Corporate Updates – 17-11-2015


As a part of the continuing endeavor to streamline the process of public issue of equity shares and convertibles, it has been decided, in consultation with the market participants to reduce the time taken for listing after the closure of issue to 6 working days as against the present requirement of 12 working days, and to broad-base the reach of investors by substantially enhancing the points for submission of applications. In this regard, necessary amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 have already been notified. Accordingly, the operational details to implement the same is now prescribed through this circular, wherein all investors applying in a public issue shall use only Application Supported by Blocked Amount (ASBA) facility for making payment and in addition to the Self Certified Syndicate Banks (SCSBs), Syndicate Members and Registered Brokers of Stock Exchanges, the Registrars to an Issue and Share Transfer Agents (RTAs) and Depository Participants (DPs) registered with SEBI are now permitted to accept application forms (both physical as well as online) in public issues. The revised indicative timelines for various activities are also specified through this circular. Further, this circular shall be applicable for all public issues opening on or after January 01, 2016.

CBEC – Service Tax

CBEC has issued guidelines for speedy disbursal of pending refund claims to exporters of services. The scheme for speedy disbursal of pending refund claims to exporters of services is applicable to Service tax registrants, who are exporter of services, with respect to refund claims, which have been filed on or before March 31, 2015 and which have not been disposed of as on date of the issue of the Circular. Further, refunds which had been finalized earlier by issuance of an adjudication order but have been remanded back to the original sanctioning authority will not be covered under this scheme since re-examination of such claims will have to be done strictly in terms of the remand order of the Commissioner (Appeals)/ CESTAT/ High Court. In addition to the specified documents required to be filed along with the refund claim, A certificate from the statutory auditor and an undertaking from the claimant are additionally required to be submitted. The department will make provisional payment of 80% of the amount claimed as refund, within 5 working days of the receipt of the documents. Further, Principal Commissioners/Commissioners should ensure that the provisional payment of refunds should be done strictly in terms of the time lines specified and that there should be no complaints regarding delays of refund.

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