Corporate Updates – 03-03-2016


As the National Company Law Tribunal (NCLT) and its Appellate Authority is at an advanced stage of constitution and after its constitution, it is proposed to commence the provisions relating to Revival of Sick Companies (Chapter XIX) of Companies Act, 2013. The revival.rules. The Committee has made an endeavor to draft the Rules in accordance with the scheme of the Act which is a creditor oriented process of revival and rehabilitation. Further, special care has been taken to make rules and forms to provide the relevant disclosures to ensure transparency in the process and strict timelines has also been provided so as to ensure timeliness of the process. The Committee has also drafted a set of Regulations so that the Tribunal may control its regular functioning in respect of the implementation of Rehabilitation Rules.


The Reserve Bank of India has issued Know Your Customer (KYC) Direction, 2016. The Master Direction issued consolidates all relevant instructions issued by different departments of the Reserve Bank on KYC and will be applicable to all its regulated entities which includes all Scheduled Commercial Banks/Regional Rural Banks (RRBs)/Local Area Banks/All Primary (Urban) Co-operative Banks (UCBs) /State and Central Co-operative Banks and any other entity which has been licensed under Section 22 of Banking Regulation Act, 1949, All India Financial Institutions, All Non-Banking Finance Companies, all Authorised Persons, etc. The Direction covers procedures on Customer Identification, Customer Due Diligence, Steps to be taken regarding maintenance, preservation and reporting of customer account information, Reporting Requirements to Financial Intelligence Unit – India, sharing KYC information with Central KYC Records Registry (CKYCR). The existing set of Master Circulars issued on KYC will stand withdrawn with the issue of the Master Direction on the same.

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