Regulatory Archives - Page 4 of 18

Regulatory Landscape for SM REITs in India

Insights | May 5, 2025 | Practice Area: Capital Markets, Investment Funds, InvITs; REITs and Business Trusts, Real Estate, Regulatory

In March 2024, the Securities and Exchange Board of India (“SEBI”) amended the SEBI (Real Estate Investment Trusts) Regulations, 2014, to introduce Small and Medium Real Estate Investment Trusts (“SM REITs”), aiming to regulate fractional ownership platforms (“FOPs”) that offer retail investors access to real estate. This move addresses concerns related to investor protection, regulatory gaps, and operational transparency in FOPs. SM REITs are structured as SEBI-registered trusts and are required to comply with specific eligibility, investment, and governance criteria. This note outlines procedures for registration, scheme launches, and investor safeguards intended to enhance investor confidence, market liquidity, and standardized practices in India’s evolving real estate sector.

‘Prior’ CCI Approval of Resolution Plans: A Case for a Legislative Amendment

Insights | April 28, 2025 | Practice Area: Banking and Finance, Competition/Antitrust, General Corporate, Mergers and Acquisitions, Regulatory, Restructuring and Insolvency

The recent judgment of the Supreme Courtin Independent Sugar Corporation Ltd. v. Girish Sriram Juneja & Ors. has reignited the debate on whether the approval of the Competition Commission of India (“CCI”) must precede the Committee of Creditors (“CoC”) approval in the insolvency process. This note critiques the Court’s strict interpretation of the proviso to Section 31(4) of the Insolvency and Bankruptcy Code, 2016 and supports the dissenting opinion, arguing for a liberal interpretation of the proviso to Section 31(4). The note proposes a legislative amendment to the proviso, proposing that CCI approval be requiredprior to approval of the adjudicating authority(i.e., the NCLT) instead ofprior to CoC approval, to better balance regulatory compliance with efficiency of the insolvency process.

Regulatory Updates: IFSCA (Fund Management) Regulations, 2025

Insights | April 7, 2025 | Practice Area: Investment Funds, Regulatory

The International Financial Services Centres Authority (“IFSCA”) has introduced the IFSCA (Fund Management) Regulations, 2025 (“FM Regulations 2025”) to further streamline fund management activities in GIFT-IFSC. The FM Regulations 2025 introduce investor-friendly measures, reduced entry barriers, and increased operational flexibility, while also strengthening investor protection. These regulations aim to foster a business-friendly environment, align with global standards, and reinforce GIFT-IFSC’s position as a global financial hub.

Updated Master Direction on Foreign Investment in India: Clarifications to the Regulatory Framework

Insights | April 3, 2025 | Practice Area: General Corporate, Mergers and Acquisitions, Regulatory

The Reserve Bank of India recently issued an updated Master Direction on Foreign Investment in India (“Master Direction”) on January 20, 2025 to clarify various aspects in the regulatory framework for inbound investments. The Master Direction provides significant regulatory clarifications on foreign investments in India, particularly in relation to downstream investments, cross-border share swaps, share issuances to non-resident shareholders pursuant to a scheme of merger or amalgamation, and the issue of equity-based employee benefits to directors and employees resident outside India. This note highlights the key clarifications and changes to the regulatory framework brought about by the Master Direction that are intended to provide greater certainty and enhance the ease of doing business for overseas investors in India.

Evaluating the Regulatory Framework Governing Executive Compensation in Listed Companies

Insights | April 2, 2025 | Practice Area: Capital Markets, General Corporate, Regulatory

Executive compensation in listed Indian companies is determined through a three-stage process involving the Nomination and Remuneration Committee (“NRC”), the Board of Directors, and shareholders. The NRC identifies candidates, formulates a remuneration policy, and submits recommendations to the Board. The Board then reviews and approves these recommendations before presenting them to shareholders for a final vote. While shareholders theoretically have the ultimate authority, ambiguities in India’s regulatory framework may weaken its effectiveness. This note examines key issues in executive compensation governance, analyzing relevant regulations and proposing solutions to enhance the framework.

Clean Energy: Issue 1 of 2025

Periodic Roundups | March 20, 2025 | Practice Area: Clean Energy, Projects; Infrastructure and Energy, Regulatory

Issue 1 of 2025 of our Quarterly Roundup Series on Clean Energy covers the period between October 2024 and January 2025. This Issue tracks key regulatory developments in the covered period involving solar and wind generation, green hydrogen/ammonia production, EVs, tariff, and connectivity, and includes miscellaneous updates and key announcements from the Union Budget of February 2025.

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; REITs and Business Trusts, Regulatory

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.

Investing in India: An Overview of Legal Considerations – 2025 Checklist

Insights | February 5, 2025 | Practice Area: Capital Markets, Competition/Antitrust, InvITs; REITs and Business Trusts, Mergers and Acquisitions, Private Equity, Regulatory, Tax

Foreign investment continues to play a crucial role in India’s economic growth with India achieving the milestone of having received USD 1 trillion of foreign direct investment since April 2000. While the cumulative FDI received in the financial years ended March 31, 2023, and March 31, 2024 remained similar, there has been an increase in the FDI received between April 2024 to September 2024 in comparison to previous years.
This note examines certain key legal considerations for foreign investors investing in India and highlights key updates included in the legal framework during the calendar year 2024.

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.