India – Latest Developments In Indian Corporate Laws, March 2021.

Greetings from Acuity Law LLP!
 
We are pleased to share our knowledge alert for the month of March 2021 relating to latest developments in Indian corporate laws. A snapshot of the March 2021 Newsletter is enclosed below. 

COMPANIES LAW
 

1. Amendment to Companies (Audits and Auditors) Rules, 2014
    

The Ministry of Corporate Affairs vide its notification dated 24 March 2021 has amended Companies (Audits and Auditors) Rules, 2014 with effect from 1 April 2021. The amendment provides for a few additional matters to be included in the audited report of a company by the auditor.
 

2. Amendment to the Companies (Account) Rules, 2014
    

The Ministry of Corporate Affairs vide its notification dated 24 March 2021 has amended the Companies (Accounts) Rules, 2014 with effect from 1 April 2021. The amendments have been made with respect to keeping accounts in electronic mode and information and details to be mentioned in the report of the board of a company.
 

3. Amendment to Schedule III of the Companies Act, 2013
    

The Ministry of Corporate Affairs vide its notification dated 24 March 2021 has amended the Schedule III of the Companies Act, 2013 with effect from 1 April 2021. The amendments provides that the profit and loss statement of a company should include details of investments or trading conducted by the company in crypto or virtual currencies.

 
SECURITIES LAW
 

1. Discussion paper by Securities and Exchange Board of India (“SEBI”) on review of regulatory provisions related to independent directors.
    

SEBI has released a discussion paper on 1 March 2021 proposing to amend the regulatory provisions in relation to independent directors of listed companies. Public comments are invited on the discussion paper.
 

2. SEBI’s ruling in the matter relating to disclosure of acquisition of shares in case of transmission.
    

SEBI has passed an order in the matter of Solitaire Machine Tools Limited, in relation to disclosure requirements in the event of acquisition resulting from transmission of shares after death of a shareholder under the provisions of the SEBI (Prohibition of Insider Trading) Regulations 2015.
 

3. SEBI circular on voting by Mutual Funds.
    

SEBI has issued a circular on 5 March 2021 providing that mutual funds will be required to exercise their voting rights in relation to the shares held by them in portfolio companies starting from 1 April 2021. The circular also provides for quarterly declarations to be made by fund managers in this regard.
 

4. Consultation paper released by International Financial Services Centre Authority (“IFSCA”) on proposed regulations on issuance and listing of securities in International Financial Services Centres (“IFSC”).
    

The IFSCA has released a consultation paper on 10 March 2021 in respect of proposed regulations relating to issuance and listing of securities in IFSC. The consultation paper proposes to establish a comprehensive regulatory framework to facilitate listing of equity shares as well as convertible securities in a stock exchange set up in an IFSC.
 

5. Securities Appellate Tribunal (“SAT”) overturns SEBI’s orders in the matter concerning alleged sharing of unpublished price sensitive information (“UPSI”).
    

The SAT has passed an order on 22 March 2021, overturning orders passed by the SEBI adjudicating officer in a matter concerning alleged contravention of the SEBI (Prohibition of Insider Trading) Regulations, 2015 wherein alleged UPSI was shared via messaging application WhatsApp.

 
TO READ THE DETAILED CORPORATE LAW KNOWLEDGE ALERT, PLEASE CLICK HERE.

 

 

 

For further information, please contact:  

Souvik Ganguly, Partner, Acuity Law

al@acuitylaw.co.in