In this edition we have tried to bring you notice the latest amendment that followed in the month of August issued by MCA, SEBI, RBI and others.
Amendment introduced by MCA
Amendment of item no. (ix) In the Schedule VII of the Companies Act, 2013
In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule VII to the said Act, as follows:- http://www.mca.gov.in/Ministry/pdf/NotificationCompAct_26082020.pdf
[Source: MCA Notification, Dated 24th August 2020]
(Corporate Social Responsibility Policy) Amendment Rules, 2020
In exercise of the powers conferred by section 135 and sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Corporate Social Responsibility Policy) Rules, 2014, namely, as follows:- http://www.mca.gov.in/Ministry/pdf/csr_26082020.pdf
[Source: MCA Notification, Dated 24th August 2020]
Clarification on dispatch of notice under Section 62(2) od companies Act,2013 by listed companies for right issue opening up to 31st December,2020
Reference is drawn to this Ministry’s General Circular Number 21/2020 dated 11th May, 2020 regarding clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issue opening upto 31st July, 2020. Representations have been received for extending the validity of such clarification. The Circular (Number SEBI/HO/CFD/DIL1/CIR/P/2020/136) issued by SEBI on 24th July, 2020 has also been considered. In view of this it has been decided as follows:- http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.25_03082020.pdf
Source: MCA Circular No.27/2020, Dated 03rd August 2020]
Clarification on Extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020, under Companies Act, 2013
Several representations have been received in the Ministry for providing relaxations in the provisions of Companies Act, 2013 (the Act) or rules made thereunder to allow companies to hold their annual general meeting (AGM) for the financial year ended on 31st March, 2020 beyond the statutory period provided in section 96 of the Act. The matter has been examined in this Ministry and Clarified as follows:- http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.28_17082020.pdf
Source: MCA Circular No.28/2020, Dated 17th August 2020]
Revised Standard Operating Procedure for Ld. Advocate/ Authorized Representative/Party-in-Person for mentioning the matter for hearing through virtual mode
As directed, the following is the revised Standard Operating Procedure for hearing of cases through virtual mode (Cisco Webex Meeting Platform) from 04.08.2020 till further orders. The mentioning application shall be submitted only by e-mail at the email address registrar-nclat@nic.in. If the mentioning application is allowed, the Learned Advocate / Authorized Representative /Party-in-Person shall file the Appeal/ Interlocutory application in hard copy as per the procedure prescribed under NCLAT Rules. The parties shall not be permitted to rely upon any document other than the documents duly filled along with the Appeal/Interlocutory application in conformity with the NCLAT Rules. The mentioning application must contain a separate paragraph giving consent for taking up the matter through virtual mode.
[Source: NCLT Notice]
Amendment introduced by SEBI
Securities and Exchange Board of India(Listing Obligations And Disclosure Requirements)(Second Amendment Regulations, 2020)
In exercise of the powers conferred by section 11, sub-section (2) of section 11A and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 31 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as follows:- https://www.sebi.gov.in/legal/regulations/aug-2020/securities-and-exchange-board-of-india-listing-obligations-and-disclosure-requirements-second-amendment-regulations-2020_47274.html
[Source: Notification No. SEBI/LAD-NRO/GN/2020/25 ,dated 5th August, 2020]
Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 – Amendments
In order to further streamline the operations at IFSC, based on consultations with stakeholders, it has been decided to amend provisions of Clause 19 of SEBI (IFSC) Guidelines, 2015 is being amended, Which are as follows:- https://www.sebi.gov.in/legal/circulars/aug-2020/securities-and-exchange-board-of-india-international-financial-services-centres-guidelines-2015-amendments_47374.html
[Source: Circular No. SEBI/HO/MRD1/DSAP/CIR/P/2020/154, dated 21st August, 2020]
Amendment introduced by RBI
New Definition of Micro, Small and Medium Enterprises – clarifications
In view of the representations from IBA and banks regarding applicability of certain aspects contained in the Gazette notification No. S.O. 2119(E) dated June 26, 2020 on new criteria for classifying the enterprises as micro, small and medium enterprises, the Ministry of MSME, vide their Office Memorandum (OM) No.2/1(5)/2019 – P & G/Policy (pt. IV) dated August 6, 2020 and letter F.No.5/2(2)/2020 – P & G/Policy dated August 13, 2020 has, inter alia, clarified the following:- https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11951&Mode=0
[Source: Notification No. RBI/2020-2021/26,dated 21st August, 2020]
Miscellaneous Laws
The Delhi Government states that all people above Rs. 500 crore turnovers shall have QR Code facility.
The Delhi Finance Department has issued an order for the furnishing of the invoice that is being issued by a registered person, who aggregate turnover in a financial year exceeds five hundred crore rupees, to an unregistered person, shall have a quick response code (QR Code). Provided that where such registered person makes a dynamic quick response code available to the recipient through a digital display, such B2C invoice issued by such registered person containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having a Quick Response Code (QR Code). This Notification shall come into effect from April 01, 2020.
[Source: Notification No. 72/2019, 16th July, 2020]