Ministry of Corporate Affairs
Companies (Indian Accounting Standards) Amendment Rules, 2023
The Ministry of Corporate Affairs (MCA) has in consultation with the National Financial Reporting Authority has issued the Companies (Indian Accounting Standards) Amendment Rules, 2022. These amendment rules were notified on 31st March, 2023.
The amendment rules have introduced a provision for ‘deferred tax related to assets and liabilities arising from a single transaction’. Entities shall apply this provision for annual reporting periods beginning on or after 1st April, 2023. Read more
Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023 – Shift of Authority to process Striking Up of Companies
The Ministry of Corporate Affairs has, vide its Notification No. dated 17th April, 2023, amended or transferred the responsibility of striking off companies from Registrar of Companies to Registrar, Centre for Processing Accelerated Corporate Exit (a.k.a. Registrar, Centre for PACE) with effect from 1st May, 2023. Read More
Reserve Bank of India
RBI issues the Master Circular on Bank Finance to Non-Banking Financial Companies (NBFC)
The Reserve Bank of India (RBI) on April 03, 2023, issued the Master Circular on Bank Finance to Non-Banking Financial Companies (NBFCs) on the subject issued up to March 31, 2023, to lay down the Reserve Bank of India’s regulatory policy regarding the financing of NBFCs by banks, which should be applicable all Scheduled Commercial Banks (excluding Regional Rural Banks). Read more
RBI’s framework on Green Deposits to integrate more of ESG factors for NBFCs
The Reserve Bank of India (RBI) has released the framework for acceptance of Green Deposits to encourage regulated entities (REs) to offer green deposits to customers. As per the guidelines, the REs includes all the SCBs, SFBs, NBFCs, and HFCs with the aim to protect interest of the depositors, aid customers to achieve their sustainability agenda, address greenwashing concerns and help augment the flow of credit to green activities/projects. Read more
Securities and Exchange Board of India
SEBI advisory on Procedure for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 – Directions to stock exchanges and registered intermediaries
The Securities and Exchange Board of India (SEBI) on April 05, 2023, issued a notification regarding procedure for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 – Directions to stock exchanges and registered intermediaries. Read More
Issue of Master Circular by Stock Exchanges, Clearing Corporations and Depositories
The Securities and Exchange Board of India (SEBI) on April 20, 2023, issued a circular regarding the Master Circular by Stock Exchanges, Clearing Corporations, and Depositories collectively called Market Infrastructure Institutions (MIIs). Read More
Dispute Resolution Mechanism for Limited Purpose Clearing Corporation (LPCC)
Market regulator Securities Exchange Board of India (SEBI) has released a circular announcing a dispute resolution mechanism for Limited Purpose Clearing Corporation (LPCC). The mechanism will be placed for the settlement of disputes or claims arising out of transactions cleared and settled by the regulator, in the manner specified by SEBI in consultation with the Reserve Bank of India (RBI). Read More
Foreign Direct Investment
Foreign trade, a new pathway
GoI has issued its Foreign Trade Policy (FTP), 2023. The earlier policy FTP 2015-20, which was to end on March 31, 2020 was extended till end-March this year due to the pandemic and volatile geopolitical conditions. The new policy incorporates measures for ease of doing business like e-certificate of origin, online approvals without a physical interface, paperless filing, overall reduction in transaction costs, boost manufacturing and facilitate exports through ecommerce that has been identified as a key thrust area. Read More
Real Estate
Rent can be raised if lease agreement is registered: Karnataka HC
If the tenancy period is more than 11 months and the lease agreement is not a registered document, then it can be considered only for collateral purposes and not for rent enhancement, the high court said in a recent judgement. Read More
Information Technology (IT)
MeitY notifies IT amendment rules: Govt-appointed fact-checker to identify fake news
The Centre has announced proposed amendments to the Information Technology (IT) rules according to which the government will appoint an organisation to identify any false or misleading content relating to the government. The amended rules will give powers to the Press Information Bureau (PIB) to fact-check any ‘fake, false or misleading’ information about the central government. It can also ask social media platforms such as Twitter and Facebook to take down the content. Read More
IB Ministry issues fresh Advisory warning against advertisements of betting, gambling
The Ministry of Information and Broadcasting has advised media entities, media platforms and online advertisement intermediaries to refrain from carrying advertisements/ promotional content of betting platforms. In an Advisory issued by them, the Ministry has taken strong exception to the recent instances of mainstream English and Hindi newspapers carrying advertisements and promotional content of betting websites. The Advisory has been issued to all media formats, including newspapers, television channels, and online news publishers, and showed specific examples where such advertisements have recently appeared in the media. Read More
Arbitration
Unstamped arbitration agreement not valid, can’t be enforced, rules SC.
A five-judge constitution bench of the Supreme Court in a majority verdict on April 25 held that unstamped arbitration agreements are not legally enforceable. The law requires that the stamp duty for a document be paid for it to become enforceable legally. The case was referred to the constitution bench after two three-judge benches came to different conclusions on the issue. Read More
Supreme Court verdict on scope of Pre-referral jurisdiction of High Court under S. 11 of Arbitration and Conciliation Act
In an appeal against the decision of Delhi High Court, wherein the Court allowed the respondent’s application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for the constitution of an Arbitral Tribunal, the Division Bench of Dr. DY Chandrachud, C.J. and P.S. Narasimha, J. held that the High Court has committed an error in allowing the application under Section 11(6) of the Act. It ought to have examined the issue of the final settlement of disputes in the context of the principles laid down in Vidya Drolia v. Durga Trading Corpn., (2019) 20 SCC 406. Read more
Food and Beverages
FSSAI Issues Direction for Re-Operationalisation of the FSS (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Prebiotic Food) Regulations, 2022
On 11th April 2023, the Food Safety and Standards Authority of India (FSSAI) issues the Directions under Section 18 (2) (d) to be read with Section 16 (5) of the Food Safety and Standards Act, 2006 in regard to the Re-Operationalisation of the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose and Prebiotic and Prebiotic Food) Regulations, 2022. Read more
FSSAI Publishes Draft Regulations for Amending Infant Nutrition Standards
The Food Safety and Standards Authority of India (FSSAI) has published a draft of proposed regulations to amend the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020. The proposed amendments aim to ensure the safety and quality of infant nutrition products in India. The FSSAI has been working towards improving the regulatory framework for infant nutrition since the release of the 2020 regulations. Read More
Infrastructure and Construction
New PPP model on the cards to attract investors
A new public-private partnership (PPP) architecture and standard model concession agreement (MCA) will be unveiled this financial year as part of the finance ministry’s efforts to attract investor funds. The move aims to highlight the “viability and bankability” of capital-intensive infrastructure projects. The efforts will focus on sectors such as urban infrastructure, railways and roads, where private participation remains minimal or far from its full potential. Read More
E-commerce
Government to announce National Retail Trade Policy, accident insurance scheme for GST-registered traders soon
The government is likely to announce a national retail trade policy and an accident insurance scheme for GST registered domestic traders soon, reported PTI. The policy is aimed at providing better infrastructure and more credit to the traders.
The policy is likely to include provisions related to ensuring easy and quick access to affordable credit, facilitating modernization and digitisation of retail trade; modern infrastructural support for subjects like distribution chain; promotion of skill development and improving labour productivity, and providing an effective consultative and grievance redressal mechanism. Read More
FTP aims to spur e-commerce exports with series of measures
The Foreign Trade Policy (FTP) 2023 has outlined a slew of measures like extending all FTP benefits to e-commerce exports, and doubling the value limit for exports through courier to Rs 10 lakh per consignment, with estimates pegging the potential of growth in e-commerce exports to USD 200-300 billion by 2030. To spur ecommerce exports, the FTP 2023 unveiled by Commerce Minister Piyush Goyal, also proposes to create a designated zone with a warehousing facility, to help e-commerce aggregators towards easy stocking, customs clearance and returns processing. Read More
Mergers and Acquisitions
CCI approves Haldiram Group merger plan.
India’s fair-trade regulator, the Competition Commission of India (CCI), has approved three deals, including a merger involving Dutch biotechnology company Koninklijke DSM, fragrance and flavour developer Firmenich International, the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food, and the sale of SBP Packagings to C-Flex India Entities. The CCI scrutinises deals beyond a certain monetary threshold in India. Read More
CCI gets powers to penalise tech firms based on global turnover
The lower house of Parliament has approved changes to the Competition Act that seek to cover global deals by digital companies under the local law and empower the antitrust watchdog to impose penalties on MNCs for violations based on their international revenue. The amendments also provide for settlement of minor violations.
The Competition (Amendment) Bill, 2022 seeks to capture deals happening in global digital companies, provided the entities involved have a strong business presence in India. Any such deals where the value exceeds Rs 2,000 crore will need to be notified to the Competition Commission of India (CCI). Read More
Information and Broadcasting
MIB advises OTT platforms to exercise self-restraint amidst growing concerns about vulgar content.
While advising the OTT industry to be cognisant of the country’s culture while producing content, MIB secretary Apurva Chandra said OTT platforms have become an important part of the media & entertainment (M&E) industry even as the traditional media continues to be its core and backbone. Read More
Gaming & Cryptocurrency
Govt notifies rules for online gaming, to appoint multiple SROs
The Ministry of Electronics and IT (MeitY) has announced new regulations to protect online gamers from harmful content and addiction. A self-regulation model has been applied for the online gaming sector where SROs will approve the games that can operate in the country in accordance with the rules. These new online gaming rules have been included as an amendment in the IT Rules of 2021. Read More
Tamil Nadu anti-online gambling law: Madras High Court refuses interim protection to online gaming companies
The Madras High Court recently refused to restrain the Tamil Nadu government from taking any coercive action against online gaming companies until the disposal of a batch of cases filed by them challenging the constitutional validity of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022.
Acting Chief Justice T. Raja and Justice D. Bharatha Chakravarthy desisted from passing any kind of interim orders in favour of the online gaming companies despite being told that the companies might have to shut shop if no interim protection was granted to them until the challenge to the new law was decided by the court. Read More
Energy Law
Centre seeks proposals to develop green hydrogen innovation hubs
The Centre has invited expressions of interest (EoI) for developing hydrogen valley innovation clusters (HVIC) in the country. The Department of Science and Technology’s guidelines define a hydrogen valley as a specific geographic region where hydrogen serves more than one end sector or application in mobility, industry, and energy. This includes all steps in the hydrogen value chain, from production, storage, and transport to distribution to various off-takers, as well as renewable electricity production from hydrogen. Read More
Government finalizes the revised framework of Day-Ahead National level Merit Order Dispatch Mechanism in power sector
The Ministry of Power has finalized a revised structure of Day-Ahead National level Merit Order Despatch Mechanism with a view to lower the overall cost of electricity generation, which will translate into lower electricity prices for consumers. As per the revised mechanism, the Merit Order for cheapest generating resources across the country to meet the system demand, would be, finalized a day in advance as against 1.5 hours in the existing system. This will result in better planning for generating units and cost optimization. Moreover, the revised mechanism will also enlarge the scope of present mechanism by including all the regional entity thermal power plants and subsequently all the intra-state thermal generators. In the existing system, only the NTPC thermal stations were part of the merit order despatch. Read More
Intellectual Property Law
Madras HC to have IPR benches as TN notifies rules
Paving the way for formation of exclusive Intellectual Property Rights (IPR) benches in Madras high court, Tamil Nadu government has notified the Madras High Court Intellectual Property Rights Division Rules, 2022. After the abolition of Intellectual Property Appellate Board (IPAB), Chennai in April 2021, the appeals pending before the board were transferred to the Madras high court. However, so far, the HC could not take up the appeals and the cases in the absence of the Rules which formulate the procedures to file appeals against the order of the IPR authorities and writ petitions challenging their actions and inactions. Read More
India among world’s top 10 Covid patent filers
India has emerged as one of the top 10 patent filers globally in three different categories — therapeutics, vaccines as well as traditional medicines related to COVID. India ranked 4th amongst therapeutic patent filers, with 195 applications, according to data culled from the Covid ‘patent landscape’ report by the World Intellectual Property Organization (WIPO). Read More
Taxation Law
Supreme Court ruling on Income Tax searches big relief to taxpayers
The Supreme Court has held that the income tax (I-T) department cannot reopen completed assessments under the Section 153A of the I-T Act, unless “incriminating material” is unearthed during search and seizure operations. Any other material emanating from the search can’t be relied on for issuing re-assessment orders. Read More
TDS to be deducted at New Tax Regime rates if you don’t opt out, says CBDT
In a circular dated April 5, the CBDT said that if an employee doesn’t intimate about his/her choice of tax regime then the employer can deduct TDS from salary as per the rates prescribed for the default regime, i.e. New Tax Regime. Read More
