RGNUL FINANCIAL & MERCANTILE LAW REVIEW

ARBITRATION IS CHEAPER THAN LITIGATION: AN INDIAN PERSPECTIVE

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Meenal Garg

The author specialises in commercial dispute resolution and arbitration and is currently a practicing advocate at Punjab & Haryana High Court

 

The recent Expert Level Committee Report on Arbitration has recommended that the Fourth Schedule should be deleted from the Arbitration and Conciliation Act, 1996. This has sparked a debate amongst scholars and jurists as to whether arbitration is a costly affair in India and if yes, whether the Fourth Schedule has been able to solve this problem or not. It is in this background, that this paper compares the arbitrator fee payable as per the Fourth Schedule vis-à-vis the court fee payable when litigating the same dispute and argues that the Fourth Schedule should be retained. The reason for the same is that the Fourth Schedule provides for a ceiling limit for payment of arbitrator fee which is absent in court fee legislations of most states across India. It further dispels the myth that arbitration is a costly affair and opines that arbitration is factually cheaper than litigation in case of high value disputes.

THE RISE OF FINFLUENCERS: REGULATORY STRATEGIES BY SEBI AND INTERNATIONAL PERSPECTIVES

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Sakshi Gupta and Soumil Sharma

The authors are Assistant Professor of Law at Maharashtra National Law University, Aurangabad and a third-year B.B.A. LL.B. (Hons.) student at Maharashtra National Law University, Aurangabad respectively
 

This paper discusses the rise of and regulation of Indian financial influencers, or "finfluencers," and sheds light on their influence on retail investors, through interaction with the social media platforms like Instagram and YouTube. The paper starts with the rise of finfluencers in India, the impact of COVID-19 on the same, and highlights their role in increasing awareness about financial knowledge in India. The paper then highlights the risks and concerns posed by the rise of finfluencers, by discussing how they mislead and manipulate their views resulting in financial and well as non-financial harms. The author then put forth their revenue generation models, by dividing them into four categories. The author tries to dissect all the current Indian laws and addresses the challenges by comparing them to international best practices of the U.S.A., U.K., E.U., and Australia. The authors propose that clarity of definitions, a structured registration process, transparency mandating, and best international practices be adopted to enhance SEBI's regulatory framework. In particular, the recommendations for balancing investor protection with financial education, making technological enforcement, introducing accountability mechanisms, and getting a better regulatory landscape that safeguards retail investors but also gives room to responsible financial education in India, are the need of the hour. The authors have also proposed a draft regulatory framework for governing the landscape concerning finfluencers.

SENTIENT ALGORITHMS AND CORPORATE LAW:  A LEGAL ODYSSEY TO THE NEW AGE OF INTELLIGENT ENTERPRISES

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Devansh Lunawat and Swastika Saxena

The authors are fourth-year B.A.LL.B (Hons.) students at Maharashtra National Law University, Nagpur.

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As humanity challenges itself to turn seemingly impossible imaginations into reality, the evolution of Artificial Intelligence (AI) is sending shockwaves through the fabric of society, impacting corporations and legal frameworks. The paper attempts to understand the implications of incorporating AI into the corporate structure with a multidisciplinary approach. The first part of the paper traces the timeline from the genesis of AI to the current state of affairs. The paper delves into understanding the technological intricacies to demystify the question, “What is AI?”. The second part unfolds by exploring the possibilities of incorporating AI in corporations and boardrooms at different levels of autonomy. After observing the existing paradigms and future trajectories, it can be discerned that corporate funding for AI integration is poised for an exponential curve. The third part analyses the existing corporate law principles, assessing their adequacy to sufficiently guide the directors in utilising the emerging technology. Notably, the existing Companies Act, 2013 lacks explicit provisions for AI, thereby precluding the appointment of AI as a director or distinct entity. However, the use of AI at assisted autonomy levels can be accommodated under the current framework. The section further explores the “liability gaps” existing in the current legal framework for ascertaining the contractual and extra-contractual liability of corporations for damages stemming from AI utilisation. The final part proposes prospective regulatory solutions, drawing inspiration from the analysis of technological aspects, judicial pronouncements, and committee reports to guide the effective governance of AI. The authors advocate for exploring regulatory frameworks with an understanding of the development and deployment of AI systems. This paper contributes to the existing literature by elucidating AI’s implications for corporations, offering prospective solutions within the Indian context, and showcasing the different mechanisms employed by AI systems and their implications for addressing the challenges and exploring solutions.