In this edition\nwe have tried to bring you notice the latest amendment that followed in the\nmonth of June, 2022 issued by MCA, RBI, SEBI, DIPP and others.<\/p>\n\n\n\n
Amendments issued by MCA<\/strong><\/p>\n\n\n\n Through this amendment, MCA has added a\nnew sub-rule 4 in Rule 25A of the Companies (Compromises, Arrangements and\nAmalgamations) Rules, 2016, to provide that in case of a compromise or an\narrangement or merger or demerger between an Indian company and a company or\nbody corporate which has been incorporated in a country which shares a land\nborder with India, a declaration in Form No. CAA-16 shall be required at the\nstage of submission of an application under Section 230 of the Act. <\/p>\n\n\n\n To Read More\n.. <\/p>\n\n\n\n https:\/\/egazette.nic.in\/WriteReadData\/2022\/236112.pdf<\/p>\n\n\n\n MCA has been observed that various\nSection 8 companies are altering their object clause for carrying out\nmicro-finance activities by way of passing Special Resolution, changing\nActivity code and subsequently filing of e-form MGT-14 with the concerned ROCs,\neven though at initial incorporation, the ROC (CRC) is not allowing Section 8\ncompanies to get incorporated with the objects of microfinance activities in\nview of Ministry’s direction letter no. No. 05\/33\/2017-CL.V dated 10.02.2020\nand letter dated 31.8.2020. <\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/www.mca.gov.in\/bin\/dms\/getdocument?mds=pjROvSy%252FgkUSNcnWQyTUxQ%253D%253D&type=open<\/a><\/p>\n\n\n\n MCA has tightened the norms for the appointment of any person, as\ndirector in an Indian Company, who is a national of a country\nthat shares a land border with India. Accordingly, in case the person\nseeking appointment is a national of a country that shares a land border\nwith India, necessary security clearance from the Ministry of Home Affairs, the\nGovernment of India shall also be attached along with the consent. <\/p>\n\n\n\n To Read More https:\/\/www.mca.gov.in\/bin\/dms\/getdocument?mds=wYSGjqnF6yGnx2KJbnw8aA%253D%253D&type=open<\/a><\/p>\n\n\n\n The amendment is brought under Rule 6 which deals with compliances\nrequired by a person eligible and willing to restore his name in the\nindependent director databank.<\/p>\n\n\n\n To\nRead More <\/p>\n\n\n\n https:\/\/www.mca.gov.in\/bin\/dms\/getdocument?mds=U4Pl6Cz4l3T9YHrD1ZOq2g%253D%253D&type=open<\/a><\/p>\n\n\n\n The amendment brought the revisions to the procedure for striking\noff a company. Accordingly, where the Registrar, on examining the application\nmade in Form STK-2, finds that it is necessary to call for further information\nor finds such application or any document annexed therewith is defective or\nincomplete in any respect, he shall inform the applicant to remove the defects\nand re-submit the complete Form within fifteen days from the date of such\ninformation, failing which the Registrar shall treat the Form as invalid in the\nelectronic record, and shall inform the applicant. <\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/www.mca.gov.in\/bin\/dms\/getdocument?mds=TffuoSoybbV3DKUqzsmMaQ%253D%253D&type=open<\/a><\/p>\n\n\n\n According\nto the National Financial Reporting Authority (NFRA) amendment rules 2022,\nRule 13 is amended to provide the revised penalty provision for non-compliance\nor contravention with any of the provisions.<\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/www.mca.gov.in\/bin\/dms\/getdocument?mds=ALYJ%252BRnuB%252BCYMY4Llv02JA%253D%253D&type=open<\/a><\/p>\n\n\n\n All Demat accounts maintained by stock brokers should be\nappropriately tagged. All Demat accounts of stock brokers which are untagged\nneed to be appropriately tagged by June 30, 2022, under the categories which\ninclude Proprietary Account to Hold Own Securities; Pool account for Settlement\nPurposes; Client Unpaid Securities Account to Hold Unpaid Securities of\nClients; Client Securities Margin Pledge Account for Margin obligations to be\ngiven by way of Pledge\/ Re-pledge, and Client Securities under Margin Funding\nAccount to Hold funded securities in respect of margin funding.<\/p>\n\n\n\n To\nRead More <\/p>\n\n\n\n https:\/\/www.sebi.gov.in\/legal\/circulars\/jun-2022\/naming-tagging-of-demat-accounts-maintained-by-stock-brokers_59830.html<\/a><\/p>\n\n\n\n The Board has approved an amendment to\nsimplify the process for transmission of securities to ensure that uniform\nprocesses are followed by the Registrars to an Issue and Share Transfer Agents\n(RTAs) \/ listed companies which would further ease the transmission process for\ninvestors. The threshold limit for simplified documentation for transmission of\nsecurities has been revised from Rs. 2 lakhs to Rs. 5 lakhs for securities held\nin physical mode per listed issuer and from Rs. 5 lakhs to Rs. 15 lakhs for securities\nheld in the dematerialized mode for beneficiary account.<\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/mail.google.com\/mail\/u\/0\/?pli=1#inbox\/FMfcgzGpGnLZzQTSPSTHmDnZrhjtNNfk<\/a><\/p>\n\n\n\n As per Clause 9 of SEBI KYC (Know Your Client)\nRegistration Agency (KRA) Regulations, 2011. The KYC records of all existing\nclients (who have used Aadhaar as an officially valid document (OVD) shall be\nvalidated within a period of 180 days from August 01, 2022. and for those\nclients who have completed KYC using non-Aadhaar OVD, their records will be\nvalidated only after they have given their Aadhaar number.<\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/egazette.nic.in\/WriteReadData\/2022\/236790.pdf<\/p>\n\n\n\n The new framework\nwill come into force with effect from 1st<\/sup> June 2022. The\nArbitration Mechanism shall be initiated post exhausting all actions for\nresolution of complaints including those received through the SCORES Portal.\nThe Arbitration reference shall be filed with the Stock Exchange where the\ninitial complaint has been addressed. In case of arbitration matters involving\na claim of up to Rs. 25 lakhs, a sole arbitrator shall be appointed and, if the\nvalue of the claim is more than Rs. 25 lakhs, a panel of three arbitrators\nshall be appointed. The arbitration and appellate arbitration shall be\nconducted at the regional center of the stock exchange nearest to the\nshareholder(s) \/investor(s). <\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/www.sebi.gov.in\/legal\/circulars\/may-2022\/standard-operating-procedures-sop-for-dispute-resolution-under-the-stock-exchange-arbitration-mechanism-for-disputes-between-a-listed-company-and-or-registrars-to-an-issue-and-share-transfer-agents-_59345.html<\/a><\/p>\n\n\n\n Based on the representations received from REITs\/InvITs, SEBI has\ndecided to further extend the facility to conduct annual meetings through\nVC\/OAVM. Besides, the Ministry of Corporate Affairs (MCA), last month, extended\nthe facility of holding AGMs and EGMs through VC\/OAVM till December 31, 2022. <\/p>\n\n\n\n To\nRead More <\/p>\n\n\n\n https:\/\/www.sebi.gov.in\/legal\/circulars\/jun-2022\/extension-of-facility-for-conducting-annual-meeting-and-other-meetings-of-unitholders-of-reits-and-invits-through-video-conferencing-vc-or-through-other-audio-visual-means-oavm-_59534.html<\/a><\/p>\n\n\n\n For any dispute between the member and the client relating to or\narising out of the transactions in the Stock Exchange, which is of civil\nnature, the complainant\/ member shall first refer the complaint to the IGRC\nand\/ or to Arbitration Mechanism provided by the Stock Exchange before\nresorting to other remedies available under any other law. A\ncomplainant\/member, who is not satisfied with the recommendation of the IGRC\nshall avail the arbitration mechanism of the Stock Exchange for settlement of\ncomplaints within three months from the date of IGRC recommendation. <\/p>\n\n\n\n To\nRead More <\/p>\n\n\n\n https:\/\/www.sebi.gov.in\/legal\/circulars\/jun-2022\/investor-redressal-grievance-mechanism_59521.html<\/a><\/p>\n\n\n\n Amendments\nissued by RBI<\/strong><\/p>\n\n\n\n <\/strong>The directions shall apply to the Non-centrally\ncleared foreign exchange derivative contracts undertaken in terms of the\nForeign Exchange Management (Foreign Exchange Derivative Contracts)\nRegulations, 2000 and non-centrally cleared interest rate derivative contracts\nundertaken in terms of the Rupee Interest Rate Derivatives (Reserve Bank)\nDirections, 2019 and any other non-centrally cleared derivative (NCCD) contract\nas may be specified by the Reserve Bank. <\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=12328&Mode=0<\/a><\/p>\n\n\n\n IBBI\nhas notified which shall come into force on the date of their\npublication in the Official Gazette i.e 14-06-2022.<\/strong> The Amendment has provided\nthe revised mechanism for carrying out inspections and investigations on\ninsolvency professional agencies, insolvency professionals, and information\nutilities and passing orders by Disciplinary Committee. The mechanism of\ncomplaint\/ grievance redressal and subsequent enforcement action has been\namended to have expeditious redressal and also to avoid placing an undue burden\non the service providers. <\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/ibbi.gov.in\/uploads\/legalframwork\/c317bc75a22562eb4a439072ecda405f.pdf<\/a><\/p>\n\n\n\n The amendment provides the operational creditors to furnish\nextracts of Form GSTR-1, Form GSTR-3B and e-way bills, wherever applicable\nalong with the application filed under Section 9 of the Insolvency and\nBankruptcy Code, 2016. These additional sets of documents can be used as\nevidence of transactions with the corporate debtor, debt, and default easing\nthe process of admission. These documents will also to be submitted as part of\nthe claims submitted to the resolution professional to help collation of claims.\n<\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/ibbi.gov.in\/uploads\/legalframwork\/c317bc75a22562eb4a439072ecda405f.pdf<\/a><\/p>\n\n\n\n Amendments issued by CBIC<\/strong><\/p>\n\n\n\n CBIC has requested the Insolvency and\nBankruptcy Board of India establish the role of the GST and Customs authorities\nin certain crucial matters under the Insolvency and Bankruptcy Code,\n2016. The GST and Customs Authorities have been classed as operational\ncreditors. The authorities must file claims against corporate debtors when the\ncorporate bankruptcy and resolution process are commenced and a public\nstatement inviting claims is published by the insolvency professional. <\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/ibbi.gov.in\/uploads\/whatsnew\/d43197e20e9644e00e26c5e036e0a269.pdf<\/a><\/p>\n\n\n\n The Goods\nand Services Tax (Compensation to States) Act, 2017 provides for compensation\nto states for any loss in revenue due to the implementation of GST. The Act\nallows the central government to levy a GST Compensation Cess on the supply of\ncertain goods and services. The receipts from the cess are deposited to a\nGST Compensation Fund. The amount deposited in the Fund is used to compensate\nstates for any loss in revenue following the implementation of GST. Earlier the\ngovernment fixed the last date for levy of GST compensation cess till July 01,\n2022, however, it has now been extended till March 31, 2026.<\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/egazette.nic.in\/WriteReadData\/2022\/236790.pdf<\/p>\n\n\n\n The GST on the supply of printing,\nwriting or drawing ink, knives, power-driven pumps, LED Lamps, lights and\nfixtures are recommended to be increased from 12% to 18%. The GST rate on the\nsolar water heaters and finished leather is recommended to be increased from 5%\nto 12%. <\/p>\n\n\n\n To Read More <\/p>\n\n\n\n https:\/\/pib.gov.in\/PressReleseDetail.aspx?PRID=1838020<\/a><\/p>\n\n\n\n Amendments issued by FSSAI<\/strong><\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/fssai.gov.in\/upload\/advisories\/2022\/06\/629cbbf413763Order_Extension_Annual_Return_05_06_2022-compressed.pdf<\/a><\/p>\n\n\n\n As per sub-regulation 9 of FSS (labeling and display) regulations\n2020, the food service establishments having central license or outlets\nat 10 or more locations shall mention the calorific value against the food\nitems displayed on the menu cards or boards or booklets and shall also provide\ninformation such as nutritional information, allergen information, ingredient\ninformation, etc.<\/p>\n\n\n\n To Read More<\/p>\n\n\n\n https:\/\/www.fssai.gov.in\/upload\/advisories\/2022\/06\/62a86bfa4849eOrder_FBO_ECommerce_14_06_2022.pdf<\/a><\/p>\n\n\n\n Amendments issued by CBDT<\/strong><\/p>\n\n\n\n The Budget brought in a new section, 194R in the I-T Act\nwhich requires deduction of tax at source at the rate of 10%, by any person,\nproviding any benefit or perquisite, exceeding Rs 20,000 in a year to a\nresident, arising from the business or profession of such resident. In line\nwith CBDT\u2019s commitment to reduce taxpayer grievances, revised Instruction for\nthe constitution & functioning of Local Committees to deal with taxpayer\ngrievances arising out of high-pitched assessments was issued. <\/p>\n\n\n\n To Read More <\/p>\n\n\n\n
\n<\/strong>Amendments issued by SEBI <\/strong><\/p>\n\n\n\n
\nAmendments issued by IBBI<\/strong><\/p>\n\n\n\n
\n<\/strong><\/a>Submission of returns physically or through email will not be\nconsidered. As per regulation 2.1.13 of Food Safety and Standards (Licensing\nand Registration of Food Businesses) Regulations, 2011, every licensee shall on\nor before 31st May of each year, submit a return, in \u2018Form D-1\u2019 to the\nLicensing Authority in respect of each class of food products handled by him\nduring the previous financial year. <\/p>\n\n\n\n