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June 6, 2023 In Channels, MSME/Startups, Sectors, Start-Ups, Video By editor

Why Startups need to prioritize Governance to attract PE Funding?

In today’s dynamic business landscape, startups are often hailed as the driving force behind innovation, disruption, and economic growth. However, for these young companies to reach their full potential and thrive, they require adequate financial support. Private equity (PE) funding has emerged as a crucial source of capital for startups, offering both financial resources and strategic guidance. To unlock the doors to PE investment, startups must recognize the significance of governance and prioritize its implementation.

So what role does Governance actually play in order to attract funding?

In general, corporate governance principles help companies establish strong, ethical, and legally sound systems that allow them to steer towards long-term sustainability, hence improving their potential to draw in investment capital. This enhances startups’ accountability and openness in managing risks that can result in fines and third-party claims. Given that it lowers investment risks, private equity investors are more willing to participate in businesses that have solid governance practises.

Investor expectations have been modified accordingly as a result of the rise in interest rates, decline in liquidity, severe stress in the global economic climate, and erratic capital markets. Profitability and cash flows are once again in vogue as opposed to the dogma of growth at any costs. This has caused a reallocation of funds as well as an effect on the liquidity available for numerous unsuccessful firms. Additionally, the financial restrictions have revealed flaws in the governance ecosystem at startups.

– Put more effort into founder and management ethics: Investors could gain from a renewed emphasis and vigilance on founder ethics. Frequently, this influences the organization’s culture and governance.

– Having the proper expectations: Expectations, both explicit and implicit, by the investors and other stakeholders influence the conduct of management. Such expectations must be balanced in order to prevent negative behaviour from being motivated by them.

– Board oversight: The Board should have qualified independent directors, devote enough time, and be in charge of monitoring the company’s governance structure, including the leadership style.

– Investments in governance: Businesses and their investors should understand that when businesses get bigger, it’s necessary to make the right investments in things like a solid finance department (with a solid CFO), reliable internal procedures and controls, and a separate internal audit function. Another useful tool might be a whistleblower programme that is properly thought out.

– External audits must be conducted on time, and boards and companies must make sure that auditors have the opportunity and the confidence to share their findings and concerns with the board. In order to guarantee high-quality audits, auditors must also receive just compensation.

Alongside growth, profitability, and other financial measures, effective governance should be given the weight it deserves as a key enabler for wealth development. This is true for both large publicly traded corporations and startups. In the fiercely competitive startup ecosystem, attracting PE funding can provide the necessary financial backing and strategic support for sustainable growth. By embracing governance as a key priority, startups can position themselves as attractive investment opportunities, opening doors to funding and propelling them toward future success.

Write to us at talktous@lawwiser.com.

May 30, 2023 In Channels, MSME/Startups, Sectors, Start-Ups, Video By editor

Navigating Cross Border Tax Compliance for Indian Startups

In this informative video by Lawwiser, discover why navigating cross-border tax compliance is crucial for Indian startups expanding their horizons. As these startups venture into global markets, understanding and adhering to international tax regulations becomes a strategic imperative. Learn about the risks of non-compliance and the benefits of proper tax and regulatory planning before scaling overseas. Explore sectoral caps, foreign investment laws, repatriation methods, and Double Taxation Avoidance Agreements (DTAA) to optimize your earnings. Stay ahead of long-term taxation and compliance headaches, and ensure your startup’s success in the global business landscape. Subscribe to Lawwiser for more valuable content on legal matters.

May 25, 2023 In Channels, Intellectual Property, Intellectual property rights, Legal, Video By editor

Cracking Down on Counterfeiters: A Guide to Post-Identification Procedures

Ever wondered what happens after counterfeiting is identified?

Watch the final part of our series on counterfeiting with Saikat Mukherjee on Cracking Down on Counterfeiters: A Guide to Post-Identification Procedures that cover the procedures that come into play when counterfeiting is detected.

The video will further cover different processes of tackling this global issue from investigation techniques to legal actions.

Discover the intricate strategies employed to bring counterfeiters to justice and safeguard the marketplace.

Share your thoughts and experiences related to counterfeiting.

May 23, 2023 In Channels, Competition, Corporate Commercial, Legal, Video By editor

Anti Trust Laws in India

In this video, we will be discussing antitrust laws and their violations in India.

Antitrust laws are regulations put in place to promote fair competition and protect consumers from monopolistic practices. The laws aim to ensure healthy competition exists in a free market economy.

These laws have evolved over time, carefully preventing potential monopolies and disruptions to competitive markets. In other words, they protect consumers by promoting a competitive environment and taking action against monopolies.

India first enacted the Monopolistic and Restrictive Trade Practices Act 1969. Due to the flaws in this law, a new law, the 2002 Competition Law, was passed in full in 2009. The Executive and Judiciary also set up like Competition Commission of India and Competition Appellate Tribunal to perform different kind of Functions to promote the competition.

As given in Section 3 of The Competition Act, 2002- Any agreement related to production, supply, distribution, etc. which is of Anti-Competitive nature has a adverse effect on Competition is prohibited and fully void. As per Section 4, not dominance but the abuse is prohibited, it occurs when uses the dominance power in an Exploitative manner. The penalty imposed for the violation of the Competition Act under section 4(2) is imprisonment for a term which may extend up to three years and a monetary penalty of twenty-five crores by the Magistrate of Delhi.

Lets take a look at few real case examples of Anti Trust Law

According to a recent report from 2022, Google International LLC and Airtel have obtained CCI approval to acquire a telecom player. An agreement was drafted for the purpose of investing in and purchasing telecom player shares by both parties. However, it was seen that any arrangement which is past the put-forth limit requires the endorsement of a regulator. This is done to prevent unfair trade practices and the CCI acts as the regulator.

Another recent piece of information pertaining to the operation and functioning of the CCI demonstrates that it has accepted Air India’s acquisition of Air Asia on the condition that it will not have any adverse effect on market competition.

The CCI imposed fines in its decision against bid rigging in Indian railways tenders. The CCI imposed penalties of Rs. 30 lacs on the seven organizations found guilty of such activities. Under Section 46 of the Competition Act of 2002, one of them applied to the Commission for a lesser penalty, and the application was accepted. It was also decided that the CCI can accept an application for a lesser penalty if the true and genuine disclosure regarding the particular allegation or activity is fully disclosed.

In conclusion, that wraps up our discussion on antitrust laws and violations in India. By upholding antitrust laws, India aims to maintain a level playing field, encourage healthy competition, and safeguard the rights of consumers and businesses alike.

May 22, 2023 In Channels, Cyber Law, Data Protection, Legal, Video By editor

How to Protect your Company’s data?

In this video, we will discuss about something very important to companies: protecting their data. In today’s world, a company’s data is its biggest asset. But if that data falls into the wrong hands, it can lead to identity theft, financial fraud, and other malicious activities that can harm both the company and its stakeholders. That’s why it’s essential to protect your company’s data from potential threats.

So, how can you do that? Let’s discuss some methods that can minimize the chances of a data leak.

First and foremost, investing in cybersecurity solutions and services can significantly enhance a company’s cybersecurity posture. Cybersecurity services such as vulnerability assessments and penetration testing can help identify weaknesses in a company’s systems and applications and provide recommendations for improving security.

Another important method is encryption. By using encryption, a company can ensure the confidentiality and integrity of its data, protecting it from cybercriminals, hackers, and other malicious actors who may attempt to invade the system for the purpose of stealing. Encryption can be applied to various types of data, including email communications, sensitive documents, and login credentials, among others.

It’s also crucial to back up your data regularly. Backed-up data can be restored in cases of a data loss event and ensures that critical data is not lost, and business operations can continue without significant interruptions. It also helps in mitigating associated financial and reputational damage.

Keeping a regular check on cybersecurity is also important. By reviewing and analyzing security policies, procedures, and controls, a company can identify potential weaknesses and gaps that could be exploited by cybercriminals. This, in turn, helps to improve the company’s overall security posture and reduce the risk of data breaches, unauthorized access, or other cyber incidents.

Lastly, being prepared with remedies in case of a data breach is crucial. By responding quickly and transparently to a data breach, a company can maintain customer trust and demonstrate its commitment to protecting customer data. This can help reduce the risk of customer churn and protect the company’s reputation.

Remember, a company’s data is its biggest asset, and protecting it is vital to the success and sustainability of the business. By investing in cybersecurity solutions, encrypting communication, backing up data regularly, keeping a regular check on cybersecurity, and being prepared with remedies in case of a breach, companies can minimize the chances of a data leak and protect their data from potential threats.

May 18, 2023 In Channels, Intellectual Property, Intellectual property rights, Legal, Video By editor

What is the Role of In-house Counsels in Identifying and Addressing Counterfeiting?

Attention all businesses!

Did you know that Inhouse counsels play a critical role in combatting the sale of counterfeit products? By working closely with your legal team, you can protect your brand and customers from the damaging effects of fake goods.

In episode 2 of the series on counterfeiting watch Saikat Mukherjee, Head of Legal at Dabur International Ltd covers this topic in detail. In-house counsels can play a major role in identifying and prosecuting counterfeiters, as well as preventing the distribution of counterfeit products by monitoring supply chains and implementing effective legal strategies.

Don’t let counterfeiters tarnish your reputation or harm your customers.

May 17, 2023 In Channels, Legal, litigation, Video By editor

What is the Relevancy of Foreign Judgements in India Courts?

Welcome to our video discussing the relevance of foreign judgments in India. Have you ever wondered how judgments passed in other countries can impact our legal system? In this video, we’ll delve into the significance of foreign judgments and how they can influence Indian law.

As a part of the common law countries, India does not have any law restricting the constitutional court from following foreign judgments. In fact, foreign judgments provide a wider perspective on any law and offer a wealth of knowledge to the legal fraternity. With legal education becoming more globalized, students from different legal jurisdictions exchange ideas, and as they enter the legal profession, they bring with them their international knowledge and perspectives.

One of the most significant advantages of following foreign judgments is the exposure to different legal systems. For instance, Indian judges can look to judgments in countries like the United States, the United Kingdom, or Canada to understand how similar legal principles were applied in different contexts. This allows Indian judges to take a more holistic approach to legal decision-making, thereby enhancing the quality of justice delivered.

Moreover, foreign judgments can be particularly useful in interpreting ambiguous laws. In cases where a legal provision is unclear or can be interpreted in multiple ways, foreign judgments can provide valuable guidance in understanding how similar provisions were interpreted in other countries. For instance, the interpretation of the term ‘reasonable care’ in a tortious liability case can be more easily understood by referring to the judgments in countries where similar laws exist. However, it is important to note that foreign judgments cannot be blindly followed in India. For a foreign judgment to be recognized and enforced in India, it must pass the conclusiveness test under Section 13 of the Code of Civil Procedure, 1908 (CPC). This means that the foreign judgment must meet certain criteria, such as being passed by a competent court, being final and conclusive, and not being in contravention of Indian laws or public policy.

Apart from the CPC, bilateral treaties between reciprocating countries can also govern the recognition and enforcement of foreign judgments. India has signed several such treaties with countries like the United Kingdom, the United States, and Japan, among others. These treaties lay down the conditions under which judgments passed in one country can be enforced in another. Another important factor to consider when following foreign judgments is the cultural context in which the judgment was passed. It is essential to understand the cultural, social, and political factors that influenced the judgment to apply it appropriately in the Indian context. For instance, a judgment passed in a country with a vastly different cultural and social background may not be applicable in India, where the legal system and cultural context are different.

In conclusion, the relevance of foreign judgments in India cannot be overstated. They offer a wider perspective on legal principles, help in interpreting ambiguous laws, and enhance the quality of justice delivered. However, it is important to ensure that the foreign judgment meets the criteria laid down in the CPC, and to consider the cultural context in which the judgment was passed. As India’s legal system continues to evolve and adapt, the relevance of foreign judgments is only set to increase.

So, if you want to understand how foreign judgments can impact the Indian legal system, watch this video till the end. We hope you’ll gain some knowledge from it. Don’t forget to share your thoughts in the comments section!

May 16, 2023 In Banking and Finance, Channels, Finance, Legal, Sectors, Video By editor

Digital Infrastructure for Financial Inclusion in Rural India

Financial inclusion has never been more crucial to policymakers as it is right now. Geographical constraints, a lack of banking infrastructure, widespread financial illiteracy, and our country’s high population density make it extremely difficult for rural Indian business owners to obtain official financial services and products.

In order to enable small business owners, particularly in rural India, to have access to low-cost formal financial products and services, effective programs like the Pradhan Mantri Jan Dhan Yojna and Pradhan Mantri Mudra Yojna collaborate with digital financial infrastructures like the Aadhaar-enabled Payment System (AePS) and UPI.

The problem of accessibility and affordability

India’s small rural businesses lack safe access to formal banking facilities for lending and savings. Those that do so, lose time associated with travelling to unsuitable locations for banks. Furthermore, when formal banking solutions are available, the strict lending criteria become obstacles to their ability to accept loans, showing that accessibility does not always mean obtainability.

How can UPI be used to increase financial inclusion for rural MSMEs?

Mobile phones are the answer to the issue facing India’s millions of rural traders. First, UPI may be utilised to offer MSMEs digital payment solutions that would allow them to securely and conveniently accept payments from clients.

Are digital financial infrastructures truly inclusive?

When digital financial services are mentioned, the debate regarding access to reliable internet connections keeps coming up. UPI 123 Pay, a recently launched immediate payment system, was introduced by the Reserve Bank of India as a straightforward yet effective response to this pressing issue. It would enable users to conduct UPI transactions without a network connection.

Kirana stores as micro ATMs – Changing the landscape of rural banking

In rural India, micro ATMs are quickly becoming an extensively used financial infrastructure. The Indian entrepreneurial spirit is represented through the kirana ecosystem. They simplify the lives of local residents by providing basic banking and financial services.

In conclusion, emerging nations like India, where mobile phones are more common than bank accounts, digital payments are a crucial tool for increasing financial access. Financial inclusion may become a reality with consistent and fair implementation, which can change how rural business owners run their operations to make better decisions and save a lot of money and resources.

May 15, 2023 In Channels, Cyber Law, Legal, Video By editor

What is Ransomware and Phishing?

In this video, we’re going to spill the tea on two of the most common cyber-attacks you need to watch out for: Ransomware and Phishing.

First up, Ransomware. Imagine waking up one morning to find that all of your important files have been encrypted and held hostage by hackers, demanding a ransom in cryptocurrency. Yeah, it’s not a fun thought, but it’s a reality for many. In 2017, the WannaCry ransomware attack affected over 300,000 computers in 150 countries. How can you ensure you do not become the next victim of this sinister scheme? We’ll let you know in a bit.

Coming to Phishing. It’s more or less like fishing, but instead of catching a fish, cybercriminals are trying to hook you into revealing your personal information. It could be an email from your bank, social media account, or a seemingly legit source. But it’s not. In 2017, a phishing attack disguised as a Google Docs invite fooled many, leading them to unwittingly give attackers access to their personal information.

An instance that happens more frequently these days, is where a fraudulent email that appears to be from PayPal (or other banks) claims that the recipient’s account has been compromised and will be deactivated unless they confirm their credit card details. The email includes a link that redirects the victim to a fake PayPal website (or other bank websites), where they are prompted to enter their credit card information to “reactivate” their account. This is a phishing attack designed to steal the victim’s sensitive financial information.

So, what now? How do we save ourselves? Well, worry not because we’ve got your back! Here are five ways to avoid falling victim to these attacks.

Keep your software up to date: Hackers often exploit security vulnerabilities in outdated software to launch their attacks. So, make sure you keep all of your software up to date with the latest security patches and updates.

Use anti-virus and anti-malware software: Install reputable anti-virus and anti-malware software on your computer or mobile device to protect against potential attacks. Keep the software updated and run regular scans.

Verify the source of emails and messages: Don’t blindly click on links or download attachments from suspicious emails or messages. Always verify the source of the email or message before taking any action. Check the sender’s email address and look for any signs of suspicious or unusual activity. Be cautious of suspicious emails and messages: Be on the lookout for red flags, such as spelling errors, urgent or threatening language, or unexpected requests for personal information. Always err on the side of caution and report any suspicious emails or messages to your IT department.

Use strong passwords and two-factor authentication: Use unique, complex passwords for all of your accounts, and never reuse passwords across multiple accounts. Consider using a password manager to help generate and store strong passwords. Additionally, enable two-factor authentication (2FA) wherever possible, as this provides an extra layer of security by requiring a secondary form of authentication, such as a code sent to your phone or email.

May 12, 2023 In Channels, Legal, Video By editor

How to Protect your Products from Counterfeiting

📢 Protect your products from counterfeiting! Join our exclusive one-on-one interview series with Saikat Mukherjee, Head of Legal at Dabur International Ltd, as we delve into the crucial topic of combating product counterfeiting.

🎥 In this episode 1 of the series, we cover what is counterfeiting and how to protect your products from it.

🙌 Don’t miss this opportunity to gain valuable insights from Saikat Mukherjee, a seasoned legal professional with extensive experience in protecting brands and products from counterfeiting.