11 General Obligations of Credit Rating Agencies to Clients

(2) Agreement with the Client: Every credit rating agency shall enter into a written agreement with each client whose securities it proposes to rate, and every such agreement shall include the following provisions: (a) The rights and liabilities of each party in respect of the rating of securities shall be defined; (b) The fee to […]

What is the Law Regarding “Insider Trading” in India?

Most of the companies in India, in fact have framed a code of conduct for prohibition of insider trading. To what extent these codes are adhered to is difficult to ascertain. Insider trading is reported to be rampant in India but a few cases come to the lime-light because many times it is difficult to […]

Useful Notes on Rating Agencies in India

Thus, rating given by an agency is: (a) An opinion on probability of default on the rated obligation. (b) Forward looking. (c) Specific to the obligation being rated. It must be noted that a rating is not: (a) A comment on the issuer’s general performance. (b) An indication of the potential price of the issuers’ […]

Provision for the Removal of Company Directors – (Companies Act, 1956)

(iii) The Company Law Board under section 402. (i) Removal by the Shareholders: According to section 284, “A company may, by ordinary resolution, remove a director before the expiry of his period of office.” Special notice of at least 14 days is required to be given for moving a resolution to remove a director. On […]

How the Registration of Credit Rating Agencies Takes Place in India?

Promoter of Credit Rating Agency: The proposed credit rating agency must be promoted by a person belonging to any of the following categories. (a) A public financial institution, as defined in section 4 A of the Companies Act, 1956 (b) A scheduled commercial bank included in the second schedule to the RBI (c) A foreign […]

What are the Obligations of a Rating Agency with Reference to the SEBI Regulations?

(it) communicate or counsel or procure directly or indirectly any unpublished price sensitive information to any person who while in possession of such unpublished price sensitive information shall not deal in securities. No company shall deal in the securities of another company or associate of that other company while in possession of any unpublished price […]

What is XBRL Filing in India? (Companies (Amendment) Act 2006)

XBRL Filing: Extensible Business Reporting Language (XBRL) is a standardised language for communication in electronic form to express report or file financial information. The Central Government has framed the Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011 under which the following class of companies have to file their Balance Sheet, […]

7 Procedures that should to be followed for Conducting Business through Postal Ballot

(b) The company may make a note below the notice of General Meeting for understanding of members that the transaction(s) at SI. No. requires consent of shareholders through postal ballot. (c) The board of directors shall appoint one scrutinizer, who is not in employment of the company, may be a retired judge or any person […]

10 Salient Features of Limited Liability Partnership Act, 2008

The act provides flexibility to devise the agreement as per their choice. In the absence of any such agreement, the mutual rights and duties shall be governed by the provisions of tine LLP Act; (iii) The LLP has a separate legal entity, liable to the full extent of its assets, with the liability of the […]

10 Most Important Powers and Functions of National Company Law Tribunal

(2) The Tribunal may, after giving the parties to any proceeding before it, an opportunity of being heard, pass such orders thereon as it thinks fit. (3) The Tribunal shall have power to review its own orders. (4) Any person aggrieved by an order or decision of the Tribunal may prefer an appeal to the […]