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 Stock Appreciation Rights (or “SARs”, as they are more popularly known) have found their way into the board rooms of many companies as a noteworthy model of incentivization. SARs, in layman language, are indicative of a right issued by a company which entitles the right holder to benefit from the appreciation in value of the company on maturity over a fixed period, if any, in cash or in shares or a combination of both. As is the case with any other investor in a company, the entitlement of a SAR beneficiary grows with the growth of the company and likewise, declines with the downward performance of the company. At the threshold, SARs appear to be, and are indeed, a promising win-win model wherein the company can have substantial control over risk exposure and capitalization table while the beneficiary of SARs can get an exit in cash at the market value or corresponding shares of the issuer company or both, as applicable, all of which is relatively less onerous than the conventional

In recent years, India has witnessed a significant surge in investments across various sectors, marking a promising trend for the country's economic growth.1 This increase in investments can be attributed to several factors, including the Indian government's proactive efforts to improve the ease of doing business and implement investor-friendly policies such as the Goods and Services Tax Act, 2017 which has simplified the tax structure, making it more transparent and investor-friendly. Additionally, the Indian government has introduced amendments to the Insolvency and Bankruptcy Code, 2016 in subsequent years thus streamlining the process of resolving insolvency issues and enhancing creditor rights. The Government has relaxed foreign investment guidelines which in turn has promoted foreign direct investment. Additionally, India's burgeoning consumer market driven by the upper middle class, skilled workforce, and a growing appetite for innovation have attracted both domest

 The digital lending sector has received a significant boost from the Reserve Bank of India (“ RBI ”) through its recently issued Guidelines on Default Loss Guarantee in Digital Lending (“ DLG Guidelines ”) on June 8, 2023. These guidelines outline the terms and conditions governing the ability of RBI-regulated lending entities (“ RE ”) to engage in default loss guarantee (“ DLG ”) agreements with each other or with lending service providers (“ LSP ”). The DLG Guidelines have been introduced following extensive discussions between RBI and the fintech industry. This follows RBI's earlier decision to categorize guarantee arrangements between LSPs and REs as “synthetic securitisation” , which had raised concerns that DLG arrangements might not be permissible in the digital lending environment. The terminology concerning loss-sharing models has posed a challenge for the Reserve Bank of India (RBI) for quite some time. Following the issuance of the Guidelines on Digital Lending on Sep

In this article, I examine the treatment of immovable property of a partnership firm, in view of various dissolution scenarios. Statutory Framework Section 14 of the Partnership Act, 1932 (“ Partnership Act ”) talks of the property of the firm, which include property (a) brought in by the partners, and (b) acquired by or for the firm, for its business (including the goodwill of the business). In this regard, unless stated otherwise, any property acquired from funds of the firm shall be deemed to have been acquired for the firm. Section 48 of the Partnership Act talks of settlement of accounts upon dissolution of the firm. For the purposes of this article, sub-section (b) talks of assets of the firm, and that upon paying (i) debts of the firm, (ii) the partners, (what they are due for advances as distinguished from capital, and on account of capital. Thereafter, the residue will be divided among the partners in proportion to the profit sharing ratio. Read More: https://tlegal.co