5 December, 2017
Notification for commencement of Section 247 of Companies Act, 2013
The Ministry of Corporate Affairs (“MCA”) has vide its notification dated October 18, 2017, brought into force the provisions of Section 247 of the Companies Act, 2013. Section 247 deals with the valuation of, inter alia, property, stocks, shares, debentures or net worth of a company by the registered valuers.
The Companies (Registered Valuers and Valuation) Rules, 2017
The MCA vide a notification dated October 18, 2017 issued Companies (Registered Valuers and Valuation) Rules, 2017. The aforesaid rule extensively provides for the qualifications, eligibility criteria and experience of persons who can act as registered valuers. Different professionals have been specified for the different class of assets. It is a mandatory requirement for the valuers to get themselves registered with the Registered Valuers Organisations (“RVO”) in order to do valuation. Currently, a transition period up to March 31, 2018 has been provided to the valuers to get themselves registered with the RVOs. Until then, the valuers can continue doing valuation without registration.
Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017
The MCA vide its notification dated October 13, 2017, further amended Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Rules, inter-alia, provides that transfer of shares by company to the Investor Education and Protection Fund (“Fund”) will be treated as transmission and the procedure for transmission shall be followed by the companies and also prescribes the mechanism for transfer of shares in physical mode. Further, every company which has deposited the amount to the Fund is required to nominate a Nodal Officer for the purpose of coordination with Fund Authority and his or her details are to be communicated to the Fund Authority.
Online portal for lodging complaints regarding sexual harassment
The Ministry of Women and Child Development has launched a comprehensive “SHe-Box”, an online complaint management system, for women working in both public and private organizations to lodge complaints of sexual harassment at workplace under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“Act”).
SHe-Box portal is an effort to provide speedier remedy to women facing sexual harassment at workplace.
Once a complaint is submitted to the portal, it will be directly sent to the Internal Committee or the Local Committee formulated in terms of the Act of the concerned employer. Through this portal, the Ministry of Women and Child Development as well as complainant will be able to monitor the progress of inquiry conducted by these committees.
Recent Delhi High Court Judgment
Sexual harassment as defined under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“Act”) includes any unwelcome physical contact and advances. While the Act and its interpretation has always been a perception based law where the perception of the aggrieved women as to what she may constitute as sexual harassment, duly supported by relevant evidence, has taken precedence. “
However, the Delhi High Court, in the case of Shanta Kumar versus Council of Scientific and Industrial Research (CSIR) and Others (MANU/DE/3392/2017), while deliberating into the allegations of sexual harassment filed by the complainant, the court has stipulated that physical contact or advances would constitute sexual harassment provided such physical contact is a part of the sexually determined behaviour. Such physical contact must be in the context of a behaviour which is sexually oriented. Plainly, a mere accidental physical contact, even though unwelcome, would not amount to sexual harassment. Similarly, a physical contact which has no undertone of a sexual nature and is not occasioned by the gender of the complainant may not necessarily amount to sexual harassment.
This latest ruling is indicative of the judicial intent to take into consideration other surrounding factors such as whether any unwelcome behaviour is sexually oriented or not besides the perception of the aggrieved women, while inquiring into the allegations of sexual harassment.
Master Direction on Issuance and Operation of Prepaid Payment Instruments
The Reserve Bank of India has released a Master Direction on Issuance and Operation of Prepaid Payment Instruments (“PPI”) on October 11, 2017. The direction issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, shall be in supersession of all the previous circulars issued on the subject matter. The direction has been issued in the backdrop of developments in the field, progress made by PPI Issuers, experience gained and with a view to foster innovation and competition, to ensure safety and security, customer protection etc. In terms of the direction, existing PPI Issuers shall have to ensure compliance with the revised requirements on or before December 31, 2017, except where timelines have been specified in this direction.
The Insolvency and Bankruptcy Board of India (IBBI) notifies the IBBI (Information Utilities) (Amendment) Regulations, 2017
The Insolvency and Bankruptcy Board of India (“IBBI”) had notified the IBBI (Information Utilities) Regulations, 2017 on March 31, 2017. These regulations provided that ordinarily a person should not hold more than 10% of paid up equity share capital or voting power of an information utility, while allowing certain specified persons to hold up to 25%. These further provided that a person may hold up to 51% of paid-up equity share capital or total voting power of an information utility till the expiry of three years from its registration.
IBBI has now amended the IBBI (Information Utilities) Regulations, 2017 on September 29, 2017. According to the amended regulations, a person may, directly or indirectly, either by itself or together with persons acting in concert, hold up to 51% of the paid-up equity share capital or total voting power of an information utility up to three years from the date of its registration. Further, an Indian company, (i) which is listed on a Stock Exchange in India, or (ii) where no individual, directly or indirectly, either by himself or together with persons acting in concert, holds more than 10% of the paid-up equity share capital, may hold up to 100% of the paid-up equity share capital or total voting power of an information utility up to three years from the date of its registration. However, these amended provisions are to be available in respect of information utilities registered before September 30, 2018. The amendment requires that more than half of the directors of an information utility shall be Indian nationals and residents in India. The amendments are effective from September 29, 2017.
Formulation of a national policy for ‘domestic workers’
The Ministry of Labour and Employment has issued a notice dated October 10, 2017 regarding formulation of a national policy for ‘domestic workers’. The policy aims to explicitly and effectively expand the scope of applicable legislations, policies and schemes to grant domestic workers rights that are enshrined in laws for other category of workers including minimum wages, equal remuneration etc. Further, the policy proposes to provide several rights to domestic workers such as right to organize their own union/association, right to enhance skills through skill development programmes and establish a model contract for employment with well-defined periods of work and rest. In addition, the policy would also aim setting up of an institutional mechanism which will provide for social security cover, fair terms of employment and grievance redressal. In this regard, comments and opinions are invited from the public, no later than November 10, 2017.
Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 – Amendments
The Securities and Exchange Board of India on October 17, 2017 has issued a circular in order to further streamline the operations at International Financial Services Centres, based on the internal discussions and consultations held with the stakeholders. It has been decided to further amend Guideline 8(2) of SEBI (IFSC) Guidelines, 2015, which shall now read as follows:
“Any entity based in India or in a foreign jurisdiction may form a company in IFSC to act as a trading member of a stock exchange and/or a clearing member of a clearing corporation in IFSC.”
Amendment of the Rationalisation of Forms and Reports under Certain Labour Laws Rules, 2017
The Ministry of Labour and Employment on October 27, 2017 has issued a notification with respect to draft of certain rules (namely Contract Labour (Regulation and Abolition) Act, 1970; Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996) so as to amend the Rationalisation of Forms and Reports under Certain Labour Laws Rules, 2017 (“Rules”). In terms of these Rules, the principal employer (required to file Form XIV under the aforementioned acts) shall now file a Unified Annual Return online on the Shram Suvidha Portal of the Ministry of Labour and Employment on or before the 1st day of February following the end of the year to which it relates.
For further information, please contact:
Vineet Aneja, Partner, Clasis Law
vineet.aneja@clasislaw.com
