Saturday, January 18, 2014


1.         RBI Circular on Options

We had carried two guest posts (here and here) on RBI’s notification dated 9 January 2014 relating to options and convertible instruments.

This notification has generated a great deal of debate and its precise scope and contours are still being carefully ascertained. For a flavour of the further debate, the following resources are helpful:

- a discussion on The Firm;
- two law firm memos (here and here);
- some op-eds in the financial press (here).

In case other useful resources/materials on this topic are available, readers may please insert them in the Comments section.

2.         Material Adverse Change

The concept of material adverse change (MAC) that is present as a condition in several corporate contracts has acquired great importance in the aftermath of the global financial crisis. Courts in several jurisdictions have had the opportunity to decide on the scope and effect of such clauses. Although it is generally quite onerous for parties to invoke a MAC clause to walk away from a deal, a recent post by PXV Law Partners discusses a Delaware Chancery Court ruling that bucks the trend and allowed one of the parties to successfully invoke the MAC clause. The post also has a helpful discussion on the impact of MAC clauses in the Indian context, as that area is devoid of the much-needed judicial attention in India.

1 comment:

Subbaiah said...
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