Corporate Updates – 19-06-2015


RBI has initially allowed External Commercial Borrowings (ECB) for low cost affordable housing projects by eligible borrowers for working capital as a permissible end-use, under the approval route, subject to the conditions stipulated in the Circular. It has now been decided that the above scheme of raising ECB for low cost affordable housing projects will continue for the financial year 2015-2016 i.e upto March 31, 2016 with the same terms and conditions.

Negotiable Instruments (Amendment) Ordinance, 2015:

The President of India promulgated the Negotiable Instruments (Amendment) Ordinance, 2015 on 15-06-2015. The objective of the Ordinance is to amend the provisions of Negotiable Instruments Act, 1881, for speedy disposal of cases relating to dishonour of cheque(s). The Negotiable Instruments (Amendment) Bill, 2015 has been passed by the Lok Sabha, however it is still pending in the Rajya Sabha. Whereas, the Parliament is not in Session, the President on the satisfaction that the circumstances exist which renders is necessary for him to take immediate action, promulgated the said Ordinance. Through this Ordinance, new definition of ‘‘a cheque in the electronic form” has been prescribed new Section 142 (2) has been inserted which provides that the offence under Section 138 shall be inquired into and tried only by a court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment, is situated.

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