Introduction A company can raise its capital in many ways. In this article, we shall discuss a method laid down in the Companies Act, 2013 which allows a company to raise funds on a private placement basis. Private placement is a procedure through which a company can sell its securities directly to the pre-identified investors. […]
Introduction In today’s scenario talent is the only thing by which any organization can grow efficiently and effectively at the same time. To promote talent among employees and to retain them, various organizations offer various schemes to their employees such as: Employee stock option plan Employee stock purchase schemes Stock appreciation rights schemes General employee […]
SARFAESI Act, 2002 was formulated to promote the establishment of Asset Reconstruction Companies (ARCs) and Asset Securitization Companies (ASCs) to deal with rising NPAs that the banking and financial institutions deal with. The Act provides three important tools or methods into asset management of banking and FIs for recovery of NPAs: Securitization of financial assets […]
Introduction Banking and financial institutions are the backbones of finance sector of an economy. The well being of such institutions is extremely important for the capital to flow into the economy as their two-way functionalities i.e. accepting deposits and lending. These are the channels for capital flow. However, clogging of these channels endanger the entities […]
Introduction In today’s scenario when many companies are taking over the operations and management of other companies in order to diversify, grow and scale-up, you might have heard the term “Takeover” a lot. However, do you know the exact legal meaning of this term? who regulates the process of takeover? In this article, we shall […]
Introduction Voluntary delisting means delisting of equity share of a company voluntarily on the application of the company. Provisions related to voluntary delisting are covered under SEBI (Delisting of Equity Shares) Regulations, 2009. Regulation 5 – 21 of the aforementioned regulations deal with voluntary delisting. Subject to provisions of these regulations, a company may delist […]
Introduction As per SEBI (Delisting of Equity Shares) Regulations, 2009, delisting of security means the removal of listed security from the stock exchange platform and thus no longer be traded on the bourse (stock market). This usually takes place when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to […]
Introduction As per section 92 of the Companies Act, 2013, MGT-8 is a mini secretarial audit which is submitted as an attachment to the annual return of the companies in form MGT-7. It is mandatory to get this form certified by a company secretary in practice. MGT-8 form is required to certify the annual returns […]
Reduction of share capital is a process to lower down/reducing the share capital of a company. It means reducing the issued, subscribed and paid-up share capital of the company. Separate provisions and procedure for have been envisaged under the Companies Act, 2013 and rules made thereunder for reduction of share capital. Section 66 of the […]
Valuation of any business is very important to understand the real worth of the business. The correctness of valuation is very crucial as any deviation from the real worth of any business may result in wrong decision making and adversely impact the business. The sanctity of valuation depends on the knowledge and experience of a […]