing’ if such marketing tactics are designed to make the public believe that a company is doing more to protect the environment than it really is. ‘Greenwashing’ refers to the practice of misleading consumers, investors and other stakeholders by making false or exaggerated claims or use of misleading words or imagery about a company’s environmental or sustainability-related performance while downplaying or concealing harmful attributes.
This note discusses Greenwashing in India, in particular, greenwashing guidelines issued by regulatory authorities, including the Advertising Standards Council of India and the Central Consumer Protection Authority.

Fiber Opportunity in India: Regulatory Framework and Right-of-Way Management

Insights | January 16, 2025 | Practice Area: General Corporate, Mergers and Acquisitions, Private Equity, Regulatory, Technology; Media and Telecommunications

With increasing demand for high-speed internet, 5G roll-out and data center growth, deployment of a robust and reliable optic fiber cable (“OFC”) infrastructure has become essential to support India’s expanding digital ecosystem. Fueled by this market opportunity, companies are focusing on expanding their OFC networks and investors are exploring potential opportunities for fiber investments in India. Several telecom operators have already consolidated their fiber assets in a path towards monetization of such assets.
This note explores the legal framework and recent developments regarding Right-of-Way for OFC in India.

Accessing Space for Commercial Activities and Satellite Spectrum Allocation in India

Insights | January 6, 2025 | Practice Area: General Corporate, Mergers and Acquisitions, Private Equity, Regulatory, Technology, Technology; Media and Telecommunications

The Government of India has been actively working towards liberalizing the space sector and enhancing private sector participation. In this regard, given the stakes involved and the positions taken by various interested parties, the process for allocation of satellite spectrum remains a contentious point.
There has been a major debate among service providers regarding the appropriate way to allocate satellite spectrum.
While the Telecommunications Act, 2023 (“Telecom Act”) favors administrative allocation of satellite spectrum, the details of such process are yet to be finalized. This note considers the debate involving auctions and administrative allocation and provides an overview of past and recent developments with respect to Supreme Court judgements, digital communications policy, frequency allocation plan, space policy and the Telecom Act. It also discusses past consultation papers and recommendations of the Telecom Regulatory Authority of India on satellite spectrum allocation, as well as the recent provisional satellite spectrum allocation approved by the Department of Telecommunications.

Permissibility of Selective Capital Reduction Under the Companies Act, 2013 and the Wider “Take Private” Question

Insights | November 20, 2024 | Practice Area: General Corporate, Mergers and Acquisitions

In a departure from existing precedents, the National Company Law Tribunal, Kolkata bench (NCLT), pursuant to its order dated September 19, 2024, rejected a petition for reduction of capital under Section 66 of the Companies Act, 2013 filed by Philips India Limited, an unlisted company, to cancel and extinguish the equity shares held by the non-promoter shareholders. The rejection was on the basis that the company’s main objective was a buy-back of equity shares from the minority public shareholders and that the reduction of share capital was only incidental to the company’s main objective. This note analyzes the permissibility of selective capital reduction under the Companies Act, 2013 in light of the decision of the NCLT in Philips India and the wider question on ‘take private’ transactions.

Lessons from OpenAI: Boards and the Spin of Corporate Governance

Insights | November 18, 2024 | Practice Area: Corporate Governance and ESG, General Corporate, Private Equity, Technology; Media and Telecommunications

Widely regarded as the most innovative AI organization in the world, OpenAI’s management model presents a unique approach to corporate governance involving a majority-independent board of directors as final decision makers. In 2023, OpenAI’s CEO was fired and immediately reinstated, within a short period of a week. Such events highlight the reality of independent corporate governance models and suggest that truly independent structures may struggle in modern business environments. This note also briefly considers removal of directors from an Indian perspective.

Namaste Korea: October 2024 Edition

Namaste Korea | October 30, 2024 | Practice Area: General Corporate, Litigation and Arbitration

Welcome to the second edition of the “Namaste Korea” newsletter. This newsletter provides an overview of the latest business/trade news and developments in Indian law and practice which are relevant to Korean businesses and other organizations with India-related interests. The newsletter also includes sector-specific updates, including in telecom, electronics, semiconductors, automotive, financial services, gaming, and healthcare.

Karnataka High Court’s Recent Judgement: Are OLA Drivers Employees or Contractors?

Insights | October 25, 2024 | Practice Area: Employment, General Corporate, Litigation and Arbitration

The Karnataka High Court (“Court”), in its judgement dated September 30, 2024 in Ms. X v. Internal Complaints Committee, ANI Technologies Private Limited and Ors., held that the relationship between ANI Technologies Private Limited (“OLA”) and its driver subscribers was an employer-employee relationship for purposes of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) and such driver subscribers could not be considered as independent contractors.
The judgement, which closely scrutinizes OLA’s subscription agreements with its driver subscribers and customers, states that OLA cannot, on one hand, exercise complete control over the activities performed by the driver subscribers, while, on the other hand, onboard them as independent contractors to evade its responsibilities under relevant statutes. The judgment also analyzes the intent and objectives of the POSH Act and the wide ambit of the definitions of employer, employee and workplace under the POSH Act in furtherance of these objectives.
OLA has filed an appeal against the judgment before the Division Bench of the Court, which has issued an interim order staying its operation, stating that the issues raised in the judgement require further consideration. While the outcome of the appeal is awaited, the Court’s judgment of September 30, 2024, through its detailed reasoning, assumes significance in contributing to the discourse on the status of gig workers in the current labor economy and the responsibilities and liabilities of companies who engage such workers on a contract basis.