MAHESHWARI MILESTONES
MAHESHWARI & CO. Advocates & Legal Consultants has been honored as an award-winning law firm at the prestigious India Business Law Journal Indian Law Firm Awards 2023.
Downstream Investment – Indirect FDI
Our Senior Associate, Ms. Karishma Jaiswal, ,authored an article on “Downstream Investment – Indirect FDI,” where she delves into the intricacies of such investment and examines the compliance requisites. Read More
Clean Future with Clean Fuel: Green Hydrogen
Our Partner, Mr. Akhand Chauhan, along with our Associate, Ms. Shyamli Shukla, have recently authored an article titled “Clean Future with Clean Fuel: Green Hydrogen” which has been published on Manupatra. Read More
MINISTRY OF CORPORATE AFFAIRS (MCA)
Companies (Incorporation) Second Amendment Rules, 2023
The MCA on 2nd August, 2023 released the companies (incorporation) second amendment rules, 2023 which amended the Companies (incorporation) Rules, 2014. The Rules have revised Form No. RD-1 to be used by companies for filing application to Central Government (Regional Director) for approval of Compromises, Arrangements, Amalgamations and conversions.Read More
Ministry of Corporate Affairs has introduced condonation scheme for delays in filing Form-3, Form-4, and Form-11 under Section 67 of the Limited Liability Partnership Act, 2008 read with Section 460 of the Companies Act, 2013
The Ministry of Corporate Affairs (MCA) has introduced a condonation scheme for delays in filing Form-3, Form-4, and Form-11 under Section 67 of the Limited Liability Partnership Act, 2008 read with Section 460 of the Companies Act, 2013. The scheme is applicable to all Limited Liability Partnerships (LLPs) registered or incorporated in India.
It allows for the condonation of delay in filing the following forms:
- Form 3: Information with regard to limited liability partnership agreement and changes, if any, made therein.
- Form 4: Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner.
- Form 11: Annual return of a limited liability partnership.
SECURITIES EXCHANGE BOARD OF INDIA (SEBI)
Procedure for seeking prior approval for change in control with respect to Merchant Bankers and Bankers to an Issue
Capital markets regulator SEBI has streamlined the procedure of obtaining prior approval for the proposed change in control of merchant bankers and bankers to an issue. The new process will be applicable from September 1, 2023. Under the process, the intermediary will have to make an online application to SEBI for prior approval through its intermediary portal. The online application in the portal would be accompanied by information about itself, the acquirer, the person who will have control and the directors or partners of the acquirer.Read More
Modification in Cyber Security and Cyber Resilience framework of Stock Exchanges, Clearing Corporations and Depositories
SEBI on August 24 has provided for modification in cyber security and cyber resilience framework of Stock Exchanges, Clearing Corporations and Depositories. Market Infrastructure Institutions are mandated to conduct comprehensive cyber audit at least 2 times in a financial year. Moreover, MIIs, whose systems have been identified as Critical Information Infrastructure (CII) by National Critical Information Infrastructure Protection Centre (NCIIPC), are mandated to send regular updates/closure status of the vulnerabilities found in their respective “protected systems” to NCIIPC. Read More
Guidelines for MIIs regarding Cyber security and Cyber resilience
The Securities and Exchange Board of India has issued guidelines for cyber security and cyber resilience in market infrastructure institutions (MII) such as stock exchanges, clearing corporations and depositories. According to SEBI, there has been a surge in cyber risk in capital markets owing to the interdependency of various entities under market infrastructure institutions. The guidelines are applicable beginning August 29, and MIIs have been asked to put in place systems for implementation of the guidelines within 120 days of issuance. Read more
RESERVE BANK OF INDIA (RBI)
RBI launches उद्गम – UDGAM – Centralised Web Portal for searching Unclaimed Deposits
The governor of the Reserve Bank of India on 17th August, 2023 launched a centralised web portal called UDGAM. This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one place. The launch of the web portal will aid users to identify their unclaimed deposits/ accounts and enable them to either claim the deposit amount or make their deposit accounts operative at their respective banks. Read More
Enhancing transaction limits for Small Value Digital Payments in Offline Mode
To encourage the usage of UPI-Lite wallets in places where internet access is poor or non-available, the Reserve Bank of India (RBI) has increased the upper limit of an offline payment transaction from Rs 200 to Rs 500. The overall limit for offline transactions on a payment instrument, however, remains Rs 2,000 at all times. This directive was issued under section 10(2) of the Payment and Settlement Systems Act, 2007 read along with section 18. Read More
Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans
On August 18, 2023, the RBI came up with a circular on Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans (‘Circular) casting certain obligations and disclosure requirements on Regulated Entities (REs) at the time of reset of floating interest rate on EMI based Personal loans. The notification gives freedom to all the RBI regulated entities to offer all categories of advances either on fixed or floating interest rate basis. The notification elaborates that at the time of sanctioning an EMI based floating rate personal loan the regulating entities are required to take into account the repayment capacity or the borrower in order to ensures that an adequate margin in available if the tenure is to be extended. Read More
FOREIGN DIRECT INVESTMENT (FDI)
Mandating additional disclosures by Foreign Portfolio Investors (FPIs) that fulfil certain objective criteria
The capital markets regulator Securities Exchange Board of India (SEBI) has released a circular that mandates additional disclosures by the foreign portfolio investors (FPIs) that fulfil certain objective criteria. The regulator, via the circular, stated that certain FPIs hold concentrated portions of their equity portfolio in a single investee company. Such concentrated investments raise the concern and possibility that promoters of such companies could be using the FPI route for circumventing regulatory requirements. The circular states that the granular details of all entities holding any ownership, economic interest or exercising control in the FPI on the full look through basis up to the level of all-natural persons shall be provided by FPIs that fulfil any of the criteria defined under the circular. Read more
Validity period of approval granted by SEBI to Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) for overseas investment
SEBI has reduced the validity period of approval given to alternative investment funds (AIFs) and venture capital funds (VCFs) for making overseas investments to four months from six months at present. If these funds fail to make investments within this time limit, then SEBI can allocate their unutilized limits to other applicant AIFs and VCs. The decision has been taken considering into account the recommendation of the Alternative Investments Policy Advisory Committee. Read More
REAL ESTATE
MahaRERA asks realty developers to set up redressal cells for homebuyers’ issues
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked realty developers to set up grievance redressal cells to address complaints of their homebuyers. These cells for the developers’ projects are expected to have at least one grievance redressal officer. The regulator has highlighted that if all the developers set up a dedicated grievance redressal cell for their respective projects, these issues can be kept under control as the complainant will get official and reliable information on time. Read More
Approvals for self-redevelopment of societies within three months: Maharashtra Government
The processing of self-redevelopment proposals of housing societies will now get faster so that their constructions begin early. The Maharashtra government, which had recently appointed district zonal officers to clear self-redevelopment proposals has given yet another boost to such societies by asking its officers to clear applications ensuring all requisite permissions in place within three months of the date of application. The government has also appointed the central district cooperative banks in each district other than Maharashtra state cooperative bank as the nodal agency for financing these projects. Read More
INFORMATION TECHNOLOGY (IT)
The Digital Personal Data Protection Act, 2023
Ministry of Electronics and Information Technology (Meity) in December 2021 had released the draft of the Data Protection Bill, 2021. Finally, on 3rd August 2023, The Lok Sabha introduced the Digital Personal Data Protection Bill, 2023 on 3rd August 2023 to provide for the processing of digital personal data which not only recognizes the right of individuals in protecting their personal data but the need to process such personal data for any lawful purposes. The President of India gave her assent on Digital Personal Data Protection Act 2023 on 11th August 2023. The primary purpose of the Act is to regulate the processing of digital personal data and respect individuals’ right to protect their data while recognizing the necessity of processing and using such data for lawful purposes. Read More
National e-commerce policy in final stages
The proposed national e-commerce policy being formulated by the commerce and industry ministry is in the final stages and no new draft policy will be issued now for seeking views of stakeholders, a senior government official said. The Department for Promotion of Industry and Internal Trade (DPIIT) on August 2 held a detailed discussion with representatives of e-commerce firms and a domestic traders’ body on the proposed policy. In that meeting, a broad level of consensus emerged among the concerned stakeholders on the proposed policy. Read More
ARBITRATION
Court upholds 2018 arbitral award in MaranSpiceJet case
The Delhi High Court on refused to interfere with the 2018 arbitral tribunal award that asked SpiceJet to refund ₹579 crore with interest to former promoter Kalanithi Maran in a seven-year-old share transfer dispute. The High Court also rejected SpiceJet’s objections to the levy of interest @12% per annum on the amount to be refunded towards warrants and 18% per annum in case of non-payment within the stipulated time period. Maran and his KAL Airways had sought to set aside the award to the extent it failed to award restitution of 58.46% shareholding to them and that too, without assigning any reason. Read More
Calcutta High Court stays operation of arbitration award of Rs 1,301 Crores against SER
The Calcutta High Court has granted an unconditional stay on the operation of an arbitration award from South Eastern Railway to Rashmi Metaliks Limited, a private company, to the tune of Rs 1,301 crore. The court also directed the Ministry of Finance to immediately constitute a multi-member high-level enquiry committee headed by a secretary to the Government of India level rank officer to inquire into the conduct of the Railways and its officials (both serving and retired) and the other stakeholders in the matter. Read More
FOOD AND BEVERAGES
Ministry of Consumer Affairs, Food and Public Distribution released the Additional Influencer Guidelines For Health and Wellness Celebrities, Influencers and Virtual Influencers
Recently, the Ministry of Consumer Affairs, Food and Public Distribution, has issued Additional Influencer Guidelines For Health and Wellness Celebrities, Influencers and Virtual Influencers, making it mandatory for them to give disclaimers while presenting as Health Experts. These guidelines are an extension of the previously established “Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022”. The additional guidelines aim to deal with misleading advertisements, unsubstantiated claims and ensure transparency in health and wellness endorsements. Read More
Extension of time-period for compliance of provision of warning statement for ‘Pan Masala’
The Food Safety and Standards Authority of India (FSSAI) has issued directions extending the time-period for compliance of provision of warning statement for ‘Pan Masala’. These directions were issued on 1st August, 2023. It may be recalled that as per directions dated 22nd May, 2023, Pan Masala must have a declaration that “The warning statement must cover 50% of front-of-pack of the label”. The enforcement of this requirement was deferred for a period of 3 months from 1st May, 2023. Subsequently, the FSSAI has received representation from association requesting an extension of time-period for compliance of this requirement. This is due to the desire to exhaust the packaging material having the existing warning and to arrange for the new packaging material. Read More
INFRASTRUCTURE AND CONSTRUCTION
PM Gati Shakti: 100 infra projects worth Rs 5.89 lakh crore recommended for approval so far this fiscal
The Network Planning Group (NPG) was constituted under the PM Gati Shakti initiative which was launched in October 2021. The initiative was launched to develop an integrated infrastructure and reduce logistic costs. Any project costing more than 500 crores are to be approved by the NPG. In this fiscal, it has recommended around 100 infrastructure projects of different ministries. Read More
RBI relaxes infrastructure debt funds guidelines
The Reserve Bank of India has relaxed regulations on Infrastructure Debt Funds to expand infrastructure financing. IDFs will now be able to access funds without a sponsor, finance Toll Operate Transfer projects as direct lenders and access external commercial borrowings. Additionally, tripartite agreements have been made optional for PPP projects. Read More
PPP push: Financial Ministry asks Infrastructure Departments to identify projects for private partnership
India’s finance ministry has asked infrastructure departments to identify possible projects for private partnership. The move aims to draw greater private capital into public infrastructure and reduce delays, through particular focus on sectors like urban infrastructure, railways and roads. The ministry plans to roll out a public-private partnership architecture and standard model concession agreement framework for various infrastructure sectors. Read More
MERGERS AND ACQUISITIONS
CCI issues draft regulations for commitment, settlement provisions
Fair trade regulator CCI has issued the draft regulations for commitment and settlement provisions under the competition law. The provisions, introduced in the Competition Act through the amendments made earlier this year, are aimed at ensuring quicker market correction, according to the Competition Commission of India (CCI). Stakeholders can submit their comments on the draft regulations from August 24 to September 13, according to communications issued by the regulator. Read More
Competition Commission approves Tata Capital merger plan
Competition Commission of India (CCI) approved the merger of Tata Cleantech Capital and Tata Capital Financial Services into Tata Capital Ltd. Tata Capital Financial Services (TCFSL) and Tata Cleantech Capital Ltd are RBI registered non-deposit accepting nonbanking financial companies. Both companies are subsidiaries of Tata Capital Ltd (TCL). The proposed combination is a merger of Tata Capital Financial Services Ltd (TCFSL) and Tata Cleantech Capital Ltd (TCCL) into Tata Capital Ltd (TCL), CCI said in an official release. Read More
INFORMATION AND BROADCASTING
Advisory on Advertisements including surrogate advertisements of online betting platforms
On 25 August 2023, the Ministry of Information and Broadcasting has issued an advisory warning all television, print, digital media and social media platforms to refrain from displaying or promoting content that depicts online betting. It has stated that the failure to comply with the guidelines would entail statutory punishment. The Ministry released the advisory recognising that the recent events such as current on-going sports tournaments would spike the promotion of online betting platforms. Read More
Will incorporate rules to check vulgar content on social media, OTT platforms: Centre tells Delhi HC
The Centre has assured the Delhi High Court that its policy governing social media platforms and intermediaries will incorporate necessary rules and regulations to ensure the space occupied by them is free from vulgar language and profanities. The Ministry of Electronics & Information Technology (MeitY), in an affidavit showing compliance of the high court’s earlier directions, said it has taken note of the concerns expressed by the high court in its earlier orders. The high court had earlier said framing rules and guidelines to regulate the content on social media and OTT platforms need urgent attention. Read More
GAMING
Cabinet approves CGST Act amendment to implement 28% GST on online gaming
The Indian cabinet has given the green light to amend the Central Goods and Services Tax Act so as to allow for the introduction of a 28% goods and services tax rate on horse racing, online gaming and casinos, according to unnamed insiders. Although states will need to amend their individual GST legislation separately, the new tax system will go live from 1 October if all is passed in parliament in time. Read More
Online money gaming firms face massive Rs 45,000 crore tax demand after 28% GST levy
Online money gaming firms, previously positioning themselves as offering skill-based games, face potential additional tax dues of around Rs 45,000 crore, according to an ET report. The Central Board of Indirect Taxes and Customs (CBIC) has evaluated unsettled liabilities for these firms since 2017. Read More
ENERGY LAW
Strategy for Establishment of Offshore Wind Energy Projects
The government of India notified the nation offshore wind energy policy in 2015 which was introduced for development of the offshore wind power in the country. Under the current strategy released by the ministry of new and renewable energy 3 models for having a fast track process were proposed. Model A known as the VFG Model, Model B known as the Non VFG but with exclusivity over seabed during the study/ survey period and the last that is Model C known as the Non VFG but without exclusivity over seabed during the study/survey period. Read More
B20 Task Force on Climate Change recommends just and equitable transition to clean energy
The B20 India Task Force on Energy, Climate Change, and Resource Efficiency has recommended a just and equitable transition to clean energy that is inclusive and resilient. The task force calls for global cooperation to achieve net zero transitions and emphasizes the need for collaboration, innovation, and financing options that benefit everyone, especially in the global south. The recommendations also promote a circular economy and highlight the urgency of addressing climate change while reducing dependence on fossil fuels. Read More
INTELLECTUAL PROPERTY LAW
The Draft Patents (Amendment) Rules, 2023
The Indian Ministry of Commerce and Industry has proposed and published Draft Patent (Amendment) Rules, 2023 (the “draft Rules”) on August 22, 2023 and has invited objections and suggestions from all stakeholders within a timeline of 30 days from the date of the publication of the draft Rules. The rules streamline the patent filing procedure by making it more efficient, further, it also introduces form no. 31 which givens clarity to the applicant and prevents legal disputes between parties. The draft rules have also made a change in the fee structure and the timelines for filing patent application. Read More
IP valuation rules in works to boost funding; startups, MSMEs to benefit
India is eyeing a valuation framework for intellectual property to facilitate its financing through newer financial instruments. The Department for Promotion of Industry and Internal Trade (DPIIT) is planning to devise a system of valuation of IP as an intangible asset, a move that will aid businesses especially micro, small and medium enterprises, and startups with valuable IP and seeking alternative sources of raising capital. Read More
Google can’t claim safe harbour if use of trademarks in Ads Programme violates trade mark: Delhi HC
The Delhi High Court has held that global search giant Google cannot avail of protection under the safe harbour clause of the Information Technology Act, 2000, if it uses a trademark as a keyword in its advertisement program. It will also be held liable for trademark infringement in such cases, the court added. A division bench of Justices Vibhu Bakhru and Amit Mahajan was hearing a case related to alleged trademark infringement allegations levelled by DRS Logistics and Agarwal Packers and Movers Pvt Ltd, both constituents of the DRS Group, against Google LLC. Read More
TAX
New Guidelines For Tax Exemptions On High-Premium Life Insurance Policies
The Central Board of Direct Taxes (CBDT) has notified the Income Tax Amendment (Sixteenth Amendment), Rules, 2023, prescribing rule 11UACA for calculating income with respect to sum received upon maturity of life insurance policies wherein the amount of premiums exceed ₹ 5 lakh and such policy/policies are issued on or after April 1, 2023. According to the change, for policies issued on or after April 1, 2023, the tax exemption on maturity benefits under Section 10(10D) will only be applicable if the aggregate premium paid by an individual is up to ₹ 5 lakh a year. Read More
