9 January, 2018
Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Amendment, Rules, 2017
The MCA has amended Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Rules, 2015 vide its notifications dated November 6, 2017. According to the amended rules, the following class of companies are required to submit their financial statement and other documents with the Registrar of Companies in e- form AOC-4 XBRL:
- companies listed with stock exchanges in India and their Indian subsidiaries;
- companies having paid up capital of five crore rupees or above;
- companies having turnover of one hundred crore rupees or above;
- all companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015.
Further, the e-form AOC-4 XBRL, was revised to include the details of Specified Bank Notes (SBN) held and transacted by a company during the period from November 8, 2016 to December 30, 2016.
The Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2017
On November 21, 2017, the Securities Exchange Board of India has issued the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2017. In terms of these amendment regulations, the concept of an “Executive Director” and his role has been added. An executive director shall mean an officer of the Board who is appointed as such by the Board. Further, in terms of regulation 24 of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, the executive director shall have a right to appoint an officer not below the rank of a Division Chief, as a designated authority in cases of default (as envisaged in regulation 23).
Amendments to the Insolvency and Bankruptcy Code, 2016
On November 23, 2017, the Government of India had promulgated the ordinance to amend the Insolvency and Bankruptcy Code, 2016 (“the Code”). The Ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the Code. The Ordinance amends Sections 2, 5, 25, 30,
35 and 240 of the Code, and inserts new Sections 29A (persons not eligible to be a resolution applicant) and 235A (punishment where no specific penalty is provided) in the Code. In terms of the newly inserted Section 29A of the Code, many instances of when a person cannot be eligible to be a resolution applicant have been provided, such as, (i) an undischarged insolvent; (ii) willful defaulter in accordance with the guidelines of the Reserve Bank of India; (iii) whose account is classified as a non-performing asset; (iv) convicted for an offence punishable with imprisonment of two year so more; (v) has been prohibited by SEBI from trading in securities, etc. Further, in terms of the punishment (Section 235A of the Code), if any person contravenes with the provisions of the Code, for which no punishment or penalty has been provided, such person shall be punishable with a fine which shall not be less than one lakh rupees but which may extend to two crore rupees.
IBBI issues the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017
On November 7, 2017, the Insolvency and Bankruptcy Board of India issued the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017. These regulations amend the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons) Regulations, 2016. In terms of the amended regulations, a resolution plan must now contain details of the resolution applicant and other connected persons to enable the committee to assess the credibility of such applicant and other connected persons to take a prudent decision while considering the resolution plan for its approval. Further, the resolution professional shall submit to the committee all resolution plans which comply with the requirements of the Code and regulations made thereunder along with the details of certain transactions (as mentioned in the amended regulations), if any, observed, found or determined by him.
Online Registration Mechanism and Filing System for Clearing Corporations
On November 3, 2017, the Securities and Exchange Board of India issued a circular introducing a digital platform for online filings related to Clearing Corporations, in order to ease the process of application for recognition / renewal, reporting and other filings in terms Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and other circulars issued from time to time.
RBI issues the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017
On November 7, 2017, the Reserve Bank of India released the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 (“Regulations”). The Regulations came into effect on November 7, 2017 except proviso (ii) to sub-regulation 1 of regulation 10 and proviso (ii) to sub-regulation 2 of regulation 10 of these Regulations, which will come into effect from a date to be notified.
Some of the key amendments relate to the inclusion of definition of ‘capital instrument’, ‘foreign direct investment’, ‘foreign portfolio investment, ‘resident Indian citizen’, ‘non- resident Indian’ and ‘overseas citizen of India. Further, the Regulations also provide that any Indian company making downstream investment in another Indian company has to be notified in Form DI within 30 days of such investment. With respect to issue of capital instruments, the erstwhile regulations mandated issuance of capital instruments within 180 days from receipt of inward remittance, while the Companies Act, 2013 (“Act”) provides allotment of securities within 60 days of receipt of application money or advance for such securities. This inconsistency has now been rectified and the Regulations align the requirement to issue capital instruments with the Act.
Contract Labour (Regulation and Abolition) Haryana Amendment Act, 2016
The Haryana government vide the Contract Labour (Regulation and Abolition) Haryana Amendment Act, 2016 has extended the applicability of the Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA”) to establishments employing 50 or more workmen in the state of Haryana. Previously, in Haryana, CLRA was applicable to establishments employing 20 or more workmen.
States to frame rules for crèche facilities
In terms of the amendment to the Maternity Benefit Act, 1961, it was made mandatory for every establishment having 50 or more employees to provide for crèche facilities from July 1, 2017. The state governments had to formulate rules regarding the implementation of these crèche facilities by the employer.
Since the respective state governments have not presently formed any rules, the Ministry of Labour and Employment has issued a notification dated November 17, 2017, to all state governments to frame and notify rules to provide crèche facilities in establishments employing 50 or more persons. The notification states that the state governments are the ‘appropriate government’ under the Maternity Benefit Act, 1961 and are therefore required to take immediate action to frame and notify the rules for crèche facilities as the provision of crèche is already effective from July 1, 2017.
The rules once framed should provide clarity on various aspects such as the prescribed distance within which the crèche should be located, whether the crèche facility costs would be borne by the employer or employees or shared between both and what would be the maximum age group of the children for whom such facility will be provided.
For further information, please contact:
Vineet Aneja, Partner, Clasis Law
vineet.aneja@clasislaw.com
