Corporate Updates – 06-01-2016


RBI has issued Master Direction on Compounding of Contraventions under FEMA, 1999. The provisions of section 15 of Foreign Exchange Management Act, 1999 (42 of 1999) hereinafter referred to as FEMA, 1999, permit compounding of contraventions and, as such it empowers the Reserve Bank to compound any contravention as defined under section 13 of the FEMA, 1999, except the contraventions under section 3 (a) of FEMA, 1999, on an application made by the person committing such contravention. Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules), as amended from time to time, lays down the basic framework for the compounding process. This Master Direction are the compilation of instructions / circulars/ notifications issued on "Compounding of Contraventions under FEMA, 1999" by the RBI.


SEBI has laid down the procedures for ensuring compliance with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations)Regulations, 2012 (SECC Regulations) by Listed Stock Exchanges. Accordingly, it has been decided to prescribe the modalities so as to ensure compliance with the provisions of SECC Regulations relating to Ensuring holding of 51 per cent by public at all times by the listed stock exchange, Ensuring that all shareholders are fit and proper, Ensuring that shareholders holding shares above 2 per cent are fit and proper, Ensuring shareholding threshold of 5 per cent or 15 per cent as the case may be in terms of SECC Regulations. The stock exchanges, both listed and where the securities are listed, and depositories shall ensure that aforesaid mechanism be in place latest by March 31, 2016.

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