Archives for July 2017

MCA:

MCA has issued amendments to National Company Law Tribunal (Amendment) Rules, 2017 to introduce the new Form NCLT – 9 for filing an appeal or application to NCLT for revival or restoration of the name of the company under Section 252(1) or 252(3). In the National Company Law Tribunal Rules, 2016, after Rule 87, Rule 87A shall be inserted which provides for Appeal or application under Section 252(1) and 252(3) before the Tribunal in Form No. NCLT. 9, with such modifications as may be necessary. Such application Shall be served to ROC and person as the tribunal may direct not less 14 days before the date fixed for hearing of the appeal or application. NCLT shall give appropriate orders for restoration of name, cost to be paid and to file all pending returns with ROC as it deems fit.

MCA

MCA has issued Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 which shall come into force from the date of publication in the Official Gazette i.e 5th July, 2017. Through this notification, exemptions have been granted to certain classes of companies from appointment of Independent Director on the Board of the Company. The following classes of unlisted public company shall not be covered under sub-rule (1) are a joint venture, a wholly owned subsidiary and a dormant company as defined under section 455 of the Act. Further, In the principal rules, in the Annexure, for Physical Form DIR-5 (Application for surrender of Director Identification Number) an e-form DIR-5 shall be substituted.

CBDT:

The CBDT has clarified the applicability of a new section 269ST which has been inserted in the Income-tax Act, 1961 (the Act) vide Finance Act, 2017 on Non Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) w.r.t repayment of loan. The said section inter-alia prohibits receipt of an amount of two lakh rupees or more by a person, in the circumstances specified therein, through modes other than by way of an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account. Penal provisions have also been introduced by way of a new section 271DA, which provides that if a person receives any amount in contravention to the provisions of section 269ST, it shall be liable to pay penalty of a sum equal to the amount of such receipt. It is clarified that in respect of receipt in the nature of repayment of loan by NBFCs or HFCs, the receipt of one installment of loan repayment in respect of a loan shall constitute a ‘single transaction’ as specified in clause (b) of section 269ST of the Act and all the installments paid for a loan shall not be aggregated for the purposes of determining applicability of the provisions section 269ST.

SEBI

SEBI has issued a Circular relating to Investments by FPIs in Government Securities. It has been decided to revise the limit for investment by FPIs in Government Securities, for the July –September 2017 quarter. Limit for FPIs in Central Government securities shall be enhanced to INR 187,700 Cr. Limit for Long Term FPIs (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities shall be revised to INR 54,300 Cr. The debt limit category of State Development Loans (SDL) shall henceforth have two sub-categories, namely, SDL-General and SDL-Long Term. SDL-General shall be available for investment on tap for all categories of FPIs while SDL-Long Term shall be available for investment on tap for only Long Term FPIs. The limit for investment by all FPIs in SDL-General shall be INR 28,500 Cr while that for SDL-Long Term shall be INR 4,600 Cr.

MCA – IBBI:

The Insolvency and Bankruptcy Board of India invites comments from public on the 9 regulations notified under the Insolvency and Bankruptcy Code, 2016. The IBBI has evolved a transparent and consultative process to make regulations. It has been endeavor of the IBBI to effectively engage stakeholders in the regulation making process. The process generally starts with a working group making draft regulations. The IBBI puts these draft regulations out in public domian seeking comments thereon. It holds a few round tables to discuss draft regulations with the stakeholders. The IBBI invites comments from public, including the stakeholders and the regulated, on the 9 regulations already notified under the Code. The comments received between 4 th July, 2017 and 31st December, 2017 shall be processed together and following the due process, regulations will be modified to the extent considered necessary. It will be the endeavor of the IBBI to notify modified regulations by 31st March, 2018 and bring them into force on 1st April, 2018.

Employees’ State Insurance

The Employees’ State Insurance (“ESI”) Corporation has notified the amended Rules which may be called Employees’ State Insurance (General) Amendment Regulation, 2017. The amendment has been made to Regulation 31 of the Employees’ State Insurance (General) Regulations, 1950, by changing the due date for payment of ESI contribution from 21st of every month to 15th of every month. These Regulations and changes shall come into force with effect from the contribution payable for the month of June, 2017 i.e. by 15th July, 2017.

MCA:

The MCA has issued Order which may be called as the Companies (Removal of Difficulties) Order, 2017 and shall come into force with effect from the 29th day of June, 2017. As difficulties have arisen regarding transfer of proceedings relating to those cases of voluntary winding-up of a company where notice of the resolution by advertisement has been given under sub-section (1) of section 485 of the 1956 Act but the company has not been dissolved before the 1st April, 2017, since the Code provides for a substantially different framework for persons who may be appointed as liquidators and for making of an application for dissolution by the liquidator. Under the 1956 Act, any person could be appointed as a liquidator, only an insolvency professional registered with the Insolvency and Bankruptcy Board of India can be appointed as a liquidator subject to certain conditions. It has now clarified through removal of difficulty that all applications and petitions relating to voluntary winding up of companies pending before a High Court as on 1st April, 2017 shall continue with and dealt with by the High Court in accordance with provisions of the 1956 Act.

SEBI

SEBI has issued a circular allowing E-PAN as one of the KYC document. As Central Board of Direct Taxes (CBDT) has recently introduced a facility of E-PAN (electronic PAN card), accordingly it is clarified that E-PAN issued by CBDT can also be produced by FPI for KYC compliance. The other instructions contained in original Circular shall remains unchanged. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

MCA:

The MCA has amended the Companies (Transfer of Pending Proceedings) Rules, 2016 and notified the Companies (Transfer of Pending Proceedings) Second Amendment Rules, 2017 which shall come into force on the date of their publication in the Official Gazette. All proceedings relating to voluntary winding up of a company where notice of the resolution by advertisement has been given under sub-section (1) of section 485 of the Act but the company has not been dissolved before the 1"tday of April, 2017 shall continue to be dealt with in accordance with provisions of the Companies Act, 1956. Further, all petitions relating to winding up of a company under clause (e) of section 433 of the Act on the ground of inability to pay its debts pending before a High Court, and, where the petition has not been served on the respondent under rule 26 of the Companies (Court) Rules, 1959 shall be transferred to the Bench of the Tribunal established under sub-section (4) of section 419 of the Companies Act, 2013 exercising territorial jurisdiction to be dealt with in accordance with Part II of the Code and the petitioner shall submit all information, other than information forming part of the records transferred in accordance with Rule 7, required for admission of the petition under Sections 7, 8 or 9 of the Code, as the case may be, including details of the proposed insolvency professional to the Tribunal upto 15thday of July, 2017 , failing which the petition shall stand abated.

MCA – CCI

In exercise of the powers conferred by clause (a) of section 54 of the Competition Act, 2002 (12 of 2003), the Central Government, in public interest, hereby exempts every person or enterprise who is a party to a combination as referred to in section 5 of the said Act from giving notice within thirty days mentioned in sub-section (2) of section 6 of the said Act, subject to the provisions of sub-section (2A) of section 6 and section 43A of the said Act, for a period of five years from the date of publication of this notification in the Official Gazette.