The weekly messenger | Edition 16.21

June 2021

This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.

ACCOUNTING NEWS

Companies (Ind AS) Amendment Rules, 2021 – 18 June 2021
 
The Central Government (CG) in consultation with National Financial Reporting Authority (NFRA) has issued the Companies (Ind AS) Amendment Rules, 2021, wherein 22 Ind AS have been amended. Some of the key highlights of the Amendment Rules are as follows:

  • Further amendments w.r.t. interest rate benchmark reforms have been made in various Ind ASs such as Ind AS 107, Ind AS 109, Ind AS 104, Ind AS 116.
  • The bare text of Standards has been aligned with the Conceptual Framework of Financial reporting under Ind ASs, issued by the ICAI.
  • Lessees now permitted to apply the practical expedient to rent concessions w.r.t. reduced lease payments which are due on or before 30 June 2022 (earlier it was till 30 June 2021).

The aforesaid amendments shall come into force from different dates.
 
For more information, click here.

REGULATORY NEWS

Companies (Meetings of Board and its Powers) Amendment Rules 2021 – 15 June 2021
 
The Ministry of Corporate Affairs (MCA) has issued the Companies (Meetings of Board and its Powers) Amendment Rules, 2021, wherein it has omitted Rule 4 ‘Matters Not to be Dealt With in a Meeting Through Video Conferencing or Other Audio Visual Means’ of the principal Rules, which means now onwards it would not be mandatory for the companies to hold physical board meetings to deal with the matters which were provided under the aforesaid Rule.
 
These Rules shall come into force w.e.f. 15 June 2021.
 
For more information, click here.
 
Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 – 18 June 2021
 
The MCA has issued the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021, wherein the following changes have been made in Rule 3 ‘Creation and maintenance of data bank’:

  • In sub rule 7(a), earlier the institute was allowed fix a reasonable fee to be charged from individuals for inclusion of their names in the data bank of independent directors with the prior approval of the CG. Now the institute can also charge the fee from individuals for renewal of their names in the data bank of the independent directors.
  • After sub-rule (7), a new sub-rule (8) has been inserted which states that if there is any delay on the part of an individual in applying to the institute under sub-rule (7) for inclusion or renewal of his name in the data bank, the institute shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 after charging a further fees of one thousand rupees on account of such delay.

These Rules shall come into force w.e.f. 18 June 2021.
 
For more information, click here.
 
Relaxation from the requirement of minimum vesting period in case of death of employee(s) under SEBI (Share Based Employee Benefit) Regulations, 2014 – 15 June 2021
 
The Securities and Exchange Board of India (SEBI) has clarified that the provisions given under the SEBI (Share Based Employee Benefit) Regulations, 2014 relating to the minimum vesting period of one year would not be applicable in case of death of an employee and in such instances all the options, stock appreciation rights (SAR) or any other benefit granted to such employee(s) shall vest with his/her legal heir or nominee on the date of death of the employee.
 
This relaxation shall be available to all such employees who have deceased on or after 1 April 2020.
 
For more information, click here.
 
Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 – System Driven Disclosures for inclusion of listed Debt Securities – 16 June 2021
 
The SEBI vide its Circular dated 9 September 2020 had implemented the System Driven Disclosures in phases, under the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations). As per this Circular, System   Driven   Disclosures were implemented for the member(s) of the promoter group and designated person(s) in addition to the promoter(s) and director(s) of company (hereinafter collectively referred to as entities) under Regulation 7(2) of PIT Regulations pertaining to trading in equity shares and equity derivative instruments i.e. Futures and Options of the listed company (wherever applicable) by the entities.
 
Now, it has been decided to further include the listed debt securities of equity listed companies under the purview of the said System Driven Disclosures for the entities mentioned in the Circular. Further, the procedure for implementation of System Driven Disclosures as provided in the aforesaid Circular shall also be applicable for the listed Debt securities.
 
For more information, click here.
 
ESIC COVID-19 RELIEF SCHEME – 15 June 2021
 
The Employees’ State Insurance Corporation has notified a new scheme ‘ESIC COVID-19 RELIEF SCHEME’ under the Employees’ State Insurance Act, 1948 for the insured persons who are employees under the said Act. As per the Scheme, in case of death of an insured person due to COVID-19, the eligible dependant family members of such insured person will be eligible for some periodic payments, which would be subject to certain questions.   
 
For more information, click here.
 
Ministry of MSMEs extends validity of Udyog Aadhaar Memorandum - 16 June 2021
 
Considering the hardships being faced by the Micro, Small and Medium Enterprises (MSMEs) during the prevailing COVID-19 situation, the Ministry of MSMEs has amended its notification dated 26 June 2020, wherein it has extended the validity of EM Part-II and Udyog Aadhaar Memorandum (UAMs) from 31 March 2021 to 31 December 2021. This would facilitate the holders of EM Part-II and UAMs to avail the benefits of the provisions available under various existing schemes and incentives including Priority Sector Lending benefits of MSME.
 
For more information, click here.