INSIGNIA – Distinguished Details Delivered – February 2023

February 2023

Ministry of Corporate Affairs

Circular issued by for the extension of time for filing of 45 company e-forms

A circular has recently been issued by the Ministry of Corporate Affairs for extending time till 31st March, 2023, for filing of 45 company e-Forms, PAS-03 and SPICE+Part A, in MCA 21 Version 3.0 without any additional fee.Read more

The Central Government has sought applications for the post of chairperson of Competition Commission of India (CCI)

Applications are invited from Indian Nationals for the post of Chairperson in the Competition Commission of India (CCI). The selected candidate will be required to serve at the Headquarter of CCI, which is currently located in Delhi. Read more

Ministry of Corporate Affairs issues show cause notices to PTC India Financial Services

The Ministry of Corporate Affairs (MCA) has issued show-cause notices to PTC India Financial Services (PFS) over alleged violations of certain rules under the Companies Act, 2013, on the reconstitution of a nomination and remuneration committee and appointment of a finance director. Read more

Reserve Bank of India

Implementation of Indian Accounting Standards

Recently, a notification has been released by the Reserve Bank of India (RBI) that is applicable to all Asset Reconstruction Companies (ARCs), wherein they have been notified to prepare their financial statements as per Ind AS and reduce the stated amounts from their net owned funds while calculating the Capital Adequacy Ratio and the amount available for payment of dividend. Read More

Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021 – Disclosures for State Co-operative Banks and Central Cooperative Banks

The Reserve Bank of India (Financial Statements-Presentation and Disclosures) Directions, 2021 (‘Master Direction’) are applicable to Commercial Banks and Primary Urban Co-operative Banks (UCBs). In consultation with the National Bank for Agriculture and Rural Development (NABARD), it has now been decided to make this Master Direction also applicable to State Cooperative Banks and Central Cooperative Banks (also referred to as ‘District Central Co-operative Banks’). Read more

Governance, measurement and management of Interest Rate Risk in Banking Book

RBI, vide circular dated February 17, 2023, has released the final guidelines on Interest Rate Risk in Banking Book (IRRBB), in alignment with the revised framework issued by the Basel Committee on Banking Supervision (BCBS). Banks are advised to be in preparedness for measuring, monitoring, and disclosing their exposure to interest rate risk in the banking book in terms of this circular. Read more

Introduction of Foreign Contribution (Regulation) Act (FCRA) related transaction code in NEFT and RTGS Systems

RBI vide circular dated February 16, 2023, introduced Foreign Contribution (Regulation) Act (FCRA) related transaction code in NEFT and RTGS Systems. The contributions to the FCRA account are received directly from foreign banks through SWIFT only in the “FCRA account” of State Bank of India (SBI), New Delhi Main Branch (NDMB) and from Indian intermediary banks through NEFT and RTGS systems. Member banks have been advised to incorporate necessary changes in their core banking / middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to SBI. The instructions would be effective from March 15, 2023. Read more

Securities and Exchange Board of India

Advisory for SEBI Regulated Entities (REs) regarding Cybersecurity best practices

A notification published by SEBI, in consideration of the interconnectedness and interdependency of the financial entities to carry out their functions. For ensuring an efficient and effective response and recovery from a cyber-incident by regulated entities to limit any related financial stability risks, the Financial Computer Security Incident Response Team (CSIRT-Fin) has provided important recommendations in its report sent to SEBI which the SEBI Regulated Entities (REs) have been advised to implement. Read more

Maintenance of a website by stock brokers and depository participants

The Securities and Exchange Board of India (SEBI) has issued a circular on the maintenance of a website by stock brokers and depository participants. The circular requires that all stock brokers and depository participants maintain information related to their business activities and services. Read more

Introduction of Issue Summary Document (ISD) and dissemination of issue advertisements

On February 15, 2023, the Securities and Exchange Board of India (‘SEBI’) issued a circular to introduce Issue Summary Document (ISD) and dissemination of issue advertisements to facilitate consumption of data by stakeholders by making the relevant information/ data points available at the Stock Exchanges and Depositories in a structured manner. Read more

Foreign Direct Investment

FDI Inflows Expected To Rebound In India: Economic Survey 2023

Foreign direct investment (FDI) into the country, is expected to rebound in the coming months on account of India’s high economic growth, and steps to further improve the business environment of India, the Economic Survey said recently. Read more

Gaming and Cryptocurrency

Is online rummy a game of chance or skill? Andhra Pradesh High Court orders State to form a committee to examine the nature of online rummy.

The Andhra Pradesh High Court on Tuesday directed the State government to form a committee to examine the manner in which online rummy is played with the aim to determine whether it is predominantly a game of skill or game of chance. Read more

You can’t issue fatwa like that”: Bombay High Court pulls up Maha Basketball Association for barring players from Mini Olympic Games

The Bombay High Court recently, pulled up the Maha Basketball Association (MBA) for not being supportive of the basketball players in Maharashtra and restraining them from taking part in Mini Olympic Games of 2023. Read more

Real Estate

Can’t Entertain Plea for Demolition Unless It Specifies Particular Area Of Encroachment: Gujarat High Court

The Gujarat High Court has made it clear that it cannot issue a direction simply on a plea for demolition, not describing the particular area which is allegedly under encroachment. Single bench of Justice Nirzar S. Desai dismissed a writ petition seeking demolition of alleged illegal encroachment in Gujarat Housing Board in Chandkhela area of Ahmedabad. Read more

Information Technology (IT)

Extension of time — Inviting feedback on the draft amendment to the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 relating to due diligence by an intermediary under rule 3(1)(b)(v)

The Ministry of Electronics and Information Technology, on January 17, 2023, published on its website a draft amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, relating to due diligence by an intermediary under Rule 3(1)(b)(v), inviting feedback from the public by 25.01.2023 which has been extended till February 20, 2023. Read more

Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M)

The government has notified a scheme to incentivize banks for promoting point-of-sale and e-commerce transactions using RuPay debit cards and low-volume payments to merchants on the BHIM-UPI platform. Read more

Arbitration

Kalanithi Maran can encash Rs 270 crores bank guarantee in SpiceJet dispute: SC

In a seven-year-old dispute over the airline’s takeover, the Supreme Court has permitted Sun TV promoter Kalanithi Maran to withdraw the Rs 270 crore bank guarantee that SpiceJet had paid. To secure the interest payment due to Maran in conjunction with an arbitration judgment from 2018, the court ordered SpiceJet to deposit Rs 75 crore. The airline has three months to furnish the amount and it was allowed to approach the Delhi High Court (HC) seeking relief in interest payment. Read more

SC to Vedanta: Why not use arbitration to resolve Corex dispute

Vedanta has been asked by the Supreme Court to explain why an arbitrator should not be appointed to settle a dispute over a combined $5 million contract that the resources conglomerate had executed with Corex (UK) in 2018. Read more

Food and Beverages

Haldiram Not Liable to Pay Service Tax on Take-Away of Food Items: CESTAT

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on the activity of takeaway food items. The bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) observed that the activity of takeaway of food items would amount to sale and would not involve any element of service. Read more

Implementation of Traceability Application under Repurpose Used Cooking Oil (RUCO) Initiative

The Food Safety and Standards Authority of India (FSSAI) has developed a repurpose used cooking oil (RUCO) traceability application to check repeated frying of food items beyond the safety limits. To maintain the quality of cooking vegetable oil in repeated frying, the Food Safety and Standards (Licensing and Registration of Food Businesses) First Amendment Regulation-2017, prescribed the limit for total polar compounds (TPCs) at a maximum of 25 per cent. Beyond that, the vegetable oil is not suitable for use. Read more

Revision of the guidelines for the submission of applications for endorsement of vegan logo and formats

The Food Safety and Standards Authority of India vide circular dated 24 February, 2023, issued guidelines and FAQs for submission of applications for endorsement of vegan logo and formats. As per the FAQ, for same product with multiple variants and two or more different products from the same firm, a separate application for each variant/product needs to be submitted and the same shall not be considered under single application. Read more

Infrastructure and Construction

Srei promoters submit new resolution plan under Sec 12A to exit insolvency process

In a last-ditch effort, Srei Group promoters have submitted a resolution plan with the Srei administrator under Section 12A of IBC, offering to pay off dues of around Rs 32,000 crore to creditors to withdraw their companies from the ongoing insolvency process. Section 12A allows erstwhile management of corporate debtors to settle matters between creditors and withdraw cases under Corporate Insolvency Resolution Process (‘CIRP’). Read more

E-commerce

E-com platforms must handle small sellers’ tax

According to V. Rama Mathew, special secretary to the central government and member of the Central Board of Indirect Taxes and Customs (CBIC), e-commerce platforms will be required to report the sales information of small businesses and assume responsibility for their tax payments under penalty of law. The go-ahead has been given for platforms to enable online sales for small firms without GST registration. Read more

Mergers and Acquisitions

Genomics, big data among key themes driving M&A activity in medical devices: Global Data

GlobalData, a data and analytics company, on Tuesday said that genomics and big data have emerged as two of the most prominent themes driving the merger and acquisition (M&A) activity in the medical devices sector. Amid the rising competitive pressures and economic uncertainty, medical device companies are turning to impactful themes to stay ahead, claims GlobalData. Read more

Products acquisition: Dr Reddy’s to buy Mayne Pharma’s US generic prescription product portfolio for $105 million

Dr. Reddy’s Laboratories SA, an arm of Dr. Reddy’s Laboratories Ltd, has entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group Ltd. Under the terms of the agreement, Hyderabad-based Dr. Reddy’s will acquire the portfolio for an upfront payment of approximately $90 million in cash, contingent payments of up to $15 million, consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date. Read more

Information and Broadcasting

Advisory on Obligation of Public Service Broadcasting

Recently, the Information and Broadcasting Ministry clarified that private TV channels must show programs about important national issues and topics that matter to society for 30 minutes every day, under the “Guidelines for Uplinking and Downlinking of Television Channels in India, 2022”. Read more

Seeking comments of the Industry and General Public on the Draft of National Animation, Visual Effects, Games, Comic and Extended Reality (AVGC) Policy.

The government has sought public comments on the draft policy on the national Animation, Visual Effects, Games, Comic and Extended Reality (AVGC). In order to boost the domestic capacities and develop the opportunity landscape, collaborations in academia, co-production, technology, policy & research must be explored to leverage the existing industry expertise. The AVGC segment, as a part of the larger media and entertainment sector, also offers immense potential to employ youth. Read more

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