In this edition we have tried to bring to your notice the latest amendment that followed in the month of September, 2021 issued by MCA, RBI, SEBI, BSE, NSE and others.
Amendments issued by MCA
Relaxation for filing Cost Audit Report:
MCA has granted relaxation of additional fees and extension of the last date of filing of Cost Audit Report to the Board of Directors under Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014 due to impact of COVID-19 pandemic.
To read more: https://www.mca.gov.in/bin/dms/getdocument?mds=UxuGnG2gQZrVxQ%252Fz%252FehiFg%253D%253D&type=open
Extension to hold Annual General Meeting:
The Ministry of Corporate Affairs has directed all Registrar of Companies to accord its approval of a 2 (Two) months extension to companies who have not been able to hold their Annual General Meetings for the financial year ended March 31, 2021.
To read more: https://www.mca.gov.in/content/mca/global/en/data-and-reports/rd-roc-info/extension-agm.html
Amendments issued by SEBI
SEBI has issued the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2021:
The amendment provides that the listed entity shall give prior intimation to the stock exchange of at least two working days in advance, excluding the date of the intimation and the date of the meeting of the board of directors, about the Board meeting in which the Board is going to consider any of the proposals relating to an alteration in the form or nature of non-convertible securities that are listed on the stock exchange or in the rights or privileges of the holders thereof; An alteration in the date of the interest/ dividend/ redemption payment of non-convertible securities; Financial results viz. quarterly or annual, as the case may be; Fundraising by way of issuance of non-convertible securities; or(e) any matter affecting the rights or interests of holders of non-convertible securities. Further, the amendment also provides that the annual audited standalone and consolidated financial results for the financial years shall be submitted to the stock exchange(s) within sixty days from the end of the financial year along with the audit report.
Circular to allow stock exchanges to offer T+1 rolling settlement:
SEBI has issued a circular to allow stock exchanges to offer T+1 rolling settlement on an optional basis effective from January 01, 2022. Accordingly, a Stock Exchange may choose to offer a T+1 settlement cycle on any of the scrips subject to the conditions that advance notice of at least one month.
To read more: https://www.sebi.gov.in/legal/circulars/sep-2021/introduction-of-t-1-rolling-settlement-on-an-optional-basis_52462.html
Gold Exchange and SEBI (Vault Managers) Regulations, 2021:
The SEBI Board at their meeting has proposed a framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021, creation of the Social Stock Exchange and an Investor Charter of SEBI for investors in the securities market and introduction of Silver Exchange Traded Funds in India.
The Board approved amendment to SEBI (Alternative Investment Funds) Regulations, 2012 allowing Category III AIFs to calculate concentration norms based on Net Asset Value of the fund instead of investable funds for investment in listed equities of investee companies. The Board approved amendments to the SEBI (Portfolio Managers) Regulations, 2020 and the SEBI (Alternative Investment Funds) Regulations, 2012, to facilitate Co-investment by investors of Alternative Investment Funds (AIF) through portfolio management route.
To read more: https://www.sebi.gov.in/media/press-releases/sep-2021/sebi-board-meeting_52976.html
Risk Management Framework (RMF) for Mutual Funds:
SEBI has published the revised Risk Management Framework (RMF) which provides a set of principles or standards, which inter alia comprise the policies, procedures, risk management functions and roles & responsibilities of the management, the Board of AMC and the Board of Trustees. AMCs must perform a self-assessment of their RMF and practices and come up with a roadmap for implementation of the framework. The elements of RMF, wherever applicable, have been segregated into ‘mandatory elements’ which should be implemented by the AMCs and ‘recommendatory elements’ which address other leading industry practices that can be considered for implementation by the AMCs, to the extent relevant to them.
To read more: https://www.sebi.gov.in/legal/circulars/sep-2021/risk-management-framework-rmf-for-mutual-funds_52943.html
Amendments issued by RBI
Application for Aadhaar e-KYC Authentication Licence:
RBI has issued a notification to direct the NBFCs (Non-Banking Financial Companies), payment system providers and payment system participants to submit applications for obtaining Aadhaar e-KYC authentication license.
To read more: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12161&Mode=0
Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021:
RBI has notified the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021 which shall come into force from the date of their publication in the Official Gazette 10-09-2021. Through this amendment Regulation 15 which deals with advance payment against exports has been amended. Regulation 15 pertains to Advance payment against exports which reads, where an exporter receives advance payment (with or without interest), from a buyer / third party named in the export declaration made by the exporter, outside India, the exporter shall be under an obligation to ensure that the rate of interest, if any, payable on the advance payment shall not exceed 100 basis points above the London Inter-Bank Offered Rate (LIBOR) or other applicable benchmarks as may be directed by the Reserve Bank, as the case maybe.
To read more: https://www.egazette.nic.in/WriteReadData/2021/229553.pdf
Amendments issued by BSE
BSE has issued a circular on XBRL based compliance filing through which all the listed Debt issuers are requested to file Record date details in XBRL mode in addition to the filing in PDFmode, till further notification. The submission of Credit Rating, Interest Payment, Redemption Payment and Default History Information shall be submitted in XBRL mode only and any other mode of submission shall be treated as non-submission.
To read more: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20210915-2
Amendments issued by NSE
XBRL based filing of Related Party Transactions for Listed Companies at NSE:
NSE has issued a circular to all the listed companies to make filings in respect of related party transaction details in the extensible Business Reporting Language (XBRL) mode to make the disclosure more accurate and efficient.
To read more: https://static.nseindia.com//s3fs-public/inline-files/NSE_Circular_06092021.pdf
Amendments issued by IFSCA
Circular for the Code of Conduct and Code of Ethics for the Directors and Key Management Personnel (KMP) of recognized Market Infrastructure Institutions(MIIs) in GIFT-IFSC:
The International Financial Services Centers Authority has issued a circular to notify the Code of Conduct and Code of Ethics for the Directors and Key Management Personnel (KMP) of recognized Market Infrastructure Institutions(MIIs) in GIFT-IFSC. Every Director of the recognized MII shall ensure that the recognized MII abides by all the applicable provisions of International Financial Services Centres Authority Act, 2019, MIIs Regulations, Bullion Exchange Regulations, rules and regulations framed thereunder and the circulars, directions issued by the Authority from time to time.
To read more: https://ifsca.gov.in/Viewer/Index/227
Amendments issued by DGFT
De-Activation of IECs not updated on the DGFT
DGFT has granted a final opportunity to IEC holders (Import-Export code) to update their IEC in this interim period till 05.10.2021, failing which the given IECs shall be de-activated from October 6, 2021. Any IEC where an online updation application has been submitted but is pending with the DGFT RA for approval shall be excluded from the de-activation list. It may further be noted that any IEC so de-activated, would have the opportunity for automatic re-activation without any manual intervention or a physical visit to the DGFT RA.
Amendments issued by Ministry of MSME
The Ministry of Micro, Small, and Medium Enterprises has decided to implement International Cooperation Scheme (IC) with an objective to provide International marketing opportunities to MSMEs as well as to integrate them into global value chains. Financial assistance is provided to all eligible/State/ Central Government organizations, registered industries associations and Societies/Trusts involved in the promotion and development of MSME sectors.
To read more: https://msme.gov.in/sites/default/files/DOFromJS%28SME%29dated13.09.2021.pdf