Model Concession Agreements: Paving the Path to Increased Public-Private Partnership

The note discusses recent amendments issued by the Ministry of Road, Transport and Highways, Government of India to the model concession agreements for build-operate-toll (BOT) and toll-operate-transfer (TOT) road projects, which are expected to ease certain practical challenges under the BOT and TOT models and increase public-private partnerships in the roads sector in India.


Clean Energy

Clean Energy: Issue 1 of 2024

Issue 1 of 2024 of S&R’s Quarterly Roundup Series on Clean Energy covers the period between January and March 2024. The covered period witnessed several transformational developments, such as those in respect of the Electricity Rules, 2005 involving the delicensing of transmission lines and capping of open access charges; a renewed focus on distributed/decentralized solar energy; requirements related to the approved list of manufactures and models in connection with solar photovoltaic modules; green hydrogen policies at the state level (e.g., Uttar Pradesh); and incentive schemes and guidelines for pilot projects across key sectors (like shipping, steel and transport) related to the production and supply of green hydrogen and green ammonia, along with detailed scheme guidelines for the manufacture of electrolyzers, the setting up of hydrogen hubs, as well as on research and development and skilling.


Identification of Promoters

Regulatory Spotlight on Identification of Promoters

Identification of “promoters” ahead of an initial public offering in India is a critical step given the resultant disclosure requirements, obligations and other implications. In the recent past, the Indian securities regulators have increased their scrutiny over the persons and entities being identified as promoters in offer documents.
This note provides an overview of certain recent developments in connection with the identification of promoters.


Short Selling in India

Short Selling in India

Short selling in India has been in the spotlight as highlighted by the events triggered by the publication of a report by Hindenburg Research in 2023 (the “Hindenburg Report”). The Indian Supreme Court considered short selling pursuant to petitions filed following the publication of the Hindenburg Report. This was followed by SEBI reissuing its framework for short selling.


India-EFTA Agreement

Investments under the India-EFTA Agreement: Re-writing the Rules of the Game?

On March 10, 2024, India entered into a trade and economic partnership agreement (the “TEPA”) with the European Free Trade Association (“EFTA”). The Investment Chapter of the TEPA requires the EFTA States to aim towards (i) increasing foreign direct investment (“FDI”), and (ii) facilitating new jobs in India by specified numbers and timeframes, in exchange for India enhancing market access and simplifying customs procedures. This unique formulation could provide a new template for negotiating international investment agreements in the future – especially between developed and developing countries – given that it deviates from traditional treaty design by providing for non-reciprocal rights and differentiated responsibilities. This anomaly, in turn, could have far-reaching consequences for foreign investors and global FDI flows. However, the TEPA’s novel provisions also raise certain legal and practical concerns. In this note, we analyze such provisions of the Investment Chapter.


Foreign Investment in Nuclear Energy in India

Foreign Investment in Nuclear Energy in India

Nations across the globe have announced their net zero targets and other climate action commitments. Each country is pursuing its own pathway to achieve the net zero goal considering the resources available to it. In this background, in December 2023, the Government of India announced that it has initiated steps to substantially increase India’s nuclear power capacity.
This note provides an overview of the current legal framework for private/foreign investment in nuclear energy in India and the increased level of screening for foreign investment globally in the energy sector.


Semiconductor Industry in India

Opportunities in the Semiconductor Industry in India

Semiconductors or ‘chips’ are the building blocks of electronic devices and are used in a variety of electronic devices from cars to drones as well as smartphones and computers and across various sectors, including the aerospace and defence, telecom and automotive sectors. Currently, a majority of the semiconductor manufacturing market is dominated by countries such as Taiwan, China, the United States, South Korea and Japan. India relies on semiconductor imports from these countries. While the semiconductor manufacturing industry is currently at a nascent stage in India, due to the worldwide shortage of semiconductors, over the last couple of years, India has taken active steps to tap this market.
This note outlines the key initiatives of the Government of India in relation to the semiconductor industry, regulatory framework for investment, setting up operations in India and recent developments/investments in the semiconductor industry in India.


REITs and InvITs

REITs and InvITs: Evolution of the Regulatory Landscape in India

Business trusts play a significant role in Asian and global capital markets. India introduced real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in 2014. As the regulatory regime approaches the completion of a decade, this note reflects on the evolution of the regulatory landscape for REITs and InvITs in India.


Legal considerations of investing in india

Investing in India: An Overview of Legal Considerations

Foreign investment is a key contributor to India’s growth story and India continues to consistently experience growth in inflow of foreign direct investment (“FDI”). The Government of India has announced that the provisional figure of FDI inflow into India for the financial year ended March 31, 2023 was USD 71 billion and according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report, India remains a favored destination for global investors.
In this note we discuss certain key legal considerations for a foreign investor investing in India.
 


EU’s New Law on Artificial Intelligence

The EU’s New Law on Artificial Intelligence: Global Implications

Pursuant to ‘trilogue’ negotiations among major institutions of the EU, an agreement on a proposed regulation with respect to artificial intelligence (“AI”) was arrived at in Brussels a few months ago, the text of which may be approved, published, and subsequently enter into force later this year. This is the world’s first comprehensive law on AI (the “AI Act”). According to the current draft, the AI Act should apply two years after its entry into force, likely from the second quarter of 2026.
The broad focus of this new law is a risk-based approach, based on an AI system’s capacity to cause harm. Compared to prior legislative proposals, additional elements of the current agreement include rules on high-impact general-purpose AI models that can cause systemic risk in the future, as well as on high-risk AI systems. The AI Act may set a global standard for AI regulation in other jurisdictions, just like the EU’s General Data Protection Regulation (“GDPR”) did with respect to personal information. Moreover, similar to the GDPR, one of the most important effects of the AI Act will be its extraterritorial scope, involving obligations for non-EU businesses as well.