Cyril Amarchand Mangaldas updates

SEBI clarifies status of married daughters who become promoters of listed companies
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 06 August 2020

In India, many families are reluctant to pass their business wealth and assets onto their married daughters due to the perceived risk that the property ends up being controlled by their daughters' in-laws. This is even more pronounced for promoter families with significant holdings in listed companies. The Securities and Exchange Board of India recently issued informal guidance which dealt with a promoter gifting his shares to his married daughters and the implications under the relevant listed company regulations.

Fortifying a will: safeguards to ensure validity
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 23 July 2020

The validation and interpretation of a will is rather unique with respect to the significance of the surrounding circumstances and the identity and status of the parties involved. As such, it is advisable to not only prepare a will that is clear and legally valid, but also ensure that suitable safeguards have been implemented to fortify it against any anticipated challenge. This article discusses the legal grounds on which a will may be challenged and some of the precautions that testators can take to help validate their will.

Finance Act 2020: COVID-19 and high-net-worth individuals
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 16 July 2020

The Finance Bill 2020 was presented as the Union Finance Budget in February 2020 and was finally passed on 23 March 2020, with certain key amendments. Following the proposals in the budget, the government received feedback and representations from various stakeholders, some of which it appears to have taken into consideration in amending the bill before its passing. However, the budget's goals of wealth creation are unlikely to be fulfilled given the havoc that COVID-19 has wreaked on economic stability.

CBDT clarifies tax residency for people unable to leave India due to COVID-19
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 09 July 2020

The COVID-19 flight restrictions have led to confusion among non-resident Indians with regard to their tax residency. Such individuals have effectively been stuck in India, involuntarily increasing their time in the country. This may expose their offshore business and professional income to tax in India, as it may be regarded as controlled from India and the individual may be regarded as 'resident but not ordinarily resident in India'.

Wills in the time of COVID-19: challenges and solutions
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 28 May 2020

The COVID-19 pandemic has led to increased interest in succession planning, including through wills. However, there are considerable practical and legal challenges to consider when making a will while social distancing, isolation or quarantine measures are in place. Although no solution is foolproof, there are some measures that may help testators to overcome the various complications associated with creating a will.

Court reconfirms that legal heirs are preferred over nominees
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 21 May 2020

The issue of legatees versus nominees is still causing confusion among the public despite numerous judicial decisions which clearly confirm that legal heirs inherit assets over nominees. In November 2019 this position was confirmed once again when the National Company Law Appellate Tribunal held that nomination does not amount to beneficial ownership of an asset and that a nominee merely holds assets on behalf of the legal heirs of the deceased.

Insight into testamentary trusts
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 16 April 2020

Trusts are internationally recognised as favoured vehicles for estate and succession planning. Although most private asset-holding trusts are lifetime trusts created under inter vivos documents such as a trust deed, testamentary trusts (also known as 'will trusts' in certain jurisdictions) are formed through testamentary instruments such as a will and take effect only on demise.

Estate and succession planning during COVID-19 pandemic
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 09 April 2020

India, like most countries, is coming to grips with COVID-19. The country is now under official lockdown, and the next few weeks will be critical in determining whether it has been able to successfully contain the virus. All individuals, not just the elderly or ill, should take the time to implement an estate plan as it will make life simpler for remaining family members if the proper steps are taken now.

Federal budget 2020-21: impact on Indian promoters
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 19 March 2020

Finance Minister Nirmala Sitharaman recently presented the Union Finance Budget 2020-21. This was the minister's second budget and it had been eagerly awaited, as the government is facing immense criticism for failing to revive the slowing Indian economy. Although the finance minister's budget speech was perceived as a nod towards the possibility of significant promoter-friendly policies being introduced, on examination, it seems to represent a missed opportunity.

Small steps, giant leaps: 2019 in review for private client law
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 16 January 2020

Over the past year, Indian private client law took a number of small steps which were potentially giant leaps for the legal regime. That is to say, although no noteworthy legislation was enacted, a number of amendments and rules were introduced to existing laws which mark a significant shift in the legal position. This article examines three key legal developments which took place in the Indian private client space in 2019 and the main trends expected in 2020.

Unique complexities of Indian succession laws: part two
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 07 November 2019

Indian succession laws are manifold and complex. As such, an estate and succession plan should be devised for a person of Indian origin or with any Indian connection only once the applicable succession rules have been determined. This article discusses specific concepts of succession laws and provides a takeaway toolkit for practitioners faced with an estate with an Indian connection.

Unique complexities of Indian succession laws: part one
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 24 October 2019

The Indian diaspora is one of the largest in the world, with more than 30 million people of Indian origin living outside the country. Many of these people retain some connection with India through their nationality or ownership of assets, especially real estate. Consequently, global estate and succession planning invariably involves elements of Indian succession law. Indian succession rules are complex and multi-layered and may confound offshore practitioners who encounter estates with an Indian connection.

Family settlements: the panacea to familial disharmony
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 13 June 2019

Wealth-related disputes are common – even when family and relationships are valued over material needs. As family businesses and relationship circles get larger and more complex, parties often seek to separate commercial control, ownership and interests and achieve greater independence. This brings to the fore the significance of family settlements, which allow families to achieve these objectives amicably while preserving their values and honouring the wishes of all family members.

Significant beneficial ownership – India's pivot towards disclosure
Cyril Amarchand Mangaldas
  • Private Client & Offshore Services
  • India
  • 09 May 2019

Following the recommendations of the Financial Action Task Force, India has introduced a statutory requirement for the identification and disclosure of significant beneficial owners, whether Indian or foreign, of every company incorporated in India. This is a landmark development which will lead to a significant push towards transparency.

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