Category: Capital Markets

Private Equity and Venture Capital: Concept and Indian Legal Framework

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.

SEBI Cancels Karvy’s Registration- Laws and Impact

On May 31, 2023, the Securities and Exchange Board of India (SEBI) cancelled the Certificate of Registration of Karvy Stock Broking Limited (KSBL/ Company). This was a major blow to the Company, one of India’s leading stockbrokers, with over 2 million clients. This article analyses SEBI’s move, the Company’s acts and the laws surrounding the same. Further, it highlights the impact of this decision on investors.

Unified Securities Code

In what can be termed an opportune moment for the capital market investors, the Finance Minister Nirmala Sitharaman recently proposed the merging of four laws that govern capital markets as well as Securities. These Acts include the Securities and Exchange Board of India Act, 1992 (“SEBI Act”), the Depositories Act, 1996 (“Depositories Act”), the Securities Contracts (Regulation) Act, 1956 (“SCRA”) and the Government Securities Act, 2007 (“GSA”). These laws have been aimed to be consolidated into a unified securities market Code.

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