The recent ruling of the Bombay High Court in IDBI Trusteeship v. Hubtown Ltd. has sparked much debate around permissible foreign direct investment structures. The Court disregarded individual steps which were within the regulatory framework? and looked at the entire series of transactions to hold that the intent of the transactions was in violation of the FDI policy. The judgment provides key insights into formulation of contractual and shareholder rights, and use of step down structures for foreign investment and encourages the following questions: Are downstream investments still legit? Does the regulator have the power to examine the spirit or substance of the transaction? What should be the parameters of structuring? Are there any assured return structures available?.
Join us for an interactive Webinar on Friday, June 12, 2015 (India time) where we discuss and analyze the judgment and its impact on foreign investors. We will be sharing our Hotline on the judgment prior the Webinar.
Partner – M&A & Private Equity, Nishith Desai Associates
Nishchal Joshipura is Partner of Mergers & Acquisitions and Private Equity Practice at Nishith Desai Associates. He is a lawyer with background in management & chartered accountancy. He has led several high profile M&A and Private Equity deals and specializes in legal and tax structuring of complex cross-border transactions.
He also advises major MNCs on Corporate & Securities laws, Transfer Pricing, International Taxation, Globalization, Structuring of Inbound/ Outbound Investments, Private Equity Investments, Structuring of Offshore Funds, Taxation of E-Commerce and Exchange Control Law.
Co-Head - Private Equity and M&A, Nishith Desai Associates
Ruchir Sinha co-heads Private Equity and M&A at the firm and also leads the Real Estate Practice Group. Ruchir advises clients on private equity investments, private debt investments, mergers & acquisitions, fund formation across industries from a legal, tax and regulatory perspective, with specialism in real estate investments. He has advised several global funds in formulating, negotiating and implementing optimum tax-efficient structures for foreign investments into India. He was nominated amongst the top 3 lawyers in India (under 35 category) at IDEX Legal Awards. He is also the recipient of the Scholarship from the International Bar Association.
Senior Member – International Litigation & Dispute Resolution Practice , Nishith Desai Associates
Ashish started his practice with the M&A team and was involved in various acquisition transactions, private equity investments deals and mezzanine and pure debt financing transactions. With the corporate background, he moved to the litigation and dispute resolution practice and has since advised and represented clients in several multimillion dollar domestic and international arbitrations and commercial litigation matters. He focuses on complex commercial disputes and has dealt with several matters involving shareholder disputes, director and officer liability, investment and debt financing before various forums such as foreign seated arbitrations, Company Law Board, High Courts and the Supreme Court of India.
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