What India’s Companies Act means for ECM

Author: Ashley Lee | Published: 4 Feb 2015

While India’s new Companies Act has been widely praised for raising corporate governance standards in India, practitioners still have questions about its capital markets regulations.

The Companies Act, introduced in 2013, raised the bar for corporate governance in India, increasing liability for directors, introducing stricter related party transaction norms and the world’s first legislative corporate-social responsibility requirement. While it set India apart as a corporate reformer, its far-reaching changes have also affected the capital markets.

The Act addressed capital markets scandals that have arisen over the past few years. Most notably it has changed India’s private placement...