Corporate Updates 22 July 2014


MCA has made amendments in the Companies (Specification of definitions details) Rules, 2014 and amended rules shall come into force on the date of their publication in the Official Gazette. In Rule 3 of the said Rules, after the words ‘a director’ the words ‘other than an independent director’ shall be inserted. Now amended Rule 3 will read as “Related Party – For the purposes of sub-clause (ix) of clause (76) of section 2 of the Act, a director other than an independent director or key managerial personnel of the holding company or his relative with reference to a company, shall be deemed to be a related party”. The inference here can be drawn here is that the transactions with Independent Directors will not form part of Related Party Transactions.


SEBI has issued draft SEBI (Infrastructure Investment Trusts) Regulations, 2014. In the Budget for FY 2014-15, identifying the needs and requirement of Infrastructure sector, Hon’ble Finance Minister announced a modified REITS type structure for infrastructure projects is also being announced as Infrastructure Investment Trusts (InvITs), which would have a similar tax efficient pass through status, for PPP and other infrastructure projects. These structures would reduce the pressure on the banking system while also making available fresh equity.

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