The weekly messenger | Edition 18.21

July 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

GN on Accounting for Derivative Contracts (Revised 2021) – 6 July 2021  
 
In 2015, the Institute of Chartered Accountants of India (ICAI) had issued the ‘Guidance Note (GN) on Accounting for Derivative Contracts’ to establish uniform accounting principles for accounting of derivative contracts.
 
Now, considering the global developments being made in respect of Interbank Offered Rates (IBORs), the ICAI has issued the revised version of the aforesaid GN i.e ‘GN on Accounting for Derivative Contracts (Revised 2021)’, which addresses the replacement issues relating to hedge accounting arising from Interest Rate Benchmark Reform.
 
For more information, click here.

REGULATORY NEWS

FAQs on Circular regarding Relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 issued by the MCA on 03 May 2021- Revised – 5 July 2021
 
The Ministry of Corporate Affairs (MCA) vide its Circular dated 3 May 2021, had provided relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013. Consequently, the ICAI has issued certain Frequently Asked Questions (FAQs) w.r.t. the same.
 
Post that, the MCA vide its Circular dated 30 June 2021 has further extended the timelines for filing the above-mentioned forms, pursuant to which the ICAI has also revised its FAQs issued earlier.
 
For more information, click here.
 
Chartered Accountants (Amendment) Regulations, 2021 – 8 July 2021
 
The ICAI vide its Chartered Accountants (Amendment) Regulations, 2021 has notified the revised format of the Form 18 ‘Particulars of Offices and Firms’ for CA firms.
 
With the introduction of this revised form, it seems that ICAI has allowed the concept of Multi-Disciplinary Partnership firms, wherein Chartered Accountants can enter into partnership with Company Secretaries, Cost Accountants, Advocates, Engineers etc.
 
These Regulations shall come into force w.e.f. 8 July 2021.
 
For more information, click here.
 
Valuation: Professionals’ Insight (Series 6) – 10 July 2021
 
The ICAI has issued the Sixth Series of the publication titled ‘Valuation: Professionals’ Insight, which contains various articles from Valuation Experts on a range of topics that are shaping valuation and the valuation profession globally.
 
For more information, click here.
 
SOP for listed subsidiary company desirous of getting delisted through a Scheme of Arrangement wherein the listed parent holding company and the listed subsidiary are in the same line of business – 6 July 2021 
 
The Securities and Exchange Board of India (SEBI) vide its Circular dated 10 June 2021 has notified the amendments made to SEBI (Delisting of Equity Shares) Regulations, 2021 wherein special provisions for a listed subsidiary company getting delisted through a scheme of arrangement have been provided with respect to a listed holding company and the listed subsidiary company who are in the 'same line of business'.
 
Now, the SEBI has issued the Standard Operating Procedure (SOP) for the same, thereby specifying a criterion, which needs to be fulfilled by the listed holding company and the listed subsidiary company.
 
For more information, click here.
 
New Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale Trade – 7 July 2021 
 
The Ministry of Micro, Small, and Medium Enterprises (MSMEs) has announced a revised definition for MSMEs, wherein the Ministry has also included the retail and wholesale trades within the said definition for the limited purpose of priority sector lending under the Reserve Bank of India (RBI) guidelines and allowed them to get themselves registered on Udyam Registration Portal.
 
Consequently, the RBI has notified the new definition of MSMEs by adding the retail and wholesale trade in this category.
 
For more information, click here.
 
IRDAI (Indian Insurance Companies) (Amendment) Regulations, 2021 – 7 July 2021
 
The Insurance Regulatory and Development Authority of India (IRDAI) has issued the IRDAI (Indian Insurance Companies) (Amendment) Regulations, 2021. The objective of these Regulations is to harmonise the provisions of various regulations applicable to insurance companies with Insurance (Amendment) Act, 2021 read with Indian Insurance Companies (Foreign Investment) Rules, 2015 by amending various other corresponding regulations which are as follows:

  • IRDA (Registration of Indian Insurance Companies) Regulations, 2000;
  • Amendment to IRDAI (Transfer of Equity Shares of Insurance Companies) Regulations, 2015;
  • Amendment to IRDAI (Issuance of Capital by Indian Insurance Companies Transacting Life Insurance Business) Regulations, 2015;
  • Amendment to IRDAI (Issuance of Capital by Indian Insurance Companies Transacting other than Life Insurance Business) Regulations, 2015.

These Regulations shall come into force w.e.f 9 July 2021.
 
For more information, click here.
 
GN for companies undergoing Corporate Insolvency Resolution Process – 9 July 2021
 
The Bombay Stock Exchange (BSE) has issued the guidelines for companies undergoing insolvency proceedings.
 
For more information, click here.