Since the inception of the Centre for corporate law studies (CCLS), Institute of Law Nirma University, it has always aspired to create a unique perspective of understanding the mechanism of laws governing companies. To facilitate its students with practical aspects of the corporate world, the Centre aims to create a forum for research and exchanging ideas related to corporate and other allied laws. The Centre has chalked out a detailed plan to conduct various discussions with experts and other activities to hone our skills for the future. The Centre has made several strides in the past year by conducting various expert sessions on niche and developing topics of investment law, infrastructure law, start-ups, and general corporate laws. Furthermore, the center strengthened the presence of the Corporate Law Blog by creating a new logo and hosting it on a Nirma-based domain. Our blog ranked 44 in the Top 70 Corporate Law Blogs by FeedSpot. This was due to a massive amount of participation from students across the top universities in our country.
10:35 a.m., 28th April 2023- Inauguration
Dr. Madhuri Parikh, dean and director, of the Institute of Law Nirma University, and convenor of the center of CCLS, Mr. Amit Kumar Kashyap, welcomed our chief guest, Mr. Pravin Trivedi, executive director of the International Financial services authority (IFSCA), who inaugurated the Samanvaya conclave session, spread across 2 days. On day 1 the topic for discussion is mergers and acquisitions and private equity. The auditorium is filled with fresh budding corporate minds and inquisitive learners. Session Started with the Faculty head, Mr Amit Kumar Kashyap welcoming the speakers to reflect their views on the topic i.e., Merger & Acquisition and Private Equity. Floral welcome is done for all the speakers. The dais consists of Mr Deepak Joyce, Founding Partner, Joyce Law, Gurugram, Ms. Anandita Kaushik, Partner, CAM, Delhi, Mr. Sushil Daga, Managing Partner, Amicus Legal, Jaipur, Mr. Aninda Pal, Partner, DSK Legal, Mumbai & Ms Agrima Choudhary, Senior Associate, Consortia Legal, Mumbai (Moderator).
10:50 a.m. 28th April 2023- Speech by Pravin Trivedi and Deepak Joyce:
The speech began with the introduction of IFSCA and the introduction of gift city. In Fema gift city transactions can be made in any foreign currency. Further, an idea was given regarding India’s performance in ease of doin’ business. Moving forward the need for developing infrastructure was dwelled on. The increasing role and contribution of foreign investors were discussed.
M&A is corporate financial transactions; private equity is funds that deploy third-party money for generating returns. Further, private equity transactions and the various nitty-gritty were discussed.
11:28 a.m. 28th April 2023- Panel Discussion Begin
Speaker Ms Agrima Choudhary, Senior Associate, Consortia Legal, Mumbai (Moderator) started the panel discussion on the Merger & Acquisition. The question asked by the ma’am to Mr. Deepak Joyce Sir is Why is there a downward trend in the market of Private Equity?
The answer for the same is a lack of liquidity in the market. There is a need for valuation correction in the industry, a significant amount of capital is need to be raised in India, which may take time and it can be a challenging market for India. There is a discussion about the influence covid had in the corporate sector of law, and valuations of private equity have become unpredictable. Special comments on the same are made by Ms. Anandita Kaushik and Mr. Sushil Daga. FEMA played a great role in terms of providing flexibility. The discussion about the valuations of the company and two-year-old companies turning into a unicorn is been discussed. The life-cycle of M&A, and how a deal is made is been informed by the panelists to the patient listening audience. Lawyers are now at the forefront of deal-making. The speakers touched upon the importance of reading business and economic journals. When the valuation gap between the parties and the dichotomy for the same is bridged then a high-value deal can be exercised smoothly. The speaker further talks about the MoU procedure and the Niti-gritty like term sheets, and due diligence. Further, the evolution and the growing importance of diligence in the sector are discussed. Various forms of mergers are discussed and the legalities included are also skimmed through.
12:40 p.m. Questions and Answer Round:
Subsequently, the stage was opened for questions from the audience ranging from mergers to private equity in contemporary times. The questions included whether a non-compete clause can be concluded in the contract where you are barred from negotiating with any of the major competitors in the market. The answer for the same was given by Ms Kaushik which was that a firm is contractually obligated to maintain confidentiality and inclusivity with the client and hence you can’t negotiate with a competitor, further, Mr Pal added that a client is only contractually obligated to not have discussions with competitors and there is no law governing the same. Another question included the necessity of an exit strategy for the capital employed. The answer for the same was given by Mr Daga reinstating the need and the necessity of having an exit strategy and how the discussion for the same has revamped over the years. Further Ms Kaushik added on to the point as to how the point of exit strategy is one of the most important ones to be followed during negotiating the terms of the contract. Adding on to this Mr Joyce reiterates the importance of having an unequivocal exit strategy concerning the private equity market. Thus, the questions brought an end to the session and the guest proceeded to the guesthouse for lunch. Inquisitiveness can be seen in the session on the capital market tomorrow.
12:55 p.m 28th April 2023- Vote Of Thanks
Nivedita Ravi, the student co-chairperson, of CCLS, gave a vote of thanks to all the speakers and Ms. Agrima Choudhary for guiding the panelist discussion throughout the session.
Day 2:
On the 2nd day of SAMANVAYA 2023, we are delighted to have Shri Ananta Barua, whole-time director Securities and Exchange Board of India (SEBI) as our chief guest. The guest for the day is Mr Mudit Maheshwari, Advocate, Madhya Pradesh High Court. The honorable panelists are Mr. Paras Parikh, Founding Partner, RHP Legal, Mr. Murtaza Zoomkawala, Partner, Saraf & Partners, Mr. Narayan Kedia Vice-President Legal, Indiabulls. The topic for today’s discussion is Securities Law & Capital Market.
10:45 A.M., 29th April 2023 – Inaugration
After the arrival of the guest, Mr. Amit Kashyap, Faculty Convener, CCLS briefed for the day, and Prof. (Dr.) Madhuri Parikh, Dean & Director of the Institute of Law, Nirma University welcomes our chief guest and Panellists. Dr. Anup K. Singh delivered a speech and also addressed the panelists. He pointed out the need for new platforms like SEBI.
11:05 A.M., 29th April 2023 – Speech by Mr. Ananta Barua
The speech began with a briefing on the need for capital markets in India and the Silicon Valley Bank crisis. Before SEBI, the companies had to raise money through the controller of the capital market, and due to this, there were many restrictions on the market. With the inception of SEBI, all the restrictions were removed and the process for raising capital was eased. The recent changes in the law related to the capital market were further discussed, like regulations related to the free entry and exit of retail investors, and laws for startup companies were addressed. The new concept of ESG companies, SEBI’s new policy of T+1 trade, and ASBA were further discussed. A detailed speech on the capital market was delivered and an interactive session.
11:55 A.M., 29th April 2023 – Panel Discussion
Mr Mudit Maheshwari, the moderator of the discussion divided the session into 2 parts, first will deal with securities law and the second will deal with capital markets. He raised the first question to Mr. Paras Parekh about the malpractices in the market being managed by SEBI. He answered by mentioning the powers of SEBI and how it functions and how its regulatory side works. He also shared his practical experience in adjudicating on behalf of the institution. SEBI is a very old regulator and the credit for India’s markets uptrend should go to it, as mentioned by Mr Murtaza Zoomkawala. The next was raised to Mr. Narayan Kedia about SEBI regulations on stock market influencers, he answered how an investor believed the information provided by financial influencers and gives the practice of pumping and dumping in the stock market and the concept of touting. Therefore, there are dispute regulations and restrictions over celebrity endorsements. Mr. Ananta Barua sir also added the actions taken by SEBI for the regulations over celebrity endorsements. Another question was asked about the concept of insider trading. Mr, Paras Parekh answered, by explaining the concept of insider trading and the laws and guidelines about the person holding the material information. The question of how various companies raise funding from the capital market. Mr. Narayan Kedia answered that the most preferred mode for raising funds is through an initial public offering due to its easement of procedures. A subsequent question was asked about the recent trend in the market about the price of startups and new-age companies being way lesser than its market price. Mr. Narayan Kedia answered that it is because of the lack of profit-generating capacity of the startups and the exiting of their former investors after its issue. Mr Paras Parekh further added on the knowledge of the individual investor plays a primary role in the market. The last question was asked to Mr Murtaza Zoomkawala, about the nature of work involved in the capital market transaction. He answered by making a distinction between private transactions and the capital market transaction, and the impact of their advice has far-reaching consequences, and the future of corporate law being primarily responsible for due diligence.
12.50 P.M., 29th April 2023- Question and Answer Round
The question asked was what impact the Lock-in Period makes on the retail investor and market in general. For this, the panelists described the lock-in period and that the market should be given more time for controlling the market volatility. Mr. Murtaza Zoomkawala, added by giving a brief on the economics of the law.
12.55 P.M. 29th April 2023- Vote of Thanks
Mr. Nikunj Pandey, Student Chairperson, CCLS gave a vote of thanks to all the speakers and Mr. Mudit Maheshwari, Advocate Madhya Pradesh High Court, the moderator for today’s event. The event was knowledgeable and valuable insights from panelists were provided.
Reporting By – Team CCLS
