Corporate Updates – 11-02-2016


The Central Government has proposed amendments to Schedule III to the Companies Act, 2013. MCA has issued a notice inviting comments on the Revised Schedule III to the Companies Act, 2013 for a Company whose financial statements are drawn up in compliance of Companies (Indian Accounting Standards) Rules 2015. In the circular, the Government has divided the Schedule into two Divisions each pertaining to Companies whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time respectively. The said revised Schedule III to the Companies Act, 2013 has been placed on the MCA’s website for suggestions/comments, which may be forwarded along with justification in brief may be sent latest by 23rd February, 2016.


RBI’s Working Group issuedrecommendations on Interest Rate Options on February 8, 2016. In the Report, eleven member Committee headed by PG Apte, has recommended rolling one, two, three, six and twelve month contracts, kicking off with three serial monthly contracts in the first phase. The Working Group has recommended simple call and put options, with minimum lot sizes of Rs. 2 lakhs to start Interest Rate Options (IROs) in India. The recommendations for introducing bond options in India include simple structured contracts and allow companies to trade up to Rs. 50 million without documented underlying exposures. IROs are the derivatives to hedge interest rate risk. Traders expecting rates to rise buy a call option while those expecting rates to fall would buy a put option. Comments on the recommendations here to be sent to RBI by February 26 and Final guidelines will be issued by March end, RBI said.

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