Archives for May 2017

MCA

MCA was under maintenance since last 4-5 days and few services were discontinued during the said period. It has now notified, that maintenance activity on the MCA portal has been completed. All the document related services are now available. View Public Document, Submit Application for PAN/TAN, Download form for Resubmission, and Documents in Track Payment Status / Track SRN Status / Enquire DIN status services can now be used. Stakeholders may also note that the required extensions wherever necessary have been granted. Stakeholders are requested to plan accordingly.

CBDT

Central Board of Direct Taxes has notified exemption from quoting Aadhaar /Enrolment ID to certain individuals. As per section 139AA of the Income-tax Act, 1961 as inserted by the Finance Act, 2017, it is mandatory to quote Aadhaar / Enrolment ID of Aadhaar application form for filing of return of income with effect from 1st July, 2017. Further, the requirement of quoting of Aadhaar/ Enrolment ID shall not apply to an individual who is residing in the state of Assam, Jammu and Kashmir and Meghalaya; an individual who is a non-resident as per the Income-tax Act, 1961; an individual of the age of eighty years or more at any time during the previous year and an individual who is not a citizen of India.

MCA:

MCA has notified the amended rules which may be called as the Companies (Acceptance of Deposits) (Amendment) Rules, 2017 which shall come into force on the date of their publications in the Official Gazette. In Rule 2 (1) (c)(xviii), Infrastructure Investment Trust has been inserted. Further, MCA has also extended the time period for applicability of deposit insurance from March 31, 2017 till March 31, 2018 or availability of deposit insurance product, whichever is earlier.

CBDT:

Central Board of Direct Taxes has made it easy for taxpayers to link their PAN with Aadhaar. Taxpayers can go to www.incometaxindiaefiling.gov.in and click on the link on the left pane-> Link Aadhaar, provide PAN, Aadhaar no. and enter name exactly as given in Aadhaar card and submit. This facility is also available after login on the e-filing website under Profile settings and choose Aadhaar linking. Taxpayers are requested to use the simplified process to complete the linking of Aadhaar with PAN immediately.

IEPF – NSDL:

NSDL has issued circular w.r.t File Formats for Transfer of Shares to the demat account of Investor Education and Protection Fund (IEPF) Authority. As per the applicable Rules, all companies are required to transfer such shares to IEPF, whether held in dematerialised form or physical form, to the demat account of IEPF Authority by way of corporate action. For this purpose, the IEPF Authority has engaged services of NSDL. All Issuers/R&T Agents are hereby informed that a DPM-SHR System version release has been scheduled to facilitate Issuers/R&T Agents to transfer shares to demat account of IEPF Authority in NSDL system. There are three different file formats to transfer shares to demat account of IEPF Authority held with NSDL. File Format A shall be used where shares are being transferred from Investors’ holding demat account in NSDL Depository System. File Format B shall be used where shares are being transferred from Investors’ holding demat account in CDSL Depository System. File Format C shall be used where shares being transferred are held in physical form. The detailed operational guidelines to transfer shares to the demat account of IEPF Authority using the aforementioned file formats will be issued shortly. NSDL will provide utility to Issuers/R&T Agents to facilitate preparation of the file in the prescribed format.

RBI

RBI has introduced additional settlements in the NEFT system at half-hour intervals to enhance the efficiency of the system and add to customer convenience. Earlier, National Electronic Funds Transfer (NEFT) system settles the fund transfer requests of the participating banks on net basis at hourly intervals from 8:00 am to 7:00 pm on all working days. But, the half hourly settlements would speed up the funds transfer process and provide faster credit to the destination accounts. All the banks are advised to ensure their readiness in terms of technical and operational aspects, as the additional batches will be introduced from July 10, 2017.

News from NIRC of ICSI

NIRC is organising a Workshop on "BOARD REPORT & CSR" on Saturday, the 13th May, 2017 (Registration starts at 9.00 AM) from 10.00 am onwards at Auditorium, ICSI-NIRC Building, 4, Prasad Nagar Institutional Area, New Delhi. Fee : Rs. 500/- for all participants including Corporate Members of NIRC; Online Payment/Registration Facility Available; Program Credit Hours: 04.

MCA

MCA has revised the versions of eForms – Form DIR-3C (Intimation of Director Identification Number by the company to the Registrar DIN services) and Form RD – 1 (Applications made to Regional Director) are being revised w.e.f. 11th May, 2017 (Today). All the stakeholders are advised to check the latest version of the form before filing.

SEBI

SEBI has issued Circular and has directed all the Mutual Fund Companies to provide Instant Access Facility and e-wallet facility for investment in Mutual Funds. IAF (Instant Access Facility) facilitates credit of redemption proceeds in the bank account of the investor on the same day of redemption request. IAF shall be allowed through online mechanism and only for resident individual investors subject to the fulfillment of the conditions mentioned in this circular. Further, with an objective to promote digitalization, MFs/AMCs can accept investment by an investor through e-wallets (Prepaid Payment Instruments (PPIs)) subject to the conditions mentioned in this circular. MFs/ AMCs shall ensure that total subscription through e-wallets for an investor is restricted to INR 50,000/-per MF per financial year.

News from NIRC of ICSI

NIRC is organising a Workshop on "BOARD REPORT & CSR" on Saturday, the 13th May, 2017 (Registration starts at 9.00 AM) from 10.00 am onwards at Auditorium, ICSI-NIRC Building, 4, Prasad Nagar Institutional Area, New Delhi. Fee : Rs. 500/- for all participants including Corporate Members of NIRC; Online Payment/Registration Facility Available; Program Credit Hours: 04.

IRDA

IRDA has notified the IRDAI (Outsourcing of Activities by Indian Insurers) Regulations, 2017 which shall come into force from the date of their publication in the Official Gazette and supersede the Guidelines issued in this regard. These Regulations are applicable to all Insurers registered with the Insurance Regulatory and Development Authority of India excluding those engaged in reinsurance business. If an Insurer is engaged in both direct Insurance as well as Reinsurance business, these regulations are applicable only in respect of direct Insurance business of such Insurers. Further, these Regulations are applicable to outsourcing arrangements entered into by an Insurer with an outsourcing service provider located in India or outside India. The Board of the Insurer shall be responsible for the functions under these Regulations and Board of Directors shall approve and put in place an Outsourcing Policy. The Board of Directors, may delegate, the mandate of approving the outsourcing policy, to the Outsourcing Committee constituted under Regulation 8 of these Regulations.

RBI

Ministry of Finance has issued an order, in exercise of the powers conferred by Section 35AA of the Banking Regulation Act, 1949 (10 of 1949). Through this order, the Central Government authorises the Reserve Bank of India to further issue such directions / instructions to any banking company or banking companies which may be considered necessary to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016. This will surely lead to recovery of loan through initiation of the Corporate Insolvency Resolution Process by the Banks against the Corporate Debtors.

IBBI:

The Insolvency and Bankruptcy Board of India has constituted a Technical Committee in accordance with Regulation 14 of the IBBI (Information Utilities) Regulations, 2017. Dr. R. B. Barman (Chairman, National Statistical Commission) has been appointed as Chairperson of the Committee. The Committee shall give its recommendation for laying down Technical Standards for the performance of core services and other services under Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 and including on the matters relating to the Application Programming Interface; standard terms of service; registration of users; unique identifier for each record and each user; submission of information etc..

Delhi High Court

The High Court of Delhi recently joined ranks with several Courts around the country that are experimenting with the usage of technology in judicial proceedings. Justice Shri Rajiv Sahai Endlaw has recently allowed the Plaintiff to serve the summons on one of the defendants through Whatsapp, text message and email. The Court is hearing a case filed by Tata Sons alleging that 35 unidentified email ids were being used since December, 2015 to circulate “unwarranted, defamatory and baseless allegations questioning the integrity and educational qualification” of one of its employees.

Real Estate (Regulation and Development) Act, 2016

In pursuance of powers conferred under clause (1) of article 239 of the Constitution, the President hereby directs that the powers and the functions of the appropriate Government under the Real Estate (Regulation and Development) Act, 2016, other than the powers under section 82 and section 84, shall, subject to the control of the President and until further orders, be exercised and discharged, in relation to the Union territories of Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu and Lakshadweep, by the Administrator or the Lieutenant Governor, by whatever name called, of the respective Union territory. Further, all powers & functions in relation to the National Capital Territory of Delhi shall, subject to the control of the President and until further orders, be exercised, by the Lieutenant Governor of Delhi.

Labour Laws – EPF

Ministry of Labour & Employment has amended Paragraph 68-J and Paragraph 68-N of Employees’Provident Fund Scheme, 1952 which shall come into force from the date of its publication in the official Gazette i.e 25th April 2017. According to it, a member would only be required to submit a self-declaration, which has already been included in the composite claim form, to avail advance under the EPF Scheme. A member would no longer be required to submit any medical certificate or any other certificate or document or any proforma whatsoever to avail advances under paragraph 68-J or under paragraph 68-N of EPF Scheme 1952. This is in continuance of initiative taken by EPFO as part of its next phase of its e-governance reforms with a view to make its services available to its stakeholder in an efficient and transparent manner.

SEBI

SEBI has issued Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015. Based on the representations received from the market participants and Reserve Bank of India (RBI) circular dated April 10, 2017, it is clarified that an IFSC Banking Unit (IBU) set up in IFSC shall be permitted to act as a Trading Member of an exchange or a Professional Clearing Member of a clearing corporation in IFSC, without forming a separate company, subject to the conditions mentioned in the aforesaid RBI circular.

CBDT – Income Tax

CBDT has entered into two Unilateral Advance Pricing Agreements (APAs) on 27th April, 2017, with Indian taxpayers. Both the agreements also have a “Rollback” provision in them. The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for the maximum of five future years. The 2 APAs signed yesterday pertain to Information Technology and Banking & Finance sectors of the economy. The international transactions covered in these agreements include Software Development services, IT enabled services and KPO services. With these, the total number of APAs entered into by the CBDT has reached 154. This includes 11 bilateral APAs and 143 unilateral APAs.

RBI

RBI has issued Guidelines on Merchant Acquisition for Card Transactions. Co-operative banks have been permitted to install both onsite/offsite ATM networks and can issue debit cards on their own or through sponsor banks based on certain eligibility conditions. Also, all co-operative banks have been allowed to enter into credit card business on their own or co-branding arrangement with other banks, subject to fulfillment of the guidelines prescribed in this regard. All co-operative banks can act as Point of Sale (POS) acquiring bank by deploying their own POS terminals with prior approval of RBI subject to fulfillment of conditions specified in this regard. All co-operative banks not intending to act as Point of Sale (POS) acquiring bank are permitted to deploy third party POS terminals without prior approval of Reserve Bank of India (RBI) subject to fulfillment of conditions specified in this regard. The co-operative banks desirous to deploy their own POS terminals and act as POS acquiring bank may approach the respective Regional Offices of RBI for necessary permission in this regard, with requisite information/documents.

SEBI

SEBI has issued a Consultation Paper on permitting Category III Alternative Investment Funds (AIFs) in the commodity derivatives market. SEBI had constituted an advisory committee known as Commodity Derivatives Advisory Committee (CDAC) to advise SEBI for effectively regulating and developing the commodity derivatives market. CDAC has advised that the commodity derivatives market should be opened up to institutional participation both domestic as well as international in a phased manner. Category III AIF’s are those AIF’s which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Comments from public are invited on the proposal contained in this paper and same should reach SEBI latest by May 20, 2017.

RBI

Reserve Bank of India, keeping in view the greater role envisaged for Asset Reconstruction Companies (ARCs) in resolving stressed assets as also the recent regulatory changes governing sale of stressed assets by banks to ARCs, it has been decided to fix the minimum Net Owned Fund (NOF) requirement for ARCs at ₹ 100 crore on an ongoing basis with effect from 28-04-2017. All the ARCs which are already registered with Reserve Bank of India, having less than Rupees One Hundred Crore, NOF shall achieve the prescribed minimum NOF level latest by March 31, 2019 and the same should be duly certified by the Statutory Auditors.

SEBI

SEBI with the objective to promote transparency in remuneration policies so that executive remuneration is aligned with the interest of investors, has directed that all MFs/AMCs shall make the following disclosures pertaining to a financial year on the MF/AMC website under a separate head – ‘Remuneration’ including Name, designation and remuneration of Chief Executive Officer (CEO), Chief Investment Officer (CIO) and Chief Operations Officer (COO) or their corresponding equivalent by whatever name called, Particulars of top 10 employees, particulars of employees drawing above the limits etc. The AMCs/MFs shall disclose this information within one month from the end of the respective financial year (effective from FY 2016-17).

News from NIRC of ICSI

Registration open for “15 days Crash Course exclusively for Female Members” on different topics for three weeks i.e. from Monday, the 1st May, 2017 to Wednesday, the 17th May, 2017 from 4.00 PM to 6.30 PM at NIRC Auditorium, ICSI-NIRC Building, Plot No. 4, Prasad Nagar Institutional Area, New Delhi -110005. Fee : Fees (inclusive of service tax): Rs.2,250/- for all sessions (including Corporate Members); Program Credit Hours: 02 per day.