MINISTRY OF CORPORATE AFFAIRS (MCA)
MCA notifies Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2023
The Ministry of Corporate Affairs has issued an amendment to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. The amendment introduces streamlined procedures for handling objections and suggestions regarding schemes of merger or amalgamation. It sets clear timelines for the Central Government to issue confirmation orders or file applications with the Tribunal. The amendment aims to enhance efficiency and transparency in the process of corporate restructuring. Read More
MCA notifies Companies (Removal of Names of Companies from Register of Companies) Amendment Rules, 2023
The Ministry of Corporate Affairs has issued an amendment to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. The amendment introduces new provisions for filing applications for the removal of company names from the register. Now, companies must ensure that they have filed overdue financial statements and annual returns up to the end of the financial year in which they ceased business operations. If a company intends to file the application after the Registrar has initiated action under section 248(1), it must submit all pending financial statements and annual returns before filing the application. These amendments aim to streamline the process of removing company names and ensure compliance with financial reporting requirements. Read More
RESERVE BANK OF INDIA (RBI)
Formalisation of Informal Micro Enterprises on Udyam Assist Platform
The Reserve Bank of India (RBI) has released a circular clarifiying the definition of the Informal Micro Enterprises (IMEs) to avail the government benefits and get listed under the PSL classification. Citing the notifications and the circulars, the RBI has said the IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification. Read More
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
Comprehensive guidelines for Investor Protection Fund and Investor Services Fund at Stock Exchanges and Depositories
The Securities and Exchange Board of India (SEBI) on May 30, 2023, issued a notification regarding the Comprehensive guidelines for Investor Protection Fund and Investor Services Fund at Stock Exchanges and Depositories. This has a reference to SEBI circular no. MRD/DoP/SE/Cir-38/2004 dated October 28, 2004, had issued comprehensive guidelines for Investor Protection Fund (IPF) to be maintained by Stock Exchanges, and the SEBI circular No.SE/10118 dated October 12, 1992, that advised stock exchanges to establish an Investor Services Fund (ISF). Read More
Dematerialization of securities of Hold Cos and SPVs held by Infrastructure Investment Trusts (InvITs)
The Securities and Exchange Board of India (SEBI) on May 22, 2023, issued a notification regarding the Dematerialization of securities of Hold Cos and SPVs held by Infrastructure Investment Trusts (InvITs). It has been decided that InvITs shall henceforth hold the securities of Hold Cos and SPVs in dematerialized form only. The Investment Manager of the InvIT shall ensure the same. This is to promote the dematerialization of securities, encourage ease of doing business, and improve transparency in the dealings of securities of Hold Cos/SPVs. Read More
FOREIGN DIRECT INVESTMENT (FDI)
PLI schemes for labour-intensive toys, leather sector on the cards
The government intends to roll out production linked incentive (PLI) scheme for more labour-intensive sectors such as toys, leather and footwear, Department for Promotion of Industry and Internal Trade (DPIIT) secretary, Rajesh Kumar Singh has said. PLI schemes for 14 sectors including electronics, white goods, textiles and pharma were announced during the Covid pandemic in 2020 with an outlay of Rs 1.97 lakh crore to boost domestic manufacturing and exports. Read More
India set to be fastest growing G20 economy: Moody’s
India will be the fastest-growing G-20 economy over the next few years, with expansion of manufacturing and infrastructure sectors, but reform and policy barriers could hamper investment, global ratings agency Moody’s said in one of its reports. The report said a large young and educated workforce, increasing nuclear families and urbanisation will fuel demand for housing, cement and new cars. It said India is now the world’s most populous country and the fifth-largest economy globally, with its GDP scaling $3.5 trillion in 2022. Read More
REAL ESTATE
QR code display for projects must from August 1: MahaRERA
The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Monday directed to display QR codes of all registered housing projects, along with their registration numbers, in all advertisements or social media display from August 1. The authority started issuing QR codes for registered projects in March. A homebuyer can scan the QR code and get vital information about a project, such as the commencement and completion date, details of any complaints registered, besides necessary approvals. Also, modifications in approved plans and project renewal, too, are included in the QR code. Nearly 40,000 projects are registered with the MahaRERA. Read More
NCLAT dismisses Renaissance Indus Infra promoter’s plea against insolvency
The National Company Law Appellate Tribunal has dismissed a petition filed by the suspended promoter and director of real estate and construction company Renaissance Indus Infra against the bankruptcy court’s ruling to admit the company under the corporate insolvency resolution process (CIRP) following a plea by its financial creditor Catalyst Trusteeship. Read More
INFORMATION TECHNOLOGY (IT)
Won’t regulate cloud service providers, best regulated by MeitY, DoT tells TRAI
The Department of Telecommunications (DoT) has rejected a proposal by the Telecom Regulatory Authority of India (TRAI) for DoT to regulate cloud service providers (CSPs) like Amazon Web Services, Google Cloud, Microsoft Azure, Salesforce and Zoho. The department feels that such entities are regulated by the Ministry of Electronics and Information Technology (MeitY) and the mechanism should continue. Read More
Government working groups may submit AI framework soon
The seven working groups constituted under India’s National programme for Artificial Intelligence are likely to submit recommendations for a comprehensive framework governing various facets of AI. The working groups, set up under the aegis of the central programme that has now been christened as INDIAai, have been tasked with creating a framework for data governance framework, setting up an India Data Management Office as well as looking into the regulatory aspects of AI. Read More
ARBITRATION
India may defer ICT case appeal against EU in WTO
India is contemplating postponing its WTO appeal on the ruling that vindicates the EU against tariffs imposed on mobile phones, electronic components, and other ICT products amid heightened concerns that these levies violate global trading rules under the Information Technology Agreement. The international ruling has raised fears in the industry that these import levies might give rise to cheaper imports and hurt domestic production. This break will be a chance for the industry to bring back investors to India that will work hand in hand within the production-linked incentive programs. The appeal against Taiwan is also deferred for 90 days, scheduled in September. Read More
Seeking appointment of Arbitrator beyond three years is barred by limitation: Supreme Court reiterates
In a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, (‘the Act 1996’), filed at the instance of a company based in Switzerland and engaged in the business of manufacturing of arms etc., praying for appointment of an arbitrator for the adjudication of disputes and claims arising out of the Contract dated 27-03-2012 executed with the Government of India in its Ministry of Defence, the Division Bench of Dr. DY Chandrachud, CJI and J.B. Pardiwala, J. rejected the petition and held that the claim in the petition is a barred claim as the petitioner by its conduct slept over its right for more than five years. Read More
FOOD & BEVERAGES
Direction under Section 16 (5) of Food Safety and Standards Act, 2006 regarding enforcement of the Food Safety and Standards (Labelling and Display) Second Amendment Regulations, 2022
The Food Safety Standards Authority of India (FSSAI) on May 22, 2023, issued a direction under Section 16 (5) of the Food Safety and Standards Act, 2006 regarding enforcement of the Food Safety and Standards (Labelling and Display) Second Amendment Regulations, 2022. Reference is drawn to the Food Safety and Standards (Labelling and Display) Second Amendment Regulations, 2022 wherein, SI. No. 1 of the table in sub-paragraph (3) of paragraph (1) in Schedule-II specifies a ‘Note’ below the declaration for ‘Pan Masala’. Read More
Direction under Section 16 (5) of Food Safety and Standards Act, 2006 regarding re-operationalisation of Food Safety and Standards (Foods for Infant Nutrition) Amendment Regulations, 2022 relating to revised limits of Selenium, Manganese, Iron and Biotin
The Food Safety and Standards Authority of India (FSSAI) on May 22, 2023, notified regarding re-operationalisation of Food Safety and Standards (Foods for Infant Nutrition) Amendment Regulations, 2022 relating to revised limits of Selenium, Manganese, Iron, and Biotin. As the draft FSS (Food for Infant Nutrition) Amendment Regulations, 2022 are under the process of notification for inviting stakeholder comments and finalization of the same may take more time; the revised limits of Selenium, Manganese, Iron, and Biotin are required to be re-operationalised under section 18(2)(d) of Food Safety and Standards Act, 2006 from April 01, 2023. Read More
Enforcement of FSSA, 2006 & Rules/Regulations made thereunder, in respect of the FBOs, having Central Licenses
The Food Safety and Standards Authority of India (FSSAI) on May 12, 2023, issued a notification regarding the Enforcement of FSSA, 2006 and Rules/Regulations made thereunder, in respect of the FBOs having Central Licensees. Certain directions have been issues in this regard. Read More
INFRASTRUCTURE & CONSTRUCTION
Road Ministry to construct 12,500 km of highways in FY24
The Ministry of Road Transport and Highways (MoRTH) has put plans in place to maintain the pace of highway development and construct 12,500 km of highways in the current financial year, a senior official said. Alka Upadhyaya, Secretary, MoRTH, said Rs 10,000 crore is planned to be raised through Infrastructure Investment Trusts (InvITs) mode in FY 2023-24. The road transport and highways ministry are yet to declare data on the construction and award of highway projects for 2022-23. The ministry has constructed 10,237 kilometres in 2019-20, 13,327 kilometres in 2020-21 and 10,457 kilometres in 2021-22. Read More
Nitin Gadkari chairs meeting with NHAI officials to enhance national highway development
Union Minister for Road Transport and Highways Nitin Gadkari chaired a meeting with officials from the National Highways Authority of India (NHAI) recently, focusing on enhancing work efficiency and adopting innovative technology to accelerate National Highway development. Read More
MERGERS & ACQUISITION
Ease of doing business for MSMEs
The corporate affairs ministry’s notification amending the Companies Rules to expedite the time taken for mergers and amalgamations may not significantly benefit the MSME sector, according to experts. According to a notification by the ministry on May 15, merger or amalgamation will be deemed approved if the government “does not issue the confirmation order within a period of maximum 60 days of the receipt of the scheme.” As of now there is no time period specified for the approval from the Registrar of Companies or official liquidators. Read More
CCI clears merger of Credit Suisse Group with UBS Group
The Competition Commission of India (CCI) has said it has cleared the proposed merger of Credit Suisse Group AG with UBS Group AG. In India, UBS is primarily focused on brokerage services, while Credit Suisse’s businesses comprise wealth management and investment banking services, the regulator said. Both are multinational investment banks and financial services companies, founded in and based out of Switzerland, having operations in multiple jurisdictions globally. Read More
INFORMATION AND BROADCASTING
TRAI recommends infrastructure status for broadcasting sector
The Telecom Regulatory Authority of India (Trai) has recommended to the Ministry of Information and Broadcasting (MIB) that the broadcasting and cable service sector be granted infrastructure status. The authority also recommended that the MIB should specify stage-wise timelines for the process of grant of each licence, registration, and permission in a similar manner as has been done for uplinking and downlinking permission for TV channels. Read More
GAMING & CRYPTOCURRENCY
Cryptocurrency transfers to private wallets to now face identification checks
Crypto exchanges in India are planning to introduce a rule that will only allow a transfer of cryptocurrencies after the sender discloses the identity of the persons behind the private wallet receiving the cryptos. While there is a standard procedure to get to know the identity of buyers and sellers as part of the know-your-customer process, there is no way to know the identity of a private wallet owner. Transfers to private or unknown wallets have been a problem in the crypto ecosystem, leading to the new proposal to track transfers to private wallets and enhance security. Read More
Centre asks states to crack down on outdoor advertisements of betting, gambling platforms
The Ministry of Information and Broadcasting had issued advisories to private television channels, digital news publishers and OTT platforms to refrain from publishing and broadcasting advertisements of such platforms. Advertisements of gambling and betting platforms had appeared in a section of the media — print, digital and television — which prompted the government to issue advisories. Read More
ENERGY LAW
Government announces waiver of transmission charges for offshore wind
The union ministry of power has announced a waiver of Inter-State Transmission (ISTS) charges on the transmission of electricity generated offshore wind sources. Under the updated guidelines, offshore wind power projects commissioned on or before Dec 31, 2032, through power purchase agreements or on a merchant basis, will be exempt from ISTS charges for a duration of 25 years from the date of project commissioning. To promote development of pump storage plants, the criteria for availing the complete waiver of ISTS charges for PSP projects has now been linked to the date of award of the project rather than commissioning of the project. Read More
Centre asks states to expedite implementation of renewable energy schemes
The union government has asked states to expedite the implementation of renewable energy schemes to achieve the target of 500 GW of installed renewable energy capacity by 2030. The status of progress under the schemes/programmes such as PM-KUSUM scheme, Rooftop Solar Programme, Green Energy Corridor, National Bioenergy Programme and National Green Hydrogen Mission was reviewed in detail in the meeting. Read More
INTELLECTUAL PROPERTY LAW
Government to revamp patenting process
The government is revamping the patent office functioning to reduce the massive backlog in granting official recognition for innovations by adding manpower and changing the legislative framework, a senior government. The government is fast-tracking the hiring process and promotions of some existing officers. Read More
Ensuring Intellectual Property protection: A multifaceted approach to Border Protection Measures
The Hon’ble Delhi High Court in its order and judgement dated 18th April, 2023, imposed a cost of over Rs 9.5 lakhs on three individuals for infringing the trademarks of a French luxury company and failing to appear before the court. Earlier, a February 2022 report by the FICCI estimated the negative impact of illicit trade, counterfeiting, and piracy on the economy, highlighting the gravity of the issue. The study attempts to quantify the tax loss to the Government of India because of the illicit trade for 5 key industries – Alcoholic Beverages, Mobile Phones, FMCG-Household and Personal Goods, FMCG-Packaged Foods and Tobacco Products. Undoubtedly, such illicit practices also pose substantial threats to public health and safety, and therefore it is imperative to take measures to curb them. Read More
TAX LAW
Guidelines for removal of difficulties under sub-section (3) of section 194BA of the Income-tax Act, 1961
The Central Board of Direct Taxes issued a circular providing the guidelines for the removal of difficulties for the provision regarding the deduction of income tax from the income by the way of winnings from online games. The Amended Rules have provided for a formula to compute the net winnings from Online Games in a financial year which will be taxable at 30 % income tax. These amended rules come into effect from 1st April 2023. Read More
CBDT Issues Clarifications on Various Provisions Relating to Charitable and Religious Trusts
The Central Board of Direct Taxes (CBDT) has issued a few clarifications with respect to various provisions related to charitable and religious trusts following amendments made by the Finance Act 2023. The clarification covers various aspects relating to the applicability of section 115TD in case the trust fails to apply for registration, an extension of the due date of furnishing Form No. 10BD and Form No. 10BE, the applicability of provisional registration, the extension of the due date for furnishing statement of accumulation and clarification with respect to the furnishing audit report in Form 10B. Read More
