The weekly messenger | Edition 17.22

Regulatory news

Companies (Incorporation) Second Amendment Rules, 2022 – 20 May 2022

The Ministry of Corporate Affairs (MCA) has issued the Companies (Incorporation) Second Amendment Rules, 2022, wherein the following changes have been made:

• Form No. INC-9 ‘Declaration by Subscribers and First Directors’ has been substituted with the new form; and

• Certain changes have been made in the declaration to be provided in Part B of FORM No.INC-32 ‘(SPICe+)’.

These Rules shall come into force w.e.f. 1 June 2022.

For more information, click here.

New Definition of MSMEs – Clarification – 19 May 2022

The Ministry of Micro, Small and Medium Enterprises (MSMEs) vide its notification dated 6 May 2022, had extended the validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandum (UAMs) from 31 March 2022 to 30 June 2022.

Now, on the similar grounds, the Reserve Bank of India (RBI) has also amended its Circulars issued on ‘New Definition of Micro, Small and Medium Enterprises’.

For more information, click here.

RBI (Financial Statements - Presentation and Disclosures) Directions, 2021 - Reporting of reverse repos with Reserve Bank on the bank’s balance sheet - 19 May 2022

The RBI vide its notification dated 30 August 2021 has issued the ‘Master direction on Financial Statements – Presentation and Disclosure’ for all the commercial banks.

Now in order to bring more clarity on the presentation of reverse repo on the bank’s balance sheet, the RBI has notified as under:

• All type of reverse repos with the Reserve Bank including those under Liquidity Adjustment Facility shall be presented under sub-item (ii) ‘In Other Accounts’ of item (II) ‘Balances with Reserve Bank of India’ under Schedule 6 ‘Cash and balances with RBI’.

• Reverse repos with banks and other institutions having original tenors up to and inclusive of 14 days shall be classified under item (ii) ‘Money at call and short notice’ under Schedule 7 ‘Balances with banks and money at call and short notice’.

• Reverse repos with banks and other institutions having original tenors more than 14 days shall be classified under Schedule 9 – ‘Advances’ under the following heads:

                - A.(ii) ‘Cash credits, overdrafts and loans repayable on demand’

                - B.(i) ‘Secured by tangible assets’

                - C.(I).(iii) Banks (iv) ‘Others’ (as the case may be)

Further certain sections in the aforesaid directions are being updated for editorial corrections which are given in the Annexure.

For more information, click here.

MSME Development (Furnishing of Information) (Amendment) Rules, 2022 – 11 May 2022

The Ministry of MSME has issued the MSME Development (Furnishing of Information) (Amendment) Rules, 2022 wherein following amendments have been made in the form under the ‘Basic details’:

• The words ‘Udyog Aadhaar Number’ have been substituted with the words ‘Udyam Registration Number’;

• The words ‘Get Udyog Aadhaar’ have been omitted.

These Rules has come into force w.e.f 19 May 2022.

For more information, click here.