Companies Act

Identifying SBO in Pooled Investment Vehicles: Conundrum Continues

Summary: Identifying SBOs, especially if the member of a reporting company in India is a pooled investment vehicle of an overseas jurisdiction, continues to be a big challenge. The Indian SBO Rules provide for two different sets of tests for identifying an SBO, basis the PIV’s location. If a PIV is from a FATF compliant jurisdiction, the test is much simpler, vis-a- vis PIVs from non-compliant jurisdictions, which require more detailed scrutiny. This blog analyses several interpretative challenges that continue to bother both PIVs and reporting companies, requiring MCA clarification.Continue Reading Identifying SBO in Pooled Investment Vehicles: Conundrum Continues

Section 8 Company Limited by Guarantee: An Alternative to Traditional Section 8 for FEMA & FCRA Issues Faced by Foreign Owned and Controlled Entities

Summary: The blog discusses the progressive shift in the implementation of CSR activities by foreign-owned and controlled entities, and how a Section 8 company limited by guarantee can serve as an alternative to the challenges faced by traditional Section 8 companies under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the Foreign Contribution (Regulation) Act, 2010.Continue Reading Section 8 Company Limited by Guarantee: An Alternative to Traditional Section 8 for FEMA & FCRA Issues Faced by Foreign Owned and Controlled Entities