Corporate Updates – 06-02-2017


SEBI has issued consultation paper for Consolidation and re-issuance of debt securities issued under the SEBI (Issue and Listing of Debt Securities) Regulations, 2008. The Section 121 of the erstwhile Companies Act 1956 had provisions of consolidation and reissuance. However, the recently notified Companies Act 2013 is silent regarding the company’s power to reissue their bonds. In this regard, the Ministry of Corporate Affairs (MCA) has clarified that since Companies Act 2013 is silent on the issue, it may be assumed that such reissuance is possible if there is enabling provision in this behalf in the articles of the company. In view of the clarification provided by MCA, SEBI provided an enabling framework for consolidation and re-issuance. An amendment was made to the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 (ILDS) in the year 2015, wherein regulation 20A was inserted, to provide for consolidation and re-issuance of debt securities. In the light of the above, public comments are invited on the consultation paper latest by February 28, 2017.

CBEC – Service Tax

The Central Government hereby amend the Service Tax Rules, 1994, which may be called as the Service Tax (Second Amendment) Rules, 2017 and shall come into force on the date of publication in the Official Gazzette. In the Service Tax Rules, 1994, in rule 6, in sub-rule (1), after the last proviso, the following proviso shall be inserted, namely,- “Provided also that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, the service tax payable for the month of December, 2016 and January, 2017, shall be paid to the credit of the Central Government by the 6th day of March, 2017.

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