Book advises businesses on legal pitfalls of working in IndiaFebruary 17th, 2010
By Keith Nuthall, International News Services
India’s regulatory and legal framework is converging fast with the international system, however there are many unique political, social and historical influences that make it imperative for the overseas business to take a cautious approach while entering the country. According to a new book written by International News Services’ experienced chief south Asia correspondent Raghavendra Verma, India presents many different sets of problems and he highlights solutions developed by local enterprises.
A compilation of a series of articles discussing business deals and a spectrum of issues affecting the current business environment, this well-researched and crisply written book presents exclusive comments and analysis from the experts. For example how the Tata Steel handled the exceptional situation created during the merger with Corus that even forced change in the takeover code of UK; or the speedy merger of Ranbaxy, India’s biggest pharmaceutical company with Japanese giant Daiichi-Sankyo, which highlighted the role of multiple regulatory authorities in India and the hurdles that companies need to cross.
The book warns that India’s antiquated and investor-unfriendly labour laws that mainly affect the manufacturing industry in many Indian states, have the potential of destroying any grand industrial plan. Similarly, environmental laws and public interest litigation have become a serious irritant for the businesses that deal with ecology or tribal communities. While analysing the recent events, the book offers tips to sidestep prospective corporate minefields.
Regarding financial rules, according to the book, there are still gaps in procedures followed by government-owned and private banks. However, because of the continuing threat of terrorism and corporate frauds such as that involving Satyam Computers, the Indian authorities enforce strict monetary regulations and therefore international financial dealings require utmost care. As well as explaining various financial crimes, including the offences perpetrated by local joint-venture partners, the book warns about the dangers of not remaining on the right side of the law in India.*The book, ‘AN INDIAN BUSINESS LAW PRIMER – KEY ISSUES FOR COMPANIES WANTING TO DO BUSINESS IN INDIA’ is available in pdf format from international e-book-seller ReportLinker – see http://www.reportlinker.com/p0177970/