This week in Indian law: Parliament enacted the Advocates Amendment Act repealing the colonial-era 1879 Touts law. SEBI enforced enhanced FPI disclosure norms for concentrated holdings. IBBI strengthened the personal guarantor insolvency framework following the Dilip Jiwrajka judgment. Parliament's Winter Session neared its conclusion with criminal law reform bills approaching final votes. 7 significant legal developments this week across legislative policy, securities regulation, and insolvency law.
Top story
Advocates Amendment Act 2023 Enacted, Repealing 1879 Touts Law
Category: legislative-policy | Date: 18 December 2023 | Source: PRS India
Parliament enacted the Advocates (Amendment) Act 2023, which repeals the Legal Practitioners (Fees) Act 1879 — a colonial-era statute that regulated "touts" (unauthorized intermediaries around courts who solicit business for lawyers). The amendment modernises the regulatory framework for the legal profession by removing an archaic provision that had been largely unenforced but remained on the statute book. The Act also makes consequential amendments to the Advocates Act 1961.
Why it matters: While largely symbolic, the repeal of the 1879 Act continues the government's programme of removing obsolete colonial-era legislation. For legal practitioners, the key implication is that anti-tout provisions will now need to be enforced through the Advocates Act and Bar Council regulations rather than the repealed 1879 statute. The amendment signals ongoing interest in reforming the legal profession's regulatory structure.
Read more: Veritect analysis
Regulatory updates
SEBI Enforces Enhanced FPI Disclosure Norms for Concentrated Holdings
Regulator: SEBI | Date: 15 December 2023 | Source: SEBI
SEBI enforced enhanced beneficial ownership disclosure requirements for Foreign Portfolio Investors with concentrated equity holdings. FPIs holding more than 50% of their Indian equity portfolio in a single corporate group or holding significant positions in mid-cap or small-cap stocks were required to disclose their ultimate beneficial owners and ownership structures. The enhanced norms were part of SEBI's regulatory tightening following the Adani-Hindenburg episode.
Key point: FPIs with concentrated holdings must comply with enhanced disclosure or face restrictions on further investments. This is part of SEBI's broader push for transparency in foreign investment flows, driven by concerns highlighted during the Adani investigation about opaque FPI ownership structures.
IBBI Strengthens Personal Guarantor Insolvency Framework Post-Jiwrajka
Regulator: IBBI | Date: 15 December 2023 | Source: IBBI
Following the Supreme Court's November 9 judgment in Dilip B. Jiwrajka v. Union of India upholding the constitutionality of personal guarantor insolvency provisions under Part III of the IBC, the Insolvency and Bankruptcy Board of India issued revised regulations strengthening the operational framework for personal guarantor insolvency proceedings. The revised regulations clarify procedural aspects including application requirements, resolution professional obligations, and the repayment plan process.
Key point: Banks and financial institutions now have a fully validated and operationally clarified framework for pursuing personal guarantor insolvency. The post-Jiwrajka IBBI regulations close the implementation gaps that had previously created uncertainty in Part III proceedings.
Also this week
- Criminal law reform bills in final stages — The Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita, and Bharatiya Sakshya Adhiniyam were in the final stages of Parliamentary debate, with passage expected on December 20-21.
- Mass Lok Sabha suspensions — Over 140 Opposition MPs were suspended from Parliament for the remainder of the Winter Session, the largest mass suspension in Indian Parliamentary history. The criminal law bills were passed with limited Opposition participation.
- Article 370 verdict aftermath — Legal commentary continued on the December 11 Article 370 verdict, with analysis focusing on the Court's treatment of sovereignty, federalism, and the timeline for J&K elections.
- SC approaching winter recess — The Supreme Court was in its final sitting days before the annual winter recess commencing around December 22.
By the numbers
- 1879 — Year of the Legal Practitioners (Fees) Act now repealed by the Advocates Amendment Act
- 140+ — Opposition MPs suspended from Parliament — largest mass suspension in Indian history
- 3 — Criminal law reform bills approaching final passage (BNS, BNSS, BSA)
Looking ahead
- December 20-21: Criminal law reform bills passage in Parliament
- December 22: Parliament Winter Session concludes; SC winter recess begins
- December 24-25: Presidential assent expected for BNS, BNSS, BSA and Telecommunications Act
- January 2024: SC resumes; Adani-Hindenburg final verdict expected
This is the Veritect Weekly Legal Roundup for Week 50 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.