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Legal Capsule by LexCounsel

REGULATORY REGIME FOR RUNNING A PRIZE COMPETITION IN INDIA   Conduct of prize draws and competitions by sellers (herein referred to as the ‘ Sponsor’ ) to attract customers and sale of their products is a common practice in India. Promotional schemes offering gifts, prizes, or other items free of charge on its closure is intended to entice customers to buy multiple packs of products sold by the Sponsor. The organizers’ of such prize draws and competitions should however assess if they are subject to certain central and separate state legislations concerning prize competitions.   This update is limited to the regulatory regime concerning prize competitions and doesn’t cover gambling, gaming or lotteries legislations or regulations applicable in India.   Central Legislation:   The Central Government has enacted the Prize Competition Act, 1955 (“ PC Act ”) to  inter alia  control and regulate the prize competitions. The term ‘prize competitions’ has been defined under section 2(d) of the
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Legal Capsule by Veyrah Law

VC SERIES | PART IV – THE INVESTMENT PROCESS! Once the founders are done negotiating and signing the  term sheet , the transaction moves to the process of subscription. The subscription process essentially starts with the due diligence and proceeds with signing the detailed transaction documents. Broadly speaking, closing of an investment round is subject to satisfactory completion of a ‘due diligence’ exercise by the VC fund and signing of the transaction documents such as share subscription, shareholders’ and employment agreements. Immediately upon execution of the term sheet, a VC fund commences its due diligence process – legal, tax, financial, technical, as they deem fit. Along with conducting the due diligence, the negotiations for the transaction documents are also commenced. Due diligence Due diligence is essentially a review conducted on the startup’s business and operations to find out any material issues that the investors need to be aware of before making their investment.

PE Investments vault 52% to record $49 Billion during first 9 months of 2021

Press Release Private Equity - Venture Capital (PE-VC) firms invested a record $49 Billion (across 840 deals) in Indian companies during the first 9 months of 2021,  shows data from  Venture Intelligence , a research service focused on private company financials, transactions and their valuations. These figures, which have already surpassed the full year investment total of $39.5 Billion (across 892 deals) in the entire of 2020, represent a 52% increase over the   $32.2 Billion (across 651 deals) in  the first nine months  of 2020. (Note: These figures include Venture Capital type investments, but exclude PE investments in Real Estate). The $20 Billion investments in  Unicorns  (VC-funded startups valued at $1 Billion or more) account for close to 41% of the value pie in 2021 thus far. The July-September 2021 quarter (Q3'21) saw over $10 Billion (across 28 deals) being invested in such companies. India has minted a total of 29 Unicorns   in the first 9 months of 2021 - 13 of which

Legal Capsule by Veyrah Law

VC SERIES: PART III – THE TERM SHEET DECODED! In the previous  article  of this series we discussed the strategy to be adopted by founders while negotiating a term sheet with a VC fund. Now, on to certain important legal terminology. It is necessary for founders to be aware of and understand the implications of the legal jargons which could impact their rights in the business. Liquidation preference First and foremost – the liquidation preference. Liquidation preference is the investors’ right to get their investment amount back before the holders of common shares (equity shares) get any returns. The common shares are usually owned by the startup’s founders and employees. The preference applies when the startup undergoes a sale of its business by way of any corporate action or it distributes profits to its shareholders. With respect to liquidation preference, the most important element for founders to be mindful of is the type of liquidation preference being demanded by the VC fund – p

Top Fintech Startup Deals: Venture Capital and M&A

Source: The Venture Intelligence PE Deal  and M&A Deal  Databases Want more deeper insights into the biggest / notable startup deals? Take a demo of our Databases here . Checkout our website for more info on Venture Intelligence's products:

Indian SaaS Startup Funding: Sector in a Snapshot

  Source:  The Venture Intelligence Private Equity Deal Database . Want a deeper dive into the funding data? Take a demo of our databases  here . 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.

IPO-Bound Indian Startups: Key Highlights and Comparison

Source: The Venture Intelligence Private Equity Deal Database . Want a deeper dive into the financial and funding data? Take a demo of our databases here . 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.