Often used together, Private Equity (PE) and Venture Capital (VC) are different concepts pertaining to infusion of capital through equity purchase by investors. Thought to be similar concepts, PE and VC differ from each other in their basics. With the focus to invest in companies possessing ideas or expansion related plans or simply with a view of getting a profitable exit, citing the growth prospect of the investee companies, this article aims to explain the concept of PE and VC, along with laying down the differences between the concepts and finally explaining in brief, the legal mechanisms that govern PE and VC.
Month: July 2023
Slump Sale: Legal Regime and Supreme Court’s Classification
This article amongst other aspects highlights the reasons for the prominence of a ‘slump sale’ in respect of the structuring of asset purchase arrangements and the landmark judicial precedents) underpinning such reasons.
Derivatives Contracts: Forwards, Futures, Options and Swaps
In layman terms, a Derivative based contract is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index, or security. Some common financial instruments used for this purpose are Futures Contracts, Forward Contracts, Options Contracts, and Swaps Contracts. These are secondary securities whose value is solely based (derived) on the value of the primary security that they are linked to which is known as the underlying assets.
Impact of Social Security Code, 2020 on Employees’ State Insurance Scheme
The Code on Social Security (the Code), passed with a view to repeal and consolidate existing labor laws and facilitate ease of doing business, has introduced several changes in the Employees’ State Insurance (ESI) Scheme. This article brings forth the features pertaining to the ESI Scheme under the said Code, which proves crucial for both the employee(s) as well as the employer(s).
Restrictive covenants under the Employment Contracts: Part-2
This is the second part of the two-part series wherein we discuss about the types of Restrictive Covenants under the Employment Contracts. This article aims to describe certain commonly used Restrictive Covenants in the Employment Contracts. It may well be noted that in the first part we have looked across ascertaining the legal validity of Restrictive Covenants.
BREACH OF EMPLOYMENT CONTRACTS & NECESSARY SAFEGUARDS FOR EMPLOYERS
This article pertains to Breach of Employment Contracts & Necessary safeguards for employers.
Restrictive covenants under the Employment Contracts: Part-1
Restrictive covenants under the Employment Contract mean clauses that are incorporated in an Employment Contract in order to impose certain restrictions on the employees. These clauses are incorporated to safeguard and protect the business interests of the Company. This is the first part of a two-part series wherein we discuss about the legality of the restrictive covenants under the Employment Contracts. This article aims to ascertain the legal validity of such restrictive clauses.