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Legal Capsule:Acquisition of Shares by Economic Laws Practice

Acquisition of Shares – A perspective on tax considerations while determining fair market value
TAXABLE INCOME ON THE ACQUISITION OF SHARES: DEPENDENT ON FAIR MARKET VALUE
Under the provisions of the Income-tax Act, 1961,the sale of shares of an unlisted Indian company above the fair market value of the shares can result in “income” in the hands of the seller and consequently result in income-tax liability.Similarly, if the purchaser of shares of an unlisted Indian company pays a price lower than the fair market value of the shares purchased, the purchaser may become liable to pay income tax.
Recently, several unlisted Indian companies that have received investments and investors in such companies have received notices from the Income-tax department questioning the valuation at which deals have been concluded. The Income-tax department has claimed that analogous to a share sale transaction, subscription to shares of an Indian company will render the premium paid above fair market value, …
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ChrysCapital and Sequoia Capital India grab two awards at APEX’19 PE-VC Awards

Mumbai, India, Feb 27, 2019: ChrysCapital and Sequoia Capital bagged two awards each as part of the “Awards for Private Equity Excellence” (APEX)event organized by Venture Intelligence. 

ChrysCapital bagged the Private Equity Fund Raise of 2018 Award (Closed $850 M Fund VIII within 4 months of launch) and the Private Equity Investor of 2018 Award (for its Exits from LiquidHub with 4x in dollar terms (within 4 years of its $53-M investment), AU Small Finance Bank with 11.5x return,  Torrent Pharma with 2.95x, City Union Bank with 2.83x, L&T Infotech with 2.56x)

Sequoia Capital India won the Early Stage VCInvestor(the firm registered 10x+ exits in Byjus Classes and SCIOInspire) and VC Fund Raise of 2018 (the firm closed an almost $700-M Fund VI).


Award Winners at APEX'19 PE-VC Awards

The event opened with a Fireside Chat with Kiran Reddy, CEO of SPI Group interviewed by his long time friend and colleague Vineeth Vijayraghavan.



Snapshots of the Awards Ceremony: (L-R) Gopal Srinivasan, …

Legal Capsule: Angel Tax by Economic Laws Practice

DPIIT issues notification to revise exemptions for start-ups under Section 56(2)(viib)
Given its direct impact on availability of capital, taxation of start-ups on account of issuance of shares at a premium above the fair market value under Section 56(2)(viib) of the Income-tax Act, 1961 (“IT Act”) – also referred to as Angel Tax – has been an issue of concern for the start-up sector for some time now. To alleviate these concerns, the Department for Promotion of Industry and Internal Trade (“DPIIT”) has issued a Notification dated 19-02-2019 (“Notification”) in supersession of earlier notifications dated 11-04-2018 as modified by another notification dated 16-01-2019.
At its core, there are three key aspects of this Notification: definition of start-ups (as per DPIIT); eligibility for claiming deduction under Section 80-IAC of the IT Act; and exemption under Section 56(2)(viib) of the IT Act. A few important aspects pertaining to these are set out below:
Definition of start-up expanded
Th…

Jiometrics: A graphical narrative of Reliance’s telecom, media and e-commerce machine - The Ken

A Ken article titled Jiometrics: A graphical narrative of Reliance’s telecom, media and e-commerce machine(behind paywall), quotes Venture Intelligence data on select investments and acquisitions by Reliance Industries. Piqued to know about the Reliance Industries' other investments in retail, fashion, etc? Log into Venture Intelligence's M&A Deal Database.
Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

JP Morgan tops League Table for Transaction Advisors to M&A deals in 2018

Barclays, Goldman Sachs claim the No.2 & No.3 slots; EY claims top spot including other advisory services
JP Morgan topped the Venture Intelligence League Table for Transaction Advisor to M&A Transactionsin 2018. JP Morgan advised M&A deals worth $21.8 Billion (across 5 qualifying deals) during the period. Barclays ($21.1 Billion across 4 deals) and Goldman Sachs ($16.8 Billion across 2 deals) took the second and third spot. DSP Merrill Lynch and Morgan Stanley which advised the $14.6 Billion merger between Indus Towers and Bharti Infratel took the fourth spot. Alvarez & Marsal($9.6 Billion across 6 deals) came in fifth. The top three transaction advisors had advised the $16 Billion acquisition of Flipkart by Walmart.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Apart from the Walmart-Fl…

EY tops League Table for Transaction Advisors to Private Equity deals in 2018

Avendus, JP Morgan claim the No.2 & No.3 slots; PwC claims top spot including other advisory services
EY topped the Venture Intelligence League Table for Transaction Advisor to Private Equity Transactionsin 2018. EY advised PE deals worth $4.9 Billion (across 17 qualifying deals) during the period. Avendus ($2.9 Billion across 18 deals) and JP Morgan ($2.2 Billion across 2 deals) took the second and third spot. Barclays ($2 Billion across 3 deals) and KPMG ($1.7 Billion across 7 deals) completed the top five in 2018.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
EY advised deals during the year include Macquarie's $1.5 Billion investment in NHAI Toll-Operate-Transfer (TOT) Bundle and Blackstone's investment in Indiabulls' commercial assets in Mumbai. Avendus advised deals include the Nasp…

Shardul Amarchand Mangaldas tops League Table for M&A deals in 2018

AZB & Partners, Cyril Amarchand Mangaldas claim the No.2 & No.3 slots; AZB & Partners claims top spot by deal volume
Shardul Amarchand Mangaldas (SAM) topped the Venture Intelligence League Table for Legal Advisor to M&A Transactionsin 2018. SAM advised M&A deals worth $59.3 Billion (across 69 qualifying deals) in 2018. AZB & Partners ($42.6 Billion across 73 deals) and Cyril Amarchand Mangaldas (CAM, $34.2 Billion across 48 deals) took the second and third spot. Khaitan & Co. ($26.5 Billion across 67 deals) and Trilegal ($22.2 Billion across 18 deals) completed the top five in 2018.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
SAM advised deals include Walmart's $16 Billion acquisition of Flipkart and the $14.6 Billion merger between Indus Towers and Bharti Infratel. AZB…