The Securities and Exchange Board of India (SEBI), by a recent notification, has agreed to include clauses relating to pre-emptive rights (right of first offer, tag-along right, drag-along right) and call and put options, when contained in shareholders’ agreements, as valid contracts for the purpose of the Securities Contracts Regulation Act, 1956 (SCRA).
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, Bangalore, Silicon Valley, Singapore, New Delhi and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.