Shopper's Stop Limited - Securities and Exchange Board of India

SECTION VI: LEGAL AND REGULATORY INFORMATION
REGULATIONS AND POLICIES
The Government of India has over the years formulated various legislations, which apply to
companies engaged in the business of retail and establishing retails stores in India.
TRADE REGULATIONS
Under the provisions of various Central Government and State Government statutes / legislation
each of our department stores are required to obtain and regularly renew certain licenses/
registrations and / or permissions required statutorily to operate our department stores.
Our Company currently has 15 department stores situated in various cities in India and therefore
are regulated by legislation enacted by various State Governments.
Pursuant to the applicable laws in force in various states in India in which our department stores
are situated each of our department stores require material registrations / licenses/ consents /
permissions under the statutes listed out below. The statutes/ legislation list set out below is by way
of illustration and is not exhaustive.
• The Bombay Shops and Establishment Act 1948
• The Karnataka Shops and Commercial Establishments Act 1951
• The A.P. Shops and Establishment Act 1988
• The Andhra Pradesh Factories and Establishments (National, Festival and other Holidays)
Act 1974
• The Rajasthan Shops and Commercial Establishments Act 1958
• The Delhi Shops and Establishment Act 1954
• The Tamil Nadu Shops and Establishment Act 1947
• The Punjab Shops and Commercial Establishments Act 1958
• The West Bengal Shops and Establishment Act 1963
• The Mumbai Municipal Corporation Act 1888
• The Karnataka Municipal Corporation Act 1976
• The H.M.C Act 1955
• The New Delhi Municipal Council Act 1994
• The Chennai City Corporation Licensing of Hoardings and Levy and Collection of
Advertisement Tax Rules 2003
• The Tamil Nadu Fire Services Act 1985
• The Tamil Nadu Industrial Establishments (National and Festival Holidays) Act 1958
• The CMC Act 1980; and
• Various other statutes.
Our stores also require a license for live musical performances and for playing music in the stores
under the provisions of the Copyright Act 1957.
Our brand names are also required to be registered under the Trademarks Act 1999.
In addition to the above our Company is also required to comply with the provisions of the
Companies Act, the Foreign Exchange Management Act 1999, the Income Tax Act 1961, various
sales tax and customs and excise related legislations/statutes and the rules issued from time to
time there under to the extent applicable.
Our Company engages for each of our stores the services of various contractors who in turn
employ contract labour who provide inter alia gift wrapping, security, housekeeping, maintenance,
alteration, valet services at various department stores of our Company. Hence our Company is also
regulated by the provisions of the Labour (Regulation & Abolition) Act 1970 and other State
Government legislations to the to the extent applicable...
For details of the above-mentioned licenses/ registrations see the section titled 'Government
Approvals’ on page 307 of this draft Red Herring Prospectus .
FOREIGN INVESTMENT REGULATIONS
An industrial policy was formulated in 1991 ( the ‘Industrial Policy 1991’) in order to implement the
economic reforms initiated by the GoI. The GoI has since amended the Industrial Policy 1991 from
time to time in order to enable foreign direct investment in various sectors of the Indian industry in a
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