MINISTRY OF CORPORATE AFFAIRS (MCA)
TWO DIRECTORS NOMINATED ON THE BOARD OF IL&FS
The Ministry of Corporate Affairs (MCA) has nominated two directors — G Mahalingam and Deepak Mohanty — to the board of IL&FS. The appointment of these two directors has been approved by both the MCA and National Company Law Tribunal. Both Mahalingam and Mohanty are former executive directors of the Reserve Bank of India. Read more
REVISED COMBINATION ASSESSMENT TIMELINES
One of the key amendments proposed is to reduce the time limit for approval of combinations to 150 days from the current 210 days and another is that the Competition Commission of India (CCI) has to form a prima facie opinion within 20 days for expeditious approval of combinations. Read more
RESERVE BANK OF INDIA(RBI)
RBI IMPOSES MONETARY PENALTY ON THE BHARAT CO-OPERATIVE BANK LIMITED, BENGALURU
The Reserve Bank of India (RBI) has imposed a monetary penalty on The Bharat Co-operative Bank Limited, Bengaluru with effect from 5 December 2022. The punitive measure comes in light of the scrutiny applied to the actions of the bank. Read more
WHY RBI COULD RAISE REPO RATES BY UP TO 25-30 BPS IN DECEMBER
The outcome of the RBI’s Monetary Policy Committee (MPC) meeting, scheduled on December 5-7, is expected to create a moderate rate hike. The central bank is likely to raise the repo rate by up to 25-30 basis points (bps), the current situation does not demand a steep 50 bps hike. Read more
SECURITIES EXCHANGE BOARD OF INDIA (SEBI)
ALTERNATIVE INVESTMENT FUNDS: SEBI ON FINAL CLOSURES
Amid inspections, complaints, and questions over performance and compliance, the capital market regulator on Friday asked all alternative investment funds (AIFs) to spell out whether the different schemes run by them have reached ‘final closure’ – if not, why – and the ‘end date’ of the schemes. Read more
SEBI’S AI TOOL ‘PINAKA’ TO IDENTIFY STOCK RECOMMENDATIONS ON TV SHOWS
The SEBI has developed an AI-based system called Pinaka that will scan various stock and finance-based television shows and form a database of recommendations made by these shows. Pinaka’s database will be part of SEBI’s big-data network that the regulatory body will use to conduct inspections for stock market-related offenses. Read more
FOREIGN DIRECT INVESTMENT(FDI)
SANCTION-HIT RUSSIA SEEKS INDIAN SUPPORT FOR AUTO PARTS
Being hit by severe sanctions in the aftermath of waging war against Ukraine, Moscow sends a list of more than 500 products it needs as support from India. These include parts for cars, aircraft, and trains, as reported by media reports. India has actively been involved in trade with Russia. Read more
INDIA-AUSTRALIA FREE TRADE AGREEMENT FINALISED TO BE ENFORCE
The free trade agreement, which was until now in contention of being finalized, would now be enforced from December 29. The FTA agreement is considered to double the bilateral commerce trade to USD 45 to 50 billion in only five years. The agreement was signed on April 2. Read more
GAMING & CRYPTO
FEDERAL REGULATIONS ON ONLINE GAMING
The Prime Minister’s office objected to a differentiation between games of skill and games of chance, calling for expanded oversight on all types of games, according to the minutes of the gathering. Sources from New Delhi addressed Reuters saying that the new Federal Rules will cover all branches of online gaming involving the staking of money and provided that States have the autonomy to regulate games per their Read more
FTX COLLAPSE: ARREST FOR CEO? THE MARKET CONTINUES TO SUFFER
The collapse of Crypto giant FTX continues to cause waves in the market amid speculation about whether CEO Sam Bankman Fried could face arrest. Fried attributes the collapse to poor risk management and decision- making. However, pundits in the field say the charges of fraud are not a reach due to the practices of FTX and the enterprises it operated with. Read more
REAL ESTATE
DELHI HIGH COURT: ADS COUNT AS REVENUE EXPENDITURES
Certain expenses incurred by a real estate developer come under revenue expenditure towards advertisement, brokerage and commission are in the nature of general administration cost and selling cost. This is with respect to the classification done by the Guidance Note with regard to the cost incurred in the production issued by the Institute of Chartered Accountants of India. Read more
INDIA MAY SUFFER AND MIGHT WITNESS A PUSHBACK IF HOME LOAN RATES CROSS 9.5%
High-interest rates and inflation are weighing on the global property boom, but India continues to shine. According to channel checks conducted by foreign brokerage firm CLSA, home demand in India remains stable despite rising mortgage rates and property costs. Read more
INFORMATION & TECHNOLOGY
DIGITAL INDIA ACT, DRAFT OUT BY DECEMBER 31
The Act is said to have a body for accountability and grievance redress setup. The Ministry of Information Technology has confirmed that a draft of the bill will be available for public viewing that will also contain provisions for data protection and will lead to the lapse of the Information Technology, 2000 which has been deemed insufficient and obsolete. Read more
REGULATIONS FOR DIGITAL MEDIA AND PRINT MEDIA
The government has approved the Print and Digital Media Association (PADMA) as a self-regulatory body for publishers of news and current affairs across the country. The organization will look at grievances related to digital media news content on its platforms. Read more
ARBITRATION
SUPREME COURT RULING ON MSME ACT
Even in the presence of an arbitration agreement between the parties, the parties shall continue to have access to the Facilitation Council as described in the MSMED act. According to the court’s rationale, the MSMED Act is a specific piece of legislation that governs medium-sized and small businesses. As a result, it shall take precedence over the general Arbitration and Conciliation Act. Read more
DELHI HIGH COURT RULES ON SARFAESI CHALLENGE
According to the Delhi High Court, arbitration is still permissible even if a party has already filed a petition with the Debt Recovery Tribunal to challenge a secured creditor’s conduct in accordance with the SARFAESI Act. Both the arbitration case and the SARFAESI Act case may proceed at the same time. Read more
FOOD AND BEVERAGES
INDIAN MISSIONS TO BE ROPED IN FOR PROMOTING AND BRANDING OF DOMESTIC MILLET
The Indian mission abroad and the government’s robust strategy to promote “Indian Millet” abroad, would be roped in for promotion, branding, and identification of all the potential buyers globally, for instance, the departmental stores for domestic millet, stated by the ministry of commerce. A conclave named “Millet Smart Nutritive Conclave” is also being organized by the government. Read more
NATURAL FARMING: INCLUSIVE PART OF THE AGRICULTURAL EDUCATION CURRICULUM
The government will further include natural farming in the curriculum of Agri education. At the Natural Farming National Workshop, Narendra Singh Tomar discussed the same in Gwalior, Madhya Pradesh. One of the most critical aspects highlighted for the initiative was the low cost and high price of the produce. Read more
INFRASTRUCTURE & CONSTRUCTION
NATIONAL INFRASTRUCTURE PIPELINE (NIP) IS THE FIRST OF ITS KIND INITIATIVE
The National Infrastructure Pipeline (NIP) for the Fiscal Year 2019-25 is a first-of-its-kind, whole-of-government effort to provide citizens with world-class infrastructure while improving their quality of life. It aims to improve project preparation and attract infrastructure investments. Read more
NCRTC AWAITS APPROVAL FROM THE CENTRE
The National Capital Region Transport Corporation (NCRTC), developing the Delhi-Meerut rapid rail transport service (RRTS), is awaiting Centre approval for the project’s second corridor. The multi-modal project, which is expected to cost around 25,000 crores, will be partially operational next year. Read more
E-COMMERCE
E-TAILERS MAY NEED USER PERMISSION TO GET DATA
The Ministry of Consumer Affairs is creating a comprehensive set of instructions for getting authorization for data sharing. These regulations will be part of the Consumer Protection (E-commerce) Rules, which are anticipated by many parties if they are finalized. The government had asked for a response from interested parties, and August 2021 was the deadline for submitting comments on the suggested rules. The amended standards have not yet been released, nevertheless, due to objections from the business community and other government organizations. Read More
RBI RELAXES UPI PAYMENTS
The Reserve Bank of India (RBI) on Wednesday allowed users to block their funds in their bank accounts using the Unified Payments Interface (UPI), which can be used to make specific payments later. This will enable faster transactions in the stock market, retail purchases of government securities, spending on e-commerce platforms, and hotel bookings. Read more
MERGERS AND ACQUISITIONS
COMPETITION COMMISSION OF INDIA: ROLE IN M&A DISCUSSED AT PARLIAMENT, BILL INTRODUCED
The Bill, which aims to make changes in the Competition Commission of India (CCI)’s role in mergers and acquisitions, among a raft of other reforms, was introduced in the Lok Sabha during the monsoon session in August. The changes are likely to target one of the key proposals in the Bill, which plans to make CCI’s approval mandatory for all mergers and acquisitions valued at over ₹2,000 crores. It is to be a key focus of the winter session. Read more
PHARMACEUTICAL COS GO ON M&A SPLURGE, TRENDS INDICATE GLOBAL PRESENCE
The M&A activity within the Indian Pharma sector has gained momentum as of recently. Biocon Biologics, the biosimilars (copycat biotech drug) manufacturing arm of Biocon said it completed the acquisition of the global biosimilars business of its partner Viatris for $3 billion, a deal announced this year in February. Other cos have followed the trend of high- value acquisitions. Read more
INSOLVENCY AND BANKRUPTCY CODE
TRIBUNAL NOT REQUIRED TO ENTER INTO EVIDENCE: RULING BY NCLAT
The National Company Law Appellate Tribunal (“NCLAT”) Principal Bench, made up of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Judicial Member), and Mr. Barun Mitra (Technical Member), has decided that the Tribunal does not have to take testimony or record findings in the manner of a civil court. Read more
SECTION 96 WOULD NOT APPLY AGAINST CO-GUARANTOR
The Delhi Court in a series of rulings stated that an Interim moratorium under S. 96 IBC in respect of one of the guarantors would not ipso facto apply against a co-guarantor and has stayed a suit under the same grounds. Read more