Volume : 9, Issue : 8, AUG 2023

CORPORATE LAW DEVELOPMENTS IN INDIA: A 2022 REVIEW

DR. NANDITA S JHA

Abstract

The year 2022 was a new milestone in India’s corporate regulatory environment, which was largely a result of the broad-based reforms introduced by the Securities and Exchange Board of India (SEBI). Although the Companies Act did not significantly alter its provisions, SEBI is said to have transformed capital markets, corporate governance and investor protection. An important factor was implementing structured digital databases which helped build digital compliance, including to tighten the control on insider trading, including regulation of mutual funds for the first time. The creation of Social Stock Exchanges brought about a new approach by social business institutions for capital mobilisation. Capital raising regulations of various dimensions were restructured, including amendments to the ICDR Regulations concerning preferential issues, QIPs, rights issues, and IPOs with a higher degree of valuation, disclosure and monitoring requirements. LODR Regulations were revised with six amendments to reinforce related party transaction rules, dematerialisation procedures, investor grievance provisions and corporate governance, but SEBI dismantled the required separation rule between Chairman and MD. The Companies Law Committee recommended comprehensive reforms on director qualifications, auditor independence and merger/acquisition rules alongside IEPF provisions to reduce NCLT burden. LLP rules moved toward company law to address regulatory arbitrage. Reforms in the debt market brought in requirements to enforce rules governing online bond platforms, expanded the duties of debenture trustees, and DLT-based monitoring. Significant metrics in 2023 are improved governance rules for high-value debt entities, tougher RPTs, and mandatory reporting by BRSR.

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IESRJ

International Educational Scientific Research Journal

E-ISSN: 2455-295X

International Indexed Journal | Multi-Disciplinary Refereed Research Journal

ISSN: 2455-295X

Peer-Reviewed Journal - Equivalent to UGC Approved Journal

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