SEBI´s new proposed Insider Trading Regulations is the topic of discussion this month´s Corporate Amicus. The article in this regard concludes that SEBI has indeed adopted a more principle based approach to deter insider trading in the securities market as evident from the tests laid down to understand and determine concepts such as UPSI, “Connected persons” or even “Generally available information”.
Notifications and Circulars portion of this issue covers recent clarification by the Ministry of Corporate Affairs stating that provisions of Chapter III of the Companies Act, 2013 will not apply to issue of Foreign Currency Convertible Bonds (FCCBs) or Foreign Currency Bonds (FCBs) made exclusively to persons resident outside India. Department of Industrial Policy and Promotion (DIPP) has clarified that items having military as well as civilian applications would not require industrial license for defence purposes.
Ratio decidendi portion of this Amicus includes a recent order of the Supreme Court holding that BIFR does not automatically lose jurisdiction once company gets revived. Readers may also see this issue for order wherein SEBI has held that fund mobilizing activity of a company under the garb of real estate business for sale/purchase, development and maintenance of agricultural land is covered within the parameters of ‘collective investment scheme’ as defined in Section 11AA of the SEBI Act, 1992.