The weekly messenger | Edition 08.16

Accounting News

FASB issues proposed changes to Hedge Accounting Guidance – 8 September 2016

In order to make improvements to the accounting guidance for hedging activities, the Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) for the same.
 
Comments to be received by 22 November, 2016.
 
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Auditing News

ED of GN on Reports in Company Prospectuses (Revised 2016) – September 2016

The Auditing and Assurance Standards Board (AASB) has issued an exposure draft (ED) of guidance note (GN) on reports in company prospectuses which provide guidance in relation to preparation of financial information to be included in prospectus in case of Initial Public Offer (IPO) to issuers and in relation to reporting requirements to auditors.
 
The main purpose of this GN is to provide guidance on compliance with the provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2009 relating to the reports to be issued by chartered accountants in prospectus issued by the companies for the offerings made in India.
 
Comments to be received by 10 October, 2016.
 
For more information click here       

Regulatory News 

IEPF Authority (Appointment of chairperson and members, holding of meetings and provisions for offices and officers) Amendment Rules 2016- 5 September 2016 

Rule 3 of the Investor Education and Protection Fund (IEPF) Authority (Appointment of chairperson and members, holding of meetings and provisions for offices and officers) Rules 2016 states the date of establishment of authority.
 
Now, MCA has amended these rules in which a new rule has been inserted which provides clarification regarding the status of Authority i.e. the Authority shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property, movable or immovable by the said name and can sue and be sued.
 
These rules shall come into force from the date of their publication in Official Gazette.
 
For more information, click here

IEPF (Appointment Accounting, Audit, Transfer and Refund) Rules 2016 - 5 September 2016 

MCA has issued new rules namely the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The rules, inter-alia, include provisions related to: 

• Fund
• Accounts and audit
• Statements to be furnished to the Fund
• Manner of transfer of shares to the Fund
• Refunds to claimants from Fund
• Power to direct payment of amount due to the Fund
• Transfer of assets, liabilities etc of the existing IEPF to the Authority
• Returns and Reports
• Protection of action taken in good faith
• Repeal and Savings

These rules shall come into force with effect from 7 September 2016
 
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Restrictions on promoters and whole time directors of compulsorily delisted companies pending fulfilment of exit offers to the shareholders – 7 September 2016 

SEBI has issued a circular in order to protect the interests of the investors in the securities of the companies whose shares have been compulsorily delisted by any recognized exchange. This circular inter alia provide: 

• The whole time directors, promoters and the companies promoted by such person, shall not access the securities markets for a period of ten years from the date of compulsory delisting directly or indirectly.
• The promoter shall acquire delisted equity shares from the public shareholders by paying them the fair value as determined by the independent valuer appointed by the stock exchange.
• The company whose fair value is positive shall not effect transfer, by way of sale, pledge, etc., of any of the equity shares and corporate benefits like dividend, rights, bonus shares, split, etc. shall be frozen, for all the equity shares, held by the promoters/ promoter group till the promoters of such company provide an exit option to the public shareholders.
• The promoters and whole-time directors of the compulsorily delisted company shall also not be eligible to become directors of any listed company till the exit option as stated above is provided.

For more information click here

 Guidelines for DDR Fixation for Regional Commodity Derivatives Exchange  – 7 September 2016

SEBI in order to protect the interests of investors in securities and to provide the development of and regulate securities market has issued a circular which prescribes the guidelines for Regional Commodity Derivative Exchanges in respect of Due Date Rate (DDR) which are as follows: 

• Exchange shall have a DDR Committee and who shall be the members of such committee.
• Formation of Spot Price Polling Panel.
• Use of spot price in order to derive the DDR.
• Bye laws and procedures to be followed by the DDR Committee to arrive at the DDR.
• Recommending the DDR to the board of exchange for its approval.
• Records of DDR fixation of each contract to be maintained for 6 months.

For more Information click here

 FAQs providing clarification on various issues under the IDS 2016 issued – 5 September 2016

The Central Board of Direct Taxes (CBDT) has issued the sixth set of frequently asked questions (FAQs) providing clarification on various issues under the Income Tax Declaration Scheme (IDS).
 
For FAQs click here

 CBDT Extends due date for filing of Income Tax Returns – 9 September 2016 

Since the last date for making declaration under the IDS, 2016 i.e. 30 September 2016 coincides with the last date for filing of income tax return .Therefore, in order to remove inconvenience and to facilitate ease of compliance, CBDT has extended the due date for filing income tax return from 30 September 2016 to 17 October 2016.
 
For more information click here

Companies (Mediation and Conciliation) Rules, 2016– 9 September 2016

MCA has released Companies (Mediation and Conciliation) Rules 2016. The rules, inter-alia include provisions regarding: 

• Panel for mediators and conciliators
• Qualification and disqualification of empanelment
• Application for appointment of mediators and conciliators
• Deletion from empanelment
• Withdrawing name from panel
• Duty of mediators and conciliators to disclose certain facts
• Withdrawal of appointment
• Procedure for disposal of matters, etc.

The rules shall come into force on the date of their publication in official gazette
 
For more information, click here

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