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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.Continue Reading Allocation of CSR Funds: Need for more equitable distribution

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.Continue Reading Alternative Investment Funds: Dealing with unliquidated investments

SEBI Proposes Key Changes to the AIF Regime

The Securities Exchange Board of India (“SEBI”) has been actively updating the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) to strengthen the governance mechanism of alternative investment funds (“AIFs”) and bring in more transparency and accountability for market participants. The recent updates seem to be aimed at investor protection and ensuring compliance with the existing array of laws related to AIF Regulations.Continue Reading SEBI Proposes Key Changes to the AIF Regime

Fund structures are gaining popularity among wealthy individuals in India as optimum structures to help with wealth planning, investments, and tax management. Family offices are viewing GIFT City, India’s first international financial services centre (“IFSC”), for the purpose of facilitating global investments in a structured manner. Continue Reading IFSCA Relaxes Rules for Family Investment Funds in GIFT City