Monthly Compliance Calendar – February, 2022 – Due Dates Tracker

This article contains various Compliance  requirements  for the Month of February,  2022  under  various  Statutory  Laws.  Compliance means “adhering to rules and regulations.”  Compliance  is  a continuous process of following laws, policies, and regulations, rules to meet all the necessary governance requirements without any failure.

If you think compliance is expensive, try non‐ compliance”

Compliance Requirement Under
  1. Income Tax Act, 1961
  2. Goods & Services Tax Act, 2017 (GST) and Important Updates / Circulars
  3. Companies Act, 2013 & LLP Compliance (MCA/ROC Compliance) and Notifications
  4. Foreign   Exchange    Management    Act,    1999    (FEMA)   and    Important Notifications
  5. Other Statutory Laws and Updates
  6. SEBI      (Listing    Obligations     &     Disclosure     Requirements)    (LODR) Regulations, 2015
  7. SEBI Takeover Regulations 2011
  8. SEBI (Prohibition of Insider Trading) Regulations, 2015
  9. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
  10. SEBI (Buyback of Securities) Regulations, 2018
  11. SEBI (Depositories and Participants) Regulations 2018) and Circulars
  12. Insolvency and Bankruptcy Board of India (IBBI) Updates
  13. NBFC Compliance Overview
  14. NCLT & NCLAT Updates
  15. Competition Commission of India
  16. IRDAI – Insurance Sector Updates
  17. Cabinet Decisions / New Acts

1. COMPLIANCE REQUIREMENT UNDER INCOME TAX ACT, 1961

Sl.Compliance ParticularsDue Dates
1Due date of depositing TDS/TCS liabilities under Income Tax Act, 1961 for previous month.07.01.2022
2.Due date for issue of TDS Certificate for tax deducted under section 194- IA, 194-IB and 194M in the month of January, 2022.07.01.2022
  3a) “Due date for filing of audit report under section 44AB for the assessment year 2021-22 in the case of a corporate-assessee or non-corporate assessee (who was required to submit his/its return14.01.2022
 of income on October 31, 2021). The due date for filing of audit report for Assessment Year 2021- 22 has been extended vide Circular no. 17/2021, dated 09-09- 2021.The due date for filing audit report has been further extended to February 15, 2022 vide Circular No. 01/2022, dated 11-01-2022″. 
  4Due date of furnishing of Form 24G by an office of the Government where TDS/TCS for the month of January, 2022 has been paid without the production of a challan.14.01.2022
5Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending December 31, 2021.14.01.2022
  6Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194-IB, 194-IM, in the month of December, 2021.  15.01.2022
  7“Audit report under section 44AB for the assessment year 2021- 22 in the case of an assessee who is also required to submit a report pertaining to international or specified domestic transactions under section 92E.The due date for filing of audit report for Assessment Year 2021- 22 has been extended vide Circular no. 17/2021, dated 09-09- 2021.The due date for filing audit report has been further extended to February 15, 2022 vide Circular No. 01/2022, dated 11-01-2022”.  15.01.2022

Income Tax Due Date – Extension

Sl.Nature of ExtensionProvisions / Forms of IT Act 1961Earlier Due DateExtended Due Date
1The application in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc.,Under    Section    10 (23C), 12AB, 35 (1) (ii) / (iia) / (iii) and 80G of the Act    30.06.2021    31.03.2022
2Return of income for the assessment year 2021-22 in the case of an assessee if he/it is required to submit a report under section 92E pertaining to international or specified domestic transaction(s)    under section 92E    31.12.202128.02.2022
  3Filing of belated/revised return of income for the assessment year 2021-22 for all assessee (provided assessment has not been completed before December 31, 2021).Belated/revised return of income for the assessment year 2021-2231.01.202231.03.2022

IMPORTATNT UPDATES – JANUARY, 2022:

1. Income Tax Return for AY 2022-2023: Avoid flat 30% tax on cryptocurrency income till now – here’s how

The new crypto tax rule would apply from Assessment Year 2023 -2024. That means your income from crypto in Financial Year 2022-23 would be taxed at the rate of 30% (plus cess and surcharges).

How to avoid flat 30% tax on income from cryptocurrency? After the announcement of proposed 30 percent tax rule on income from cryptocurrencies and other virtual digital assets (VDAs) in Budget 2022, this may be the biggest question on the minds of crypto investors and traders.

The new crypto tax rule would apply from Assessment Year 2023 -2024. That means your income from crypto in Financial Year 2022-23 would be taxed at the rate of 30% (plus cess and surcharges).

For income in the current financial year (till 31st March 2022), 30% tax rule will not apply. So if you sell your crypto holdings till March 31 and book profit, this income will be taxed as per existing rules in Assessment Year 2022 -2023.

According to Revenue Secretary Tarun Bajaj, crypto investors can show their income under some head in ITR and the Assessing Officer would do the assessment for them for transactions before April 1. (To know more: Click Here)

2. Income tax slabs 2022: No changes in Income Tax, govt employees’

tax deduction limit increased to 14%.

While presenting the Union Budget on Tuesday, Finance Minister Nirmala Sitharaman proposed no change in income tax slabs. She, however, proposed that both Centre and states government employees’ tax deduction limit be increased from 10% to 14%. The move, she said, will help the social security benefits of state government employees and bring them at par with the Central government employees.

The Finance Minister also proposed a reduction in corporate surcharge and said that the transfer of any virtual digital asset shall be taxed at the rate of 30%. “Corporate surcharge to be reduced from 12% to 7%. I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition,” she said.

The Budget has also extended the timelines for benefits under the new corporate tax regime. The government had announced a 15 per cent corporate tax rate for newly incorporated manufacturing companies till March 31, 2023, which has now been

extended till March 31, 2024. The period of incorporation for startups to avail the tax benefits has also been extended by a year to March 31, 2023.

(To know more: Click Here)

3. Here’s how the new CBDT circular has impacted Ulip taxation benefits

Ahead of budget 2022 which will be presented by the finance minister in a few days, let me take you back to Budget 2021, when the Ulip (unit linked insurance policies) industry got a shock as the new provisos for claiming exemption of the sum received from Ulip were added. There were still some grey areas with respect to the newly added provisos which are now clarified in more detail by CBDT (Central Board of Direct Taxes) in the ‘Guidelines under clause (10D) section 10 of the Income-Tax Act, 1961’ vide circular no. 2 of 2022, dated 19 January 2022.

Ulip is one of the most common investment people make as it has dual benefits. Firstly, when the premium is paid it is claimed as deduction under Section 80C of the Income Tax Act. Secondly, the sum received from the Ulip is exempted under Section 10(10D) of the Income Tax Act, subject to certain conditions.

This amendment is applicable prospectively, i.e. for policies issued after 1 February 2021. When the exemption stands withdrawn, tax will be payable on the capital gains i.e. difference between sum received (including withdrawals and bonus) and total premium paid. Also, if premium is payable for more than one Ulip, issued on or after 1 February 2021, the exemption of sum received under Section 10 (10D) shall be available only with respect to such policies where the aggregate premium does not exceed ₹2.5 lakh for any of the previous years during the term of any of those policies. (To know more: Click Here)

  • IMPORTANT NOTIFICATIONS – For the month of January – 2022:
Sl.Particulars of the Notification(s)File No. / Circular No.Link(s)
1.Income Tax department detects anomalies in 2 Chinese mobile firmsTax NewsClick Here
    2.One-time relaxation for verification of all income tax-returns e-filed for the Assessment Year 2020-21 which are pending for verification and processing of such returns – reg.Circular No. 21 / 2021  Click Here
3.The Income-tax (34th Amendment) Rules, 2021Notification No. 138/2021Click Here
4.The Faceless Appeal Scheme, 2021.Notification No. 139/2021Click Here
5.The Income-tax (35th Amendment) Rules, 2021Notification No. 140/2021Click Here
 Income Tax notification to give effect to theNotification No.Click Here
6.Faceless Appeal Scheme, 2021141/2021 
7‘Regional Air Connectivity Fund Trust (PAN AADTR1130P),Notification No. 1/2022Click Here
  8Searches conducted by Income Tax Department largely in Uttar Pradesh and MaharashtraPress Release ID: 1787764Click Here
9Evasion of Customs duty of Rs. 653 crore by M/s Xiaomi Technology India Private LimitedPress Release ID: 1787686Click Here
10Extension of timelines for filing of ITRs and various reports of audit for the Assessment Year 2021-22– regCircular No. 01/2022Click Here
  11Central Government hereby notifies for the purposes of the said clause, ‘International Financial Services Centres Authority’Circular No. 03/2022Click Here
12Income tax (1st Amendment) , Rules, 2022.Circular No. 06/2022Click Here
13Income Tax Department conducts searches in KeralaPress Release ID 1788947Click Here
14Guidelines under clause (10D) section 10 of the Income-tax Act, 1961 – reg.Circular No. 02/2022Click Here
15CBDT notifies National Skill Development Corporation for exemption U/s. 10(46)Notification No. 10/2022Click Here
,16The      Securities      Transaction      Tax      (1st Amendment), Rules, 2022Notification No. 09/2022Click Here
17The Income tax (2nd Amendment) Rules, 2022.Notification No. 08/2022Click Here
18The “e-advance rulings Scheme, 2022”.Notification No. 07/2022Click Here

2. COMPLIANCE REQUIREMENT UNDER GST, 2017

A.    Filing of GSTR –3B

a) Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY
Tax periodDue DateNo interest payable tillParticulars
    January, 2022  20th February, 2022   Due Date for filling GSTR – 3B return for the month of June, 2021 for the taxpayer with Aggregate turnover exceeding INR 5 crores during previous year
  • Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)
Tax periodDue DateNo interest payableParticulars
  till 
      January, 2022    22nd February, 2022 Due Date for filling GSTR – 3B return for the month of June, 2021 for the taxpayer with Aggregate turnover upto INR 5 crores during previous year and who has opted for Quarterly filing of GSTR-3B
Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep
  • Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)
Tax periodDue DateNo interest payable tillParticulars
January, 202224th February, 2022  
Group B States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi
  • Filing Form GSTR-1:
Tax periodDue DateRemarks
    Monthly return (January, 2022)    11.02.2022“1. GST Filing of returns by registered person with aggregate turnover exceeding INR 5 Crores during preceeding year. 2. Registered person, with aggregate turnover of less then INR 5 Crores during preceeding year, opted for monthly filing of return under QRMP”
  • Non Resident Tax Payers, ISD, TDS & TCS Taxpayers
Form No.Compliance ParticularsTimelineDue Date
GSTR-5 & 5ANon-resident     ODIAR    services provider file Monthly GST Return20th of succeeding month20.02.2022
  GSTR -6Every Input Service Distributor (ISD)  13th of succeeding month  13.02.2022
  GSTR -7Return for Tax Deducted at source to be filed by Tax Deductor  10th of succeeding month  10.02.2022
  GSTR -8E-Commerce operator registered under GST liable to TCS10th of succeeding month10.02.2022
  • GSTR – 1 QRMP monthly / Quarterly return
Form No.Compliance ParticularsTimelineDue Date
  Details of outward supply-IFF &   Summary              of outward supplies by taxpayers who have opted for the QRMP scheme.GST QRMP monthly return due date for the month of December, 2021 (IFF). Applicable for taxpayers with Annual aggregate turnover up to Rs. 1.50 Crore.Summary of outward supplies by taxpayers who have opted for the QRMP scheme.    13th     of    succeeding month – Monthly   Quarterly Return      13.02.2022

E.        GST Refund:

Form No.Compliance ParticularsDue Date
RFD -10Refund of Tax to Certain Persons18 Months after the end of quarter for which refund is to be claimed
  • Annual Returns:
Form No.Compliance ParticularsDue Date
    GSTR – 9GSTR-9 is Annual Return applicable for registered person with aggregate turnover exceeding INR 2 Crores during the F.Y. 2020-21. However, registered person with aggregate turnober upto INR 2 Crores have option to file GSTR-9.    28.02.2021
  GSTR – 9CGSTR-9C is reconciliation statement applicable for registered person with aggregate turnover exceeding INR 5 Crores during the F.Y. 2020-21.  28.02.2021
Major Update:

Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.

Aadhaar    authentication    of    registered    person    is    mandatory    for    filing    of Refund/Revocation of cancelled registration applications w. e. from 1.1.2022.

  • KEY UPDATE(s) – January, 2022:
1.  Several textile cos’ stocks rallied in past 1 yr on GST hike deferment, PLI

The shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills companies rose 252%, 316%, 711%, respectively, over the past one-year period

Shares in textile business have witnessed a consistent uptick in the recent months due to various policy measures and on hopes of a firm outlook for the sector going ahead.

Besides, the GST council’s recent move to defer rate hike on textiles has buoyed investors’ sentiment. In its latest GST council meeting, it was unanimously decided to defer a hike in rates on textiles from 5 per cent to 12 per cent, which was to come into effect from January 1.

The decision by the Council gave a breathing space to the industry. Accordingly, stocks of several textile firms zoomed. Till date, shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills have seen a sharp rally. The shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills companies rose 252 per cent, 316 per cent, 711 per cent, respectively, over the past one-year period.

Consequently, shares Of companies such as Alok Industries rose 40 per cent, Trident 333 per cent, KPR Mill 315 per cent, Arvind 195 per cent, Welspun India 134 per cent, Gokaldas Exports 344 per cent, Lux Industries 147 per cent, Filatex India 109 per cent, and Ambika Cotton Mills 105 per cent during the period. (To read more: Click Here)

2.  ‘Exempt all branded essential food prods under GST’

Madurai: The Agrofood chamber of commerce and industry (agrofood chamber) has urged the union government to exempt all branded essential food products under the Goods and Services Tax (GST) at par with the same products such as unbranded. This has been stressed by the chamber in a pre-budget memorandum for the year 2022-23 submitted to the union finance minister Nirmala Sitharaman. In the representation on behalf of the trade and industry, farming and agrofood sector, the agrofood chamber president S Rethinavelu said that this has been a long pending demand of the industry. “Unbranded essential food items such as rice, wheat and pulses are exempted from GST. But the same when branded attract 5% GST, making them expensive or forcing brands to disown the brand names with a disclaimer,” he said. The chamber president said that the government should encourage companies and traders to go for branded essential food items by exempting them under GST. “By going with the brand name the companies have the responsibility of giving quality products to the consumers and to promote the brand name. As brands disown their names with a disclaimer to avail tax exemption, there is a threat for misuse of their names by anyone,” he added.

They also sought one tax rate for all the products covered under one chapter for ease of doing business, deregulating the Cereals, Pulses and Staples from the Essential Commodities Act, 1955, abolition of cess levied on farm produce that are sold outside the Agricultural Produce Marketing Committees and increasing the threshold limit for the service sector from Rs 20 lakh to Rs 40 lakh for the benefit of small service providers. (To read more – Click Here)

3.  K’taka CM urges Centre to extend GST compensation period upto 2024-25

Karnataka Chief Minister Basavaraj Bommai on Monday requested the Centre to extend the GST compensation for a period up to 2024-25. Bommai presented the request when he called on Union Finance minister Nirmala Sitharaman in New Delhi on Monday.

“The period of GST compensation, being paid by the Union government, is set to end in March 2022. But the states are facing a resource crunch due to the COVID-19 impact. In this background, the Union government should extend the GST compensation time limit up to 2024-25 to help the states,” said Bommai.

Sl.Notification ParticularsNotification No.Link (s)
1.Reporting of supplies notified under section 9(5) / 5(5) by E-commerce Operator in GSTR-3BGSTN Update No. 516Click Here
2.Module wise new functionalities deployed on the GST Portal for taxpayersGSTN Update No. 516Click Here
3.Advisory     on     Revamped     Search     HSN                    Code FunctionalityGSTN Update No. 516Click Here
4.Upcoming functionality – Interest Calculator in GSTR- 3BGSTN Update No. 516Click Here
5.Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017.40/2021- Central Tax dated 29.12.2021Click Here
6Seeks to amend Notification No 1/2017- Central Tax (Rate) dated 28.06.2017.18/2021-Central Tax (Rate), dt. 28-12-2021Click Here
7Seeks to amend Notification No 2/2017- Central Tax (Rate) dated 28.06.2017.19/2021-Central Tax (Rate), dt. 28-12-2021Click Here
8Seeks to amend Notification No 21/2018- Central Tax (Rate) dated 26.07.201820/2021-Central Tax (Rate), dt. 28-12-2021Click Here
9Seeks to supersede notification 14/2021- CT(R) dated 18.11.2021 and amend Notification No 1/2017- CT (Rate) dated 28.06.2017.21/2021-Central Tax (Rate), dt. 28-12-2021Click Here
10Seeks to supersede notification 15/2021- CT(R) dated 18.11.2021 and amend Notification No 11/2017- CT (Rate) dated 28.06.2017.22/2021-Central Tax (Rate), dt. 28-12-2021Click Here
11Mechanism for filing of refund claim by the taxpayers  
 registered in erstwhile Union Territory of Daman & Diu for period prior to merger with U.T. of Dadra & Nagar Haveli.168/24/2021- GSTClick Here
12Deployment of Interest Calculator in GSTR-3BGSTN Update 520Click Here

3. COMPLIANCE REQUIREMENT UNDER COMPANIES ACT, 2013 AND RULES MADE THEREUNDER;

  Applicable Laws/Acts  Due Dates  Compliance Particulars  Forms / Filing mode
  Companies Act, 2013Within 180 Days From The Date Of Incorporation Of The Company (one time compliance only)As per Section 10 A (Commencement of Business) of the Companies Act, 2013, inserted vide the Companies (Amendment) Ordinance, 2018 w.e.f. 2nd November, 2018, a Company Incorporated after the ordinance and having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the Director within 180 days from the date of Incorporation of the Company with the ROC.MCA E- Form INC 20A (one time compliance)
Companies Act, 2013First declaration within 90 days from the date of notification Dt. 08.02.2019A person having Significant beneficial owner shall file a declaration to the reporting company http://www.mca.gov.in/Ministry/pdf/Co mpaniesOwnersAmendmentRules_0802 0219.pdf i.e. within 90 days of the commencement of the Companies (Significant Beneficial Owners) Amendment Rules, 2019 i.e. 08.02.2019

In case Subsequent Acquisition of the title of Significant Beneficial Owner / Any Change therein a declaration in Form No. BEN-1 required to be filed to the reporting company, within 30 days of acquiring such significant beneficial ownership or any change therein.
Form BEN-1 Draft Format available at LINK
Companies Act, 2013within 30 days of acquiring beneficial interestFiling of form BEN-2 under the Companies (Significant Beneficial Owners) Rules, 2018. (the date of receipt of declaration in BEN-1 Form BEN – 2 (e-form deployed by Ministry (ROC) ON
  BEN-1 ) CLICK HERE01.07.2019
Companies Act, 2013Annual Compliance (30.09.2021)*DIN KYC through DIR 3 KYC Form is an Annual Exercise. Last date for filing DIR-3 KYC for Financial year 2020-21 is 30th September, 2021 Annual Exercise: CLICK HERE Penalty after due date is Rs. 5000/-(one time)  E-Form DIR – 3 KYC (Web Based and E-form)
Companies Act, 2013Within 270 days from the date of deployment of this FormAnnual Return To Be Filed By Auditor With The National Financial Reporting Authority CLICK HERE CLICK HERE Click Here Note on NFRA -2 Click HereNFRA-2 (NFRA-2 e-Form live since 9th December 2019.)
Companies Act, 2013Within 15 days of appointment of an auditor.The Ministry in its General Circular No. 12/2018 dated 13th December, 2018 clarified that filing of Form NFRA-1 is applicable only for Bodies Corporate and ruled out filing by Companies as defined under sub-section (20) of Section 2 the Act.E – Form NFRA -1
Companies Act, 2013Within 30 days of the board meetingFiling of resolutions with the ROC regarding Board Report and Annual Accounts. The details of the resolutions passed should be filed.MGT-14 (Filing of resolution with MCA)
    Companies Act, 2013Within 60 (sixty) days from the conclusion of each half year.Reconciliation of Share Capital Audit Report (Half-yearly) Pursuant to sub-rule Rule 9A (8) of Companies (Prospectus and Allotment of Securities) Rules, 2014 To be filed all unlisted companies, deemed public companies. Till further clarification to be filled in GNL-2E-Form PAS – 6
  Companies Act, 2013(Half Yearly basis) 31.10.2021Form for furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprise, can be filed delayed without any Additional FeeE-Form MSME-1
  Companies Act, 2013One Time compliancesRegistration of Entities for undertaking CSR activities – Trust/ Society/ Section 8 Company need to file before Acceptance of Donation as CSR w.e.f. 01st April 2021E-Form CSR-1
Companies Act, 2013within a period of 60 days after the holding of AGMIEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 Statement of UNCLAIMED AND UNPAID AMOUNTS. This e-form shall be filed within a period of 60 days after on which it should have been held as per the provisions of section 96 of the Act, whichever is earlierIEPF -2

Due dates of ROC Return Filings

S. No.ParticularsDue DateE-form
  1  Appointment of AuditorWithin 15 days from the conclusion of AGM  ADT-1
    2  Filing of financial statement and other documents with the ROC15.02.2022 – due date extended for all Companies including OPC Within 30 days from the conclusion of the AGM, other than OPC (In case of OPC within 180 days from the close of the financial year)  AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL
  3Filing of annual return by a company.28.02.2022 – due date extended for all Companies including OPC Within 60 days from the conclusion of AGM  MGT-7
4Filing of annual return by a company.28.02.2022 – due date extended for all Companies including OPC Within 60 days from the conclusion of AGM – Applicable in respect of Annual Return for the F.Y. 2020-21 and onwards of OPC and small companies.    MGT-7A

4. KEY COMPLIANCES UNDER FEMA / RBI

Applicable Laws/ActsDue DatesCompliance Particulars Forms / (Filing mode)
FEMA 1999 ACT 1999  Not later than 30 days from the date of issue of Capital instrumentFC-GPR is a form filed when the Indian company receives the Foreign Direct Investment and the company allots shares to a person resident outside India.  Form FC-GPR
    FEMA ACT 1999  With in 60 days of receipt/ remittance of funds or transfer of   capital instruments whichever earlier.Reporting of transfer of shares and other eligible securities between residents and non-residents and vice- versa is to be made in Form FC-TRS. The onus of reporting shall be on the resident transferor/ transferee.    Form FC-TRS
    FEMA ACT 1999within 30 days from the date of receipt of the amount              of consideration.A Limited Liability Partnership receiving amount of consideration and acquisition of profit shares is required to submit a report in the Form FDI LLP-1    Form FDI LLP-I
  FEMA ACT1999  within 60 days from the date of receipt of funds in  A Limited liability Partnership shall report disinvestment/       transfer       of      capital contribution or profit share between a resident and a non resident (or vice versa)  Form FDI LLP-II
  FEMA ACT 1999  within 30 days from the date of allotment           of capital instruments  The domestic custodian shall report the issue/ transfer/ of sponsored/ unsponsored depository receiptsDownstream statement       – Form    DI    & reporting      at FIFP too

Entities which are filing FLA return for the first time/ with revised UIN (Unique identification number) are required to register themselves first for generating login credentials and afterwards they can file FLA return. However, the entities which have already registered earlier may submit FLA-2021 using their earlier login credentials.

IMPORTANT UPDATES, JANUARY-2022:

1.  NBFCs seek relaxation from RBI on asset classification, provisioning norms

Non-banking finance companies (NBFC) are still hopeful of some relaxation by the Reserve Bank of India (RBI) on the norms of income recognition, asset classification, and provisioning for advances.

“Industry associations have requested the RBI to have a re-look at the requirements and give us a little more time to make this alignment. The reason is that we have to communicate to customers across the country, and they will have to align their payments. We are hopeful that something should come from the RBI in terms of direction this month,” said the head of an NBFC. The RBI has however, not acceded to such requests till now.

Highlighting the disruption from the pandemic, the FIDC in its representation had said that most of the borrowers of NBFCs are self employed or belong to the MSME segments and are economically vulnerable and would require more time to stabilise their operations.

In a notification in November 2021, the RBI had clarified on prudential norms on income recognition, asset classification and provisioning pertaining to advances for all banks, NBFCs and all India financial institutions. It had said that NBFCs must recognise loans as NPAs if they are not serviced for over 90 days. The objective is to bring uniformity in the implementation of IRACP norms across all lending institutions. Further, upgradation of

accounts classified as NPA needs to be done only when the entire arrears of interest and principal is paid by the borrower. (Source: Click Here)

2.  RBI may hike reverse repo rate by 20 bps outside MPC: SBI report

State Bank of India (SBI) Research Report stated that the Reserve Bank of India (RBI) is likely to increase the reverse repo rate by 20 bps outside MPC. The report titled ‘20 bps hike in reverse repo rate outside MPC’ is authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India. “Given all this, we believe the time is now appropriate to go for a 20 bps hike on reverse repo rate, but outside the MPC meeting as enshrined in the RBI act that clearly lays down that reverse repo is more of liquidity management. A hike in the reverse repo is also required as a larger corridor has resulted in rate volatility.” the report said.

RBI is likely to maintain the status quo on key policy rates in its next bi-monthly economic policy, which will  be the first after the presentation of the Union Budget for 2022-23. Experts, however, are of the opinion that RBI’s MPC may change the policy stance from ‘accommodative’ to ‘neutral’ and tinker with the reverse-repo rate as part of the liquidity normalisation process. (To Read more Click Here)

3.  NBFC May Get Permission From RBI To Issue Credit Cards, Says Report

For the first time, the Reserve Bank of India (RBI) is discussing with a few non-banking financial companies (NBFCs) the possibility to allow them to issue credit cards on a standalone basis, states a recent report by Business Standard. To date, NBFCs have the permission to issue co-branded credit cards with banks.

NBFCs have been constrained from the credit card market due to several high-access barriers, especially regarding the issuance of general credit cards. They could not even issue other cards, like charge cards, debit cards, and stored-value cards.

The consumer credit landscape has now undergone several changes and authorities may need to revisit this area. The circular of July 7, 2004, is being re-read along with the central bank’s observations in the ‘Report of the Working Group on Digital Lending through Online Platforms and Mobile Apps’ – which was put for public comments in November last year.

Moreover, with the growing practice of buy now pay later (BNPL), more people have started using a credit card. As Redseer, a research firm, estimates, India’s BNPL market is likely to rocket to $45-50 billion by 2026 from $3-3.5 billion now, with the growing number of BNPL users in the country. (To Read more Click Here)

4.   Digital rupee: RBI must proceed cautiously, remain mindful of design considerations, wider implications, challenges

In the Union budget 2022-23, Finance Minister Nirmala Sitharaman proposed the introduction of a digital currency to be issued by the Reserve Bank of India (RBI) in the

coming financial year. The announcement follows reports of central bank officials informing the central board of the RBI of a pilot project for the introduction of a Central Bank Digital Currency (CBDC). Some countries have already introduced CBDCs in some form or the other. For instance, in 2020, the central bank of Bahamas issued a digital currency. More and more central banks across the world are beginning to explore the viability, usefulness and value of digital currencies. Countries like Japan, China, Singapore, Sweden are currently examining the various facets of such a transition. A few days ago, the US Federal Reserve also released a report outlining the costs and benefits of issuing a central bank backed digital dollar.

CBDCs are essentially fiat currencies issued in the virtual/electronic form. Their appeal or the interest in issuing them has gained traction with the rapid surge of cryptocurrencies, the increasing popularity of blockchain technology, and the benefits that many argue stem from its adoption. Among the likely benefits claimed by advocates of CBDCs are the acceleration of financial inclusion, lower costs for financial transactions, especially in the case of cross- border transactions, the advantages of an alternate payments system, the creation of another instrument in the monetary policy arsenal of central banks, the likely adverse impacts on corruption and money laundering, among others. However, to what extent these benefits actually materialise will vary from country to country depending on its specific economic scenario. On the flip side, though, there are several possible risks associated with the introduction of CDBCs. In the case that retail CBDC accounts are interest bearing, there are obviously implications for the banking system. It is also possible that during periods of extreme uncertainty, depositors may choose to migrate away from commercial banks, causing financial upheaval. Then there is also the question of whether CBDCs will offer the same degree of anonymity as cash does. (Read more- Click Here)

  • RBI CIRCULARS / NOTIFICATIONS: JANUARY, 2022
1Periodic Updation of KYC – Restrictions on Account Operations for Non- complianceClick here
2Report on Trend and Progress of Banking in India 2020-21Click here
3RBI releases ‘Statistical Tables relating to Banks in India: 2020-21’Click here
4Clarification on Acquisition/Transfer of Immovable Property in India by Overseas Citizen of India (OCIs)Click here
5RBI releases the Financial Stability Report, December 2021Click here
6Quarterly BSR-1: Outstanding Credit of Scheduled Commercial Banks – September 2021Click here
7Applicable Average Base Rate to be charged by NBFC-MFIs for the Quarter Beginning January 1, 2022Click here
8Sources of Variation in Foreign Exchange Reserves in India during April- September 2021Click here
9RBI releases Name of Applicant under the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private SectorClick here
10.RBI launches the January 2022 round of the Inflation Expectations Survey of HouseholdsClick here
11.RBI launches the January 2022 round of Consumer Confidence SurveyClick here
12RBI extends deadline for KYC in bank accounts till March 31, 2022Click here
13Inclusion of “Airtel Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934Click here
14Retail Direct Scheme – Market MakingClick here
15Master Circular – Bank Finance to Non-Banking Financial Companies (NBFCs)Click here
16Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards and Net Stable Funding ratio – Small Business Customers  Click here
17RBI   launches    Quarterly    Order    Books,    Inventories    and   Capacity Utilisation Survey: October-December 2021 (Round 56)Click here
18RBI releases 2021 list of Domestic Systemically Important Banks (D- SIBs)Click here
19Monthly Data on India’s International Trade in Services for the Month of November 2021Click here
20RBI releases “Eligibility criteria for entities to be categorised as Specified User under clause (j) of Regulation 3 of the Credit Information Companies (Amendment) Regulations, 2021”Click here
21Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
22RBI releases Annual Report of Ombudsman Schemes, 2020-21Click here
2328th Meeting of the FSDC Sub-Committee over Video ConferenceClick here
24Nine Non-Banking Financial Companies (including one Housing Finance Company) surrender their Certificate of Registration to Reserve Bank of IndiaClick here
25RBI releases Discussion Paper on Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial BanksClick here
26Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
27Registration of Factors (Reserve Bank) Regulations, 2022Click here
28Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022Click here
29RBI Bulletin – January 2022Click here
30Reserve Bank of India announces Digital Payments Index for September 2021Click here
31RBI releases Primary (Urban) Co-operative Banks’ Outlook 2020-21Click here
32Launching of Quarterly Industrial Outlook Survey (IOS): January-March 2022 (Round 97)Click here
33RBI Working Paper No. 04/2022: States’ Fiscal Performance and Yield Spreads on Market Borrowings in IndiaClick here
34RBI   Working    Paper    No.    03/2022:    India’s    External    Commercial Borrowings: Determinants and Optimal Hedge RatioClick here

5.   COMPLIANCE UNDER OTHER STATUTORY LAWS

  Applicable Laws/ActsTimeline / Due DatesCompliance ParticularsForms / (Filing mode)
EPF (The Employees’ Provident Funds      And                Miscellaneous Provisions Act, 1952)15.01.2022PF PaymentECR
ESIC       (Employees’       State Insurance Act, 1948)15.01.2022ESIC PaymentESI CHALLAN
  Contract Labour (Regulation & Abolition) Act, 1970Within 15 Days of commencement/ completion            of contract workReturn/Notice   within 15           days                        of commencement/ completion    of    each contract       by       the Principal employerForm VI-B
  Contract Labour (Regulation & Abolition) Act, 1970Within 15 Days of commencement/ completion            of contract workNotice                      of commencement/ completion               of contract work by the Contractor within 15 daysForm VI-A
Payment of Gratuity RuleWithin 30 Days of applicability of the Act & any changeNotice of applicability of the Act & any changeForm A or B
The    minimum   Wages    Act, 194801.02.2022Annual ReturnForm – III Rule 21 (4A)
The Payment of Wages Act,1936 & related Mines Rules  15.02.2022  Annual Return  FORM – IV
The     Contract     Labour     9 (R&A) Act, 1970 & Rules15.02.2022Annual ReturnFORM – XXV
  • Key Updates – January, 2022:
1.  HC stays Haryana govt’s law providing 75% reservation for locals

The court, while staying the Haryana law, said “the core issue is whether any state can restrict

employment (even in the private sector) on the basis of domicile”.

In a relief to industry groups in Haryana, the Punjab and Haryana High Court on Thursday granted an interim stay on a law providing 75 per cent reservation in the private sector for those who have a domicile in the state. The high court released the detailed order on Friday.

A bench of Justices Ajay Tewari and Pankaj Jain passed the order on a petition filed by the Faridabad Industries Association and other associations from Haryana. Staying the Haryana law mandating 75 per cent reservation in the private sector for people domiciled in the state,

the court said “The core issue is whether any state can restrict employment (even in the private sector) on the basis of domicile”.

The Haryana State Employment of Local Candidates Act, 2020, which came into force on January 15, provides for 75 per cent reservation in the private sector to jobseekers “domiciled in the state of Haryana”. The law covers private companies, societies, trusts and partnership firms and applies to jobs that offer a maximum gross monthly salary or wages of up to Rs 30,000. Central or state governments and any organisation owned by these governments are outside the ambit of the Act.

The law was passed by the Haryana Vidhan Sabha on March 2, 2021. It came into effect in the state on January 15, 2022. As per the law, eligible candidates are required to register on a designated online portal. Companies can make recruitments only through this portal.

(To read more Click Here)

2.  17 states have pre-published draft rules for labour reforms

Labour reforms are progressing steadily as at least 17 states have pre-published draft rules for four labour codes on wages, social security, industrial relations and occupational safety, health and working conditions (OSH), according to the Economic Survey 2021-22, tabled in Parliament.

“As on January 11, 2022, 26 states/UTs have also pre-published the draft rules under the Code on Wages, 22 states/UTs under Industrial Relations Code, 20 states/UTs under Code on Social Security, and 17 states/UTs under OSH & WC Code,” it said.

In 2019 and 2020, 29 central labour laws were amalgamated, rationalised and simplified into four labour codes, which included the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health & Working Conditions Code, 2020.

“The new laws were in tune with the changing labour market trends and at the same time accommodating the minimum wage requirement and welfare needs of the unorganised sector workers, including the self-employed and migrant workers, within the framework of legislation,” the Survey said, adding that while the Centre has pre-published draft rules for all four codes. The states are now required to frame regulations on their part as labour is a concurrent subject, it added. (To read more: Click Here)

3.    PF Update: Will Govt Allow a Non-Refundable Advance from EPFO Account for Third Time?

To face this, the government had in 2020 during the first wave allowed Employees’ Provident Fund (EPF) members a Covid-19 advance. This was a completely tax free and non refundable option for the employees who had lost jobs or were facing a financial crisis due to the pandemic. Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the EPFO had in March 2020 allowed its subscribers to withdraw up to 75 per cent of the balance standing as credit in their account or a sum up to three months of basic salary plus DA, whichever was lower.

“Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. Members can apply for lesser amount also,” the labour ministry said.

You can avail this service online using your Universal Account Number (UAN), bank details and specifying the reason for your withdrawal of the money.

With the third wave already settling in, there is a chance that the government might again extend this scheme to withdraw Covid-19 advance from EPF. The Omicron variant of Covid-

19 has created a medical emergency across the country again, with deaths and hospitalisations going up. As per latest data, between April 1, 2021 and November 30 2021, the EPFO had settled a total of 68.10 lakh Covid-19 advance claims, disbursing an amount of Rs. 14,242 crore to PF members. (To read more Click Here)

  • UPDATES TRACKER UNDER LABOUR LAWS – JANUARY, 2022:
Sl.ParticularsLink
1EPFO Nomination, Annual GST Return Filing: Govt Extends Deadlines for Key Money TasksClick Here
2EPFO sets up two new service centre centres for filing e-nominationsClick Here
3Empower your family, file enomination. #EPFOClick Here
424.07 crore accounts have been credited with an interest of 8.50% for the Financial Year 2020-21.Click Here
5#EPFO never asks its members to share their personal details like Aadhaar, PAN, UAN, Bank Account or OTP over phone or on social media.Click Here
6Employees’ Pension Scheme (EPS) 1995, Eligibility & Its BenefitsClick Here
7Supply of information under the Right to Information Act, 2005Click Here
8Strengthening of Administration – Periodical review under FR 56(j) and Rule 48 of CCS (Pension) Rules, 1972 that are applicable mutatis mutandis to the employees of Central Board in terms of Rule 18 and Rule 22 (read with Schedule I and II respectively) of Employees’ Provident Fund (Officers and Employees’ Conditions of Service) Regulation 2008  Click Here
9Provident Fund Alert! Government transfers huge amount to EPFO accountsClick Here
10EPFO Update: NOW Check your PF balance via SMS, missed call, UMANG App! Here’s how toClick Here
11Provident Fund Users Can Easily Update Name, Date of Birth on EPF PortalClick Here
12Employer’s Failure To Deposit Contributions Doesn’t Disentitle Insured Person’s Ward From Availing ESI Quota: Rajasthan HC Grants Relief To NEET Candidate  Click Here
13ESIC provides periodical monthly payments under #DependantBenefit to the dependants of an Insured Person died as a result of employment injuryClick Here
14ESI provides periodical payment to Insured Women under its Maternity Benefit. The Scheme provides 100% of average daily wage under ESI #MaternityBenefit.  Click Here
15EPFO Payroll data: EPFO added 13.95 lakh net subscribers in November, 2021Click Here
16All-India Consumer Price Index Numbers for Agricultural and Rural Labourers – December, 2021Click Here
17Withdraw of Fund from EPF account related to CovidClick Here
18Pension Rule BIG Change: You will Receive Pension by this Date From Now, Details HereClick Here
19Retirement planning: How EPF, NPS can help you get government-like pensionClick Here

6. SEBI – SECURITIES EXCHANGE BOARD OF INDIA

COMPLIANCE REQUIREMENT UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (LODR) REGULATIONS, 2015

  1. Quarterly Compliances:
Sl. No.Regulation reference (Reg.)Compliance ParticularsTimeline / Due Date (For the Quarter Ended December, 2021)Due Dates
132 & 33Financial Results & Statement of deviation45 days/60 days from end of quarter14.02.2022
  • Half Yearly Compliances:
  Sl. No.Regulation No.Compliance ParticularCompliance Period (Due Date)  Due Date
1.Regulation 23(9)Related     party transactions.The listed entity shall submit within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results to the stock exchanges and publish the same on its websiteWithin 30 days of FR
REG NOREGULATION NOPARTICULARSTIMELINE
47 Advertisements in Newspapers.47                     (3) Advertisements in NewspapersFinancial results at 47 clause (b) of sub-regulation (1), shall be published within 48 hours of conclusion of the meeting of board of directors at which the financial results were approved.48 HOURS
23 Related party transactions.Reg 23(9) Related party transactionsThe listed entity shall submit within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results to the stock exchanges and publish the same on its website30 days
24A   Secretarial Audit.Red 24AEvery listed entity and its material unlisted subsidiaries incorporated in India shall undertake secretarial audit and shall annex with its annual report, a secretarial audit report, given by a company secretary in practice, in such form as may be specified with effect from the year ended March 31, 2019. (within 60 days from the Closure of FY)60 days from the Closure of FY
46 Website46(2)(s)The listed entity shall disseminate the following information under a separate section on its website separate audited financial statements of each subsidiary of the listed entity in respect of a relevant financial year, uploaded at least 21 days prior to the date of the annual general meeting which has been called to inter alia consider accounts of that financial year.]21 days prior 1 days prior to the date of AGM

D. Other Quarterly compliance which included half year compliance except Financial Result (FR)

REG NOREGULATION NO
IntimationReg 29 read with Reg 33intimation regarding item specified in clause 29(1) (a) to be discussed at the meeting of board of directors shall be given at least five days in advance (excluding the date of the intimation and date of the meeting), and such intimation shall include the date of such meeting of board of directorsat least 5 working days in advance, excluding the date of the intimation and date of the meeting
Intimations    and Disclosure         of events                or information      to Stock Exchanges.87B: Intimations and Disclosure of events               or information to Stock Exchanges. READ WITH PART     E     OF Schedule IIIThe listed entity shall first disclose to stock exchange(s) of all events or information, as specified in Part E of Schedule III, as soon as reasonably possible but not later than twenty four hours from occurrence of the event or information:      24 HOURS
Valuation, Rating and NAV disclosure.87C(1) (iii)An issuer whose security receipts are listed on a stock exchange shall ensure that: the net asset value is calculated on the basis of such independent valuation and the same is declared by the asset reconstruction company within fifteen days of the end of the quarter.  15 Days
Other corporate governance requirements.Reg 27(2)The listed entity shall submit a quarterly compliance report on corporate governance in the format as specified by the Board from time to time to the recognised stock exchange(s) within fifteen days from close of the quarter.15 days 15/01/2022
Indian Depository Receipt    holding pattern              & Shareholding details.69(1)The listed entity shall file with the stock exchange the Indian Depository Receipt holding pattern on a quarterly basis within fifteen days of end of the quarter in the format specified by the Board.15 days from end of each quarter 15/01/2022
REG NOREGULATI ON NOPARTICULARSTIMELINE
30 Disclosure of events or information.30(6)    AND Part    A    of Schedule IIIThe listed entity shall first disclose to stock exchange(s) of all events, as specified in Part A of Schedule III, or information as soon as reasonably possible and not later than twenty four hours from the occurrence of event or information24 HOURS
30 Disclosure of events or information.30(6)   AND sub-para 4 of Para A of Part A of Schedule IIIThe listed entity shall disclose to the Exchange(s), within 30 minutes of the closure of the meeting held to consider the following: dividends and/or cash bonuses recommended or declared or the decision to pass any dividend and the date on which dividend      shall      be      paid/dispatched;any cancellation of dividend with reasons                                               thereof;the decision on buyback of securities;the decision with respect to fund raising proposed to be undertakenincrease in capital by issue of bonus shares through capitalization including the date on which such bonus shares shall be credited/dispatched;reissue of forfeited shares or securities, or the issue of shares or securities held in reserve for future issue or the creation in any form or manner of new shares or securities or any other rights, privileges or benefits            to            subscribe     to;short particulars of any other alterations of capital, including calls;financial results;decision on voluntary delisting by the listed entity from stock exchange(s).30 MINUTES
31A: Conditions for re- classification of any person as promoter / public31A(8)The following events shall deemed to be material events and shall be disclosed by the listed entity to the stock exchanges as soon as reasonably possible and not later than twenty four hours from the occurrence of                          the                              event: receipt of request for re-classification by the listed entity from the promoter(s) seeking                                re-classification;minutes of the board meeting considering such request which would include the views of the board on the request;submission of application for re- classification of status as promoter/public by the listed entity to the stock exchanges;decision of the stock exchanges on such application as communicated to the listed entity;24 HOURS
34         Annual Report.34(1)(b)In the event of any changes to the annual report, the revised copy along with the details of and explanation for the changes shall be sent not later than 48 hours after the annual general meeting.]48 HOURS
44 Meetings of shareholders and voting44(3)The listed entity shall submit to the stock exchange, within forty eight hours of conclusion of its General Meeting, details regarding the voting results in the format specified by the Board.48 HOURS
47 Advertisement s                    in Newspapers.47             (3) Advertiseme nts              in NewspapersThe listed entity shall publish the information specified in 47(1) in the newspaper simultaneously with the submission of the same to the stock exchange(s). The same is reproduced below 47(1) (a) notice of meeting of the board of directors where financial results shall be discussed (c )statements of deviation(s) or variation(s) as specified in sub-regulation (1) of regulation 32 on quarterly basis, after review by audit committee and its explanation in directors report in annual report; (d) notices given to shareholders by advertisementSimultaneous ly
SCHEDULE III PART PART A 7(A)resignation of the auditor of the listed entity, detailed reasons for resignation of auditor, as given by the said auditor, shall be disclosed by the listed entities to the stock exchanges as soon as possible but not later than twenty four hours of receipt of such reasons from the auditor24 HOURS
SCHEDULE III PART PART A 7(B)In case of resignation of an independent director of the listed entity, within seven days from the date of resignation, the following disclosures shall be made to the stock   exchanges   by   the   listed   entities: Detailed reasons for the resignation of independent directors as given by the said director shall be disclosed by the listed entities      to      the      stock      exchanges.The independent director shall, along with the detailed reasons, also provide a confirmation that there is no other material reasons    other    than    those    provided.The confirmation as provided by the7 days from the date of resignation
  independent director above shall also be disclosed by the listed entities to the stock exchanges along with the detailed reasons as specified in sub-clause (i) above.] 
7             Share Transfer Agent.Reg 7(4) & (5)        Share Transfer Agent.The listed entity shall intimate any change or appointment of a new share transfer agent, to the stock exchange(s) within seven days of entering into the agreement.7 DAYS
29Reg 29(1)The intimation required under 29 (1), shall be given at least two working days in advance, excluding the date of the intimation and date of the meeting Reg 29(1) is reproduced below: (b) proposal for buyback of securities ; (c) proposal for voluntary delisting by the listed entity from the stock exchange(s); (d) fund raising by way of further public offer, rights issue, American Depository Receipts/Global Depository Receipts/Foreign Currency Convertible Bonds, qualified institutions placement, debt issue, preferential issue or any other method and for determination     of      issue      price: Provided that intimation shall also be given in case of any annual general meeting or extraordinary general meeting or postal ballot that is proposed to be held for obtaining shareholder approval for further fund raising indicating type of issuance. (e) declaration/ recommendation of dividend, issue of convertible securities including convertible debentures or of debentures carrying a right to subscribe to equity shares or the passing over of dividend. (f) the proposal for declaration of bonus securities where such proposal is communicated to the board of directors of the listed entity as part of the agenda papers:at least 2 working days in advance, excluding the date of the intimation and date of the meeting
31 Holding of specified securities and shareholding pattern.Reg           31 (1)(a)The listed entity shall submit to the stock exchange(s) a statement showing holding of securities and shareholding pattern separately for each class of securities, in the format specified by the Board from time to time- one day prior to listing of its securities on the stock exchange(s);1 day prior to listing of its securities on the stock exchange(s
31Reg 31 (1 (c)within ten days of any capital restructuring of the listed entity resulting in a change exceeding two per cent of the total paid-up share capital:within 10 days of any capital restructuring
31A Conditions for re- classification of any person as promoter / publicReg 31Aan application for re-classification of a promoter/ person belonging to promoter group to public to the stock exchanges has to be made by the listed entity consequent to the following procedures and not later than thirty days from the date of approval by shareholders in general meeting30 days from the date of approval by shareholders in general meeting
37            Draft Scheme         of Arrangement & Scheme of Arrangement.37(1)Draft Scheme of Arrangement & Scheme of Arrangement before for obtaining Observation Letter or No-objection letter, before filing such scheme with any Court or Tribunal, in terms of requirements specified by the Board or stock exchange(s) from time to time.Before filling the same with any court or tribunal
39 Issuance of Certificates or Receipts/Lette rs/Advices for securities and dealing      with unclaimed securities.39(2)The listed entity shall issue certificates or receipts or advices, as applicable, of subdivision, split, consolidation, renewal, exchanges, endorsements, issuance of duplicates thereof or issuance of new certificates or receipts or advices, as applicable, in cases of loss or old decrepit or worn out certificates or receipts or advices, as applicable within a period of thirty days from the date of such lodgement.30 Days
39 Issuance of Certificates or Receipts/Lette rs/Advices for securities and dealing      with unclaimed securities39(3)The listed entity shall submit information regarding loss of share certificates and issue of the duplicate certificates, to the stock exchange within two days of its getting information.2 days of its getting information.
40 Transfer or transmission or transposition of securities.40 (3)On receipt of proper documentation, the listed entity shall register transfers of its securities in the name of the transferee(s) and issue certificates or receipts or advices, as applicable, of transfers; or issue any valid objection or intimation to the transferee or transferor, as the case may be, within a period of fifteen days from the date of such receipt of request for transfer15 days
40 Transfer or transmission or transposition of securities.40 (3)the listed entity shall ensure that transmission requests are processed for securities held in dematerialized mode within seven days after receipt of the specified documents:7 Days
40 Transfer or transmission or transposition of securities.40 (3)the listed entity shall ensure that transmission requests are processed for securities held in physical mode within twenty one days after receipt of the specified documents:21 Days
SCHEDULE VII: TRANSFER OF SECURITIE S (PART B (1))In case of minor differences in the signature of the transferor(s), the listed entity shall follow the following procedure for registering       transfer       of       securities: (a) the listed entity shall promptly send to the first transferor(s), via speed post an intimation of the aforesaid defect in the documents and inform the transferor(s) that objection, supported by valid proof, is not lodged by the transferor(s) with the listed entity within fifteen days of receipt of the listed entity’s letter, then the securities shall be transferred15 Days
42 Record Date or Date of closure of transfer books.42(2)The listed entity shall give notice in advance of atleast seven working days (excluding the date of intimation and the record date) to stock exchange(s) of record date specifying the purpose of the record date:7 working days advance intimation excluding the date of the intimation and date of the meeting
42 Record Date or Date of closure of transfer books.42(2)in the case of rights issues, the listed entity shall give notice in advance of atleast three working days (excluding the date of intimation and the record date).]3 working days advance intimation excluding the date of the intimation and date of the meeting
42 Record Date or Date of closure of transfer books.42(3)The listed entity shall recommend or declare all dividend and/or cash bonuses at least five working days (excluding the date of intimation and the record date) before the record date fixed for the purpose.5 working days advance intimation excluding the date of the intimation and date of the meeting
46 Website46 (3)(b)The listed entity shall update any change in the content of its website within two working days from the date of such change in content.2 working days
50    Intimation to             stock exchange(s).50(1)The listed entity shall give prior intimation to the stock exchange(s) at least eleven working days before the date on and from which the interest on debentures and bonds, and redemption amount of redeemable shares or of debentures and bonds shall be payable.11 working days
50    Intimation to             stock exchange(s).50(3)The listed entity shall intimate to the stock exchange(s), at least two working days in advance, excluding the date of the intimation and date of the meeting, regarding the meeting of its board of directors, at which the recommendation or declaration of issue of non convertible debt securities or any other matter affecting the rights or interests of holders of non convertible debt securities or non convertible redeemable preference shares is proposed to be considered.2 working days advance intimation excluding the date of the intimation and date of the meeting
52     Financial Results.52 (4) & (5)The listed entity shall, within seven working days from the date of submission of the information required under sub- regulation (4), submit to stock exchange(s), a certificate signed by debenture trustee that it has taken note of the contents7 working days
52     Financial Results.52 (4) & (8)The listed entity shall, within two calendar days of the conclusion of the meeting of the board of directors, publish the financial results and statement referred to in reg 52 (4), in at least one English national daily newspaper circulating in the whole or substantially the whole of India.two calendar days of the conclusion of the meeting
57           Other submissions to stock exchange(s).57(1)The listed entity shall submit a certificate to the stock exchange within two days of the interest or principal or both becoming due that it has made timely payment of interests or principal obligations or both in respect of the non convertible debt securitieswithin 2 days
60         Record Date60(2)The listed entity shall give notice in advance of at least seven working days (excluding the date of intimation and the record date) to the recognised stock exchange(s) of the record date or of as many days as the stock exchange(s) may agree to or require specifying the purpose7 working days advance intimation excluding the date of the intimation and date of the
  of the record date.meeting
78         Record Date.78(2)The listed entity shall give notice in advance of at least four working days to the recognised stock exchange(s) of record date specifying the purpose of the record datenotice in advance of at least 4 working days
82    Intimation and        filings with         stock exchange(s).82(2)The listed entity shall intimate to the stock exchange(s), at least two working days in advance, excluding the date of the intimation and date of the meeting, regarding the meeting of its board of trustees, at which the recommendation or declaration of issue of securitized debt instruments or any other matter affecting the rights or interests of holders of securitized debt instruments is proposed to be considered.2 working days in advance, excluding the date of the intimation and date of the meeting,
82    Intimation and        filings with         stock exchange(s).82(3)The listed entity shall submit such statements, reports or information including financial information pertaining to Schemes to stock exchange within seven days from the end of the month/ actual payment date, either by itself or through the servicer, on a monthly basis in the format as specified by the   Board   from   time   to    time: Provided that where periodicity of the receivables is not monthly, reporting shall be made for the relevant periods.within 7 days
87         Record Date.87(2)The listed entity shall give notice in advance of atleast seven working days (excluding the date of intimation and the record date) to the recognised stock exchange(s) of the record date or of as many days as the Stock Exchange may agree to or require specifying the purpose of the record date7 working days advance intimation excluding the date of the intimation and date of the meeting
87E      Record Date.87E(2)The listed entity shall give notice in advance of at least seven working days (excluding the date of intimation and the record date) to the stock exchange(s) of the record date or of as many days as the stock exchange may agree to or require specifying the purpose of the record date.7 working days advance intimation excluding the date of the intimation and date of the meeting

7. SEBI    (Substantial     Acquisition     of    Shares    and    Takeovers) Regulations, 2011

Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/CFD/DCR1/CIR/P/2020/49 issued and publish dated 27th March 2020, has published Relaxation from compliance with certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 due to the COVID-19 pandemic.”.

  Sl. No.  Regulation No.  Compliance ParticularCompliance Period (Due Date)
  1  Regulation 30(1)Every person, who together with persons acting in concert with him, holds shares or voting rights entitling him to exercise 25% or more of the voting rights in a target company, shall disclose their aggregate shareholding and voting rights as of the 31st day of March, in such target company in such form as may be specified.    The disclosures required under sub-regulation (1) and sub-regulation (2) shall be made within seven working days from the end of each financial year to;   every stock exchange where the shares of the target company are listed; and
   
    2    Regulation 30(2)The promoter of every target company shall together with persons acting in concert with him, disclose their aggregate shareholding and voting rights as of the thirty-first day of March, in such target company in such form as may  the target company at its registered office
      3.Regulation 31(1) read with Regulation 28(3) of Takeover Regulations AUGUST 7, 2019 CIRCULAR https://www.sebi.gov.in/legal/ circulars/aug-2019/disclosure- of-reasons-for-encumbrance- by-promoter-of-listed- companies_43837.htmlThe promoter of every listed company shall specifically disclose detailed reasons for encumbrance if the combined encumbrance by the promoter along with PACs with him equals or exceeds: a) 50% of their shareholding in the company; or b) 20% of the total share capital of the company,within 2 (two) working days
    4.    Regulation 31(4)    Disclosure     of     encumbered sharesPromoter of every target company shall together with persons acting in concert with him, disclose their aggregate shareholding and voting rights as of the 31st March, in such target company in such form as may be specified

8. SEBI (Prohibition of Insider Trading) Regulations, 2015

  Sl. No.  Regulation No.  Compliance ParticularCompliance Period (Due Date)
        1      Regulation 7(2) “Continual Disclosures”Every promoter, employee and director of every company shall disclose to the company the number of such securities acquired or disposed of within two trading days of such transaction if the value of the securities traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of ten lakh rupees (10,00,000/-) or such other value as may be specified;Every company shall notify; within two trading days of receipt of the disclosure or from becoming aware of such information

9. SEBI    (Issue    of    Capital    and    Disclosure     Requirements) Regulations, 2018

Sl. No.Regulation No.  Compliance Particular  Compliance Period (Due Date)
    1Schedule XIX – Para (2) of ICDR Read with Reg 108 of SEBI LODR“The issuer shall make an application for listing from the date of allotment, within such period as may be specified by the Board from time to time, to one or more recognized stock exchange(s)”.Within 20 days from the date of allotment
  In regard to above, it is specified that Issuer shall make an application to the exchange/s for listing in case of further issue of equity shares from the date of allotment within 20 days (unless otherwise specified). 
2Regulation 162The tenure of the convertible securities of the issuer shall not exceed eighteenWithin 18 months from date of allotment
  months from the date of their allotment. 
3SEBI CIRCULAR Aug 19, 2019 https://www.sebi.gov.in/legal/cir culars/aug-2019/non- compliance-with-certain- provisions-of-sebi-issue-of- capital-and-disclosure- requirements-regulations-2018- icdr-regulations-_43941.htmlApplication for trading approval to the stock exchange Listed entities shall make an application for trading approval to the stock exchange/s within 7 working days from the date of grant of listing approval by the stock exchange/s.Within 7 working days from grant of date of listing approval
4Regulation 76 Application for rights issueThe issuer along with lead managers and other parties related to the issue shall constitute an optional mechanism (non-cash mode only) to accept the applications of the shareholders to apply to rights issue subject to ensuring that no third-party payments shall be allowed in respect of any application.
5.Regulation 77 Service of DocumentsIn case if the company fails to adhere to modes of dispatch through registered post or speed post or courier services due to Covid-19 conditions it will not be treated as non-compliance during the said period. The issuers shall publish required & necessary documents on the websites of the company, registrar, stock exchanges and the lead managers to the rights issue.
6Regulation 84   AdvertisementIssuer has the flexibility to publish the advertisement in additional newspapers above those required in Regulation 84. The advertisement should also be made available on: Website of the Issuer, Registrar, Lead Managers, and Stock Exchanges.Television channels, radio, the internet, etc. to spread information related to the process.

10. SEBI (Buyback of Securities) Regulations, 2018 (Buyback Regulations)

  Sl. No.  Regulation No.  Compliance Particular  Compliance Period (Due Date)
1Regulation 11 and 24(iv)Extinguishment of equity shares in conncection with Buy back the particular of the security certificates extinguished and destroyed shall be furnished by the company to the stock exchanges where the shares or other specified securities of the company are listed within seven days of extinguishment and destruction of the certificates 7 days of extinguishment and destruction of the certificates.
    2  Regulation 24(i) (f)    Minimum time between buy back and raising of fundsTemporary relaxation in the period of restriction provided in Regulation 24(i)(f) from “one year” to “six months” Applicable up to December 31, 2020 only

11.   SEBI (Depositories and Participants) Regulations 2018)

  Sl. No.  Compliance Particulars  Due Date
  1.Regulation 76 (Quarter, January – March 2021) Reconciliation of Shares and Capital AuditWithin 30 days from end of quarter.
  2.Regulation 74 (5): Processing of demat requests form by Issuer/RTAs – Certificate Received from RegistrarWithin 15 days from the end of each quarter
  • SEBI Circulars Tracker: January, 2022
Sl.ParticularsLink
1.SEBI Board MeetingClick Here
2.Notice convening the meeting of Equity Shareholders of Dhampur Sugar Mills Limited as per the directions of the Hon’ble National Company Law Tribunal, Allahabad BenchClick Here
3.Non-compliance with provisions related to continuous disclosuresClick Here
4.Right Issues – Beardsell LimitedClick Here
5.Extension of timeline for modified reporting requirements for AIFsClick Here
6.Implementation of Section 51A of UAPA,1967: Updates to UNSC’s 1267/ 1989 ISIL (Da’esh) & Al-Qaida Sanctions List: Amendment of 62 Entries on Its Sanctions ListClick Here
7.Remittance Order  under Recovery  Certificate  No. 3831 of  2021 against Anirudh Parashar in the matter of Maa Jagdambe Tradelinks LimitedClick Here
8.Options on Commodity Futures – Modification in Exercise MechanismClick Here
9.Schemes of Arrangement by Listed Entities – Clarification w.r.t. timing of submission of NOC from the lending scheduled commercial banks/ financial institutions/ debenture trustee  Click Here
10.Adjudication Order in respect of Radha Mohan Construction LLP, earlier known as Radha Mohan Construction Private Limited, in the matter of dealings in Illiquid Stock Options at BSEClick Here
11.Increasing Awareness regarding Online Mechanisms for Investor Grievance RedressalClick Here
12.Address by Chairman, SEBI – Silver Jubilee Celebrations – 25 years of NiftyClick Here
 Index and 20 years of Index Derivatives 
13.“SEBI Order for Compliance” – Prohibitory Order No. 209 of 2022: In the matter of Susk India Limited: Recovery Certificate No. 2113 of 2019Click Here
14.Adjudication Order in respect of Surabhi Mundhara in the matter of dealings in Illiquid Stock Options at BSE LimitedClick Here
15.Publication of Untraceable DefaultersClick Here
16.Disclosure obligations of high value debt listed entities in relation to Related Party TransactionsClick Here
17Consultation paper for Review of SEBI (Collective Investment Schemes) Regulations, 1999Click Here
18Framework for operationalizing the Gold Exchange in IndiaClick Here
19Names of the companies/Intermediaries/MIIs having complaints pending for more than 3 months on SCORES as on December 31, 2021Click Here
20Order under Regulation 11 of SEBI(SAST) Regulations, 2011 in the matter of Subros LimitedClick Here
21Grant of recognition to CDSL Ventures Limited as an Accreditation AgencyClick Here
22Right Issues – Mohindra Fastners LimitedClick Here
23“SEBI Order for Compliance” – Prohibitory Order No. 211 of 2022: In the matter of Bhoomi Devcon & Agritech Limited : Recovery Certificate No. 2112 of 2019  Click Here
24Informal Guidance Sought by HDFC Securities Limited regarding SEBI (Research Analyst) Regulations, 2014Click Here
25Debt Offer Document – InCred Financial Services Limited- ProspectusClick Here
26SEBI Chairman launches “Saa₹thi” – SEBI’s Mobile App on Investor EducationClick Here
27Adjudication Order in respect of Madhumita Gupta in the matter of dealings in Illiquid Stock Options at the BSEClick Here
28“SEBI Order for Compliance” – Prohibitory Order No. 212 of 2022: In the matter of USK India Limited : Recovery Certificate No. 2294 of 2019Click Here
29Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 [Last amended on December 31, 2021]Click Here
30Public Issues – Landmark Cars LimitedClick Here
31Mutual Funds – Canara Robeco Multi Cap FundClick Here
32Adjudication Order in respect of Shiv Kumari Devi in the matter of dealings in illiquid stock options at BSEClick Here
33Public Issues – Adani Wilmar LimitedClick Here
34Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2022Click Here
35Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2022Click Here
36Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2022Click Here
37Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} (Amendment) Regulations, 2022Click Here
38Change in control of the asset management company involving scheme of arrangement under Companies Act, 2013Click Here

12. IBBI UPDATES {INSOLVENCY AND BANKRUPTCY BOARD OF INDIA}

Budget 2022 | FM announces plan for strengthening IBC

Finance Minister Nirmala Sitharaman said while presenting the Union Budget 2022 on February 1 that changes have been proposed in the Insolvency and Bankruptcy Code (IBC) to enable seamless cross-border insolvency as well as quicker dispute resolution.

She said: “Necessary amendments will be made in the IBC for more efficient dispute resolution and enable cross-border insolvency resolution.” The changes will come about six years after the IBC was legislated that promised to institutionalise corporate restructuring through a modern, contemporary mechanism.

The proposed legislative changes, which will likely come through a series of amendments in the existing law, could also include a code of conduct for the committee of creditors (CoC), the group that is empowered to decide on insolvency resolution proposals.

The new rules on IBC related to cross-border insolvency will be broadly framed on the lines of United Nations Commission on International Trade Law (Uncitral). In an increasingly economically interdependent world, the importance of developing and maintaining a robust cross-border legal framework for the facilitation of international trade and investment is widely acknowledged.

To implement its mandate and to facilitate the exchange of ideas and information, Uncitral maintains close links with international and regional organisations, both inter-governmental and non-governmental, that are active participants in the work programme of Uncitral and in the field of international trade and commercial law. (To read more Click Here)

Income tax cannot raise fresh claims after resolution plan approved under IBC: Bombay High Court

In what might give reduction to a number of corporations under the Insolvency and Bankruptcy Code (IBC), Bombay High Court has dominated that the tax department cannot raise fresh claims after a resolution plan is approved.

The tax division had issued fresh notices to the company debtor after a resolution plan was approved. There remains to be ambiguity over what would occur to pending tax demand for the corporate under IBC. And what would occur if the corporate had been to get a refund from the tax division after the brand new consumers take over, say business trackers.

Though the recent ruling deals with the demands raised by the income-tax authorities from the assessments for the financial years prior to the IBC order, an open issue arises in the case where the corporate debtor gets such assessments in their favour and there is a claim of refund or loss carry forward. Technically, the income tax laws are silent on this aspect and since IBC does not per se deal in relation to tax matters, it could be said that there is no conflict between the IBC and tax laws,” stated Yashesh Ashar, accomplice at tax advisory agency Bhuta Shah & Co.

“The income tax authorities…ought to have been diligent to verify the previous years’ assessment of the corporate debtor as permissible under the law and to raise the claim in the prescribed form within time before the resolution professional. In the present case, the income tax authorities failed to do so and therefore, the claim stood extinguished,” the court docket dominated. (To read more Click Here)

Reliance-ACRE seeks competition panel’s nod to buy Sintex under IBC

Reliance Industries Limited (RIL) in partnership with Assets Care & Reconstruction Enterprises (ACRE) has sought approval from the Competition Commission of India (CCI) to acquire Sintex Industries.

According to a report, RIL and ACRE have made bid to acquire Sintex Industries which is under insolvency proceedings. The report said that an approval from CCI is required before the resolution plan can receive the lenders’ nod. At present, RIL, ARES Capital-backed ACRE, Welspun Group company Easygo Textiles, Trident, Himatsingka Ventures and GHFC have shown interest in Sintex Industries.

The Gujarat-based textile company is currently undergoing a corporate insolvency and resolution process in the National Company Law Tribunal (NCLT).

(To read more Click Here)

  • Important Notifications and Circulars Tracker (January, 2022)
Sl.Notification(s)Link(s)
1.Provisional List of IPs prepared in accordance with ‘Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2021’, for appointment as IRP, Liquidator, RP and BT, during the period January 1, 2022, to June 30, 2022.  Click here
2.In the matter of Mr. Vimal Kumar Grover, Insolvency ProfessionalClick here
3Voluntary Liquidation Processes Ending with Order of Dissolution: As on 30th September, 2021Click here
4Final Panel of IPs prepared in accordance with ‘Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (second) Guidelines, 2021’ for the period from January 1, 2022, to June 30, 2022Click here
5Certificate Course on IBC in association with ICAIClick here
6Liquidation Processes Ending with Order of Dissolution/Closure: As on 30th September, 2021Click here
7Invitation for One Day Workshop on “Committee of Creditors: An Institution of Public Faith”Click here
8The Insolvency and Bankruptcy Board of India organises a Workshop on “Committee of Creditors: An Institution of Public Faith”.Click here
9Extension of additional charge of Dr. Navrang Saini, WTM, IBBI as Chairperson, IBBI till 5th March, 2022Click here
10International Conference on “MSMEs: Legislative and Regulatory Challenges” on 3rd February, 2022Click here
11Edtech boost: IBBI extends online mode for professional development courses till MarchClick here
12IBBI cancels registration of insolvency professionalClick here
13No objection certificate from IT dept not required for voluntary liquidation: IBBI – Teh move will help speed-up the process of liquidation under the IBCClick here
14In the matter of IIV India Registered Valuers Foundation, under Rule 17 of the Companies (Registered Valuers and Valuation) Rules, 2017.Click here
15IBC may come up in Budget session for faster resolution, cross-border normsClick here
16Pristine Logistics front runner to buy Sical Logistics under IBCClick here
17Request for Proposal for Group Term Life Insurance Plan for Employees of IBBIClick here
18IBBI organises training programme for Indian Corporate Law Service Officers.Click here
19The Insolvency and Bankruptcy Board of India organises a Virtual Conference on “5 Years of Insolvency and Bankruptcy Code: Looking Forward and Beyond”Click here
20International Insolvency & Bankruptcy Moot CompetitionClick here

13. NBFC Compliance Overview

Non-Banking Financial Companies (NBFCs) is a Company registered under the Companies Act 2013 engaged in the businesses of providing financial services including loans & advances, leasing, hire purchase etc. They provide loans and advances and other credit facilities to business people or budding entrepreneur where Bank/Financial Institution are not comfortable, or say it is an alternative source of finance to businessman.

NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Chapter IIIB of the Reserve Bank of India Act, 1934 and any rules made thereunder or any directions issued by it under the Act.

A. NBFC MONTHLY COMPLIANCES SUBMITTED BY ALL NON-DEPOSIT TAKING NBFCS
NAMEPURPOSE OF THE FORMDEPARTMENT
Monthly ReturnMonthly Return on NBFC-NDSI with asset size of Rs.100 CR. & aboveRBI
NBS_ALM1Statement of Short term dynamic liquidity to be filed within 10 days of the closer monthRBI
To be submitted by all deposit-taking NBFC’s having asset size above Rs. 100 crores or public deposit of Rs. 20 crores and above
NBS6Monthly Return stating Exposure to Capital MarketRBI
  • NBFC COMPLIANCE UNDER COMPANIES ACT, 2013
FORM NAMEPURPOSE OF THE FORMDEPARTMENT
E-Form MGT-7Annual Return (Within 60 days of conclusion AGM)ROC
E-Form AOC-4Filing of annual financials i.e. Balance Sheet & Profit & Loss statement (Within 30 days of conclusion of AGM)ROC
E-Form DIR-12If there is any change in Directors (Within 30 days of the date of that change)ROC
And any other Event based Compliance like DIR 3 KYC, ADT-1 etc.
  • NBFC Compliance Checklist for Non-Deposit & Deposit-taking Company
S. No  Particulars  Time Limit
Annual Compliances
1.Audited March Monthly return/NBS-7Upon completion
  2.  File audited annual balance sheet and P&L AccountOne month from the date of signoff
  3.  Resolution of Non-Acceptance of Public DepositBefore the commencement of the new Financial year
  4.Declaration of Auditors to Act as Auditors of the Company  Annual basis
Monthly Compliance
1.Monthly ReturnBy 7th of every month
2.Upload Monthly ReturnBy 7th of every month
Periodical Compliances
1.Appointment of Director (Annexure III)Within 30 days of appointment
2.Resignation of Director (DIR-12 + Challan report)Within 30 days of appointment
  3.Adoption of any notification in the ensuing Board Meeting and filing the certified copy with RBI 
  • NBFC Updates – January, 2022

1. Apollo Management to invest $125 mn in Indian NBFC

US-based private equity major Apollo Management has agreed to invest around Rs 940 crore ($125 million) as growth capital to pick up minority stake into Hero Fincorp, the lending unit of the Hero Group.

The investment will be made through Apollo’s investment affiliate AHVF II Holdings Singapore II Pte. Ltd, according to a public disclosure viewed by VCCircle.

Apollo will acquire around 9-11% stake in the non-banking financial company (NBFC) on a fully diluted basis along with a board seat. This is likely to be Apollo’s third investment in India after its breakup with ICICI Venture in 2020. In 2021, they invested around $200 million (~Rs 1,500 crore) into JSW Cement. As per reports, it has in 2020 invested $500 million into Piramal Finance’s AIF. Apollo’s India team is led by Utsav Baijal, who oversees their private equity and credit businesses. Last month, Hero MotoCorp said its board has approved investing up to Rs 700 crore in the NBFC arm. (To read more Click Here)

2. RBI simplifies rules for factoring business; move to increase NBFC numbers from 7 to 182

Reserve Bank of India (RBI) has simplified rules for the Non Banking Finance Companies or NBFCs. The banking regulator has simplified rules for the factoring business. NBFC- Investment and Credit Companies (NBFC-ICCs) with asset size of Rs 1,000 crore and above will be permitted to undertake factoring business.

RBI Issues Guidelines on NBFC: India’s central bank Reserve Bank of India, or RBI, has eased guidelines for the Non Banking Finance Companies, or NBFCs. In a recent notification, the banking regulator said that it had allowed select NBFCs to undertake factoring business subject to satisfaction of certain conditions. With this, the guidelines laid for factoring businesses have been simplified by the RBI. This comes close in heels with analysts revising the growth outlook of retail to NBFCs to 5-7 per cent for the fiscal 2022 from an earlier expectation of 8 to 10 per cent. In the first half of FY2022, retail NBFCs grew by less than one per cent.

Following this, the RBI said that it had introduced some regulations. “Under the provisions of the regulations mentioned above, all existing non-deposit taking NBFC-Investment and Credit Companies (NBFC-ICCs) with asset size of Rs 1,000 crore and above will be permitted to undertake factoring business subject to satisfaction of certain conditions,” the central bank said in the notification. (To read more Click Here)

3. RBI seeks details of NBFCs’ ‘buy now, pay later’ deals with e-tailers

It may be recalled that the RBI’s Financial Stability Report of December 2021 had called attention to the retail credit growth model confronting headwinds.

The ‘buy now, pay later’ (BNPL) game is set for a big change. The Reserve Bank of India (RBI) has sought details of shadow banks’ BNPL arrangements with e-commerce (e-com) players. The central bank has also asked for information on their roles as transferor or transferee for loans under its “Master Direction on Transfer of Loan Exposures”, issued on September 24, 2021. The urgency of the issue was evidenced in the RBI’s email to non- banking financial companies (NBFCs) on Monday: That the data is to be submitted by the end of the day.

The aggregate loans given via the BNPL route are not known though the “Report of the Working Group on Digital Lending including Lending through Online Platforms and Mobile Apps” in November last year gave a sense of it.

It noted that “even though the amount disbursed under BNPL schemes is only 0.73 per cent (banks) and 2.07 per cent (NBFCs) of the total loans disbursed, the volumes (number of loans) are quite significant”. In digital lending (and not restricted to BNPL), disbursements by RBI-sampled entities exhibited a more than 12-fold increase to Rs1,41,821 crore in FY20 from Rs 11,671 crore in FY17.

It may be recalled that the RBI’s Financial Stability Report of December 2021 had called attention to the retail credit growth model confronting headwinds: Delinquencies have risen; and the new-to-credit segment is showing a dip in originations. It referred to the Bank for International Settlements’ observation that in emerging markets, bad loans “typically peak six to eight quarters after the onset of a severe recession”. (To read more Click Here)

14. NCLT & NCLAT UPDATES (Updates- January, 2022)

Title of the notification (s)DocumentsIssue Date
Constitution of Special Bench NCLT New Delhi bench- Court No. III order dated 2.2.2022 Size : 864.51 KB02/02/2022
Constitution of Special Bench NCLT Mumbai bench- Court No. IV order dated 1.2.2022- For Pronouncement Size : 1.45 MB01/02/2022
Constitution of Special Bench NCLT Mumbai bench- Court No. II order dated 1.2.2022- For Pronouncement Size : 1.54 MB01/02/2022
Constitution of Special Bench NCLT New Delhi bench- Court No. VI order dated 1.2.2022 Size : 842.46 KB01/02/2022
Constitution of Special Bench NCLT Ahmedabad bench- Court No. II order dated 31.1.2022 Size : 825.98 KB31/01/2022
Constitution of Special Bench NCLT Chennai bench- Court No. I order dated 31.1.2022 Size : 857.04 KB31/01/2022
Title of the notification (s)DocumentsIssue Date
Constitution of Special Bench NCLT Chennai bench- Court No. I order dated 31.1.2022 Size : 857.04 KB31/01/2022
Constitution of Special Bench NCLT Mumbai bench- Court No. IV order dated 31.1.2022 Size : 829.29 KB31/01/2022
Sitting of the NCLT Benches for the period 1.2.2022 to 11.2.2022 Proceedings- Order dated 31.1.2022 Size : 860.81 KB31/01/2022
Constitution of Special Bench NCLT Principal bench order dated 28.1.2022 Size : 849.56 KB28/01/2022
Constitution of Special Bench NCLT Guwahati bench order dated 28.1.2022 Size : 833.33 KB28/01/2022
Constitution of Special Bench NCLT Principal bench order dated 27.1.2022 Size : 844.25 KB27/01/2022
Constitution of Special Bench NCLT Mumbai bench- Court No. II order dated 25.1.2022 Size : 833.66 KB25/01/2022
Re-Constitution of Bench at NCLT Kochi order dated 25.1.20222 Size : 816.04 KB25/01/2022
Constitution of Special Bench NCLT Mumbai bench- Court No. II order dated 25.1.2022 Size : 833.66 KB25/01/2022
Constitution of Special Bench NCLT New Delhi bench- Court No. III order dated 24.1.2022 Size : 806.87 KB24/01/2022
Order dated 24.1.2022- For Recusal at NCLT New Delhi Bench-Court No. I- Member (T) Size : 777.81 KB24/01/2022
Constitution of Special Bench NCLT New Delhi bench- Court No. VI order dated 24.1.2022 Size : 807.24 KB24/01/2022
NCLT order dated 15.1.2022 Size : 434.7 KB15/01/2022
Urgent Hearing order 9 Jan 2022 Size : 819.45 KB09/01/2022
  1. Larsen & Toubro receives NCLT approval for scheme of amalgamation

Larsen & Toubro announced that the Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT) vide its order dated 28 January 2022 has approved the said Scheme of Amalgamation of L& T Hydrocarbon Engineering with the company.

The appointed date for scheme is 01 April 2021. The Scheme shall be effective after the receipt of the certified copy of the order from NCLT and its consequent filing with the Registrar of Companies. (To read more Click Here)

2.  NCLT sends Prajay Ltd dispute to International Arbitration and Mediation Centre

The National Company Law Tribunal (NCLT), Hyderabad bench referred one other batch cases between Belcare Ltd, Vs. Prajay Properties Pvt. Ltd & others and Whitestock Ltd Vs. Prajay Properties Pvt. Ltd & others to the International Arbitration and Mediation Centre (IAMC) Hyderabad.

The petitioners Belcale Ltd invested certain amounts to hold 21.45% equity shareholding and Whitestock Ltd invested 22% equity in Prajay Properties. The matter has been going on for more than three years. The NCLT bench comprising Justice Ramalingam Sudhakar and Veera Brahma Rao Arekapudi, while going through the counters with the consent of the counsels referred the disputes for negotiations to the newly inaugurated IAMC, Hyderabad. The NCLT bench recently referred its first batch of disputes between Sanghi brothers to IAMC. (To read more Click Here)

3.  SC: NCLT has no authority to ask creditors to settle with defaulter

In an important verdict concerning the Insolvency and Bankruptcy Code (IBC), the Supreme Court on Tuesday ruled that the National Company Law Tribunal (NCLT) has no authority to ask creditors to settle with a defaulter though it has the power to either summarily reject or entertain pleas for initiation of insolvency proceedings.

Agreeing with the contention of advocate Srijan Sinha, who appeared for a number of investors who had moved for bankruptcy proceedings against realtor Bharath Hitech Builders, a bench of Justices D Y Chandrachud and A S Bopanna said, “The IBC is a complete code in itself. The adjudicating authority (NCLT) and the appellate authority (NCLAT) are creatures of the statute. Their jurisdiction is statutorily conferred. The statute which confers jurisdiction also structures, channelises and circumscribes the ambit of such jurisdiction. Thus, while the adjudicating authority and appellate authority can encourage settlements, they cannot direct them by acting as courts of equity.” (Read more Click Here)

15. Competition Commission of India

Competition Commission of India is a statutory body of the Government of India, established on 14 October 2003, responsible for enforcing The Competition Act, 2002 and promoting competition throughout India and to prevent activities that have an appreciable adverse effect on competition in India.

  • Key Updates – for the month of January – 2022
Sl.ParticularsLink
1CCI approves acquisition of 96.42% equity shareholding in Jindal Power Limited by Worldone Private LimitedClick here
2CCI Directs Investigation Into Apple’s App Store Policies On Allegations Of Unfair Trade PracticesClick here
3Competition Commission of India orders probe against AppleClick here
4HDFC Life completes acquisition of Exide Life Insurance – The deal was approved by the Competition Commission of India (CCI) in November and by the Insurance Regulatory and Development Authority of India on December 31.  Click here
5CCI set to probe Google’s ‘abuse of dominance’ in news aggregationClick here
6Google faces CCI probe over alleged abuse of dominance in news aggregationClick here
7‘Google’s Conditions On Digital News Publishers Prima Facie Unfair, Abuse OfClick here
 Dominant Position’ : CCI Orders Probe 
8‘Unfair terms’ for digital news publishers: CCI to probe GoogleClick here
9CCI approves acquisition of shares in Sutherland Global Holdings Inc. by Coral Blue Investment Pte. Ltd.Click here
10NCLAT admits Amazon’s plea against CCI order on Future CouponsClick here
11CAIT files plea before CCI to block Amazon deal to acquire CloudtailClick here
12Telangana govt’s efforts to revive CCI rekindles hopes of employeesClick here
13CCI approves deal involving three GlaxoSmithKline group entitiesClick here
14CCI imposes penalty on maritime transport companies for indulging in cartelizationClick here
15CCI orders probe against IREL for abuse of dominant positionClick here
16CCI approves acquisition by GlaxoSmithKline Consumer Healthcare Overseas Limited and GlaxoSmithKline Consumer Healthcare UK Trading Limited of shareholding in GlaxoSmithKline Asia Private Limited  Click here

A senior industry official preferring anonymity told IANS: “Perhaps the government can give the necessary powers to the IRDAI Members and abolish the Chairman’s post. The other option is to have IRDAI as one more wing of the Reserve Bank of India (RBI).”

“Globally in the insurance sector, many things are changing focussed on safeguarding the policyholder’s interest, growing the industry and making the players remain solvent,” a head of a large non-life insurer had told IANS on the condition of anonymity.

“Ease of doing insurance business in India? You must be joking. One should ask the industry players on how IRDAI is a control freak. The licence permit raj is in full force in the insurance sector,” a senior industry official preferring anonymity told IANS. The IRDAI not only licences the insurers, intermediaries but also the outsourcing agencies like the healthcare claim processing companies.

  (To read more Click Here)

  • Discussions ongoing with IRDAI over license: Paytm

Fintech major Paytm on Saturday said that they are in discussion with the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) on getting approval for the insurance license.

“It is an ongoing discussion with the regulator. There have been some rumours that the license got rejected but there have been no official, unofficial, formal or informal indications from the regulator that they want to reject our license,” said Paytm CFO Madhur Deora.

  • IRDAI reduces obligatory cession of premiums to GIC Re to 4% from FY23

The insurance regulator has lowered the obligatory cession of sum insured on each general insurance policy that is to be reinsured with state-owned reinsurer GIC Re to 4 per cent, beginning financial year 2022-23 (FY23), from 5 per cent earlier. The move could result in GIC Re losing about Rs 1,500-2,000 crore of premiums, said industry experts.

Irdai has been reducing the obligatory cession over time — from as much as 20 per cent, to 15 per cent, and then to 5 per cent, and 4 per cent now. Slowly the regulator is making sure that more re-insurers get into the market to develop India as a hub, he added.

According to regulations, the reinsurer, in this case GIC Re, has to share the profit commission on a 50:50 basis with the ceding insurer based on the performance and surplus of the total obligatory portfolio of the ceding insurer. However, no profit commission is payable if the loss ratio exceeds 78 per cent and profit commission shall not exceed 14 per cent, the regulator said. (To read more click here)

  • Key Updates January, 2022
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1Telecom Department revises policy for issue/renewal of NOC for sale/rent of International Roaming SIM Cards/ Global Calling Cards of Foreign Operators in India  Click here
2All DoT & BSNL Pensioners are cautioned not to share any sensitive information like OTP/Bank Details/PPO Details with anyone on email/SMS/call. It might be a trap!  Click here
3Gujarat LSA, under chairmanship of DDG (Technology), organized 
 meeting of State Telecom Disaster Coordination Committee on 18.01.2022 in virtual mode, attended by representatives of State DMA and Service Providers.Click here
4Due to prevailing #pandemic situation, #GMDSS-GOC #exam for the month of January 2022 has been #cancelled at all exam centers. Such candidates will be admitted in the subsequent examination.Click here
5Frequently Asked Questions (FAQs) on Telecom Reforms PackageClick here
6In another step towards facilitating SAMPANN Pensioners of DoT the O/o CCA Gujarat has published Income Tax e-Book. This e-book provides answers to Income Tax related queries of Senior Citizens  Click here
7Department of Telecommunications, Government of India is now available on Public App also.Click here
8Telangana – setting up telecom/OFC network to develop world-class telecommunication infrastructure, under #NationalInfrastructurePipeline.Click here
9Frequently Asked Questions (FAQs) on Telecom Reforms PackageClick here
10In another step towards facilitating SAMPANN Pensioners of DoT the O/o CCA Gujarat has published Income Tax e-Book. This e-book provides answers to Income Tax related queries of Senior Citizens  Click here
11Department of Telecommunications, Government of India is now available on Public App also.Click here
12Telangana – setting up telecom/OFC network to develop world-class telecommunication infrastructure, under #NationalInfrastructurePipeline.Click here
14“Licensing framework for Audio Conferencing/ Audiotex/ Voice Mail Services” to be part of Unified License, decides Telecom DepartmentClick here
15Acceptance of digital documents through DigiLocker by the Department of Telecommunications has made the process of buying SIM Cards convenient for the people of India. A significant initiative fulfilling the vision of Digital India! #DigitalIndia2021 |  Click here
16TCIL has achieved standalone revenue and profit after tax of Rs.17492.90 Mn and Rs.527.70 Mn respectively, in 2020-21.  Click here
17“Licensing framework for Audio Conferencing/ Audiotex/ Voice Mail Services” to be part of Unified License, decides Telecom DepartmentClick here
18Indigenous 5G Test bed project: White heavy check markThe project funded by @DoT_India has reached its final stages and White heavy check markLikely to be completed by 31st December’2021  Click here
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1Centre notifies rules for Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021Click here
  2Notifications issued regarding Triple Deck to transport two wheelers, Safety Requirements for Road Trains and Norms regarding Electric power train vehiclesClick here
3Investor Education and Protection Fund Authority (IEPFA) signs MoU with Indira Gandhi National Open University (IGNOU) for promoting Investor Education and Financial literacy among youth through Gyan Darshan channelClick here
4Draft    notification    issued    which    mandates    vehicles    of    category    M1, manufactured after 1st October 2022 to be fitted with two side/side torso air bags and two side curtain/tube air bagsClick here
5Centre issues guidelines for restructuring under Sugar Development Fund Rules 1983Click here
6Cabinet    approves    Memorandum    of   Understanding   between    India                and Turkmenistan on Cooperation in the field of Disaster ManagementClick here
7Cabinet approves Agreement between India and Spain on Cooperation and Mutual Assistance in Customs MattersClick here
8Cabinet approves Intra-State Transmission System – Green Energy Corridor Phase-IIClick here
9Cabinet approves Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accountsClick here
10Cabinet approves infusion of Rs.1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA)Click here

This article is updated till 31st January, 2022 with all Laws / Regulations and their respective amendments.

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Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information. Many sources have been considered including newspapers (ET, BS & HT etc.).