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Introduction

One of the most discussed media and entertainment industry developments since early 2023 is the merger of the media assets of Reliance Industries’ (“RIL”; including JioCinema) with Disney India’s (“Disney”; including Disney+Hotstar)¹. The deal has continued to make headlines, with the latest being a series of developments in an enterprising case of ‘cybersquatting’ on the “JioHotstar.com” domain². In this #TreelifeInsights piece, we break down the core legal issues surrounding this JioHotstar dispute: what cybersquatting is, why it is considered an infringement of intellectual property rights, and what the legal ramifications of the developer’s actions are.  

Timeline

1. 2022 – Disney loses digital streaming rights for Indian Premier League to RIL’s Viacom18. Disney sees loss of subscriber revenue.
2. February 2024 – Disney and Viacom18 sign contracts; Viacom18 and Star India to be integrated into a JV reportedly valued at INR 70,352 crores (post money).
3. August 2024 – Competition Commission of India and NCLT approve the USD 8.5 billion merger.
4. October 2024 – Anonymous Delhi-based app developer reveals registration of “Jiohotstar.com” domain name; offers to sell to RIL in exchange for higher education funding. RIL responds threatening legal action. 
5. October 26, 2024 – Reports emerge that domain name has been sold to a UAE-based sibling duo involved in social work.
6. November 11, 2024 – UAE siblings reveal their refusal of sale of domain name; offers to legally transfer to RIL for free.

Legal Backdrop: Intellectual Property Rights

In order to better understand the implications of this ‘cybersquatting’, it is critical to recognise the intellectual property rights (‘IPR’) in question:

• Intellectual Property Rights (‘IPR’): legal right of ownership over the creation, invention, design, etc. of intangible property resulting from human creativity. A critical element to the protection of IPR is restraining other persons from using the protected material without the prior permission of the owner.
• Trademarks: a form of intellectual property referring to names, signs, or words that are a distinctive identifier for a particular brand in the market, protected in Indian law by Trade Marks Act 1999. 
• Domain names included in IPR: in today’s digital world, a web address that helps customers easily find the business/organization online – a domain – is also considered a brand that should be registered as a trademark to prevent misuse.
• Value: trademarks are a great marketing tool that make the brand recognizable to the consumers, and directly correlates to an increase in the financial resources of the business. 
• Consequences: breach of IPR can lead to monetary loss, reputational damage, operational disruptions or even loss of market access for a business. Infringement therefore attracts significant criminal and civil liability, as a means to dissuade unauthorized use and protect such IPR owners.

In this regard, the positions adopted by RIL and the developer are briefly set out below: 

What is Cybersquatting?

‘Cybersquatting’ or digital squatting refers to the action of individuals who register domain names closely resembling established brands, often with the intent to sell for profit or otherwise leverage for personal gain. Cybersquatting can take the following forms:

• Typo squatting/URL hijacking: Domains are purchased with a typographical error in the name of a well-known brand, with the intent to divert the target audience when they misspell a domain name. This could occur with an error as simple as “gooogle.com” instead of “google.com”.
• Identity Theft: Existing brand’s website is copied with the intent to confuse the target consumer. 
• Name Jacking: Impersonation of a celebrity/famous public figure on the internet (includes creating fake websites/accounts on social media claiming to be such public figure). 
• ‘Reverse’ Cybersquatting: False claim of ownership over a trademark/domain name and accusing the domain owner of cybersquatting. 

Cybersquatting can be used as a form of extortion, an attempt to take over business from a rival, or even to mislead/scam consumers, but there is no law in India that specifically addresses such acts of cybersquatting. Since domains are considered ‘trademarks’ under the law, use of a similar or identical domain would render an individual liable for trademark infringement³, in addition to any other liabilities that may be applicable from the perspective of consumer protection laws.   

Legal Treatment of Cybersquatting

Cybersquatting rose as an issue as more and more businesses began to realize the value of their online presence in the market. As the digital age unfolded, the Internet Corporation of Assigned Names and Numbers (ICANN) was founded in 1998 as a non-profit corporation based out of the United States with global participation. In 1999, the ICANN adopted the Uniform Domain Name Dispute Resolution Policy (UDRP) to set out parameters in which top level domain disputes are resolved through arbitration. It is important to note that the remedies available under UDRP are only cancellation or transfer of the disputed domain name and do not envisage monetary compensation for any loss suffered. This was ratified in India through the .IN Domain Name Dispute Resolution Policy (INDRP) which is available to all domains registered with .in or .bharat.

Procedure under ICANN/UDRP

1. File a Complaint: Approach a provider organization like the World Intellectual Property Organization (WIPO), Asian Domain Name Dispute Resolution Centre (ADNDRC), or the Arab Center for Dispute Resolution (ACDR). Complaints must demonstrate certain key elements.
2. Submissions: The respondent is notified of the complaint and UDRP proceedings initiated. Respondents are given 20 days to submit a response to the complaint defending their actions.
3. Ruling: A panel with 1 or 3 members is appointed to review the submissions and evaluate the complaint. The panel renders a decision within 14 days of the response submission deadline.
4. Implementation and Judicial Recourse: 10 day period is given to the losing party to seek judicial relief in the competent courts. The Registrar of ICANN will implement the panel’s decision on expiry of this period. Either party can seek to challenge the decision in a court of competent relief. The panel’s decision remains binding until overturned by a court order. 

Key Elements to a Successful Complaint of Cybersquatting

• Identical or Confusingly Similar Domain Name: The disputed domain name should be identical or confusingly similar to an established trademark or service mark to which the complainant has legal right of ownership;
• Lack of Legitimate Interest: The registrant of the domain name (i.e., the alleged squatter) should have no legitimate interest or right in the domain name; and 
• Bad Faith: The disputed domain name should be registered and being used in bad faith. 

Factors influencing the UNDRP Panel Review

• Disrupt Competitors: Intent of registrant was to disrupt the business of a competitor; 
• Sale/Transfer to Owner: Intent is to resell, transfer, rent or otherwise give right of use to the owner of the trademark; 
• Disrupt Reflection of Trademark: Intent is to disrupt the owner from reflecting their trademark in a corresponding domain name and whether a pattern of such conduct is observed by the domain name owner;
• Commercial Gain through Confusion: Intent is to attract internet users to the registrant’s website for commercial gain by capitalizing on the likelihood of confusion with the complainant’s trademark.

Remedies under Indian Law

As held by the Honorable Supreme Court of India, disputes on domain names are legally protected to the extent possible under the laws relating to passing off even if the operation of the Indian Trade Marks Act, 1999 is not extraterritorial (i.e., capable of application abroad). Thus, complainants of cybersquatting can pursue the standard reliefs available under the Trade Mark Act, 1999:

• Remedy for Infringement: Available only when the trademark is registered; 
• Remedy for Passing Off: Available even without registration of the trademark.

Notable Examples of Cybersquatting in India

With the evolution of the digital age, India has seen some notable judicial precedents that have shaped how cybersquatting is legally addressed:

The JioHotstar Case

The registration of the domain name “JioHotstar” by the unnamed developer amounts to a textbook case of cybersquatting, for which relief can be pursued by RIL and/or Star Television Productions Limited (respectively, the registered owners of “Jio” and “Hotstar” trademarks), either under Trade Marks Act, 1999 or through ICANN/UDRP, relying on the following factors: 

• Confusing Similarity: The domain name is confusingly similar to the registered trademarks owned by RIL and Star respectively. Though the formal transfer of trademark has not happened, RIL can still rely solely on the Jio trademark to claim similarity of the mark⁹. A joint application can also be filed by RIL and Star, as this domain registration would amount to infringement of two separate registered marks; 
• Lack of Legitimate Interest: The message posted by the developer on the domain webpage makes it clear that there is no legitimate interest in the domain name to be held by the developer. There is no common reference in public to him by the brand name “JioHotstar” and his clear intent to sell the name for profit evidences a lack of legitimate interest; 
• Bad Faith Registration: The transparent intent of the developer to sell the name to profit from the merger and fund his education (i.e., personal gain) evidences a bad faith registration. This is further bolstered by his statement recalling the rebranding of music platform Saavn to ‘JioSaavn’ post the acquisition by RIL’s Jio, which motivated the application for and registration of the domain name¹⁰. Bad faith is also recognised within the UDRP itself, when the purpose of the domain name registration is to gain valuable consideration in excess of documented out of pocket costs related directly to the domain name¹¹.

Conclusion

Given the intent behind such domain registrations arousing JioHotstar controversy, cybersquatting typically targets established, reputed brands. In fact, the domain name “JioSaavn.com” was itself the subject of a domain name  dispute for cybersquatting in 2018¹². Though the merger had swiftly navigated regulatory challenges including conditional approval from the Competition Commission of India and clearances from the National Company Law Tribunal and the Ministry of Information and Broadcasting, the domain registration in an unrelated third party’s name serves to showcase the impact that issues such as cybersquatting can have on large scale mergers and acquisitions. The “noble” intent of the developer to use this registration to fund his education aside, the intent is still to leverage the registration for personal gain, thereby satisfying the conditions under law to establish bad faith registration and consequently, cybersquatting that amounts to an infringement of IPR. Interestingly, the domain registration has seemingly been transferred and the webpage now reflects the social service mission of two children in the UAE¹³. Given the now cross border nature of the dispute and the fact that Trade Marks Act, 1999 cannot be applied extraterritorially, the recourse available to RIL and/or Star to gain ownership of this domain would now be through the UDRP and prescribed dispute resolution mechanisms thereunder. However, in light of latest reports that the UAE siblings have offered to legally transfer the registration to RIL for free, it remains to be seen how this dispute will unfold.

NOTE: 

Recently, the domain “Jiostar.com” went live with a teaser message, “coming soon,” sparking speculation that it could be the official platform for Reliance Industries’ streaming services following the Reliance-Disney merger. While there is no official confirmation, many believe this new domain may replace or supplement “JioHotstar.com” in the wake of the cybersquatting issue.

FAQs on the JioHotstar Cybersquatting Case

1. What is cybersquatting?
Cybersquatting, also known as domain squatting, is the act of registering, selling, or using a domain name with the intent of profiting from the trademark of another person or business. Typically, cybersquatters aim to sell the domain to the rightful trademark owner or use it to redirect traffic for personal gain.

2. What does cybersquatting mean in the context of domain names?
In domain name cybersquatting, individuals register domains that closely resemble well-known brands, trademarks, or business names. This practice is intended to leverage the established brand’s reputation, either for financial gain or to redirect web traffic.

3. Are there examples of cybersquatting in India?
Yes, cybersquatting cases in India include notable legal battles such as Yahoo! v. Akash Arora, where the defendant registered the domain “YahooIndia.com,” and Bisleri v. Mr. Pramod Borse, involving the domain “Bisleri.com.” The recent JioHotstar domain row is another example, highlighting cybersquatting practices and legal implications.

4. What happened in the JioHotstar domain case?
An anonymous app developer registered “JioHotstar.com” shortly after news of the Reliance-Disney merger. The developer initially intended to sell the domain to Reliance Industries to fund his education, which led to claims of cybersquatting and trademark infringement.

5. Why is the JioHotstar domain considered a case of cybersquatting?
The JioHotstar domain is deemed cybersquatting because it combines two well-known trademarks, “Jio” and “Hotstar,” for potential personal gain, evidenced by the developer’s offer to sell the domain to Reliance. This action reflects typical cybersquatting behavior under both Indian law and international dispute resolution standards.

6. How does Indian law address cybersquatting?
Although India lacks specific cybersquatting laws, such cases can be pursued under the Trade Marks Act, 1999. The Act offers remedies for trademark infringement and passing off, both of which can apply in cybersquatting disputes.

7. What legal recourse is available for cybersquatting cases in India?
Victims of cybersquatting can file a complaint under the Uniform Domain Name Dispute Resolution Policy (UDRP) through ICANN or under the .IN Domain Name Dispute Resolution Policy (INDRP) if the domain is registered with .in. In addition, they may pursue action under the Trade Marks Act, 1999, for trademark infringement or passing off.

8. Why is the JioHotstar domain case significant?
The JioHotstar domain row is a high-profile example of cybersquatting involving established brands. This case underscores the importance of protecting trademarks in India, particularly in the context of large mergers and acquisitions, as well as the challenges of cross-border cybersquatting disputes.

9. What are the steps to resolve a cybersquatting dispute under the UDRP?
To resolve a cybersquatting case, a complainant files a complaint with an organization like WIPO. The process includes notifying the domain owner, reviewing submissions, and having a panel render a decision. Remedies include transferring or canceling the domain but not monetary compensation.

10. How did the JioHotstar domain row end?
Initially, the domain was offered for sale by the developer, but later it was transferred to two UAE-based siblings. Given the now cross border nature of the dispute and the fact that Trade Marks Act, 1999 cannot be applied extraterritorially, the recourse available to RIL and/or Star to gain ownership of this domain would now be through the UDRP and prescribed dispute resolution mechanisms thereunder. However, in light of latest reports that the UAE siblings have offered to legally transfer the registration to RIL for free, it remains to be seen how this dispute will unfold.

References:

1. [1] https://economictimes.indiatimes.com/industry/media/entertainment/media/reliance-disney-media-giant-may-be-born-in-november/articleshow/114477261.cms?from=mdr
   ↩︎
2. [2] https://www.business-standard.com/companies/news/delhi-techie-snags-jiohotstar-domain-asks-reliance-to-fund-cambridge-dream-124102400446_1.html
   ↩︎
3. [3] Under Section 29 of the Trade Marks Act, 1999.
   ↩︎
4. [4] 1999 ALR 620
   ↩︎
5. [5] 2001 SCC OnLine Del 444
   ↩︎
6. [6] WIPO Case No. D2005 0271
   ↩︎
7. [7] C.S. No. 335 of 2020
   ↩︎
8. [8] IA (Lodging) No. 38837 of 2022 in IA (Lodging) no. 26556 of 2022 in Commercial IP Suit (Lodging) No. 26549 of 2022
   ↩︎
9. [9] This argument has been successfully put forth by Decathlon SAS in previous UDRP case, where the domain name “decathlon-nike.com” was ordered to be transferred to Decathlon trademark owner despite a lack of consent from Nike, as there was no provision in the policy or rules requiring a third party consent [Decathlon SAS v Nadia Michalski Case No. D2014-1996, available here: https://www.wipo.int/amc/en/domains/search/text.jsp?case=D2014-1996].
   ↩︎
10. [10] https://economictimes.indiatimes.com/news/new-updates/cant-stand-against-reliance-app-maker-who-demanded-rs-1-crore-for-jiohotstar-com-domain-name-seeks-legal-help/articleshow/114543044.cms?from=mdr
    ↩︎
11.  [11] Paragraph 4(b)(i) of the UDRP (accessible here: https://www.icann.org/resources/pages/policy-2024-02-21-en)
    ↩︎
12.  [12] WIPO Case No. D2018-1481 
    ↩︎
13. [13] https://www.hindustantimes.com/entertainment/web-series/techies-message-asking-reliance-1-crore-for-jiohotstar-domain-mysteriously-vanishes-uae-siblings-now-own-the-website-101729919899425.html
    ↩︎

Business Overview

A health-tech company operating a digital clinic under the brand name ‘Proactive For Her’, providing a digital platform to offer accessible, personalized, and confidential healthcare solutions for women.

Project Undertaken

• Review of accounting records and tax filings on a monthly basis
• Compliance assistance for fundraising

How We Helped?

Review of Accounts and Tax Filing:

• Treelife conducted a thorough review of the monthly accounting books to ensure accuracy and completeness, helping the company maintain precise financial records.
• We ensured GST payments and returns were filed timely and accurately, reducing the risk of non-compliance and potential penalties for the company.
• Our team streamlined and regularized tax returns, annual filings, and other statutory compliances according to applicable due dates, ensuring the company met all regulatory requirements promptly.

Fundraising (Compliance Advisor):

• Treelife provided compliance advisory services for the company’s fundraising efforts, ensuring that all financial records and compliance requirements were up-to-date.
• We assisted with the timely updating of accounting entries and filings, completing requisite regulatory compliances efficiently.
• Our involvement ensured a reduction in the turnaround time (TAT) for payments and MIS processing, facilitating smoother financial operations and improved investor confidence.

By leveraging our expertise in financial and compliance advisory, Treelife enabled ‘Proactive For Her’ to maintain accurate financial records, meet all compliance requirements, and support its fundraising activities. Our comprehensive support helped the company focus on its core mission of providing accessible and personalized healthcare solutions while ensuring robust financial and compliance management.

Treelife played a pivotal role in helping an Indian private limited company transition to a US-headquartered structure. By setting up an LLP in India and guiding the investment process under the ODI route, we ensured compliance with FEMA and income-tax regulations. Our strategic approach enabled the company to raise funds from foreign investors and expand globally with minimal tax implications.

Business Overview

Indian individual promoters had established a private limited company in India and sought to expand their business globally. They aimed to raise funds from foreign investors and transition to a US-headquartered structure.

Project Undertaken

• Setting up an LLP in India
• Investment in a newly incorporated US entity under the ODI route
• Acquisition of Indian entity shares by the US entity from the promoters

Structure Mechanics:

• Indian individual promoters set up an LLP in India.
• The LLP makes investments in a newly incorporated US entity under the ODI route.
• The US entity acquires the shares of the Indian entity from the promoters, adhering to FEMA and income-tax regulations.
• A benchmarking study is undertaken for all ongoing transactions between the US entity and the Indian entity.

Parameters:

• The gift structure used under the erstwhile ODI rules was no longer possible, as Indian resident founders can now receive gifts of shares from their relatives.
• Recently revamped ODI rules by RBI do not permit a foreign company to set up an Indian subsidiary where the Indian promoters control such a foreign company.
• Any transaction between the offshore company and its Indian subsidiary needs to be benchmarked from a transfer pricing perspective.
• Minimal income-tax implications and adherence to FEMA pricing norms.

Facts:

• Indian promoters aimed to expand their business globally and raise funds from foreign investors.
• They sought to move to a US-headquartered structure to facilitate this expansion.

By strategically structuring the investment and ensuring compliance with the latest ODI rules and FEMA pricing norms, Treelife enabled the company to achieve its global expansion goals. Our financial advisory services provided the necessary support to navigate complex regulatory landscapes and optimize tax implications, ensuring a smooth transition for the company’s international growth.

In just a few weeks, Treelife transformed the financial infrastructure of an innovative SaaS company. We set up efficient accounting systems, ensured seamless bookkeeping, and provided critical fundraising support. Discover how our strategic approach reduced their operational burden and enhanced their financial management.

Business Overview

An innovative insurance-tech company using technology and innovation to transform the traditional insurance model. The company offers a cloud-based platform that connects distributors to the insurance ecosystem.

Project Undertaken

• Setting up systems for HR, accounting, and payroll
• Ongoing bookkeeping, tax compliance, and payments
• Fundraising and due diligence support

How We Helped?

Setting Up:

• Treelife took ownership and set up the entire accounting system for the company from inception using Zoho Books and Zoho Payroll.
• Assisted in migrating from Zoho Payroll to Keka, ensuring a smooth transition.
• Effective implementation of software and processes reduced the time and effort required by the founders.

Bookkeeping and Accounting:

• Timely updating of accounting entries and filing, ensuring compliance with regulatory requirements.
• Completion of requisite regulatory compliances, reducing TAT for payments and MIS processing.

Fundraising & Vendor Due Diligence:

• Represented the company during the due diligence process conducted by investors, assisting them in understanding the business model and transaction workflow.
• Submitted data in the requisite formats and seamlessly resolved queries from the diligence team regarding finance and tax-related areas promptly.

By leveraging our expertise in financial management, Treelife significantly improved the company’s operational efficiency and supported its growth journey. Our comprehensive services ensured that the company was well-prepared for investor scrutiny and ongoing financial challenges.

IFSCA listing regulations requires debt securities to adhere to international standards/principles to be labelled as “𝐠𝐫𝐞𝐞𝐧”, “𝐬𝐨𝐜𝐢𝐚𝐥”, “𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲” 𝐚𝐧𝐝 “𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲-𝐥𝐢𝐧𝐤𝐞𝐝” 𝐛𝐨𝐧𝐝.

As of September 30, 2024, the IFSC exchanges boasted a listing of approximately USD 14 billion in ESG-labelled debt securities, a significant chunk of the total USD 64 billion debt listings in a short period. This rapid growth highlights the growing appetite for sustainable investments among global investors.

Certain investors, particularly institutional ones like pension funds and socially responsible investment (SRI) funds, explicitly state in their investment mandates that they can only invest in ESG-labeled securities. To encourage and promote ESG funds, the IFSCA has waived fund filing fees for the first 10 ESG funds registered at GIFT-IFSC, to incentivise fund managers to launch ESG-focused funds.

However, this rapid growth also comes with a significant risk of “greenwashing” where companies or funds exaggerate or falsely claim their environmental and sustainability efforts.

𝐖𝐡𝐚𝐭 𝐢𝐬 “𝐆𝐫𝐞𝐞𝐧𝐰𝐚𝐬𝐡𝐢𝐧𝐠”?

However, with this rapid growth comes a significant risk: greenwashing. Greenwashing occurs when companies or funds exaggerate or fabricate their environmental and sustainability efforts to project a greener image and attract investors. It’s essentially a deceptive marketing tactic that undermines the true purpose of sustainable investing.

IFSCA’s Consultation Paper: Mitigating Greenwashing

Recognizing the threat of greenwashing, the IFSCA has released a consultation paper seeking public comment on a draft circular titled “Principles to Mitigate the Risk of Greenwashing in ESG labelled debt securities in the IFSC.” This circular outlines principles that companies and funds issuing ESG-labelled debt securities on the IFSC platform must adhere to.

Refer link for consultation paper: https://ifsca.gov.in/ReportPublication?MId=8kS3KLrLjxk= 

Karnataka, a state in India known for its vibrant tech industry, has recently unveiled its Global Capability Centres (GCC) Policy 2024-2029. This ambitious policy aims to solidify Karnataka’s position as a leading hub for GCCs in India and propel the state’s tech ecosystem to even greater heights.

What are Global Capability Centres (GCCs)?

For those unfamiliar with the term, GCCs are specialized facilities established by companies to handle various strategic functions. These functions can encompass a wide range of areas, including:

• Information Technology (IT) services
• Customer support
• Research and development (R&D)
• Analytics

By setting up GCCs, companies can streamline operations, reduce costs, and tap into a pool of talented professionals. This allows them to achieve their global objectives more efficiently.

Why is Karnataka a Major Hub for GCCs?

India is a powerhouse for GCCs, boasting over 1,300 such centers. Karnataka takes the lead in this domain, housing nearly 30% of India’s GCCs and employing a staggering 35% of the workforce in this sector. Several factors contribute to Karnataka’s attractiveness for GCCs:

• Vast Talent Pool: Karnataka is home to some of India’s premier educational institutions, churning out a steady stream of highly skilled graduates in engineering, technology, and other relevant fields.
• Cost-Effectiveness:India offers a significant cost advantage for setting up and operating GCCs, compared to other global locations.

Key Highlights of Karnataka’s GCC Policy 2024-2029

The recently unveiled GCC Policy outlines a series of ambitious goals and initiatives aimed at propelling Karnataka to the forefront of the global GCC landscape. Here are some of the key highlights:

• Establishment of 500 New GCCs: The policy sets a target of establishing 500 new GCCs in Karnataka by 2029. This aggressive target signifies the government’s commitment to significantly expanding the state’s GCC footprint.
• Generating $50 Billion in Economic Output: The policy envisions generating a staggering $50 billion in economic output through GCCs by 2029. This substantial economic contribution will be a boon for Karnataka’s overall development.
• Creation of 3.5 Lakh Jobs: The policy aims to create 3.5 lakh (350,000) new jobs across Karnataka through the establishment and operation of new GCCs. This significant job creation will provide immense opportunities for the state’s workforce.
• Centre of Excellence for AI in Bengaluru: Recognizing the growing importance of Artificial Intelligence (AI), the policy proposes establishing a Centre of Excellence for AI in Bengaluru. This center will focus on driving research, development, and innovation in the field of AI, fostering a robust AI ecosystem in Karnataka.
• AI Skilling Council: The policy acknowledges the need to equip the workforce with the necessary skills to thrive in the AI-driven future. To address this, the policy proposes the creation of an AI Skilling Council. This council will be responsible for developing and delivering AI-related training programs, ensuring Karnataka’s workforce is well-prepared for the jobs of tomorrow.
• INR 100 Crore Innovation Fund: The policy establishes an INR 100 crore (approximately $12.3 million) Innovation Fund. This fund will support joint research initiatives between academia and GCCs, fostering a collaborative environment that fuels innovation and technological advancements.

The GCC Policy has a clear and ambitious goal: for Karnataka to capture 50% of India’s GCC market share by 2029. Read more about the policy here.

In recent years, a significant number of Indian startups have chosen to incorporate their businesses outside India, primarily in locations like Delaware, Singapore  and other global locations. This trend, known as “flipping,” offered advantages like easier access to foreign capital and tax benefits. However, the tide is starting to turn. We’re witnessing a growing phenomenon of “reverse flipping,” where these startups are now shifting their bases back to India.

This shift back home is driven by several factors, including a booming Indian market, attractive stock market valuations, and a desire to be closer to their target audience – Indian customers. To further incentivize this homecoming, the Ministry of Corporate Affairs (MCA) has recently introduced a significant policy change.

MCA Streamlines Cross-border Mergers for Reverse Flipping

The MCA has amended the Companies (Compromises, Arrangements, and Amalgamations) Rules, 2016, to streamline the process of cross-border mergers. This move makes it easier for foreign holding companies to merge with their wholly-owned Indian subsidiaries, facilitating a smooth transition for startups seeking to return to their roots.

Key Takeaways of the Amended Rules

Here’s a breakdown of the key benefits for startups considering a reverse flip through this streamlined process:

• Fast-Track Mergers: The Indian subsidiary can file an application under Section 233 read with Rule 25 of the Act. This rule governs “fast-track mergers,” which receive deemed approval if the Central Government doesn’t provide a response within 60 days.
• RBI Approval: Both the foreign holding company and the Indian subsidiary need prior approval from the Reserve Bank of India (RBI) for the merger.
• Compliance with Section 233: The Indian subsidiary, acting as the transferee company, must comply with Section 233 of the Companies Act, which outlines the requirements for fast-track mergers.
• No NCLT Clearance Required: This streamlined process eliminates the need for clearance from the National Company Law Tribunal (NCLT), further reducing time and complexity.

The Road Ahead

The MCA’s move represents a significant positive step for Indian startups looking to return home. This policy change, coupled with a thriving domestic market, is likely to accelerate the trend of reverse flipping. This not only benefits returning companies but also strengthens the overall Indian startup ecosystem, fostering innovation and entrepreneurial growth within the country.

Treelife Fintech Report 2024-25

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India’s Fintech Report 2024-25 by Treelife provides a data-driven analysis of the fintech industry in India, highlighting key trends, growth drivers, and future opportunities. As the fintech market size in India continues to expand rapidly, this report offers a comprehensive view of how fintech companies and fintech startups in India are transforming the financial landscape.

A major highlight of the India Fintech Report 2024-25 is the transformative role of India Stack in shaping the fintech ecosystem. India Stack, a government-backed digital infrastructure, provides a suite of open APIs that enable seamless integration between private companies and government services, paving the way for digital financial inclusion on an unprecedented scale.

India Stack’s Four Layers

1. Identity (Aadhaar): A unique digital identity for over 1.3 billion Indians, facilitating secure, real-time identity verification. Aadhaar has been instrumental in enabling digital onboarding, reducing costs, and expanding access to financial services.
2. Payments (UPI, AEPS): The Unified Payments Interface (UPI) and Aadhaar-enabled Payment System (AEPS) provide a secure, real-time digital payments system, transforming digital payments in India and making it accessible to both urban and rural populations.
3. Paperless (DigiLocker): Digital management of documents through DigiLocker allows users to store, manage, and share official documents securely, supporting financial transactions and government interactions without physical paperwork.
4. Data (DEPA): The Data Empowerment and Protection Architecture (DEPA) framework empowers individuals to securely share personal and financial data with their consent, enabling innovative fintech services and fostering data privacy.

India Stack has been a game-changer for fintech companies in India, democratizing access to banking, insurance, lending, and wealth management services. It has supported the rapid expansion of fintech startups in India by reducing barriers to entry, lowering costs, and enabling interoperability across financial services.

Impact of India Stack on Fintech in India

The implementation of India Stack has not only increased the fintech market size in India but also boosted financial inclusion, particularly in rural areas where traditional banking access is limited. By facilitating over 63 billion Aadhaar authentications and enabling UPI to process billions of transactions annually, India Stack has become the backbone of India’s digital economy.

Key Insights from the Report

1. Market Growth: The fintech sector in India is projected to reach a valuation of $420 billion by 2029, with a compound annual growth rate (CAGR) of 31%. This growth is driven by digital innovations, increased internet penetration, and supportive regulatory frameworks. India has emerged as one of the top three fintech ecosystems globally, with over 3,000 fintech startups contributing to this growth.
2. Digital Payments in India: Digital payment systems in India have witnessed exponential growth, largely powered by the Unified Payments Interface (UPI) and RuPay cards. In FY 2023-24 alone, UPI processed over 131 billion transactions, representing more than 80% of retail digital payments. The UPI market size is expected to increase significantly as UPI expands globally, positioning India as a leader in digital payments.
3. Opportunities at GIFT IFSC: GIFT IFSC (Gujarat International Finance Tec-City) has become a key strategic location for fintech growth, offering a gateway to global markets. The report highlights the benefits for fintech firms establishing operations in IFSC GIFT City, including tax incentives and access to international markets. With over 55 fintech entities already operational in GIFT IFSC, it is fast becoming a preferred destination for new fintech startups in India.
4. Investment and Funding Trends: The fintech market in India has attracted significant investment, with total funding peaking at $9.6 billion in 2021. Although funding levels normalized to $6 billion in 2022 and $2.7 billion in 2023, the report indicates that investor interest remains high, particularly in areas like digital lending, payments, and insurance technology.
5. Fintech Job Market: The expansion of the fintech ecosystem has also spurred job creation. Fintech jobs in India are on the rise, with demand for talent in areas such as digital payments, data analytics, AI, and cybersecurity. This surge in job opportunities underscores the sector’s potential for sustained growth and innovation.
6. Public Market Performance and Leading Companies: The Report 2024-25 also examines the public market performance of key fintech companies in India and compares it with traditional financial institutions. The report discusses how fintech companies, such as Paytm and Angel One, have navigated the challenges of going public, highlighting trends in valuation and market perception. While new-age fintech firms are driving innovation and growth, they face scrutiny around profitability and sustainability, which can impact stock performance in the public market.
7. Top Companies in India’s Fintech Ecosystem: The report sheds light on leading players in the fintech sector in India, including Razorpay, PhonePe, Zerodha, and Cred, which are shaping the landscape across segments like digital payments, lending, and wealth management. These companies exemplify the rapid growth and transformative impact of fintech on India’s economy.
8. Investment Landscape and Major Investors: The investment landscape in India’s fintech market has attracted some of the biggest names in venture capital and private equity. Key investors, including Blume Ventures, Accel, Matrix Partners India, and Kalaari Capital, have played a vital role in funding the growth of fintech in India. In 2021, fintech funding peaked at $9.6 billion, and though it moderated to $6 billion in 2022, investor interest remains high, particularly in sectors like digital payments and LendingTech.

Types of Fintech Covered in the Report

The Treelife India Fintech Report 2024-25 covers a wide array of fintech segments that are driving innovation across the financial landscape in India:

• Digital Payments (PayTech): Exploring the growth of UPI and mobile wallets, which now dominate the digital payments system in India.
• LendingTech: Covering advancements in digital lending, Buy Now Pay Later (BNPL) models, and platforms providing seamless credit access to individuals and businesses.
• InsurTech: Examining technology-driven innovations in the insurance sector, including digital policy management and AI-powered risk assessments.
• WealthTech: Highlighting platforms that democratize investment, from robo-advisors to digital wealth management solutions.
• Fintech Infrastructure/SaaS: Analyzing backend technologies and SaaS solutions that support financial services, including Banking-as-a-Service (BaaS) and compliance tools.

Each of these segments plays a pivotal role in the fintech ecosystem, transforming how financial services are delivered and accessed in India.

Why Download the India Fintech Report?

The India Fintech Report 2024-25 by Treelife is a valuable resource for industry professionals, investors, and policymakers seeking in-depth insights into the growth of fintech in India. Covering all major segments of the fintech market in India, from digital payments to wealth management, the report provides essential data and analysis on the drivers, challenges, and future directions of this rapidly evolving sector.

Get the Treelife India Fintech Report 2024-25 to stay informed about:

• The transformative impact of UPI and RuPay cards on the digital payments landscape
• The role of GIFT IFSC in driving fintech globalization
• Key players, investment trends, and employment opportunities within the fintech industry in India

Download your copy today to explore the latest trends and stay ahead in the evolving fintech sector in India.

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The 2024 U.S. presidential election was a highly anticipated and fiercely contested affair, with the outcome having far-reaching implications globally. As the nation grappled with a range of pressing issues, from the economy and healthcare to climate change and social justice, the political landscape was marked by a clash of ideologies and the continued influence of money and celebrity in the electoral process. Here are 10 fascinating facts about the 2024 US elections:

1. Historic Comeback: Former President Donald Trump became the second U.S. president, after Grover Cleveland, to serve non-consecutive terms since 1897. His comeback bid was fueled by a loyal base and a message of “America First” policies.
2. Divided Electorate: The 2024 U.S. election polls painted a picture of a deeply divided electorate, with the race for the White House too close to call. The Republican ticket of Trump and Ohio Senator JD Vance campaigned on a platform of limited government and a hardline stance on immigration, while the Democratic duo of Vice President Kamala Harris and Minnesota Governor Tim Walz put forward a progressive agenda.
3. Record Voter Turnout: The 2024 election saw unprecedented voter participation, with over 160 million Americans casting their ballots. This high level of engagement underscored the profound political polarization and the high stakes involved in the outcome.
4. Battleground States: As in previous elections, the 2024 U.S. election results hinged on the performance of the candidates in the key battleground states, such as Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin. On US election day, these states, with a combined 88 electoral votes, proved crucial in determining the overall outcome.
5. Popular Vote vs. Electoral College: The 2024 election once again highlighted the discrepancy between the popular vote and the Electoral College system. While Harris and Walz secured a narrow majority in the Electoral College, Trump received the most votes nationally, with 74 million votes (50.8%) compared to Harris’ 67 million votes (47.5%). Trump becomes the first Republican candidate to win the popular vote in 20 years.
6. Youth Voter Engagement: One of the notable trends in the 2024 election was the increased voter turnout among individuals aged 18-29, which saw an 8% increase compared to the 2020 election. This younger generation of voters played a significant role in shaping the outcome.
7. Celebrity Endorsements: High-profile figures, including musicians and actors, actively endorsed various candidates, underscoring the increasingly blurred lines between popular culture and the political sphere.
8. Campaign Expenditures: The combined spending by both campaigns exceeded $5 billion, making the 2024 election one of the most expensive in U.S. history. This further highlighted the outsized influence of wealthy donors and special interests in the electoral process.
9. Early Voting: Over 100 million votes were cast before Election Day through early and mail-in voting, accounting for more than 60% of the total votes. This trend, driven in part by the ongoing COVID-19 pandemic, reflected the evolving nature of the electoral process.
10. Midnight Voting Tradition: Dixville Notch, a small New Hampshire town, continued its tradition of being the first to vote at midnight on US Election Day, showcasing the enduring commitment to the democratic process.

These 10 fascinating facts from the 2024 U.S. elections provide a glimpse into the complex and dynamic landscape of American politics. As the nation moves forward, the key challenge will be to find ways to bridge the deep partisan divides and address the pressing issues facing the country.

The success or failure of the incoming administration in navigating these challenges will have far-reaching implications for the future of American democracy. The 2024 election has once again demonstrated the resilience and adaptability of the U.S. electoral system, as well as the enduring passions and loyalties that shape the political landscape.

As the nation looks ahead, the 2024 U.S. elections will undoubtedly be remembered as a pivotal moment in the country’s history, one that will continue to shape the course of the nation for years to come. The path forward will require a renewed commitment to bipartisanship, civic engagement and preservation of democratic norms.

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As India marches towards its goal of becoming a $5 trillion economy, innovation and global connectivity in finance have become critical components of this journey. At the heart of this transformation lies the Gujarat International Finance Tec-City (GIFT City)—India’s first operational International Financial Services Centre (IFSC). Launched in 2007, GIFT City is not just a hub for international finance; it represents India’s vision of becoming a leader in global finance, technology, and innovation. GIFT IFSC provides a comprehensive platform for financial activities, including banking, insurance, capital markets, FinTech, and Fund Management Entities (FMEs). Its attractive tax incentives and solid regulatory framework make it a gateway for both inbound and outbound global investments, drawing businesses and investors from around the world.

At Treelife, we are excited to present “Navigating GIFT City: A Comprehensive Guide to India’s First International Financial Services Centre (IFSC).” This guide offers insights into the current legal, tax, and regulatory framework within GIFT IFSC, highlighting the strategic advantages of establishing a presence here, with a focus on the FinTech and Fund Management sectors. Whether you’re an investor, financial institution, or corporate entity exploring opportunities, we believe this guide will be a valuable resource in navigating the exciting prospects within GIFT IFSC.

What Does GIFT City Offer?

GIFT City is positioned as a global hub for financial services, offering a range of services across banking, insurance, capital markets, FinTech, and Fund Management Entities (FMEs). By combining smart infrastructure and a favorable regulatory environment, GIFT City is becoming the go-to destination for businesses seeking ease of doing business, innovation, and access to global markets.

Here are some key takeaways from the guide:

1. Introduction to GIFT City and IFSCA

GIFT City is the epitome of India’s ambition to establish a world-class international financial center. The International Financial Services Centres Authority (IFSCA) is the primary regulatory body that oversees operations within GIFT City, ensuring a seamless and globally competitive financial environment. IFSCA’s unified framework offers businesses ease of compliance and flexibility, making it an attractive hub for both domestic and international entities.

2. Regulatory Framework for Permissible Sectors with Treelife Insights

Our guide provides an in-depth look at the regulatory landscape governing GIFT City’s key sectors, including banking, insurance, capital markets, and many more, with a special focus on FinTech, and Fund Management Entities (FMEs). Alongside Treelife insights, we highlight how the city’s regulatory framework promotes innovation, offering businesses a fertile ground for growth. 

3. Setup Process

Our guide walks you through the step-by-step setup process for entities looking to establish operations. Whether you are a startup, a financial institution, or a multinational company, guide through GIFT City’s infrastructure and compliance processes.

4. Tax Regime

One of the standout advantages of operating within GIFT City is its favorable tax regime. Businesses enjoy significant tax exemptions, including a 100% tax holiday on profits for 10 out of 15 years, exemptions on GST, and capital gains tax benefits. These incentives are designed to attract global businesses and investors, positioning GIFT City as a competitive alternative to other international financial hubs. Our guide details these tax benefits and how businesses can leverage them for maximum advantage.

Why This Guide is Essential

Our guide provides a comprehensive overview of the opportunities within GIFT City, focusing on FinTech and Fund Management sectors. It also includes a detailed analysis of the tax incentives, setup processes, and regulatory requirements that make GIFT City an attractive destination for global financial institutions.

Whether you’re an investor looking to tap into India’s expanding economy, or a business exploring new markets, this guide will serve as your roadmap to success within GIFT City.

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Discover how GIFT City is shaping the future of finance and how you can be part of this exciting journey. Download our guide to learn more about the opportunities, regulatory framework for the permissible sectors, incentives, and innovations that await in India’s first IFSC.

For any questions or further information, feel free to reach out to us at [email protected].