Corporate Law

Documentation Required for Setting-up Angel Funds

PRIVATE PLACEMENT MEMORANDUM (PPM) At the Offshore Fund level: PPM is the document that discloses all pertinent information to the investors regarding the company, proposed business operations of the company, structure of the transaction, the terms of the investment (share price, note amounts, maturity dates, etc.), potential risks for the investors, and details of the…

Corporate Law

Angel Funds and Angel Investors

Angel Funds and Angel Investors As per Regulation 19A(1) of SEBI AIF Regulations, 2012 (“AIF Regulations”) “angel fund” means a sub-category of Venture Capital Fund[1] under Category I- Alternative Investment Fund that raises funds from angel investors and invests in accordance with the provisions of this Chapter 3A of SEBI AIF Regulations. Regulation 19A (2)…

Corporate Law

FDI IN REAL ESTATE BUSINESS & CONSTRUCTION DEVELOPMENT SECTOR

FDI IN REAL ESTATE BUSINESS & CONSTRUCTION DEVELOPMENT SECTOR FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in Transferable Development Rights (TDRs).[1] For this purpose of FDI investment in real estate business, the term “Real Estate Business” means dealing…

Corporate Law

Do Directors Owe Fiduciary Duty to Shareholders?

Scope and Definition of ‘fiduciary’, “fiduciary capacity” and “fiduciary relationship” The Hon’ble Supreme Court in Sri Marcel Martins vs. M. Printer and Ors.[1] defined the term ‘fiduciary’ as- “The word ‘fiduciary’, as a noun, means one who holds a thing in trust for another, a trustee, a person holding the character of a trustee, or…