Compliance requirements for the Month of September, 2022

This article contains various Compliance requirements for the Month of September, 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 noncompliance”

Compliance Requirement Under:

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

Our dedicated team will do their best to share the practical resolutions.

1. KEY COMPLIANCES UNDER FEMA / RBI

Applicable Laws/ActsDue DatesCompliance ParticularsForms / (Filing mode)
FEMA ACT 199915th July 2022Annual return on Foreign Liabilities and Assets is required to be submitted by all the India resident companies which have received FDI and/ or made overseas investment in any of the previous year(s), including current year by July 15th every year.FLAIR System Click Here
FEMA 1999ACTNot 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 1999ACTWith in 60 days of receipt/ remittance of funds or transfer of capital instruments whichever is 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 TRS.FC-
FEMA 1999ACTWithin 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-1Form LLP-IFDI
FEMA 1999ACTwithin 60 days from the date of receipt of funds inA Limited liability Partnership shall report disinvestment/ transfer of capital contribution or profit share between a resident and a non resident (or vice versa)Form LLP-IIFDI
FEMA 1999ACTwithin 30 days from the date of allotment                         of capital instrumentsThe domestic custodian shall report the issue/ transfer/ of sponsored/ unsponsored depository receiptsDownstream statement       – Form    DI    & reporting      at FIFP too
Types of AccountsCapital Account and Current Account – The purpose of the capital account is to adjust the assets and liabilities of individuals outside India to persons residing in India. Thus any transaction that results in a change of the overseas assets and liabilities in India of an Indian residing outside India or transactions overseas of a person residing in India will be considered under the capital account. All other transactions fall under the category of the current account.
NRI Bank AccountsThere is option for the Non-Resident Indians to set up various bank accounts in India, like FCNR, NRE and NRO Accounts.
  • IMPORTANT UPDATES, AUGUST – 2022:

1. RBI put out alert list of illegal forex trading apps, Check full list

The Reserve Bank of India (RBI) put out an alert list of entities involved in forex transactions on unauthorized electronic trading platforms this week. RBI noticed that several unauthorised platforms lure people by promising lofty returns. RBI said users of these restricted platforms may be prosecuted from now onwards. Among the long list of illegal apps include OctaFX which is the official trading sponsor of the Indian Premier League (IPL) team Delhi Capitals.

Here’s a full list of unauthorised forex trading apps and websites

  • Alpari
  • AnyFX
  • Ava Trade
  • Binomo
  • e Toro
  • Exness
  • Expert Option
  • FBS
  • FinFxPro
  • com
  • Forex4money
  • Foxorex
  • FTMO
  • FVP Trade
  • FXPrimus
  • FXStreet
  • FXCm
  • FxNice
  • FXTM
  • HotFores
  • ibell Markets
  • IC Markets
  • iFOREX
  • IG Markets
  • IQ Option
  • NTS Forex Trading
  • Octa FX
  • Olymp Trade
  • TD Ameritrade
  • TP Global FX
  • Trade Sight FX
  • Urban Forex
  • Xm
  • XTB

The RBI added that an entity not appearing on this list should not be assumed to be authorised by the central bank. As per the RBI norms, resident persons should undertake forex transactions only with authorised persons and for permitted purposes, in terms of the FEMA (Foreign Exchange Management Act, 1999). (Source: Click Here)

2.Digital lending guidelines aim to protect customer interest: RBI governor Rao

The Reserve Bank of India (RBI)’s new digital lending norms are designed to end regulatory arbitrage, and protect customers, said RBI deputy governor Rajeshwar Rao.

On 10 August, RBI came out with its digital lending norms to curb illegal activities, and mitigate concerns arising from credit delivery by digital platforms. The new rules, applicable only to RBI-regulated entities and loan providers, mandate them to disclose all-inclusive cost of digital loans to borrowers and bar the lenders from automatically increasing credit limits without the borrower’s consent.

Last week, the central bank said entities engaged in digital credit delivery have time till 30 November to comply with the norms for existing digital loans. For new as well as existing customers availing fresh loans, the norms will be applicable with immediate effect.

The onus of complying with the regulatory guidelines rests with the regulated entities and they will have to ensure loan service facilitators and digital lending apps with which they have outsourcing tie ups functions within the regulatory ecosystem, not just in letter, but also in spirit, he added. (To Read more Click Here)

  • RBI CIRCULARS / NOTIFICATIONS: AUGUST, 2022
Sl. Particulars of the Circulars  Link
1External MeasuresCommercial                        Borrowings                  (ECB)                        PolicyLiberalisationClick here
2Master Circular – Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)Click here
3United Nations Security Council Resolutions (UNSCR) 1718 Sanctions Committee on Democratic People’s Republic of Korea (DPRK) amends 44 existing entries on its Sanctions List  Click here
4Regulation of Payment Aggregators – Timeline for submission of applications for authorisation – ReviewClick here
5Board approved Loan Policy – Management of Advances – UCBsClick here
6Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
7Discussion Paper and results of Survey on Climate Risk and Sustainable FinanceClick here
8Sectoral Deployment of Bank Credit – June 2022Click here
9New Banking Policy for Purchase From Foreign CountriesClick here
10.Amendment to FCRAClick here
11.Gold Monetization Scheme (GMS), 2015Click here
12Liquidity Adjustment Facility- Change in ratesClick here
13Reserve Bank – Integrated Ombudsman Scheme, 2021 (RBIOS, 2021)Click here
14Rupee Interest Rate Derivatives (Reserve Bank) Directions – ReviewClick here
15Section 23 of the Banking Regulation Act, 1949 (As Applicable to Co- operative Societies) – Opening of new place of business by District Central Co-operative Banks (DCCBs)  Click here
16Bilateral Netting of Qualified Financial Contracts – Amendments to Prudential GuidelinesClick here
17Recommendations ImplementationoftheWorkinggrouponDigitalLendingClick here
18Survey of Foreign Liabilities and Assets of Mutual Fund Companies – 2021-22Click here
19Premature redemption under Sovereign Gold Bond (SGB) Scheme – Redemption Price for premature redemption due on August 08, 2022 (SGB 2016 – I)  Click here
20Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
21Outsourcing of Financial Services – Responsibilities of regulated entities employing Recovery AgentsClick here
22Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
23RBI Working Paper No. 10/2022: Monetary Transmission in India under the Base Rate and MCLR Regimes: A Comparative StudyClick here
24RBI Working Paper No. 11/2022: SME Exchanges in India: Empirical Analysis of Firm Attributes and IPO CharacteristicsClick here
25RBI releases Discussion Paper on Charges in Payment SystemsClick here
26Reserve Money for the week ended August 12, 2022Click here
27RBI Bulletin – August 2022Click here
28RBI ClarificationClick here
29DRG Study No. 47: Governance, Efficiency and Soundness of Indian BanksClick here
30Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
31Foreign Exchange Management (Overseas Investment) Regulations, 2022Click here
32Foreign Exchange Management (Overseas Investment) Directions, 2022Click here
33Section 23 of the Banking Regulation Act, 1949 – Branch Authorisation Policy – Left Wing Extremism affected districts – Revised ListClick here
34RBI Bulletin – August 2022Click here
35RBI ClarificationClick here
36Minutes of the Monetary Policy Committee Meeting, August 3 to 5, 2022Click here
37Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here
38Sovereign Gold Bond Scheme 2022-23 Series II – Issue PriceClick here
39RBI releases ‘Quarterly Statistics on Deposits and Credit of SCBs: June 2022’Click here
40597th Meeting of Central Board of the Reserve Bank of IndiaClick here
41Reserve Bank of India – Bulletin Weekly Statistical Supplement – ExtractClick here

2. COMPLIANCE REQUIREMENT UNDER INCOME TAX ACT, 1961

Sl.Compliance ParticularsDue Dates
1Due date of depositing TDS/TCS liabilities under Income Tax Act, 1961 for the previous month.07.09.2022
2.Due date for issue of TDS Certificate for tax deducted under section 194- IA, 194-IB, and 194M in the month of June 2022.14.09.2022
3Due date for furnishing of form 24G by an office of the government where TDS/TCS for the month of July 2022 has been paid without the production of a challan.15.09.2022
4Second instalment of advance tax for the assessment year 2023-2415.09.2022
5Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes have been modified after registering in the system for the month of July 2022.15.09.2022
6Due date for filing of audit report under section 44AB for the assessment year 2022-23 in the case of a corporate-assessee or non-corporate assessee (who is required to submit his/its return of income on October 31, 2022)30.09.2022
7Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194-IB, 194-IM, in the month of July 2022.30.08.2022
  • IMPORTATNT UPDATES – AUGUST, 2022:

1.ITR filing 2021-22: THIS income tax RULE allows filing ITR without any penalty even after last date

  • Those filing income tax returns after July 31 have to pay a
  • However, there is exemption of penalty in some cases under 234 FA of Income
  • A person won’t be fined for filing ITR after 31 July if his total financial income isn’t above 5 lakhs.

According to tax experts, you won’t be charged any penalty for filing ITR after 31st July in case your total income in a financial year is not above 2.5 lakhs under 234 F section of Income tax act. In simple terms, a person whose total income in a financial year isn’t above 2.5 lakhs can pay ITR even after the last date without any penalty. However, there is a catch here which you should know. It’s also dependent on which tax regime you have chosen.

The returns of most of the tax payers who have filed income tax returns for th e financial year 2021-22 are out. The Central Board of Direct Taxes (CBDT) had said in the data released last days that during April 2022 to August 31, 2022, 1.96 crore income tax payers have been refunded Rs 61 thousand 252 crore in the form of

personal tax refund. Apart from this, the total income tax refund of Rs 1.14 lakh crore was done by the department.

(To know more: Click Here)

2.CBDT amends income tax rule for foreign tax credit claims

The income rule for providing relief to taxpayers claiming foreign tax   credit (FTC) has been amended. The Central Board of Direct Taxes (CBDT) has made changes to rule 128 under Income Tax Rules 1962, for FTC. The pre-amended rule required taxpayers to file their FTC claims by the due date for furnishing income tax returns (ITR).

Income Tax department through its Twitter   account, notified CBDT’s amendment in the rule for FTC. The department said, “The pre-amended Rule required the FTC claim to be filed by the due date of furnishing the Income Tax Return. The amendment operates retrospectively so that this benefit is available to all FTC claims filed during the current Financial Year.”

As per the CBDT notification, “the statement in Form No 67…. shall be furnished on or before the end of the assessment year relevant to the previous year in which the income referred in the sub-rule (1) has been furnished within the time specified under sub-section (1) or sub-section (4) of section 139.”

The amendment has come into effect on April 1, 2022. The notification said, “The amendment is effective from the 1st day of April 2022 so that it applies to all the claims of foreign tax credit furnished during the financial year 2022 -2023. It is hereby certified that no person is being adversely affected by giving retrospective effect to this rule.” (To know more: Click Here)

  • IMPORTANT NOTIFICATIONS – For the month of August – 2022:
Sl.Particulars of the Notification(s)File No. / Circular No.Link(s)
1.Procedure of PAN application & allotment through Simplified Proforma for incorporating Limited Liability Partnerships (LLPs) electronically Form FiLLiP of Ministry of Corporate Affairs.Notification No. 04/2022Click Here
2.Order authorizing ‘Prescribed Authority’ for the purpose of e-Verification Scheme, 2021F.No.282/04/2022Click Here
3.Order under Section 119(1) of the Income Tax Act, 1961 – ASK Centers throughout India shall remain open on 31st July 2022 during normal office hours.F. No. 225/125/2022- ITA.IIClick Here
4.In exercise of the powers conferred by clause (XII) of the first proviso of clause (x) of sub-Notification No.Click Here
section (2) of section 56 of theIncome-tax Act,1961 (43 of 1961),the Central Government hereby specifies the following conditions91/2022
5The Central Government hereby specifies the sovereign wealth fund, namely, Qatar Holding LLC (PAN: AAACQ3167H),Notification No. 93/2022Click Here
6The  Income-tax (24th Amendment) Rules, 2022.Notification No. 94/2022Click Here
7The  Income-tax (25th Amendment) Rules, 2022.Notification No. 96/2022Click Here
8The Income-tax (26th Amendment) Rules, 2022Notification No. 98/2022Click Here
9Provisions of Section 206C (1G) of the Act shall not apply to a person (being a buyer) who is a non-resident in terms of section 6 of the Act and who does not have a permanent establishment in India.Notification No. 99/2022Click Here
10The    Income-tax    (27thAmendment)    Rules, 2022Notification No. 100/2022Click Here
11The Income-tax (Twenty Eighth Amendment) Rules, 2022Notification No. 101/2022Click Here
12The Andhra Pradesh Pollution Control Board (PAN AAAJA1610Q)Notification No. 103/2022Click Here

3. COMPLIANCE REQUIREMENT UNDER GST, 2017

A.Filing of GSTR –3B / GSTR 3B QRMP

a) Taxpayers having aggregate turnover > 5 Cr. in preceding FY

Tax periodDue DateParticulars
August, 202220th September, 2022Due Date for filling GSTR – 3B return for the month of June, 2022 for the taxpayer with Aggregate turnover exceeding INR 5 crores during previous year. Due Date for filling GSTR – 3B return for the quarter of January to March 2022 for the taxpayer with Aggregate turnover up to INR 5 crores during the previous year and who has opted for Quarterly filing of return under QRMP.

B.Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)

Tax periodDue DateParticulars
August, 202222nd September, 2022Due Date for filling GSTR – 3B return for the month of June, 2022 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

c) Taxpayers having aggregate turnover upto 5 crores in preceding FY (Group B)

Tax periodDue DateParticulars
August, 202224th September, 2022Annual Turnover Up to INR 5 Cr in Previous FY But Opted Quarterly Filing
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

B.Filing Form GSTR-1:

Tax periodDue DateRemarks
Monthly return (August, 2022)11.09.20221.   GST Filing of returns by registered person with aggregate turnover exceeding INR 5 Crores during preceding year. 2.    Registered person, with aggregate turnover of less then INR 5 Crores during preceeding year, opted for monthly filing of return under QRMP.

C. 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 month20.09.2022
GSTR -6Every Input Service Distributor (ISD)13th of succeeding month13.09.2022
GSTR -7Return for Tax Deducted at source to be filed by Tax Deductor10th of succeeding month10.09.2022
GSTR -8E-Commerce operator registered under GST liable to TCS10th of succeeding month10.09.2022

D. GSTR – 1 QRMP monthly / Quarterly return

Form No.Compliance ParticularsTimelineDue Date
Details of outwarda) GST QRMP monthly return due date for the month of April, 2022
supply-IFF & Summary              of outward supplies by taxpayers who have opted for the QRMP scheme.(IFF). Applicable for taxpayers with Annual aggregate turnover up to Rs. 1.50 Crore. b) Summary of outward supplies by taxpayers who have opted for the QRMP scheme.13th     of    succeeding month – Monthly Quarterly Return13.09.2022

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

 F. Monthly Payment of GST PMT-06:

Compliance ParticularDue Date
Due Date of payment of GST for a taxpayer with Aggregate turnover up to INR 5 crores during the previous year and who has opted for Quarterly filing of return under QRMP.25.09.2022
  • MONTHLY KEY UPDATE(s) – August, 2022:

1.GoM readies report on GST appellate tribunals

A group of ministers (GoM) set up by the Goods and Services Tax (GST) Council has cleared the framework for setting up appellate tribunals to hear disputes, proposing more than one bench in state, said with pepole knowledge of the matter.

The principal bench of the GST Appellate Tribunal (GSTAT) is proposed to be set up in New Delhi, while large states can have up to five benches, they said. It also suggested relaxation in criteria for appointment of members. A final call on recommendations will be taken by the council when it meets in September. Once the GoM’s recommendations are accepted by the council, appellate bodies can be set up in states and UTs, they added.

The industry has repeatedly raised the need for GSTATs, flagging the urgency to expedite disposal of cases. In the absence of these tribunals, GST disputes were going straight to the high courts after adjudication by officials, creating delays and dragging out disputes.

The GST Council had proposed that each regional bench consist of a judicial officer equivalent to a high court judge, and a senior tax officer from either the Centre or state as a technical member. The appellate body will be headed by former Supreme Court judges or high court chief justices.

The GoM also recommended that a four-member search and selection committee be set up for the appointment of members to the benches. The selection committee will be headed by either the Chief Justice of India or his representative judge from the top court, along with the president of the GSTAT, a Union government secretary and a state chief secretary.

2.Govt contract winners must share all details for GST assessment: SC

The Supreme Court has said all details of the bidder winning a government contract need to be shared with the Goods and Services Tax (GST) jurisdictional officers concerned to enable them to correctly assess tax liability. The Supreme Court also held that it is the responsibility of the bidder to quote the correct Harmonised System of Nomenclature (HSN) code and the corresponding GST rate.

The ruling came in response to the government’s plea following the high court’s decision in a case pertaining to Bharat Forge Ltd in connection with a railway contract. Diesel Locomotive Works, under the Indian Railways, floated a global tender inviting e-tenders for procurement of turbo wheel impeller balance in 2019, under the Make in India scheme.

The Supreme Court said that when the state decides to award a contract it is not obliged to undertake the ordeal of finding out the correct HSN code and the tax rate applicable to the product which it wishes to procure. However, it ruled that a copy of the document that forms the basis of award of contract containing all material details will have to be immediately forwarded to the jurisdictional officer concerned by the appellant to ensure that there is no tax evasion. (To read more – Click Here)

GST UPDATES – AUGUST, 2022:

Sl.Notification ParticularsNotification No.Link (s)
1.Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 10 Cr from 01st October, 2022.17/2022-Central TaxClick Here
2.Authorisation under clause (c) of sub-rule (4) of rule 96 of the Central Goods and Services Tax Rules, 2017GSTN Cir. 549Click Here
3.Module wise new functionalities deployed on the GST Portal for taxpayersGSTN Cir. 552Click Here
4.Introducing Single Click Nil Filing of GSTR-1GSTN Cir. 551Click Here
5.Clarifications regarding applicable GST rates & exemptions on certain services177/09/2022-GSTClick Here
6GST    applicability     on    liquidated    damages, compensation and penalty arising out of breach of contract or other provisions of law178/10/2022-GSTClick Here
7Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 47th meeting held on 28th – 29th June, 2022 at Chandigarh179/11/2022-GSTClick Here
8Guidelines for arrest and bail in relation to offences punishable under the CGST Act, 2017.Instruction No. 02/ 2022-23-[GST-INV]Click Here
9Guidelines On Issuance Of Summons Under Section 70 Of The Central Goods & Services Tax Act, 2017Instruction No. 03/2022-23 [GST- INV]Click Here

4. COMPLIANCE UNDER OTHER STATUTORY LAWS

Applicable Laws/ActsTimeline / Due DatesCompliance ParticularsForms / (Filing mode)
EPF (The Employees’ Provident Funds      And               Miscellaneous Provisions Act, 1952)15.09.2022PF PaymentECR
ESIC      (Employees’       State Insurance Act, 1948)15.09.2022ESIC PaymentESI CHALLAN
Contract Labour (RegulationWithin 15 Days ofReturn/Notice within 15 days of commencement/Form VI-B
& Abolition) Act, 1970commencement/ completion of contract workcompletion       of       each contract by the Principal employer
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
  • Key Updates – August, 2022:

1. New Labour Law: Workers could get paid for unused leaves in same year! Check details

The new wage code that is all set to be implemented from July 1, 2022, will impact employees’ working hours, salary restructuring, PF contribution, gratuity aspect, and encashing of Earned Leaves, among other things. For instance, one of the major changes coming next months is related to the encashment of leaves of the workers. According to the new wage rule, employees will be able to encash the leaves without waiting for the financial year to end.

With the new wage code, the Central government has made an attempt to enforce leave provisions across all sectors. The government has tweaked rules related to how many leaves can be carried forwarded next year, providing a chance to employees to get encashment for the unused leaves in the same year.

Currently, 23 states have pre-published draft rules on these laws, The Centre had completed the process of finalising rules on these codes in February 2021. On August 8, 2019, the central government notified four labour codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020. Because labour law is a concurrent subject, the Centre wants the states to implement it all at once, as previously reported.

2. Most states ready, staggered rollout of labour codes likely

With the government setting the stage for the four new labour codes, there are indications of a staggered implementation with an initial rollout of two codes, The Code on Wages and The Code on Social Security. These will likely be followed by the other two — The Industrial Relations Code and The Occupational Safety, Health and Working Conditions Code — at a later stage.

The proposed phased implementation of the codes, along with social security measures for informal workers, will be part of the discussions at the National Labour Conference of labour ministers and secretaries of all states/UTs and the Centre to be held on August 25-26 at Tirupati.

Senior government officials indicated there is an emerging consensus in favour of a staggered implementation, with most states having pre-published the draft rules for The Code on Wages. “Many discussions have happened with all stakeholders. Concerns were raised about the wage provision, whether allowances can be more than 50 per cent. Those have been sorted out and we are trying to build consensus on other issues. Most states have pre- published draft rules for Wage Code, and for rest also they are doing it. A phased implementation is being considered and discussed,” a senior government official told The Indian Express.

Experts said a phased implementation of the codes will give the Centre an edge ahead of the general elections. “It will not be one-go because none of the state governments have notified the rules, all of them have it in draft form. All are waiting and watching … before the elections, the government may like the Wage Code and Social Security Code to be implemented because gig employees are taken care of, universal social security would be there, minimum wage would be there. Electorates are not worried about hire-and-fire, trade unions are worried about that. So for election purposes, it is imperative to pass Wage Code and Social Security Code instantly,” labour economist and professor at XLRI — Xavier School of Management Jamshedpur, K R Shyam Sundar said.

Strategically, he said, it is better to bring Wage Code and Social Security Code first, and those on OSH and IR later. “It is a strategic move for the government to hard pedal the industry to introduce Wage Code, thereby earn legitimacy and also satisfy the credibility gap and also introduce social security to be inclusive about gig workers, and then through the backdoor introduce the IR code and the OSH code.”

  • UPDATES TRACKER UNDER LABOUR LAWS – AUGUST, 2022:
Sl.ParticularsLink
1231st Meeting of CBT, EPF Held at New Delhi on 29th & 30th July 2022.Click Here
2EPFO Payroll data: EPFO adds 16.82 lakh net subscribers in the month of May, 2022Click Here
3#EPF #Members can now Generate Direct #UAN by following these easy steps.Click Here
4Members can visit grievance portal at http://epfigms.gov.in for redressal of any type of grievance related to #services of #EPFO.Click Here
5New Wage CodeClick Here
6Unorganized Workers Registered on E-Shram PortalClick here
7Government committed to protect and promote the welfare, social security, safety and health of labourers.Click here
8Change In Take-Home Salary and Working Hours From New Wage Code, Check DetailsClick Here
9Labour laws upgrade, simplification of taxes, stable tariffs key to India’s trade: ReportClick Here
10EPF contribution rules: What to do if employer doesn’t deposit money in the Provident Fund accountClick Here
11Supreme Court hears the validity of pension scheme amendmentClick Here
12Where has PF of 10,000 sanitation workers gone?Click Here
13Merge 2 EPF Accounts Online: Know Step By Step ProcessClick here
14Scheme for upliftment of daily wage workersClick here
15EPFO Account: Will your EPF accounts earn interest if contribution is not made? 5 lesser known factsClick Here
16EPFO Account: Facts to know about earning EPF account interest without any contributionClick Here
17Your employer’s EPF, NPS contribution can be taxable in your hands: Here’s how to check if it isClick Here
18Know how to calculate interest on EPF balanceClick here
19EPFO News: 10 Simple Steps to File EPF/EPS Nomination OnlineClick Here
20Govt only helping EPF dig a deeper financial holeClick Here
21Mumbai EPFO fraud losses estimated at up to Rs 1,000 cr; a senior social security assistant suspendedClick Here
22PM Modi Says India Is Now Changing, Reforming, Simplifying Labour LawsClick here

 5. SEBI – SECURITIES EXCHANGE BOARD OF INDIA

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

A. Half Yearly Compliances:

Sl. No.Regulation No.Compliance Period (Due Date)Due Date
1.Regulation 23(9)               Related party transactions.The listed entity shall make such disclosures every 6 months within 15 days from the date of publication of its standalone and consolidated financial results: Provided further that the listed entity shall make such disclosures every 6 months on the date of publication of its standalone and consolidated financial results with effect from April 1, 2023.Within 15 days of FR

B.Regular / Annual Compliances:

REG NOREGULATIO N NOPARTICULARSTIMELIN E
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
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

C. Other Quarterly compliance which included half year compliance except FR (Financial Results)

REG NOREGULATION NOPARTICULARSTIMELINE
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
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

D.Event based Compliances

Reg NoRegulation 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: a)           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; b)        any cancellation of dividend with reasons                                               thereof; c)     the decision on buyback of securities; d)   the decision with respect to fund raising proposed to be undertaken e)     increase in capital by issue of bonus shares through capitalization including the date on which such bonus shares shall be credited/dispatched; f)    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; g)   short particulars of any other alterations of capital, including calls; h)  financial results; i)     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: (a)     receipt of request for re-classification by the listed entity from the promoter(s) seeking                                re-classification; (b)            minutes of the board meeting considering such request which would include the views of the board on the request; (c)          submission of application for re- classification of status as promoter/public by the listed entity to the stock exchanges; (d)     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: i.     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. ii.      The independent director shall, along with the detailed reasons, also provide a confirmation that there is no other material reasons    other    than    those    provided. iii.     The confirmation as provided by the independent director above shall also be disclosed by the listed entities to the stock7 days from the date of resignation
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 purpose of the record date.7 working days advance intimation excluding the date of the intimation and date of the 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 datenotice in advance of at least 4
specifying the purpose of the record dateworking 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

6. 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)
1Regulation 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.Omitted through introduction of SEBI         (Substantial Acquisition of Shares and             Takeovers) (Second Amendment) Regulations, 2021 Applicable                            w.e.f. 01.04.2022
2Regulation 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
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 (Provision Insertion: “Provided that the aforesaid disclosure requirement shall not be applicable where such encumbrance      is undertaken       in        a depository”)
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

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

Sl. No.Regulation No.Compliance ParticularCompliance Period (Due Date)
1Regulation 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

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

Sl. No.Regulation No.Compliance ParticularCompliance 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)”. 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).Within 20 days from the date of allotment
2Regulation 162The tenure of the convertible securities of the issuer shall not exceed eighteen months from the date of their allotment.Within 18 months from date of 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 76The issuer along with lead managers and other parties related to
Application for rights issuethe 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: A.     Website of the Issuer, Registrar, Lead Managers, and Stock Exchanges. B.        Television channels, radio, the internet, etc. to spread information related to the process.

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

Sl. No.Regulation No.Compliance ParticularCompliance Period (Due Date)
1Regulation     11 and 24(iv)Extinguishment of equity shares in connection with Buyback The particulars 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 certificates7 days of extinguishment and destruction of the certificates
2Regulation 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

10. SEBI (Depositories and Participants) Regulations 2018)

Sl. No.Compliance ParticularsDue Date
1.Regulation 76 – 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: August, 2022
Sl.ParticularsLink
1.Addendum to SEBI Circular on Development of Passive FundsClick Here
2.LODR – Single Operational Circular for listing obligations and disclosure requirements for Non-convertible Securities, Securitized Debt Instruments and/ or Commercial PaperClick Here
3.Nomination for Mutual Fund Unit Holders – Extension of timelinesClick Here
4.SEBI Bulletin – July 2022 [MSWord] [MSExcel]Click Here
5.Framework for automated deactivation of trading and demat accounts in cases of inadequate KYCsClick Here
6.Enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligenceClick Here
7.Consultation Paper on Green and Blue Bonds as a mode of Sustainable FinanceClick Here
8.Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of SEBI (Prohibition of Insider Trading) Regulations, 2015 – Framework for restricting trading by Designated Persons by freezing PAN at security levelClick Here
9.SEBI constitutes ‘FPI Advisory Committee (FAC)’Click Here
10.Status of SCORES complaints as on July 31, 2022.Click Here
11.Participation as Financial Information Providers in Account Aggregator frameworkClick Here
12.Block Mechanism in demat account of clients undertaking sale transactionsClick Here
13.SIS Limited – BuybackClick Here
14.Guidelines for overseas investment by Alternative Investment Funds (AIFs) / Venture Capital Funds (VCFs)Click Here
15.Securities     Contracts    (Regulation)    (Stock    Exchanges    and    Clearing Corporations) (Amendment) Regulations, 2022Click Here
16.Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUFClick Here
17Circular for Portfolio ManagersClick Here
18Enhanced Disclosures by CRAs and Norms on Rating WithdrawalClick Here
19Disclosure requirement for Asset Management Companies (AMCs)Click Here
20Securities and Exchange Board of India (Portfolio Managers) (Amendment)Click Here
Regulations, 2022
21UTI Nifty 100 Enhanced ESG Index FundClick Here
22Public Notice in respect of SEBI Settlement Scheme, 2022Click Here
23Participation as Financial Information Providers in Account Aggregator frameworkClick Here
24Adjudication Order in respect of insider trading activities of certain entities in the scrip of Aadhaar Ventures India Ltd.Click Here
  • LIST OF BSE CIRCULARS – AUGUST, 2022:
CircularsDate
Amendments to guidelines for preferential issue and institutional placement of units by a listed REIT.August 30, 2022
Amendments to guidelines for preferential issue and institutional placement of units by a listed InvITAugust 30, 2022
Framework for restricting trading by Designated Persons (“DPs”) by freezing PAN at security levelAugust 8, 2022
Enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligenceAugust 8, 2022
Circular on use of digital signature certificate for announcements submitted by listed companiesAugust 1, 2022

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

Applicable Laws/ActsDue DatesCompliance ParticularsForms / 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 daysA person having Significant beneficial owner shall file a declaration to the reporting company Click HereForm BEN-1 Draft Format available at
from the date of notification Dt. 08.02.2019i.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.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 ) CLICK HEREForm BEN – 2 (e-form deployed by Ministry (ROC)) on 01.07.2019
Companies Act, 2013Annual Compliance (30.09.2022)*DIN KYC through DIR 3 KYC Form is an Annual Exercise. Last date for filing DIR-3 KYC for Financial year 2021-22 is 30th September, 2022 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, 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 the holding of AGM or the date on which it should have been held as per the provisions of section 96 of the Act, whichever is earlierIEPF -2

OPC Annual Filings:

  1. One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year.
  2. AGM not Applicable for OPC: Section 96.
  3. Due date for Annual Filing (AOC-4): The due date for Annual Filing is 27.09.2022 (if FY ended on 31.03.2022)
  • AGM Related Compliance Provisions:
Applicable SectionType of MeetingTime line for holding meetingExemptions Available to
Section 96First AGMWithin 9 months from the closure of first financial YearOne Person Company
Section 96Subsequent AGM30th Sep (Within 6 months from the closure of the financial Year) Further the gap between 2 AGM should not exceed 15 monthsOne Person Company
  • KEY UPDATES – August, 2022:

1.Centre to amend Companies Act, tighten audit regime soon

The ministry of corporate affairs will soon introduce a set of tough measures to tighten the framework of statutory auditors aimed at ensuring their independence. The measures are aimed checking the recurrence of situations such as the 2018 failure of Infrastructure Leasing and Financial Services Ltd. (IL&FS) group firms.

The ministry has completed consultation on a report on audit reforms submitted to finance and corporate affairs minister Nirmala Sitharaman in March by an expert committee. The drafting of a bill to amend the Companies Act will start now, said a person familiar with the discussions in the government, indicating the government’s resolve to raise the bar on statutory audit.

Audit reforms will now become a priority for the ministry as reforms in other areas have reached an advanced stage—a bill on amendments to the Competition Act has already been introduced in Parliament and work is at an advanced stage on bankruptcy reforms.

The proposals also include auditors’ mandatory disclosure in the audit report of previous relationship with the audit client, compulsory joint audits in certain classes of companies and compulsory impact analysis of any adverse remark or qualification in the audit report.

The proposed bill is also expected to stipulate a cooling-off period of a year for auditors before they take up senior positions in the company they audited or in any of its associates. Also, auditors will have to explain in detail the circumstances of quitting an audit assignment such as non-cooperation from the company, fraud or severe non-compliance.

2. Ministry of Corporate Affairs searches 300 entities with Chinese nationals on board

The Ministry of Corporate Affairs (MCA) Thursday carried out searches on 300 entities having Chinese nationals on board after its preliminary found them to be engaged in ‘dubious activities’. The searches were carried out at various locations including in Delhi, Hyderabada and Bengaluru after the MCA’s probe found that many of these were “shell entities” formed forging credentials and subsequently had Chinese nationals on board who controlled the affairs of the companies.

This is probably the first instance of a pan-India coordinated search operation by the ministry to crack down on entities having Chinese nationals on board. In April, the MCA had registered over 700 cases across the country against companies with Chinese nationals as promoters and directors. Among those under probe include Vivo, Xiaomi, Oppo and several India units of Alibaba. “The Company Act empowers the Registrar of Companies (RoC) or the inspector (of MCA) to carry out search and seizure operations. This is done once the preliminary probe indicates there are reasons to believe that companies are violating the provisions of the Act,” said an officer privy to the development.

  • To read more: Click Here
  • Important Updates – August, 2022
Sl.Particulars of the CircularsLink
1SFIO Notice dated 22.07.2022 along with list of Heera Claims furnished by CA Firm Sarath & AssociatesClick Here
2CBDT notification for PAN/TAN integration with LLP incorporation form FiLLipClick Here
3Clarification on spending of CSR funds for “Har Ghar Tiranga” campaignClick Here
4“Advertisement as to declaration of dividend” of N/s. Binod Mills Company Ltd. (In-Liqn), Company Petition No.12/1992Click Here
5Government says, it has launched guidelines on Scientific Social Responsibility (SSR), on the lines of Corporate Social Responsibility (CSR), on National Technology Day on 11.05.2022Click Here
6Sale Notice-In the matter of M/s.Shree Vishwanath Chemicals Private Limited (In Liquidation)- Company Petition No.02 of 2003Click Here
7IEPFA requests all the claimants to apply directly for claims refund through the official website www.iepf.gov.in by filling IEPF form 5. Any other means of application or engagement of middleman might lead to discrepancy or rejection of your case. Claimants are advised to inform IEPF Authority immediately, if approached or assured by any Broker/Middleman or Agent to get their claims refund. IEPFA acknowledges communication from the verified contact details only, provided by the claimants while filling IEPF form 5 online. Make sure no one misuses your registered contact details to approach IEPFA.Click Here
8Companies Accounts Fourth Amendment Rules2022.Click Here
9FAQs V3 COMPANY FORMS (Director KYC, Charge & Deposit Forms)Click Here
10Companies (Incorpporation) Third Amendment Rules 2022Click Here
11Companies (Removal of Names of Companies from the Register of Companies) Second Amendment Rules, 2022Click Here
12Update on MCA21 Version -3Click Here
13Companies (Registration of Charges) Second Amendment Rules, 2022 | 8 MBClick Here
14Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2022Click Here
15Companies 29.08.2022(AcceptanceofDeposits)AmendmentRules, 2022datedClick Here
         

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

  •  IBBI likely to issue more regulations by August-end to streamline CIRP

The Insolvency & Bankruptcy Board of India (IBBI) on Wednesday said it will issue some more regulations after getting elaborate feedback from the public in the form of discussion papers floated recently.

The new set of regulations will aim at further streamlining the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). It will also target to reduce delay and improve the resolution value, IBBI chairperson Ravi Mital said.

Responding to issues raised in the discussion papers and pointed out by CII Co-Chairman (ER), economic affairs, corporate finance & Taxation sub-committee, Bijay Murmuria, he said that the new norms will attempt to address many concerns of banks.

The new regulations will be on changes in timelines for activities under CIRP, guiding factors for the Committee of Creditors (CoC ) to decide on early liquidation, and remuneration of Resolution Professionals, Mital said.

NCLT Kolkata Member (Judicial) Rohit Kapoor said, “We are on the right track. Teething problems will be there as there will be solutions, and IBBI is already taking proactive measures.”

  • Read more at: Click Here
  •  IBBI suspends Deloitte partner for 3 years, imposes penalty

Disciplinary action against Savan Godiawala for withdrawal of excessive fees; wrongful hiring of related party Deloitte Touché Tohmatsu

Insolvency regulator IBBI has suspended Deloitte Touche Tohmatsu India LLP (DTTI) Partner Savan Godiawala three years on account of his contravention of IBC provisions in the liquidation cases of Lanco Infratech and Shirpur Power. Penalty has also been levied on Godiawala on this count.

The main charge against Godiawala was wrongful withdrawal of fees and hiring of related party

  • DTTI without proper identification of scope of There was “wrong manner of determination of fee” in case of his dealings in respect of Lanco Infratech Limited and laxity in filling application on avoidance transaction in respect of Shirpur Power Private Limited, the IBBI Disciplinary Committee concluded.

It was observed that for the period between February 27, 2019 and August 27, 2019, due to wrong calculation of liquidation fee, Godiawala had drawn a fee of ₹ 83.04 lakh in excess of the fees that was payable to him in accordance with the Regulations. He had taken mitigating steps by refunding the amount of ₹ 92 lakh in the liquidation account of the CD but the IBBI Committee felt that that the fact remained that he had withdrawn the excess amount, whether it was unintentional or not is a subject matter of interpretation.

The IBBI order also noted that despite considerable time having elapsed, liquidation process in respect of both the CDs (Lanco Infra and Shirpur Power) has not concluded yet.

  • Read more at: Click Here
  • Insolvency resolution plans should go beyond recast of liabilities: IBBI

Insolvency resolution plans of businesses stitched together by committee of creditors should increase the value of the company over the years in a sustained way which needs strategies

going beyond mere restructuring of liabilities, Insolvency and Bankruptcy Board of India (IBBI) has said.

In a message on its website, the bankruptcy rule maker said a resolution plan requires the committee of creditors to display great commercial wisdom.

“Such value maximisation with sustained resolution requires strategies much beyond restructuring of liabilities. This requires tremendous commercial dexterity and acumen on the part of members of the CoC,” IBBI said.

The regulator also said that with responsibility comes accountability and since the decisions of the committee of creditors impact the life of a firm and consequently its stakeholders, it needs to be fair and transparent in its decisions.

The committee of creditors has powers commensurate with its responsibilities, it said. Creditors can decide a haircut of any magnitude to any or all stakeholders required for rescuing the firm and to seek and choose the best resolution plan from the market, unlike other avenues that allow creditors to find a resolution only from existing promoters.

The regulator is in the process of building awareness about the role played by the committee of creditors as an institution of public faith and to build the capacity of institutional creditors to ensure that the committee discharges its statutory duties and responsibilities with utmost care and diligence. Read more at Click Here

  • Important Notifications and Circulars Tracker (August, 2022)
Sl.ParticularsLink
1In the matter of Ms. Padmasri Appana, Insolvency ProfessionalClick here
2Summary – Order dated 18th July, 2022 of the NCLT in the matter of Infinity Infotech Parks Limited Vs. Electroparts (India) Private Limited & Anr. [I.A (IBC) No.907 /KB/2021 in C.P. (IB) No. 140/KB/2021]Click here
3In   the    matter ProfessionalofMr.MudappallurVariethGangadharan,    InsolvencyClick here
4Filling up of 08 (eight) posts of Judicial Member and 11 (eleven) posts of Technical Members in the National Company Law Tribunal (NCLT)Click here
5In the matter of Mr. Rohit Aggarwal, Insolvency ProfessionalClick here
6In the matter of Mr. Aditya Agrawal, Insolvency ProfessionalClick here
72nd International Research Conference on Insolvency and Bankruptcy 2023: Call for Research PapersClick here
8Summary: Judgment dated 5th August, 2022 of the Hon’ble SC in the matter of Kotak Mahindra Bank Limited Vs. Kew Precision Parts Private Limited & Ors. [Civil Appeal No. 2176 of 2020]Click here
9In the matter of Mr. Rakesh Ahuja, Insolvency ProfessionalClick here
10In the matter of Mr. Ashok Kriplani, Insolvency ProfessionalClick here
11In the matter of Ms. Rakesh Verma, Insolvency ProfessionalClick here
12In the matter of Mr. Savan Godiawala, Insolvency ProfessionalClick here
13In the matter of Sundaresh Bhatt, Liquidator of ABG Shipyard Vs. CentralClick here
        
Board of Indirect Taxes And Customs Civil Appeal No. 7667 of 2021
14Summary: Judgment dated 26th August, 2022 of the Hon’ble SC in the matter of Sundaresh Bhatt, Liquidator of ABG Shipyard Vs. Central Board of Indirect Taxes And Customs Civil Appeal No. 7667 of 2021Click here
15In the matter of Mr. Dinkar Tiruvannadapuram Venkatasubramnian, Insolvency ProfessionalClick here
16Quarterly Newsletter For Apr-Jun, 2022Click here
17In the matter of Mr. Sanjay Kumar Singh, Insolvency ProfessionalClick here
18In the matter of Mr. Nipan Bansal, Insolvency ProfessionalClick here
19In the matter of Mr. Savan Godiawala, Insolvency ProfessionalClick here
20Engagement      of      Research      Associates      in      Law/Economics/Business Management/CA on Contract BasisClick here

13. NCLT & NCLAT UPDATES (Updates- August, 2022)

1.BoI takes Future Lifestyle to NCLT under bankruptcy code for due recovery

Bank of India (BoI) has dragged Kishore Biyani-controlled Future Lifestyle Fashions (FLFL) to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) for recovery of dues.

FLFL — in its filing with the BSE — said Saraf and Partners, advocates, on behalf of BoI, has served a petition under Section 7 of the IBC 2016. The company is in the process of taking legal advice in the matter. Future Retail and Future Enterprises, both part of the Biyani-led group, are already in NCLT facing cases on payment defaults.

Catalyst Trusteeship has already taken FLFL under clause 7 of the IBC to NCLT for claims worth Rs 451.98 crore. The petition is slated for hearing on Tuesday. Another entity Lotus Lifespaces LLP has dragged the company under Section 9 of the IBC for claims worth Rs

150.37 crore. The cases are slated for hearing on September 26. Both petitions are yet to be admitted by the NCLT. Section 9 of the IBC gives power to operational creditors of a company to initiate a corporate insolvency resolution process in case of a default.

The Biyani-controlled entity said as part of business revival, the Board has already initiated the monetisation of identified assets. The company was also in discussion with lenders for its proposal for restructuring financial debt. It would be submitting the proposal in due course of time after getting approval from the Board. (To read more Click Here)

2. Sony merger: NCLT directs Zee to call shareholder meet on October 14

The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday directed Zee Entertainment to convene a shareholders’ meet on October 14 for approving the merger with Culver Max Entertainment (formerly Sony Pictures Network).

The order, passed on August 24, but uploaded to the bourses on Wednesday, comes close on the heels of the Competition Commission of India (CCI)’s observation that the $10-billion merger could hurt competition and that greater scrutiny of the deal was needed.

“This Tribunal hereby directs that a meeting of the equity shareholders of the applicant company (Zee) be convened and held on Friday, October 14, 2022 at 4 p.m. for the purpose of considering, and if thought fit, approving the proposed scheme,” the NCLT order read.

The merged company would retain Zee’s stock market listing, though Sony would provide a large cash injection and control a majority shareholding of close to 51 per cent.

14. MSME (Ministry of Micro, Small and Medium Enterprises)

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.

MSME – Merged Criteria: Investment and Annual Turnover

Revised Classification applicable w.e.f 1st July 2020

ClassificationMicro EnterpriseSmall EnterpriseMedium Enterprise
Investment in PlantInvestment in Plant
and Machinery orand Machinery or
Equipment:Equipment:Investment in Plant and
ManufacturingNot more than Rs.1Not more than Rs.10Machinery or Equipment:
Enterprises andcrore and Annualcrore and AnnualNot more than Rs.50 crore
Enterprises renderingTurnover ; not moreTurnover ; not moreand Annual Turnover ; not
Servicesthan Rs. 5 crorethan Rs. 50 croremore than Rs. 250 crore
  • Key Updates – For the month of August, 2022

1.Govt to set up Rs 200 crore training centre in Goa for new MSMEs: Narayan Rane

MSME Minister Narayan Rane on Saturday said the Centre will establish a training centre at a cost of Rs 200 crore in Goa for setting up new enterprises and MSMEs in the state. The minister said he discussed establishing new businesses in the state in his meeting with Goa Chief Minister Pramod Sawant and BJP state President Sadanand Tanavade.

“As soon as I came here, he (Pramod Sawant) asked me how can I help him bring more MSMEs into the state,” said Rane. “I’m sure the work done by the state government is good to make Goa financially strong, to create employment, develop industries, boost GDP of the country and contribute towards Atmanirbhar Bharat,” he said in a press conference.

According to the government’s Udyam registration data, out of 1.07 crore MSMEs registered on the Udyam portal as of September 11, 2022, Goa was home to 0.18 per cent or 19,939 units only. Out of total units in the state, 18,957 were micro enterprises, 876were small businesses, and 106 were medium enterprises. District-wise, 11, 610 MSMEs were in North Goa while 8,329 MSMEs were in South Goa. (Read more Click Here)

2.Exclusive: No further extension of Udyog Aadhaar license validity for MSMEs by govt.

Ease of Doing Business for MSMEs: UAM was the registration portal in place for businesses to register as MSMEs before the government launched the Udyam portal in July 2020. The UAM license was valid till June 30, 2022.

The MSME ministry won’t be extending the validity of the Udyog Aadhaar Memorandum (UAM) license for MSMEs in order to encourage them to register on the new Udyam registration portal, a source in the know told FE Aspire (erstwhile Financial Express Online). UAM was the registration portal in place for businesses to register as MSMEs before the government launched the Udyam portal in July 2020. The UAM license was valid till June 30, 2022.

“As of today, there is no plan to further extend the validity of UAM further from June 30. This means MSMEs won’t be able to benefit from various government schemes available to them unless they register on the Udyam portal. The intent is to encourage them to get onto the new portal in order for the government to streamline MSME data,” the source said.

  • (To read more Click Here)
  • Key Updates – for the month of August – 2022
Sl.ParticularsLink
1Scheme Launched by Government for MSMEsClick here
2Initiatives Under the Atmanirbhar Bharat PackageClick here
3Latest Data on MSMEsClick here
4Aatmanirbhar Bharat SchemeClick here
5MSMEs: Measures Govt Taken To Lift Them From Pandemic Effect; Know DetailsClick here
6E-Commerce Marketing PlatformClick here
7Udyam Sakhi PortalClick here
8Credit Schemes for Women Owned MSMEsClick here
9Implementation of Schemes for MSMEs Under Atma Nirbhar BharatClick here
10Package to Support MSMEs SectorClick here
11MSMEs to pay more for Gmail as Google changes policyClick here
12MSME focused lender Dhanvarsha Finvest Limited renames itself as TruCap Finance LimitedClick here
13Govt to soon give investors, businesses access to PM Gati Shakti’s database: DPIITClick here
14Central Bank of India enters into co-lending partnership with Incred Financial ServicesClick here
15Andhra Pradesh government plans additional support to save sick MSMEsClick here
16CCI seen as ‘accommodative’ towards antitrust violations by MSMEs instead of imposing fine: ReportClick 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.

  • Tata Steel, JSW Steel fall after CCI starts probe into allegations of cartelisation

Several steel companies are on the radar of the Competition Commission of India (CCI). The companies are being investigated by CCI against allegations of cartelisation by some firms.

CBI in its response to the court had said that it had sent a complaint to the CCI to initiate an investigation against the steel companies.

According to the association’s complaint, the steel companies are allegedly engaged in cartelisation to increase steel prices. The hike in prices resulted in the loss of 500 contractors to the association. The steel companies raised prices despite the input cost not going up, it alleges. (To read more Click Here)

  • CCI clears PayU’s $4.7 billion acquisition of BillDesk

A year after the deal was announced, the Competition Commission of India (CCI) on Monday said it has approved payments major PayU’s $4.7 billion acquisition of online payments firm BillDesk.

While the detailed order by the CCI is awaited, it wrote on Twitter, “Commission approves acquisition of 100% of the equity share capital of http://IndiaIdeas.com (BillDesk) by PayU Payments.”

The PayU-BillDesk deal is pegged as the second-largest buyout in the Indian internet sector after Walmart’s $ 16 billion acquisition of ecommerce major Flipkart in 2018. This will involve the merger of the payments gateway business of two of India’s largest players.

The acquisition, which will see PayU, the payments and fintech business of Prosus, which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV). The deal will bring Prosus’s cumulative investment in Indian tech to more than $10 billion. Prosus CEO had then said, “Payments and fintech is a core segment for Prosus, and India remains our number one investment destination.” (To read more Click Here)

  • Key Updates – for the month of August 2022
Sl.ParticularsLink
1CCI approves acquisition of stake in Tata Power Renewable Energy Limited by Greenforest New Energies Bidco LimitedClick here
2CCI approves acquisition of Citibank, N.A.’s and Citicorp Finance (India) Limited’s (Citicorp) undertakings comprising of their consumer banking activities by Axis BankClick here
3Competition (Amendment) Bill: How it is looking to change CCI’s functioningClick here
4CCI Lashes Out At Meta In Delhi HC For Stalling Probe Into WhatsApp’s 2021 Privacy Policy UpdateClick here
5‘Large user base in India will bring global M&A under CCI’Click here
6India Proposes Changes to Competition Law; Moots More Power for CCIClick here
7Competition Amendment Bill 2022 to strengthen antitrust watchdog CCIClick here
8CCI approves (a) acquisition of majority shareholding in Optimus Drugs Private Limited (ODPL) by Sekhmet Pharmaventures Private Limited (Sekhmet); and (b) ODPL’s acquisition of shareholding in Optimus Pharma Private Limited (OPPL) and Optimus Life Science Private Limited (OLSPL)Click here
9CCI approves proposed combination involving amalgamation of HDFC Limited, HDFC Bank, HDFC Investments and HDFC HoldingsClick here
10CCI approves acquisition of the stake in Holderind Investments Limited, Ambuja Cements Limited and ACC Limited by Endeavour Trade and Investment LimitedClick here
11CCI approves acquisition of stake in IIFL Home indirectly by ADIA GroupClick here
12CCI approves (i) EQT AB’s (EQT) acquisition of Baring Private Equity Asia Group Limited (BPEA) including its subsidiaries (BPEA Group) and, to the extent not already owned by the BPEA Group, 100% of the general partner entities (GPs) (BPEA Group and GPs are collectively referred to as Target); and (ii) Jean Eric Salata Rothleder’s (BPEA Founder) acquisition of up to 9.9% of the equity shareholding of EQTClick here
13CCI approves amalgamation of Creixent Special Steels Limited (CSSL); and JSW Ispat Special Products Limited (JSW Ispat) with and into JSW Steel Limited (JSW Steel)Click here
14CCI approves acquisition by (a) Katsura Investments in Varmora Granito Private Limited and certain other entities; and (b) Varmora Granito Private Limited in some of its Group Companies and other entitiesClick here
15CCI approves acquisition of the stake in Simpolo Vitrified Private Limited by India Business Excellence Fund IV, India SME Investments Fund – I, Motilal Oswal Finvest Limited and othersClick here

16. IRDAI – Insurance Sector Updates

  • Policyholders to gain  as   IRDAI   backs  20%  cap  on   first-year commission, sops to boost persistency

The insurance regulator has proposed to cap commissions, remuneration and rewards for agents at 20 percent, besides disincentivising policy surrenders in the initial years. Policyholders could benefit in the long run, but some insurers are sceptical.

High commission rates in life insurance policies have been a sore point with policyholders for long. If the Insurance Regulatory and Development Authority of India’s draft paper on limiting commission pay-outs to intermediaries is finalised in its current form, several malpractices could be curbed. First-year commission cap on retail regular premium policies could be lowered from 35 percent to 20 percent.

Complaints abound of intermediaries pushing unsuitable life insurance products to individuals – for instance, unit-linked insurance policies (Ulips) and long-tenure traditional endowment policies to senior citizens. This, without informing them that their advanced age could eat into potential returns.

Moreover, many agents have a penchant for getting customers to churn policies in the initial years in order to earn higher first-year commissions, which ensured that policyholders shelled out steep surrender charges.

Advantage policyholders: Now, in its draft paper on ‘Payment of commission or remuneration or reward to insurance agents and insurance intermediaries’ released on August 23, the regulator has proposed changing the commission structure. The proposals include more stringent ceilings on commissions that can be paid to life and general insurance intermediaries. (To read more Click Here)

  • Irdai moots new insurance policies in ‘demat format’ from December

In a bid to move towards digitisation of insurance policies, the Insurance Regulatory and Development Authority of India (Irdai) has proposed to mandate the dematerialisation of new policies from December this year. Dematerialisation of insurance policies will allow transforming physical documents into a modifiable online format.

With dematerialisation, a policy holder can create a portfolio of insurance policies he has and store them in an electronic form with an insurance repository. With this rule, policyholders can have only one ‘e-Insurance Account’ (eIA) with an insurance repository of their choice, according to a report. IRDAI had reportedly started the demat initiative a few years back, but

it did not take off due to operational challenges. Now, the insurance regulator is pushing the idea to ensure a robust electronic mode of policy solicitation, servicing, and storage.

Currently, there are four insurance repositories -– NSDL National Insurance Repository, CDSL Insurance Repository, Karvy Insurance Repository and CAMS Insurance Repository Services. The insurance repository maintains the eIA of the insured person and all insurance policies (life/non-life/group) can be stored and accessed through this facility.

Industry experts are of the view that the dematerialisation of policies is a good move that will usher in benefits of automation and digitisation to the sctor, and help customers access insurance services in a semless manner. (To read more click here)

  • Key Updates August, 2022
Sl.ParticularsLink
1List of valid Insurance Brokers as on 28th Jul 2022Click here
2Expression of Interest for Empanelment of Advertising Agencies – 2022Click here
3Master Guidelines on Anti-Money Laundering/ Counter Financing of Terrorism (AML/CFT), 2022Click Here
4Irdai (Expenses Of Management Of Insurers Transacting General Or Health Insurance Business) Regulations, 2022Click Here
5New Business Statement of Life Insurers for the Period ended 31st Jul, 2022Click here
6Migration of BAP to new hardware and the latest softwareClick here
7Gross Direct Premium- Flash figures for Non-life Insurers (Provisional and Unaudited)-for and up to the Month of June, 2022Click Here
8List of Valid Insurance Brokers as on 10th Aug 2022Click Here
9Expression of Interest(EoI) for empanelment of Advertising agenciesClick here
10First Hackathon – Bima Manthan 2022Click here
11IRDAl Single Window NOC PortalClick Here
12To the Invitation for expression of Interest for Empanelment of Advertising Agencies – 2022Click Here
14IRDAl Single Window NOC PortalClick here
15To the Invitation for expression of Interest for Empanelment of Advertising Agencies – 2022Click here
16Expert Committee on Implementation of Ind AS/ IFRS in Insurance sectorClick Here

17.  Cabinet Decisions / New Acts

Sl.ParticularsLink
1Draft Indian Ports Bill, 2022 issued for Stakeholder ConsultationClick here
2Cabinet approves amendment to export policy for Wheat or Meslin FlourClick here
3Centre amends the Legal Metrology (Packaged Commodities) Rules 2011 for ease of doing business and reducing the compliance burden for the garment or hosiery sold in loose or openClick here
4Centre asks edible oil producers to declare net quantity in volume withoutClick here
temperature in addition to declaring the same in weight
5Government notifies Battery Waste Management Rules, 2022Click here
6Cabinet approves widening access of the Traditional Knowledge Digital Library (TKDL) database to users, besides patent officesClick here
7Cabinet approves signing of Contract between India and France to support ITF activities on the Indian Transport SectorClick here
8Cabinet approves enhancement in the corpus of Emergency Credit Line Guarantee Scheme for increasing the limit of admissible guaranteesClick here
9Cabinet approves Interest subvention of 1.5% per annum on Short Term Agriculture Loan upto Rupees Three lakhClick here
10Cabinet approves India’s Updated Nationally Determined Contribution to be communicated to the United Nations Framework Convention on Climate ChangeClick here
11Lok Sabha passes Central Universities (Amendment), Bill 2022Click here
12Cabinet approves ratification of the eleventh Additional protocol to the Constitution of the Universal Postal UnionClick here
13ECGC introduces new scheme providing enhanced export credit risk insurance cover up to 90% for small exportersClick here
14Implementation of PMAY-GClick here
15Draft Guidelines for Operationalisation of Ro-Ro and Ro-Pax ferry serviceClick here
16Implementation of Swachhta Udyami YojanaClick here

————————————————————————————————————-

This Article / Compliance Tracker is updated till 02nd August, 2022 with all Laws / Regulations and their respective amendments.

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.).

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