Articles tagged with: legal opinions
Law firmite rebuts GC’s ramblings: Law firms do and will continue to generate value
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Legal opinion: Celebrity domain squatting on the rise in India

Are option clauses actually enforcable?

Option clauses are a very common feature in shareholder agreements, share subscription agreements and many other investment related agreements. With a put option the holder has the right to sell its securities to the other party, with a call option holder will have the right to buy the securities from the other party, often at an agreed price. These can be used to hedge risks or provide an uplift to a party if securities should rise in value.
However, the enforceability of these options under Indian law is not settled.
Securitisation Act self-help remedy: legislative flaw or express exclusion of foreign lenders?

However, certain provisions of Sarfesi seem to be a deterrent to foreign lenders providing finance to Indian borrowers, which in turn affects genuine Indian companies also from raising low-cost international finance.