The Venture Intelligence Blog

Leading Mumbai-headquartered law firm Economic Laws Practice (ELP) has created a detailed analysis of the annual union budget presented by the Finance Minister Nirmala Sitharaman on February 1, examining the provisions in detail, highlight the nuances and de-mystify the small print. Extracts from the Preface by Suhail Nathani, Managing Partner, ELP: This was the third Union Budget within the last twelve months (technically the first was a ‘vote on account’ as India was headed into a general election and hence there was less flexibility available to the Government of the day). Leaving aside these technicalities, in a period of slow growth (GDP growth rate for 2019-20 estimated at 5% against 6.8% in FY19), sluggish investment, sharp deceleration in consumer demand and declining tax revenues, did the third budget do enough to galvanize the economy? First, unstated in so many words, this is a budget for India’s defence and security – with INR 3,370,000 million allotted to def...

Extract from the Preface by  Suhail Nathani, Managing Partner : In the first budget, post the thumping victory in the elections, the Finance Minister has been rich on intent and has something to offer every constituency – from startups to NBFCs and everyone in between. There are full marks for the path ahead – reform in FDI, ‘ease of living’ through ‘less government and maximum governance’, infusion of capital in the PSU banks, government guarantees for lending to NBFCs, strategic disinvestment and promise of several other reforms. Even in the taxation realm, while there are increase in tax surcharges for those earning above 2 crores per year (clearly not welcomed by those already paying high taxes), 99.3% of corporates will see tax rates remain the same or reduced. The administration of tax is also reformed – most notably with a plan to reduce legacy litigation in indirect taxes breaking free from years of prolonged litigation and uncertainty. Specifically, on ...

Extracts from the recent  Times of India article on the topic: While shareholder activism, regulatory roadblocks and tightening of acquisition financing are among different reasons behind slow-moving M&As in the country, one key factor that stands out is the rise of desperate or compulsive deal-making. ...There is a struggle in marrying economic and regulatory interest in some cases. For instance, private equity firm General Atlantic's acquisition of share share registry Karvy Computershare has been waiting for nearly one year as Sebi decides on allowing financial investors control of market infrastructure institutions without adequate restrain. ...Deal-making under the Insolvency Insolvency and Bankruptcy Code - Binani Cement, Jaypee Infratech and Essar Steel - has witnessed high drama usually associated with Bollygarchs (a reference to big Indian industrialists wielding influence over social and political narratives) on the march, often putting lenders, resolutio...