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Australia wrestles with the disclosure of equity derivatives

ABS takes off in eastern Europe

United States

Ravi Kulkarni, Haigreve Khaitan and Avaantika Kakkar of Khaitan & Co say the many opportunities available in India make it an ideal destination for venture capital

Law 247/2004 on the capital market and Regulation 32/2006 issued by the Romanian National Securities Commission (NSC), regarding the financial investment services, which replaced the Regulation 15/2005, stipulate the principle of freedom to provide investment services and activities within the territory of Romania by the investment firms authorised in a member state of European Union.

The main purpose of investment companies is to acquire and sell investment assets with funds from the placement of shares representing its capital stock among investors; likewise it can contract services and carry out activities contemplated in the law upon which it is based (the Investment Companies Law). Given the importance of this figure, the structure and organization held by the bulletins and provisions issued by the National Banking and Securities Commission, the latter has decided to enact the General Provisions Applicable to Investment companies and the persons who render Services thereto in order to achieve the compilation and update of the earlier provisions which regulated such companies, thereby seeking at all times to encourage compliance and observance. These provisions general provide: (i) a new classification of investment companies; (ii) an assessment of risk coverage and maximization of earnings; (iii) that the operation of financial derivative instruments allow a better diversification of the assets of the company; (iv) for the accounting standards to adjust to national and international standards; and (v) to establish requirements to help obtain better financial information.

As previously mentioned in this past February's edition of the IFLR, Japan's Trust Law was completely replaced by a new Trust Law (Law 108 of 2006), which will come into effect sometime before June 2008. One of the most important changes in the new Trust Law other than the introduction of the business trust, is allowing the use of a security trust which is a very familiar concept in syndicated loan arrangements in common law jurisdictions. This will mean that in the case of a secured loan, the security interest can be entrusted to a security trust and the administration of such security can be delegated to the trustee who is not an obligee of the secured obligations.

The prohibition of financial assistance has been implemented into Czech law on the basis of Article 23 of the Second Directive 77/91/EEC in 1996. According to the existing Czech regulations, any joint-stock corporation or a limited liability company must not advance funds when acquiring its own shares, make loans for the purpose of acquiring its own shares, or provide security for such purposes or for other obligations relating to the acquisition of its shares. In addition, provision of such financial assistance by a subsidiary for the purposes of an acquisition of shares of its parent company is prohibited.

Alvarez & Marsal

Proskauer Rose