Transaction & Regulatory Advisory Services Alert – May 2024
In this edition we have tried to bring you notice the latest amendment that followed in the month of May, 2024 issued by MCA, RBI and SEBI.
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MCA Updates
MCA tightens scrutiny of beneficial ownership norms for foreign-owned companies
The Ministry of Corporate Affairs has tightened its scrutiny of beneficial ownership standards for companies owned and controlled by foreign investors, which legal experts said could have consequences for compliance practices. The Registrar of Companies (RoC) recently issued notices to several foreign owned and controlled companies, including LinkedIn, for alleged violation of beneficial ownership disclosure norms, said two people with knowledge of the matter.
To read more:
MCA tightens scrutiny of beneficial ownership norms for foreign-owned companies (moneycontrol.com)
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RBI Updates
Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2024
RBI vide its Notification has decided to regularize the issuances of partly paid units by Alternative Investment Funds to persons resident outside India prior to the said amendment through compounding under Foreign Exchange Management Act, 1999. However, before approaching the RBI for compounding, AD Category-I banks may ensure that the necessary administrative action, including the reporting of such issuances by Alternative Investment Funds to the RBI, through Foreign Investment Reporting and Management System (FIRMS) Portal and issuing of conditional acknowledgements for such reporting is completed.
To read more:
http://www.rbi.org/
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SEBI Updates
Master Circular for Alternative Investment Funds (AIFs)
The SEBI has issued a Master Circular dated May 07, 2024 related to Alternative Investment Funds (AIFs). The provisions of all circulars issued until March 31, 2024 regarding AIFs have been incorporated in this Master Circular, which supersedes the Master Circular for AIFs dated July 31, 2023.
To read more:
Master Circular for Registrars to an Issue and Share Transfer Agents
The SEBI has issued a Master Circular dated May 07, 2024 related to Registrars to an Issue and Share Transfer Agents in order to enable the users to have access to the applicable circulars at one place. This Master Circular consolidates various directives previously issued to RTAs by SEBI. It supersedes the previous Master Circular for RTAs dated May 17, 2023, and subsequent circulars on the subject.
To read more: