The most popular question is what are the points to be kept in mind, while entering into an arrangement with a contractor. One of the most important factors to keep in mind while drafting agreements and/ or during appointment of contractor is employee registrations such as provident fund (PF) / employees’ state insurance (ESI) etc.... Continue Reading →
Welcoming Angel Investors: SEBI’s in line with Union Budget
The Union Finance minister in his budget speech said: “Angel investors bring both experience and capital to new ventures. SEBI will prescribe requirements for angel investor pools by which they can be recognised as Category I AIF venture capital funds.” And SEBI did! [Incidentally, the Union Finance Minister also said: “Small and medium enterprises, including... Continue Reading →
SEBI Board Meeting: A boost to investors in the same sector
SEBI in its board meeting yesterday, has approved sweeping reforms in many sectors. One such area is alternative listing opportunity to the SME sector. SEBI has created an Institutional Trading Platform (ITP) without the requirement of making an IPO. SEBI approved the proposal to amend the SEBI (ICDR) Regulations to permit listing of ‘startups’ and... Continue Reading →
Multi Brand Retailing: A few clarifications
You will recall my post titled FDI in Multi Brand Retailing: Reading between the fuzzy lines. In the last week, the Department of Industrial Policy and Promotion (DIPP) has brought out certain clarifications in relation to the hotly debated policy on FDI into multi brand retailing. On the issue relating to sourcing, the government has... Continue Reading →
To Contract or Sub-contract: That’s the question
My last post dealt with the liabilities of a principal employer vis-à-vis the contractor. The next big question is – who is this contractor and what are his obligations under the Contract Labour Act. A “contractor” is defined under the Contract Labour Act as follows: "contractor", in relation to an establishment, means a person who... Continue Reading →
Liabilities of a Principal Employer under the Contract Labour (Regulation and Abolition) Act, 1970
The liabilities of a principal employer under the Contract Labour Act are examples of vicarious liability on owners of establishments. The Contract Labour Act provides respite and recourse to contract labour from non-payment of wage by allowing them access to the principal employer in the event of a default by the contractor. A "principal employer"... Continue Reading →
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