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Regulatory Updates

Articles

THE FRIENDS/ FAMILY INVESTMENT ROUND

For a first-time and young founder, when the founder himself is not too sure of his idea or is in need of money during the early stage of business, it is family and friends(based on ‘trust’ or because they ‘love

By Sharda Balaji over 10 years ago
THIRD PARTY PAYMENTS FOR EXPORT / IMPORT TRANSACTIONS – ALLOWED

Recently RBI liberalized the procedure relating to payments for exports/imports, through circular (A.P. (DIR Series) Circular No.70) dated November 8th 2013 (‘Circular’), allowing third party payments for exports and import transactions. Earlier, payment for exports was to be received from

By Sharda Balaji over 10 years ago
LISTING WITHOUT AN IPO FOR SME: ALTERNATIVE EXIT ROUTE FOR INVESTORS

Recently, SEBI vide its Circular dated October 24, 2013 (“Circular”), allowed listing of specified securities of small and medium enterprises (“SME”) which do not have their securities listed on any recognized stock exchange, exclusively on the institutional trading platform (“ITP”),

By Sharda Balaji over 10 years ago
MANAGEMENT AND ADMINISTRATION - COMPANIES ACT 2013

[slideshare id=30031123&sc=no] This article pertains to the compliance requirements at the shareholder meetings in terms of calling for meeting, the quorum requirements, the manner of conducting the meetings including the annual compliance with the registrar of companies. The analysis seeks

By Sharda Balaji almost 11 years ago
INCENTIVES FOR INFORMATION AND BIO-TECHNOLOGY COMPANIES

The Karnataka Government recently announced various fiscal and non-fiscal incentives to give an impetus to Information Technology (IT) and Bio-Technology (BT) industries in the State. In order to enable identification of eligible units so that these incentives can be applied

By Sharda Balaji almost 11 years ago
NEGOTIATING TERMSHEETS: EXIT OPTIONS – Part 5

In the previous post ( read Part 4 here) , we discussed a few exit options. In this post we discuss about IPO, which is the preferred option in most investment deals. Many a time, even the early stage investment agreements capture quite

By Sharda Balaji almost 11 years ago
NOTE ON PATENT NOTIFICATION

IPO to act as International Searching Authority and International Preliminary Examining Authority India has seen some major reforms in intellectual Property (IP) domain over a decade or so. Talking about Patents in IP, the most technical and specialized domain, few

By Sharda Balaji almost 11 years ago
MANDATORY REGISTRATION - ESI

A business entity needs to procure, few of the registrations as per various state and central laws, depending upon the eligibility threshold provided under each act. One of the essential registrations, subject to Employees' State Insurance Act, 1948 (ESI Act),

By Sharda Balaji almost 11 years ago
NEGOTIATING TERM SHEETS - EXIT STRATEGY - PART 4

The most critical aspect in any investment deal for the investors is the exit clause, which is when they get to see the return on investment. In a typical early stage investment deal, the options are initial public offering (IPO),

By Sharda Balaji almost 11 years ago
DUE DILIGENCE

Today’s competitive forces have brought a paradigm shift in the mindsets of the investor community, that focuses more on business ground rules than ever before. Profitability is not the only parameter which plays a role. Preferably, the product/business must also

By Sharda Balaji almost 11 years ago
NEGOTIATING TERMSHEETS: BOARD REPRESENTATION - PART 3

We covered interesting tips on negotiating the ‘commercials’ of a termsheeet - http://novojuris.wordpress.com/2013/08/27/term-sheets-negotiation-and-tips-part-1/ and http://novojuris.wordpress.com/2013/09/03/term-sheets-negotiation-and-tips-part-2/. Negotiating commercial aspects of the termsheet is kind of expected unlike ‘controls’ (please see Part I of this series). Most investors would give a standard response of ‘style of investment’

By Sharda Balaji almost 11 years ago
Term Sheets – Negotiation and Tips – Part 2

NEGOTIATING FOUNDER VESTING CLAUSE IN EARLY STAGE TERMSHEETS In Part 1(refer to https://www.novojuris.com/thought-leadership/term-sheets-negotiation-and-tips-part-1), we pointed out on negotiating a few ‘commercial’ aspects. In this post we detail Founder Vesting. Please note, that Founder Vesting is a clause one would see in

By Sharda Balaji almost 11 years ago