NEWSLETTERJuly 2019

The article provides an insight into the

framework proposed by the Reserve Bank of

India (RBI) for 'regulatory sandbox' which

would be an experiment space for testing

new products and services by fintechs. RBI

will provide requisite regulatory support for

such purposes. This tool will help in testing

evolving technology so that it can be used in

the financial sector with required checks and

balances.

We continue to highlight certain key

judgements passed by the Hon'ble Court as

wel l as changes in Corporate and

Commerc ia l laws and updates on

Intellectual Property.

Your inputs and feedback are always

welcome and we look forward to our

interactions with you.

This edition brings to our readers

featured article - ”Regulatory Sandbox – An Emerging Tool for Fintechs”

and

Compliance and Audit-What sets us apart

“Clasis Law’s Managing Partner Vineet Aneja

is recognized as one of the leading

Corporate Transactional Lawyer in India for 2019

by Acquisition International”

Contents

Compliance and Audit-What sets us apartPage 2

Regulatory Sandbox - An Emerging Tool for Fintechs Page 3

Legal AlertsPage 6

Corporate and CommercialPage 7

IP UpdatePage 9

Recent EventsPage 11

OffbeatPage 12

Welcome to the July Edition of the Clasis Law Newsletter

Ranked amongst the TOP 40 Indian Law Firm, by RSG Consulting Rankings 2017

The Board/Management of Indian companies have conventionally been focused on

value/wealthcreationfortheirshareholders.However,withtheadventofnew/revised

lawsandrenewedfocusofregulatorsoncomplianceandtransparency,ithasbecome

increasinglyimportantforcompanies/Boardtoensurethatthecompliancesprescribed

undervariousIndianlawsareadheredtointrueletterandspiritsothattheshareholders

andotherstakeholderscanremainstatutorilypraotected.

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areasoflaw.Utilizingourdepthofexperience,legalskillsandresources,sectorexpertise

and internationalcapabilities,wehavebeenadvisingourclients,bothdomesticand

international,ontheirdaytodaylegalissues.Ourproactiveapproachhasalwaysbeen

ourforteandourteamisrecognizedbyclientsforitsabilitytoprovidecomplexadvicein

aclear,succinct,anduncomplicatedmanner.

Structuringadvise: Assistanceinsettingupoffices/businessinIndia

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Regularcomplianceservices:Generalcorporateadvisoryinrelation

to day to day compliance matters, for different form of entities

including companies, limited liability partnerships, branch office,

liaisonoffice,projectofficeduringtheircompletelife­cycle.

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theMinistryofCorporateAffairs/CentralGovernment,ReserveBank

ofIndiaonspecificmatterssuchasshiftingofregisteredofficefrom

one state to another, change in auditors, compounding of

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Audit and assurance: Assessment of risk of non­compliance and

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Fundingadvise:Advisoryinrelationtofundraisingincludingtheform

of instruments to be issued, listing of securities (debt/ equity

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Foreign exchange laws: Advisory on foreign exchange laws with

respecttoreceiptofinboundandoutboundinvestment,acceptanceof

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Generaladvisory:Advisoryunderthe(Indian)CompaniesAct,2013on

specific matters such as issue of capital, alteration of capital,

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promote innovation in the securities market, the

Securities and Exchange Board of India (“SEBI”) has

also proposed an 'innovation sandbox' to provide a

testing environment to fintechs for offline testing of their

proposed solutions in isolation from the live market 3subject to fulfillment of eligibility criteria .

Pursuant to the WG Report, the RBI has issued the draft

framework for 'regulatory sandbox' on April 18, 2019 4(“Framework”) . This article focusses on the concept

of regulatory sandbox, its pros and cons and its

prospects in India if the proposed Framework is

adopted as it is.

What is a regulatory sandbox?

As provided in the Framework, a 'regulatory sandbox'

refers to live or virtual testing of new products or

services in a controlled / test regulatory environment

for which regulators may permit certain regulatory

relaxations for the limited purpose of testing. The

regulatory sandbox is a formal regulatory programme

for market participants to test new products, services or

business models with customers in a live environment.

The proposed financial service to be launched under

the regulatory sandbox should include new or

emerging technology, or use of existing technology in

an innovative way and should address a problem or

bring benefit to the consumers. The RBI may provide

the appropriate regulatory support by relaxing specific

legal and regulatory requirements on a case-to-case

basis (with the exception to customer privacy and data

protection, secure storage and access to payment data

of stakeholders, security of transactions and statutory

restrictions) for the duration of the sandbox which the

sandbox entity will otherwise be required to comply.

Functioning of regulatory sandbox

The entire process for a regulatory sandbox including

launch, theme of the sandbox, entry and exit conditions

would be communicated by the RBI through its website.

The technological innovation has led to revolutionary

changes in business operations across industry

verticals. The financial sector has also been a part of

this technological revolution. In fact, technological

innovation is considered to be one of the most

influential developments affecting the global financial

sector in the near future. The changes in financial

services industry due to technological innovation has

led to evolution of fintechs.

Fintechs, being considered as a fusion of finance and

technology, have seen a rapid growth in the recent

years across the globe. According to the Financial

Stability Board of the Bank for International

Settlements, fintech is considered as a technologically

enabled financial innovation that could result in new

business models having a material effect on financial

markets and institutions and the provision of financial 2services .

In view of the growing significance of fintech

innovations in India, the Reserve Bank of India (“RBI”)

has recently taken several initiatives for re-orienting the

regulatory framework to respond to the dynamics of

rapidly evolving fintech industry. As innovation can

create new risks for financial institutions, consumers of

financial services as well as the financial system as a

whole, it is important that the technology and

innovation is used in the financial service sector with

checks and balances.

The RBI had set up an inter-regulatory working group to

examine the granular aspects of fintech. The report of

the working group was issued in February 2018 (“WG

Report”) with one of the key recommendations to

introduce an appropriate framework for 'regulatory

sandbox' which would be an experiment space for the

pilot testing of newly developed technologies.

Regulatory sandbox is a commonly used term in the

fintech industry now. Several countries such as United

Kingdom, Australia, United States of America,

Netherlands and Singapore have already introduced

framework for regulatory sandbox. Further, in order to

RegulatorySandbox–AnEmergingToolForFintechs

1https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/WGFR68AA1890D7334D8F8F72CC2399A27F4A.PDF.2 Ibid.3 https://www.sebi.gov.in/legal/circulars/may-2019/framework-for-innovation-sandbox_43027.html4 The Framework can be accessed at https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=920.

3

The regulatory sandbox would conduct end-to-end

processes with a limited number of participants having

common interest in each sandbox for testing their

products in a time bound manner. The entire process

would be overseen by the fintech unit of the RBI. Further,

the boundary conditions such as limit on number of

customers, transaction ceilings and cap on customer

losses would be clearly specified for a sandbox.

The sandbox participants would have to ensure that the

test customers are informed, and their consent is

obtained, regarding the potential risks and available

compensation during the testing process. Further,

before exiting or discontinuing the sandbox, the

participants should ensure that the existing obligations

to the customers under experimentation are fulfilled or

addressed.

Eligible participants and criteria for using

regulatory sandbox

The products / services / technology which could be

considered for testing under regulatory sandbox

include block chain technology, mobile technology

applications, retail payments, money transfer services,

smart contracts and artificial intelligence. However,

products / services / technology such as crypto

currency, credit registry, initial coin offerings and credit

information would not be accepted for testing under

regulatory sandbox.

The Framework provides for the following key

conditions to be satisfied in order to participate in a

regulatory sandbox:

(a) The entity should be a company incorporated and

registered in India and should meet the eligibility

conditions prescribed for 'start-ups' by the 5Government of India . It may be noted that an

entity formed by splitting up or reconstruction of an

existing business would not be considered as a

start-up. An entity would be considered as a start-

up:

(i) up to a period of seven (7) years from the date

of its incorporation / registration;

(ii) if turnover of the entity for any of the financial

years since incorporation / registration has not

exceeded INR 250 million, and

iii) i f i t i s work ing towards innovat ion,

development or improvement of products or

processes or services, or if it is a scalable

business model with a high potential of

employment generation or wealth creation

(b) The entity should have a minimum net worth of INR

5 million as per its latest audited balance sheet;

(c) The entity should demonstrate that their products /

services are technologically ready for deployment

in the broader market;

(d) The entity should have necessary arrangements to

ensure compliance with the existing laws on

consumer data protection and privacy and should

have a robust IT infrastructure;

(e) The proposed fintech solution should highlight an

existing gap in the financial ecosystem and the

proposal should specify how it would address the

problem or bring benefit to the consumer; and

(f) The entity should show that there is a relevant

regulatory barrier that prevents deployment of the

product / service at scale or a genuinely innovative

product or service is proposed for which relevant

regulation is necessary and is not there in the

existing regime.

Pros and cons of regulatory sandbox

As mentioned in the Framework, one of the key benefits

of regulatory sandbox for fintechs is that they will get an

opportunity to test the product's viability before rolling

out their product / services in the market to public at

large. Further, the advantage for regulator is that it will

obtain evidence on the benefits and risks of emerging

technologies enabling it to take a considered view on

the requirement of regulatory changes or making new

regulations required to support new innovation.

5The eligibility conditions prescribed for start-ups can be accessed at: https://dipp.gov.in/sites/default/files/Startup_Notification11April2018_0.pdf.

4

On the flipside, fintechs may still require RBI approval for launching the product / service in the market post sandbox testing. One of the key downsides for the regulator is that it may face legal issues such as claims from competitors who are outside the regulatory sandbox especially whose applications have been / may be rejected.

Our views

The proposed Framework is a step in the right direction to evolve technology innovation in the financial services sector, however, in our view, there may be following challenges if the proposed Framework is adopted as it is: (a) Entry restrictions: The Framework only permits

companies meeting the criteria of start-ups (discussed above) to participate in the regulatory sandbox. The Framework restricts types of entities which can participate in the process. In fact, the Framework has not contemplated all types of entities which are considered as start-ups (which include l imited l iabi l i ty partnership and partnership firm if they meet the prescribed criteria) and incorporating limited liability partnership or partnership firm is a preferred legal structure by start-ups.

(b) RBI's intervention and dispute resolution: The Framework provides that the RBI shall bear no liability arising from the regulatory sandbox process and any liability arising from the experiment will be borne by the applicant. Further, the Framework does not provide for any dispute resolution framework between the consumers and the participating entities. In the absence of dispute resolution framework and intervention of RBI and considering that the testing would be in relation to financial services, it has to be seen that whether consumers would like to participate in such processes. RBI's intervention in resolving disputes between the entities and the consumer may give confidence to consumers in participating in such processes. For instance, the regulatory framework of Australia governing regulatory sandbox provides for external dispute resolution mechanism which requires engagement of the regulator.

(c) Requirement of group of entities: The Framework provides that a regulatory sandbox would require a group of entities having similar interest for conducting tests. In the event there is only one entity with a kind of product / service to be tested, will it be permitted to use the regulatory sandbox? Clarity in this regard should be provided by the RBI.

(d) Fit and proper test: The directors / promoters of the participating entity would need to clear 'fit and proper' test of the RBI which would require documents such as CIBIL score, bank account details including loan accounts and declaration relating to, amongst others, pending proceedings. As the fit and proper test lays down lot of requirements to be complied with, it may act as a barrier for the entities considering participation in the sandbox.

In order to have an effective utilization of the regulatory sandbox, the above aspects should be taken into account by the RBI while finalizing the Framework.

For any clarification or further information, please contact

Gaurav WahiePartnerE: gaurav.wahie@clasislaw.com

Lovejeet SinghSenior AssociateE: lovejeet.singh@clasislaw.com

5

NCLT observed that it is evident from Section 19 that

besides ex-management, the ex-Directors, collectively or

independently, must furnish information and further

assist the RP in managing the affairs of the Corporate

Debtor. The unrelated parties are out of the scope of the

Section 19 of the Code and are not under any obligation

to furnish information. It has further been held that the

above mentioned provision are mandatory in order to

enable the RP to complete the CIRP expeditiously and

also manage the affairs of the Corporate Debtor, and

therefore, the persons who can cooperate with the IRP/RP

and persuade the other managerial personnel to supply

the documents, cannot escape their obligation

.The Hon'ble NCLT further held that the Statutory Auditor

in possession of the financial statements of the

Corporate Debtor is under a statutory obligation to

furnish the copies of the audited accounts along with

schedules and annexures for the specified period to the

RP. It was also held that if a Director has retired prior to

CIRP, the same is not a good ground to grant exemption

from non-submission of requisite details/ information, if

any, in his possession, as he would certainly be

answerable for any decision taken during his tenure

which would have caused financial irregularities. The

non-executive Director can persuade the other

managerial personnel to supply the documents

demanded.

Accordingly, the NCLT held that to implement the

intention of the Code, the suspended Directors and

managerial persons should extend full cooperation,

simultaneously furnish information of their accounts and

financial facilities availed from various Financial

Creditors to the RP. NCLT has further observed that when

information are in knowledge and possession of the

Directors, they shall be held responsible for non-

submission of the information as well as for non-

cooperation with the RP as prescribed under Section 19

of the Code, and shall therefore be liable for

punishment under Section 70 of the Code.

NCLT has also clarified that there is no judicial authority

available to RP to seek financial information of a third

party/ contractual counterparties of Corporate Debtor

and that the inquiry should be limited to business

transaction executed between Corporate Debtor and the

said party.

In view of the above, the application by the RP was partly

allowed in the facts and circumstances of the case.

LegalAlerts

The Hon'ble National Company Law Tribunal,

Chandigarh(“NCLT”) , in the matter of “M/s Educomp

Infrastructure & School Management Limited

(Petitioner- Corporate Debtor)” and in the matter of

“Mr. Ashwini Mehra, (Resolution Professional) vs.

Mr. Vinod Kumar Dandona, Suspended Director &

Ors (Respondents). CA No.335/ 2018 in CP (IB)

No.10/ Chd/ Hry/ 2018”, held that Section 19 of

Insolvency and Bankruptcy Code, 2016 (“Code”) casts

an obligation on the Ex-Personnel of the Corporate

Debtor, its promoter or any other person associated with

the Ex-Management including ex-Directors to extend all

assistance and cooperation to interim resolution

professional to manage the affairs of the Corporate

Debtor.

Originally, the Creditor Debtor had moved an

application under Section 10 of the Code for initiation of

Corporate Insolvency Resolution Process (“CIRP”)

against itself under the Code. The said petition was

admitted and accordingly Interim Resolution Professional

was appointed. Subsequently, a Committee of Creditors

was set up and a Resolution Professional (“RP”) was

appointed. During the CIRP, the management of the

Corporate Debtor failed to grant access to RP regarding

list of assets and book of accounts etc. The said RP moved

an application before the NCLT praying for the directions

to the defaulting personnel to provide information and

necessary documents.

The Hon'ble NCLT while partly allowing the application of

the RP elaborated on the significance of the Section 19 of

the Code. Section 19 of the Code which states:-

“19. (1) The personnel of the Corporate Debtor, its

promoters or any other person associated with the

management of the Corporate Debtor shall extend all

assistance and cooperation to the interim resolution

professional as may be required by him in managing the

affairs of the Corporate Debtor.

(2) Where any personnel of the Corporate Debtor, its

promoter or any other person required to assist or

cooperate with the interim resolution professional does

not assist or cooperate, the interim resolution

professional may make an application to the

Adjudicating Authority for necessary directions.

(3) The Adjudicating Authority, on receiving an

application under sub-section (2), shall by an order,

direct such personnel or other person to comply with the

instructions of the resolution professional and cooperate

with him in collection of information and management of

the Corporate Debtor.”

6

NCLT Clarifies That It Is Mandatory For The Management And Officers Of The Corporate Debtor To

Cooperate With The IRP/RP During The Corporate Insolvency Resolution Process

Annual Return on Foreign Liabilities and Assets (“FLA”)

with the web based online reporting portal. For the

purpose of making the FLA filings, the reporting entities

are required to register themselves with the RBI's web-

portal interface . The information https://flair.rbi.org.in/

for the financial year 2018-19 is to be furnished as per

the revised process since the existing mechanism has

been discontinued by the RBI with effect from June 28,

2019.

Permission to acquire financial asset from other

Asset Reconstruction Companies (ARCs)

On June 28, 2019, RBI, in view of the amendment to the

Securitisation and Reconstruction of Financial Assets

and Enforcement of Securities Interest Act, 2002, issued

a circular, permitting Asset Reconstruction Companies

(ARCs) to acquire financial asset from other ARCs on

following conditions:

(a) The transaction is settled on cash basis;

(b) Price discovery for such transaction shall not be

prejudicial to the interest of security receipt holders;

(c) The selling ARC will utilize the proceeds so received

for the redemption of underlying security receipts;

and

(d) The date of redemption of underlying security

receipts and total period of realisation shall not

extend beyond 8 years from the date of acquisition

of the financial asset by the first ARC.

The Companies (Appointment and Qualification

of Directors) Rules, 2014

The Ministry of Corporate Affairs (“MCA”) vide its

circular dated June 27, 2019 issued a clarification

towards Rule 12A of the Companies (Appointment and

Qualification of Directors) Rules, 2014. The said circular

inter alia provides for extension to be allowed for filing

e-form DIR-3 KYC by directors of Indian companies and

introduction of a simple web based verification service

for completing KYC by directors who have already filed

the e-form DIR-3 KYC.

CorporateandCommercial

Proposal for FDI inflows into India in 2018-19

On July 5, 2019, the Department for Promotion of

Industry and Internal Trade issued a press release,

proposing the following steps:

(a) The Government will examine suggestions of further

opening up of foreign direct investment (FDI) in

aviation, media (animation, AVGC) and insurance

sectors in consultation with all stakeholders.

(b) 100% FDI wil l be permitted for insurance

intermediaries.

(c) Local sourcing norms will be eased for FDI in single

brand retail sector

(d) Increase the statutory limit for Foreign Portfolio

Investors (FPIs) investment in a company from 24% to

sectoral foreign investment limit with option given to

the concerned corporates to limit it to a lower

threshold. FPIs will be permitted to subscribe to listed

debt securities issued by ReITs and InvITs.

The Companies (Significant Beneficial Owners)

Second Amendment Rules, 2019

The Ministry of Corporate Affairs (“MCA”) vide its

notification dated July 1, 2019 issued the Companies

(Significant Beneficial Owners) Second Amendment

Rules, 2019 thereby further amending the Companies

(Significant Beneficial Owners) Rules, 2018. By way of

amendment Rules, the MCA has substituted the form

BEN-2 specified under the original Rules. The form BEN-2

is required to be filed as a return to the Registrar of

Companies by Indian companies which have received

declaration(s) of interest from significant beneficial

owner(s) in form BEN-1. Form BEN-2 is available on the

MCA portal for filing since July 2, 2019.

Annual Return on Foreign Liabilities and Assets

Reporting by Indian Companies

On June 28, 2019, RBI issued a circular replacing the

present email- based reporting system for submitting the

7

Reduction in contribution - Employees' State

Insurance Act 1948

On June 13, 2019, the Ministry of Labour & Employment

issued a press release reducing the rate of contribution

under the Employees' State Insurance Act 1948 from 6.5

per cent to 4 per cent (employers' contribution being

reduced from 4.75 per cent to 3.25 per cent and

employees' contribution being reduced from 1.75 per

cent to 0.75 per cent). The reduced rates will be effective

from 1 July 2019. The objective behind the revision in

contribution rates is to inter alia enhance the social

security coverage, increase compliance of law and

facilitate enrollment of more workers under the ESI

scheme. Although the revision in the ESI contribution rates

may appear to be small, it is expected to have a huge

impact on the economy. The reduced contribution rates

would also ensure a greater take home pay for covered

employees and reduced costs for employers.

Discussion Paper on amendments to SEBI

(Prohibition of Insider Trading) Regulations 2015

On June 10, 2019, the Securities and Exchange Board of

India (“SEBI”) issued a discussion paper on amendments

to SEBI (Prohibition of Insider Trading) Regulations 2015,

to provision for an informant mechanism. Direct

evidence of insider trading is not easily available

and that which is generally available is almost

completely circumstantial. Since criminal law requires

proof to be established beyond reasonable doubt, it is

a challenge for SEBI to successfully prosecute such

cases. As a further step towards strengthening the

mechanism for early detection of insider trading and

better enforceability, it is desirable and prudent that

SEBI considers instituting a process that enables

timely reporting of instances of insider trading

violations and also provide for grant of reward with

adequate checks and balances that could incentivize

timely reporting of information relating to insider trading

to SEBI at the first available opportunity. Hence a

mechanism which also provides 'near absolute

confidentiality' along with appropriate safeguards is

proposed to enable reporting of such information and in

light of this SEBI has issued this discussion paper.

Prudential Framework for Resolution of Stressed

Assets

On June 7, 2019, the Reserve Bank of India (“RBI”) issued

the Reserve Bank of India (Prudential Framework for

Resolution of Stressed Assets) Directions 2019 with a view

to providing a framework for early recognition, reporting

and time bound resolution of stressed assets. The

provisions of these directions shall apply to the following

entities:

(a) Scheduled Commercial Banks (excluding Regional

Rural Banks);

(b) All India Term Financial Institutions (NABARD, NHB,

EXIM Bank, and SIDBI);

(c) Small Finance Banks; and,

(d) Systemically Important Non-Deposit taking Non-

Banking Financial Companies (NBFC-ND-SI) and

Deposit taking Non-Banking Financial Companies

(NBFC-D)

The Companies (Incorporation) Sixth Amendment

Rules, 2019

The Ministry of Corporate Affairs (“MCA”) vide its

notification dated June 7, 2019 issued the Companies

(Incorporation) Sixth Amendment Rules, 2019 thereby

substituting form no. INC. 12 in place of Form INC-32

which can be submitting for obtaining license under

section 8 (as a not for profit company) of the Companies

Act, 2013.

8

9

create a casteless society and remove stigmata usually

associated with oppressed communities. Without

dwelling into grim details; which involves a pair of

slippers being produced with human skin and the

superstitious connotations associated with the origin

story of the slippers, it shall suffice to know that the said

Basavanna achieved his objective of creating a

casteless society and it was with that spirit, that the local

artisans used their creative acumen in footwear

production. Interestingly, the name Kolhapuri was

prefixed to the slippers only around the beginning of the

20th Century.

In the undivided Bombay State (before 1947), most of

the Kolhapuri slippers were produced from bag tanned

leather by artisans in the select districts. Post-

independence and after the formal reorganization of

states, some of the districts manufacturing leather

slippers formed part of Karnataka and the tanners and

artisans continue to follow the same methods of

production in their respective districts, till date.

The GI tag approval implies that the artisans producing

Kolhapuri slippers in the aforesaid districts will now be

able to promote and market their product in domestic

and international markets with ease. This also means

the artisans will have greater leverage to negotiate

profitable deals with leading e-commerce players, as

similar products made in other parts of the country will

now be prohibited from using the term "Kolhapuri".

Artisans, some of them 4th generation specialists,

welcomed the development and are hopeful that it will

boost their business and open new avenues for their

genuine and resilient products.

India, as a member of the World Trade Organization

(WTO), enacted the Geographical Indications of Goods

(Registration & Protection) Act, 1999 (“Act”) which

came into force on September 15, 2003. Darjeeling

Tea was the first Indian product that was granted a GI

tag in 2004 and around 324 products have been

granted GI tags in India, till date.

In a recent development, the Department for Promotion

of Industry and Internal Trade (DPIIT), with a view to

encourage the promotion and marketing of Indian

products which have been granted GI, has issued draft

IPUpdates

Kolhapuri Chappal, a sturdy leather slipper that rose from

its humble rural origins to occupy the high table of global

fashion, now has a Geographical Indications (“GI”) tag.

The Controller General of Patents, Designs and Trade

Marks (“CGPDTM”) has granted GI tag, “ “

for Kolhapuri slippers originating from four districts in

Maharashtra and Karnataka respectively. These 8 districts

are Kolhapur, Sangli, Solapur and Satara districts of

Maharashtra and Belgaum, Dharwad, Bagalkot and

Bijapur districts of Karnataka.

A GI tag is granted to products which have specific

geographical origins and possess qualities, reputation

and distinctiveness which are quintessentially attributable

to its origin in that defined geographical location, whereas

in case of manufactured goods, one of the activities of

production, processing or preparation should take place

in such demarcated territory, region or locality.

Accordingly, a GI tag has been granted to Kolhapuri

slippers on account of the unique process of producing

bag tanned leather and other indigenous stitching and

pasting methodologies which are attributable exclusively

to artisans in the aforesaid districts.

What the GI tag means for the artisans that make

Kolhapuri slippers is that footwear produced only in the

aforesaid eight districts will qualify to carry the tag of being

Kolhapuri slippers. Producers of similar footwear in any

other part of the country will now be prohibited from using

the term “Kolhapuri” to promote their slippers.

Contrary to popular perception that Kolhapuri slippers are

manufactured only by artisans in Maharashtra, a large

number of artisans from Karnataka have also been

making these slippers for a long time now. For this reason,

the application for GI registration for Kolhapuri slippers

was filed conjointly in 2009 by; Sant Rohidas Leather

Industries & Charmakar Development Corporation

Limited of Maharashtra (“LIDCOM”) and Dr. Babu

Jagjeevan Ram Leather Industries Development

Corporation of Karnataka (“LIDKAR”)

In terms of the application filed by LIDCOM and LIDKAR,

the origin of Kolhapuri slippers can be traced back to the

12th Century ruler, King Bijjal of Bidar district and his

Prime Minister Viswaguru Basavanna, who wanted to

Recent Developments: Geographical Indications

10

guidelines dated June 24, 2019, whereby the following

common GI Logo [ ] and Tagline

[अत�यभारतक�अम�य�न�ध ( Invaluable Treasures of ु ू

Incredible India)] have been proposed to be used for all GI

registered products. The proposed GI Logo is intended to

act as a type of a certifying mark to clearly demarcate and

aid in the identification of all GI registered products across

all classes and thereby facilitate easy recognition of

authentic GI registered products and resultantly protect the

interest of genuine GI products and manufacturers.

A common GI tag would create awareness amongst

producers and consumers alike, and thereby result in

greater marketability and protection of these products

apart from increased sales. The said GI Logo and Tagline

will only be used in relation to GI products registered in

India and no additional fee or permissions will be required

to use the same.

The potential of GI tagging has not yet been realized to its

true potential in India due to limited awareness of GI marks

amongst general public and poor implementation of

statutory norms. Even the introduction of a common logo

and tagline will not serve much purpose unless the same is

widely popularized by the government through mass

publicity campaigns and consumer awareness programs.

Interestingly, Thailand has pioneered GI protection in

South-East Asia, and boasts of being one of the most

developed GI protection frameworks in the region. India

must look at the implementation policies undertaken by

Thai administrators and similar policies including suo-

moto investigation and penalization of GI tag infringers

must be enforced to accomplish the underlying objectives

of enacting the GI Act.

11

RecentEvents

Office Get together @ Smaaash

June 2019

Offbeat

Theoriginsofkabaddicanbetracedbacktoaround4,000years.Thegamehasbeenmentionedinmanymythologicalepics,themostsignificantofwhichisitsreferenceintheMahabharataduringAbhimanyu'sbattlewiththeKauravas.BuddhistliteraturealsorevealsthatLordGautamaBuddhaalsoplayedthissport,oftenforrecreation.

Kabaddi is known by different names in different parts of India and Asia. It's known as Hadudu inBangladesh,BaibalaainMaldives,CheduguduinAndhraPradesh,SaduguduinTamilNaduandHututuinMaharashtra.Theword'Kabaddi'hascomefromaTamilword,Kai-pidi,whichmeans'holdinghands'.

Kabaddi first received international exposure when India demonstrated the sport during the BerlinOlympicsin1936.

Interesting FactsAbout Kabaddi

12

Kabaddi, the game that was nowhere in the headlines having lost its recognition, is slowly but surely gaining in popularity.

The contact sport of kabaddi has been one of the most popular indigenous games played in India. It is often called the 'game of the masses' because of its tremendous public appeal and delightful simplicity.

With the Kabaddi World Cup 2019 and Pro Kabaddi League around the corner, we are sharing some interesting facts about the game:

Subsequently in 1950, the All India KabaddiFederation came into existence which helped toorganize the Senior National Championship from1952. The Amateur Kabaddi Federation of India(AKFI) was formed in 1972 and that introducednationalcompetitionsatthejuniorleveltoo.

The first Asian Kabaddi Championshipwas held in

1980 and India won the championship againstBangladeshinthefinals.

Kabaddi is theonlysport inwhichtheIndianteam,bothmenandwomen,havewonall theworldcupssinceitsconception.

ThefirstWomen'sKabaddiWorldCupwasplayedin2012inPunjab,India,whichwaswonbyIndia.Indiaretainedthetitlein2013bydefeatingdebutantesNewZealand.

TheProKabaddiLeagueinauguralseasonwasthesecond-mostviewedsportstournamentonIndianTVin2014aftertheIPL.Thefirstseasonwaswatchedby435millionpeople!

ThesportisgainingpopularityinothercountriesandisnowplayedincountriessuchasItaly,Spain,Argentina, Denmark, USA, Australia and Belgium. In fact, the 2019 Kabaddi World Cup will seeparticipationofaround30pluscountries.

#worldcupkabaddi2019 #ProKabaddi

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