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)…

Data Protection | Internet & Privacy | Technology Law

Digital Encryption Laws in India

What is Encryption? Schedule V of the Information Technology (Certifying Authorities) Rules, 2000, defines encryption as- “The process of transforming plaintext data into an unintelligible form (cipher text) such that the original data either cannot be recovered (one-way encryption) or cannot be recovered without using an inverse decryption process (two-way encryption).” Cryptographic techniques are generally…

Tax Law

Tax Implications on Issuance of Compulsorily Convertible Preference Shares /Convertible Preference Shares

The issuance of Compulsorily Convertible Prefernce Shares (“CCPS“) and Convertible Preference Shares (“CPS“) and conversion thereof can give rise to two kinds of taxing events for the company issuing such shares. First is when the preference shares are simply redeemed either a higher market value or lower market value. Second is when such preference shares…