The weekly messenger | Edition 17.19

Accounting News

FASB issues Narrow-Scope Improvements to Financial Instruments Standards – 25 April 2019
 
The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement.
 
For more information, click here.

Regulatory News

GN on Annual Secretarial Compliance Report – 8 April 2019
 
The Institute of Company Secretaries of India, has issued a ‘Guidance Note (GN) on the Annual Secretarial Compliance Report’ which highlights the process and scope of Annual Secretarial Compliance Report and also provides detailed checklists with respect to all mandatory laws as specified in the prescribed format by the Securities and Exchange Board of India (SEBI).
 
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Companies (Incorporation) Fourth Amendment Rules, 2019 – 25 April 2019
 
The Central Government (CG) has amended the Companies (Incorporation) Rules, 2014 with the Companies (Incorporation) Fourth Amendment Rules, 2019, wherein the CG vide Rule 25 A ‘Active Company Tagging Identities and Verification (ACTIVE)’ has extended the due date of furnishing of e-Form ACTIVE from 25 April 2019 to 15 June 2019. This change has resulted into further two more modifications which are as under:

• In third proviso to sub-rule (1) of the aforesaid rule, earlier if a company does not intimate the particulars for the purpose of filing of the abovementioned form within the due date, then the same shall be marked as ‘ACTIVE-non-compliant’ on or after 26 April 2019. Now, this date has also been extended to 16 June 2019;
• In Sub-rule (2), earlier if a company used to file e-Form ACTIVE on or after 26 April 2019, then that company used to be marked as ‘ACTIVE Compliant’ on payment of ₹10,000. Now, the aforesaid date has also been extended to 16 June 2019.

These Rules shall come into force from the date of publication in official gazette i.e. 25 April 2019.
 
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Companies (Registration Offices and Fees) Second Amendment Rules, 2019 – 25 April 2019
 
The CG has amended the Companies (Registration Offices and Fees) Rules 2014 with the Companies (Registration Offices and Fees) Second Amendment Rules, 2019, wherein the time lines mentioned in item VIII of the Annexure ‘Table of Fess’, which prescribes the fee for late filing of e-form ACTIVE under rule 25A of the Companies (Incorporation) Rules, 2014 has been extended from 25 April 2019 to 15 June 2019.
 
These Rules shall come into force from the date of publication in official gazette i.e. 25 April 2019.
 
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Comments Invited on the Insolvency and Bankruptcy Code, 2016 and the Insolvency and Bankruptcy (AA) Rules, 2016 – 16 April 2019

 
The Ministry of Corporate Affairs has invited suggestions / comments from the stakeholders along with brief justification on the Insolvency Resolution of Group Companies, Pre-packaged Insolvency Resolution and any other issue relating to the Insolvency and Bankruptcy Code, 2016 and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (AA Rules).
 
Suggestions/Comments are to be provided by 7 May 2019.
 
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SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2019 – 22 April 2019
 
The SEBI has amended the SEBI (Real Estate Investment Trusts (REITs)) Regulations, 2014 with the SEBI (REITs) (Amendment) Regulations, 2019, wherein the following changes have been made:

• Sub-regulation (14) of the Regulation 14 ‘Issue and allotment of units’ has been substituted with a new sub-regulation which is as follows: ‘The minimum subscription from any investor in initial and/or public offer shall be rupees fifty thousand’;
• In sub - regulation (4) of Regulation 16 ‘Listing and trading of units’, which states that ‘trading lot for the purpose of trading of units of the REIT shall be one lakh rupees’, the words ‘be one lakh rupees’ have been substituted with the words and figure ‘consist of 100 units’.

These regulations shall come into force from the date of their publication in official gazette i.e.22 April 2019.
 
For more information, click here.
 

SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2019 – 22 April 2019
The SEBI has amended the SEBI (Infrastructure Investment Trusts (InvITs)) Regulations, 2014 with the SEBI (InvITs) (Amendment) Regulations, 2019, wherein the following changes have been made:

• In Regulation 14(4)(c) which specifies ‘Issue of units and allotments’, the word ‘ten’ has been substituted with the word ‘one’;
• In Regulation 17(1)(e) which specifies ‘Delisting of units and winding up of InvITs’, the words ‘sponsor(s)’ have been omitted and after the word ‘trustee’ and before the word ‘requests’, the words ‘and investment manager’ have been inserted;
• In Regulation 16(9)(b) which specifies ‘Listing and trading of units’, the words ‘be five lakh rupees’ have been substituted with the words ‘consist of 100 units’;
• A new sub-clause has been inserted i.e. Regulation 17(1)(ea), which states that ‘the trustee and the Investment Manager of a privately placed and listed InvIT chooses to convert InvIT to a privately placed unlisted InvIT and such request has been approved by unit holders in accordance with regulation 22, provided that exit shall be provided to dissenting unitholders etc’.

These regulations shall come into force on the date of their publication in Official Gazette i.e. 22 April 2019.
 
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Disclosure on Exposure to Infrastructure Leasing & Financial Services Limited (ILFS) and its group entities – 24 April 2019
 
The Reserve Bank of India (RBI) has advised banks and All India Financial Institutions (AIFIS) to disclose in their notes to accounts, the information in the proforma given below:
 
Disclosure in respect of ILFS and ILFS entities.
 
Position as on ------
 

 
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Ombudsman Scheme for NBFCs, 2018 – 26 April 2019
 
The RBI has extended the coverage of ‘Ombudsman Scheme for Non-banking Financial Companies (NBFCs), 2018’ to eligible non deposit-taking NBFCs with asset size of ₹ 100 crore or above with customer interface. Further, the NBFC – Infrastructure Finance Company, Core Investment Company, Infrastructure Debt Fund – NBFC and a NBFC under liquidation, are excluded from the ambit of this scheme.
 
For more information, click here.
 
Further GST Updates
 
The Central Board of Indirect Taxes and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows:

• For more information w.r.t extension of last date for furnishing return in FORM GSTR-3B for March 2019 from 20 April 2019 to 23 April 2019, click here;
• For more information w.r.t notification of provisions of rule 138E of the Central GST (CGST) Rules w.e.f 21 June 2019, click here;
• For more information w.r.t notification w.r.t procedure for quarterly tax payment and annual filing of return for taxpayers availing the benefit of notification No. 02/2019 – Central Tax (Rate), dated the 7 March 2019, click here;
• For CGST (Third Amendment) Rules, 2019, click here;
• For more information w.r.t extension in time under sub-section (1) of section 30 of the Act to provide a onetime opportunity to apply for revocation of cancellation of registration on or before 22 July 2019 for the specified class of persons for whom cancellation order has been passed up to 31 March 2019, click here;
• For more information w.r.t clarification of the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules, click here; and
• For more information w.r.t extension of the time limit for filing an application for revocation of cancellation of registration for specified taxpayers, click here