Corporate Updates – 23-10-2015


RBI in order to capture the statistics relating to Foreign Direct Investments (FDI), both inward and outward, by Limited Liabilities Partnerships (LLPs) in India, has decided that henceforth, all LLPs that have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) as well as in the current year, shall submit the Annual Return on Foreign Liabilities and Assets (FLA Return) to the Reserve Bank of India by July 15 every year, in the format as prescribed in the A.P (DIR Series) Circular No. 145 dated June 18, 2014. Since, LLPs do not have21-Digit CIN (Corporate Identity Number), they are advised to enter ‘A99999AA9999LLP999999’ against CIN in the FLA Return. In his regard the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2015 has already been notified.


SEBI has issued clarification by way of FAQ based on SEBI (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014. In terms of proviso to regulation 3(12) of SEBI(Share Based Employee benefits) Regulations, 2014, the un-appropriated inventory of shares which is not backed by grants but has been acquired through secondary acquisition by the trust has to be sold on the recognized stock exchange within a period of five years from the date of notification of these regulations. It has been clarified that the appropriation towards ESPS / ESOP / SAR / General Employee Benefits Scheme / Retirement Benefit Schemes by the companies till October 27, 2015, would be considered as compliance with proviso to Regulation 3(12). The company may appropriate towards individual employees or sell in the market during next four years so that no unappropriated inventory remains thereafter.

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