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Allocation of CSR Funds: Need for more equitable distribution

Context

The Ministry of Corporate Affairs (“MCA”) introduced the concept of Corporate Social Responsibility (“CSR”) for the first time through the Voluntary Guidelines on CSR, 2009. These guidelines encouraged companies to formulate policies to undertake CSR, provide for its strategic planning and a roadmap for its CSR initiatives. As a mandatory legal requirement, CSR was first codified in Section 135 of the Companies Act, 2013 (“CA 2013”). As recognized in the 21st Report of the Standing Committee on Finance on the Companies Bill, 2009, this was the first time in India, and also probably in the world that CSR was being introduced as a mandatory requirement.

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Revoking Gifts by Senior Citizens: Supreme Court judgment ‘Beneficial’ but questions remain

Introduction

In our previous blog post (accessed here), we discussed the judgement of the Supreme Court (SC) in Sudesh Chhikara v. Ramti Devi & Anr[1] (Sudesh Chhikara), whichheld that a gift or transfer of property by a senior citizen may be declared void by a Maintenance Tribunal only if certain conditions as set out in section 23(1) of the under the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (Senior Citizens Act) are fulfilled.

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The importance of brand strategy and management for large family businesses

In today’s highly competitive business landscape, a robust brand strategy is crucial for any organisation, especially large conglomerates that bear a family name. A well-defined brand strategy can not only establish a strong market presence, it can also mitigate potential conflicts, ensure consistency, and protect the brand’s legacy.

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GIFT-IFSC and LRS- Insurance Products for Resident Indians?

Background

In recent years, the Indian government has made significant strides toward enhancing the operational framework of the International Financial Services Centre at Gujarat International Finance Tec-City (“GIFT-IFSC”). GIFT-IFSC was established with an aim to redirect all financial transactions conducted by residents in foreign financial centres to India. By virtue of RBI circular[1] titled ‘Operational guidelines on International Financial Services Centre (IFSC)’ dated March 31, 2015, GIFT-IFSC is deemed as an offshore jurisdiction under the Foreign Exchange (Management) Act, 1999. However, due to the restrictive nature of the Liberalised Remittance Scheme (“LRS”), there were not many GIFT-IFSC products marketable to Indian residents. In order to cement the status of GIFT-IFSC as a viable financial centre for Indian residents and pursuant to feedback received from various stakeholders, the Reserve Bank of India (“RBI”) vide a circular dated July 10, 2024 (“LRS Circular”) permitted Indian residents to remit money to GIFT-IFSC for all permissible purposes under the Master Direction- Liberalised Remittance Scheme, 2016[2] (“LRS Master Direction”). Detailed analysis on the LRS Circular and its implications on GIFT-IFSC can be found here.

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Disposition of unliquidated assets has been a major challenge for some Alternative Investment Funds (“AIFs”). Most AIFs in the market today are close ended i.e., they have a fixed tenure, within which AIF managers are expected to fully exit the AIF’s portfolio investments. The recent data on AIFs, published by Securities Exchange Board of India (“SEBI”), indicates that AIF investments in unlisted securities are significantly higher (almost by a factor of 2.8) than that in listed securities. SEBI has increased its scrutiny of those AIFs which are seeking tenure extensions, are in the midst of their liquidation period or are struggling with expired liquidation period.

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Heirs not liable for personal contractual obligations: Supreme Court opines

When entering into contracts, individuals rarely consider whether their contractual obligations would bind or impose liabilities on their heirs in the event of their demise. Therefore, upon the passing of the contracting party, it is, at times, not straightforward to ascertain whether the heirs are liable to honour the deceased’s obligations. The Supreme Court of India (“SC”) was recently called upon to opine on this issue in the matter of Vinayak Purshottam Dube (Deceased) v. Jayashree Padmakar Bhat and Ors.[1].

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Does unregistered codicil alter the terms of a registered will?

The following article was first published in the Mint newspaper on 5th March, 2024. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.

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