Taking Advantage of India's Improving Business

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Issue 33 · December 2016 · I ndia Briefing
The Arbitration and
Conciliation (Amendment)
Ordinance, 2015
The Arbitration and Conciliation Act, 1996 was
amended by the Arbitration and Conciliation
(Amendment) Ordinance, 2015. One of the main
changes made was with respect to restrictions
on arbitrators. The amended Act states that
companies can no longer appoint their own
employees as arbitrators. Arbitration cases have
to be resolved within a year, with an option for a
six month extension. For international arbitration,
the courts lower than the High Court do not have
any jurisdiction. Both parties can also mutually
settle disputes based on written pleadings and
submission of documents. If a settlement is being
approached, the tribunals have to finalize it within
six months. As far as possible, oral hearings must
be done daily to expedite the resolution process.
e-Commerce
The e-commerce industry continues to expand
as more Indians shop online and move towards
cashless transactions. With major online
companies like Flipkart and Amazon offering
attractive discounts, the industry is expected
to grow at an annual rate of 51 percent. Most
recently, the government clarified its policy on FDI
in online retail. Consumer businesses that operate
as marketplaces – which refers to companies that
act as facilitators between buyers and sellers on
a technology platform – are allowed 100 percent
FDI under the automatic route. While the sector
can be further liberalized, the government has
at least formalized its policy for the e-commerce
sector in a transparent manner, unlike previously,
when companies worked under assumptions
and without clear regulatory oversight. India’s
e-commerce sector has attracted a significant
amount of FDI and is an opportunity for foreign
investors. New research shows that India’s
e-commerce market could overtake that of the
US by 2034, going head-to-head with China.
This is why investors cannot afford to ignore the
multi-fold growth potential of India’s digital market
segment.
National Intellectual
Property Rights (IPR)
The government announced a new IPR policy in
May of this year. As per the notification, national
laws on patents, trademarks, and IPRs will now
be shaped by the overarching policy, which
intends to safeguard the interests and rights of
owners and tackles copyright infringement. The
Department of Industrial Promotion and Policy
(DIPP) will regulate intellectual property rights in
India and the national IPR policy will be reviewed
every five years. According to the newpolicy, online
registration of trademarks will be permitted. This is
because the government wants to expedite the
process of trademark and patent examination to
just onemonth by 2017. The policy scope has been
expanded to include films, music, and industrial
drawings.
Coal Mines (Special
Provisions) Bill, 2015
The government passed the Coal Mines (Special
Provisions) Bill in May 2015 allowing the e-auction
of coal blocks. The Bill allows the winning bidder
the rights, title, and interest over the land and
mining infrastructure together.The bidding process
is also made transparent through the law. The Coal
Mines Bill is important to the central government
as it looks to develop the eastern part of the country
that is rich inmineral deposits. So far thegovernment
has held three auctions with both power and non-
power companies participating. While the
auctioning of mines is for national use, the
government is expected to later allow private
companies to mine commercially. As of now, the
mining sector in the country is dominated by the
state-run Coal India Ltd.
Pr
D tes can help companies navigate India’s regulations related to pre-
investment and market entry. To arrange a free consultation,please contact us at india@
dezshira.com