The weekly messenger | Edition 23.17

Regulatory News

Exemption to Government Companies under section 462 of CA, 2013 – 13 June 2017

The Central Government (CG) has amended the principal notification G.S.R. 463(E), dated 05 June 2015 containing exemptions wrt the government companies under section 462 of the Companies Act (CA) 2013 in order to incorporate certain additional relaxations/modifications in it. This notification includes amendments wrt the following topics:

• Annual General Meeting;
• Retirement of directors and filling of casual vacancy in case of their retirement ;
• Compromises, Arrangements and Amalgamations.

For More Information, click here.

Exemption to Private Companies under section 462 of CA, 2013 – 13 June 2017

CG has amended the principal notification G.S.R. 464(E), dated 05 June 2015 containing exemptions wrt the private companies under section 462 of the CA 2013 in order to incorporate certain additional relaxations/modifications in it. This notification includes amendments largely wrt small companies and private startup companies on the following topics:  

• Definition of Financial statements to include cash flow statements
• Prohibition on acceptance of deposits from public companies
• Particulars required to be given in the annual return
• Number of Meetings of Board to be held in a financial year
• Powers and duties of auditors wrt reporting on adequacy and operational effectiveness of internal financial controls.
• Quorum for the purpose of meetings of board

For more Information, click here

Exemption to Section 8 Companies under section 462 of CA, 2013 – 13 June 2017

CG has amended the principal notification G.S.R. 466(E), dated 05 June 2015 containing exemptions wrt the Section 8 companies under section 462 of the CA 2013 in order to incorporate certain additional relaxations/modifications in it. This notification includes amendments wrt the following topics:

• Limits given for the purpose of having minimum and maximum number of directors on the board of the company;
• Loans and Investments by company.

 
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Comprehensive guidelines for IPF, Investor Service Fund and its related matters – 13 June 2017

The Securities and Exchange Board of India (SEBI) has vide its circular no. SEBI/HO/CDMRD/DEICE/CIR/P/2016/94 dated September 26, 2016 consildated various norms and guidelines wrt Investor Protection Fund (IPF), issued by Forward Market Commission applicable to the National Commodity Derivatives Exchanges. Now, in order to align with various practices in securities markets, based on the internal deliberations, discussions and feedbacks received from the National Commodity Derivatives Exchanges, SEBI has decided to modify certain clauses of the aforesaid circular which are as follows:

• Constitution and management of the IPF;
• Contribution the IPF;
• Eligibility of claims;
• Determination of legitimate claims;
• Threshold limits for claims;
• Disbursement of claims from the IPF etc.

For more Information, click here

Non-compliance with certain provisions of SEBI (ICDR) Regulations, 2009 – 15 June 2017

SEBI has issued a circular in which it has given a structure to be followed by the stock exchanges in case of non-compliance by listed companies with certain provisions of SEBI (Issue of Capital and Disclosure Requirements (ICDR)) Regulations, 2009.

For more Information, click here

Insolvency and Bankruptcy Board of India notifies Fast Track Insolvency Resolution Process for Corporate Persons Regulations – 16 June 2017

The Insolvency and Bankruptcy Board of India has issued Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017. These regulations inter-alia includes:

• Definitions;
• General Provisions
• Public Announcement
• Proof of Claims
• Committee of Creditors
• Meetings of the Committee
• Voting by the Committee
• Conduct of Fast Track Process etc.

These Regulations would become applicable from 14 June 2017 and would be applicable to the fast track process given under Chapter IV of Part II of the Code.

For more Information, click here

Relaxation in return filing procedure for first two months of GST implementation – 18 June 2017

In order to ensure smooth rollout of Goods and Service Tax (GST) and after taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that for the first two months of GST implementation, the tax would be payable based on a simple return i.e. Form GSTR-3B containing the summary of outward and inward supplies which are to be submitted before 20^th of the succeeding month. However, the invoice-wise details in regular GSTR-1 would have to be filed for the month of July and August 2017 as per the below mentioned timelines:

 
Further, it has also been clarified that no late fees and penalty would be levied for the interim period.
For more information, click here

Further GST Updates- 18 June 2017

The Central Board of Excise and Customs after their discussions in the GST Council Meeting held on 18 June 2017 has issued certain recommendations regarding the composition levy and GST rates on certain goods and services, whose links are as follows:

For decisions taken by the GST Council on composition levy & GST rates for certain goods in the 17^th Meeting, click here
For decisions taken by the GST Council on GST rates for services in the 17^th Meeting, click here