We have travelled half of the year 2021 now and we have a lot to talk about what happened last month.

The Ministry of Corporate Affairs (MCA) vide General Circular No. 11/ 2021 has further extended the timeline to file prescribed eForms (that are due to be filled between April 01, 2021 and July 31, 2021) until August 31, 2021. Similarly, for charge related fillings under the Companies Act, 2013, MCA vide General Circular No. 12/2021 has extended the timeline to July 31, 2021. Further, the MCA has notified the revised accounting standards to be complied with from the current financial year along with amendments to the Companies (Indian Accounting Standards) Rules, 2015. With the effects of pandemic continuing, MCA has permitted companies to hold virtual Extraordinary General Meetings.

The Central Government has given another opportunity to Independent Directors who have missed the deadline to include their name in the central database, provided a delay fees shall be charged for such late inclusion. In a relief to board members, the Government has allowed companies to transact all business items in virtual board meetings. Easing the process of setting up of new businesses, the Central Government has amended eForm No. INC-35aka AGILE-PRO-S, which allows companies to file a single application for Goods and Services Tax Identification Number, Employees State Insurance Corporation registration, Employees Provident Fund Organization registration, Professional Tax registration, opening of a bank account and Shops and Establishment registration.

The Reserve Bank of India (RBI) has notified the revised directions for regulating certificate of deposits and borrowing limits for transactions in Call, Notice and Term Money markets. On a review of existing ATM charges and fees and in the interest of stakeholders, the RBI has increased the cap on (i) interchange fee to Rs. 17/- per financial transaction and Rs. 6/- per non-financial transaction (effective from August 01, 2021); and (ii) customer charges on ATM cash withdrawals beyond the free transaction limit to Rs. 21/- per transaction (mandatorily effective from January 01, 2022), in addition to the applicable taxes. Further, the RBI has mandated banks to provide minimum 5 monthly withdrawals from their own bank ATMs and 3 monthly withdrawals from other participating banks ATMs (5 in case of non-metro cities) at no cost to the customers.

The RBI has liberalised the terms of repayment of gold loans for jewellery exporters and domestic manufacturers of gold jewellery. Further, the Non-Banking Financial Companies regulator prescribes guidelines for declaration of dividend. Guidelines for appointment of Managing Director, Whole-Time Director and Chief Risk Officer in Primary (Urban) Co-operative Banks have been issued by the RBI. RBI also notified guidelines on outsourcing of financial services by Cooperative Banks.

Meanwhile, the Finance Minister announced several schemes to address the concerns arising out of Covid-19 pandemic. The schemes are broadly clubbed into three categories: (i) schemes giving economic relief amidst pandemic; (ii) schemes assisting in strengthening the public health system; and (iii) schemes enabling growth and employment. These schemes included credit guarantee scheme through Micro Finance Institutions, emergency credit line guarantee scheme, financial support to stakeholders in travel & tourism industry, reform based result linked power distribution scheme, amongst others. Further, the Central Government has extended the regulatory timelines under the Income Tax Act, 1961 and allowed tax exemption on the amount remitted by a person for treatment of covid-19 patients. As introduced in the Finance Act, 2021the Income Tax Act, 1961 was amended to levy a higher rate of tax deduction at source/ tax collection at source for a certain ‘specified person’. To enable payers to check if the recipient falls within the ambit of the specified threshold, Income Tax authorities have added a new feature on their portal with a detailed clarification letter.

The capital markets regulator, Securities and Exchange Board of India (SEBI), announced extension of regulatory timelines in light of the ongoing pandemic. Further, the SEBI declared BSE Administration & Supervision Limited as the Investment Advisor Administration and Supervisory Body under the SEBI (Investment Advisers) Regulations, 2013 and has directed existing registered Investment Advisors to apply for membership with the newly appointed body. With the intent to ease the access to information for investors, SEBI has come up with a more elaborate list of information that needs to be maintained in the central database of corporate bonds/ debentures. The SEBI has increased the cap on overseas investments by mutual funds to USD One Billion along with an overall industry limit of USD Seven Billion.

In the industry news, you may be interested in knowing about Reliance’s collaboration with Google and its new venture in the end-to-end renewable energy ecosystem, amongst other things announced in its recent Annual General Meeting.

Do you have a question about any of these developments or would like to see something different next month in your inbox? Reach out to us at knowledge@sarthaklaw.com or drop us a text here.

 

From the Docket

In Neetstream Creations Private Limited v. Telegram FZ LLC & others, the High Court of Delhi passed a temporary injunction order directing the social media app Telegram to remove all infringing content pertaining to the movie – ‘MAADATHY’ from the social media application within 36 hours of receiving notice in regard of the same from the Plaintiff.

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