India: Directors and Officers

Before regulations were put in place, India’s stock market was much less transparent and often seemed like the Wild West. Traders would frequently use the phrase “Bhaav Bada Hai”, which hinted that stock prices were being artificially inflated, usually for personal profit. It wasn’t just a casual remark about market trends; it was a quiet signal that trades were being made to manipulate prices, pushing them far beyond what was actually fair or realistic.

India’s startup ecosystem has evolved from nascent digital ventures in the early 2010s to a high-growth engine with over 110 unicorns and more than 159,000 Department for Promotion of Industry and Internal Trade (“DPIIT”)- recognised startups as of January 2025, positioning India as the third-largest startup ecosystem globally. Bolstered by venture capital (“VC”) and foreign institutional investments, startups have unlocked new markets, created millions of jobs, and shaped India’s global innovation profile.

Corporate law encompasses the legal framework governing business entities, including formation, governance, compliance, and dissolution. It addresses the rights and obligations of shareholders, directors, officers, and other stakeholders while ensuring adherence to regulatory requirements. Understanding corporate law is essential for navigating complex business transactions and maintaining proper corporate structure.

1. Applicability – Under the Payment and Settlement Systems Act, 2007 (“PSS Act”), no person can operate a payment system without an authorisation issued by RBI in accordance with the PSS Act. PS directions are applicable only on entities applying for authorisation or authorised to operate a payment system under the PSS Act. Such authorisation is based on an ‘on-tap basis’

The Applicant proposed to appoint as an Independent Director an individual who was the cousin (daughter of the father's sister) of a member of its promoter group, who was also serving as a director on the boards of two subsidiary companies of the Applicant.

最終的に署名済みの株主間契約（SHA）へと移行するすべてのタームシート（条件規定書）には、投資家保護条項が数多く盛り込まれており、書面上は非常に強力な内容に見えます。これらの条項は、双方の弁護士の間で激しく交渉されます。しかしインドでは、創業者との紛争が深刻化し&

The introduction of the Corporate Laws (Amendment) Bill, 2026 (“the Bill”) in the Lok Sabha represents a transformative milestone in India's ongoing journey to enhance its regulatory landscape.

Starting a company is only the first step in a long legal journey.

Imagine you are a founder of a company you built from scratch. Over the years, you diluted your shareholding through successive funding rounds, stepped back from day-to-day operations, brought in a professional CEO, and reconstituted the board with independent directors.