Transaction & Regulatory Advisory Services Alert

August 9, 2024

Transaction & Regulatory Advisory Services Alert – July 2024

In this edition we have tried to bring you notice the latest amendment that followed in the month of July, 2024 issued by MCA, RBI and SEBI.

MCA UPDATE

Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024

The Central Government notified the Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024. According to the Amended Rules the updating of directors’ personal details namely mobile number and email address should be done within the mentioned time frame i.e upto 30th September of the financial year. In case he is desirous of updating the above-mentioned details more than one time during the financial year he can so do by filing of e-form DIR-3 KYC on payment of fees amounting to Rs. 500/-.

Filings under section 124 and section 125 of the Companies Act 2013 read with IEPFA (Accounting, Audit, Transfer and Refund) Rules 2016 in view of transition from MCA 21 version 2 to version 3 .

In view of the transition of form from MCA 21 V2 to MCA 21 V3 and in order to provide opportunity to make compliances thereof, additional fee on filing of various IEPF e- forms (IEPF -1, IEPF-1A, |EPF-2, IEPF-4) and e- verification of claims filed in e-form IEPF-5 has been waived till 16% ‘’August, 2024. Similarly, one time relaxation for filing of e-verification under third proviso to sub rule (3) of rule 7 of IEPFA (Accounting, Audit, Transfer and Refund) Rules has also been provided till 16″ August, 2024.

The (Incorporation) Amendment Rules, 2024

The Central Government notified (Incorporation) Amendment Rules, 2024. As per the amended rules the word Nidhi shall be omitted from clause (p) which means that if the proposed name includes word Nidhi a declaration to be submitted by the applicant that the requirements mandated by the respective regulator have been complied with by the applicant is not mandatory.

The Nidhi (Amendment) Rules, 2024

The Central Government notified the Nidhi (Amendment) Rules, 2024 According to the Amended Rules in the Nidhi Rules, 2014, that a company shall not use the words “Nidhi Limited” in its name unless it is declared as such under sub-section (1) of section 406 of the Act.” Thus, A Company shall not use the words “Nidhi Limited unless it is declared by the Central Government by notification in the Official Gazette as declared to be a Nidhi or Mutual Benefit Society, as the case may be.

Extension of time for Filing of PAS-7-reg

Every public company which had issued share warrants prior to commencement of the Companies Act, 2013 (18 of 2013) and not converted such warrants into shares should have informed the Registrar about the details of such share warrants in Form PAS-7 within a period of three months of the commencement of the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023.

Web-Form PAS-7 Form has now been deployed on MCA-21 Portal. Stakeholders may file requisite details in terms of Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 through this Web-Form without payment of additional fees up to 05.08.2024.

RBI UPDATES

Foreign Exchange Management (Overseas Investment) Directions, 2022 – Investments in Overseas Funds

It has been decided by RBI that Authorised Persons may facilitate remittances for all permissible purposes under LRS to IFSCs for: i. Availing financial services or financial products as per the International Financial Services Centres Authority Act, 2019 within IFSCs; and ii. All current or capital account transactions, in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs. For these permissible purposes, resident individuals can open Foreign Currency Account (FCA) in IFSCs.

Release of foreign exchange for Miscellaneous Remittances

Authorised Dealers are permitted to release foreign exchange for any current account transaction, on the basis of a simple letter containing basic information and subject to an upper limit of USD 25,000 or its equivalent. It was also advised that Authorised Dealers need not obtain any other documents, including Form A2.. With a view on streamlining the regulatory compliances and operational procedures, it is now decided that Authorised Dealers shall obtain Form A2 in physical or digital form for all crossborder remittances irrespective of the value of transaction.

SEBI UPDATES

SEBI launches chatbot “SEVA” for investors on July 29, 2024

SEBI has launched SEBI’s Virtual Assistant (SEVA) – an Artificial Intelligence (AI) based conversation platform for investors. The chatbot is presently enabled to answer questions relating to general information on securities market, latest master circulars, grievance redressal process, etc. Based on the feedback received from the users, additional areas will be added to the chatbot. The beta version of the chatbot is available on SEBI’s investor website (https://investor.sebi.gov.in/) and SAARTHI mobile app (both Android and iOS).

To read more: https://www.sebi.gov.in/media-and-notifications/press-releases/jun-2024/sebi-boardmeeting_84448.html

Miscellaneous Laws

Ministry of Health and Family Welfare

Ministry of Health and Family Welfare FSSAI approves proposal to display nutritional information labelling of total sugar, salt and saturated fat in bold letters and bigger font size in 44th meeting of Food Authority

The Food Safety and Standards Authority of India (FSSAI) has approved a proposal to display nutritional information regarding Total Sugar, Salt and Saturated Fat in bold letters and relatively increased font size on labels of packaged food items. The decision to approve the amendment in the Food Safety and Standards (Labelling and Display) Regulations, 2020 regarding. The amendment aims to empower consumers to better understand the nutritional value of the product they are consuming and make healthier decisions.

Ministry of Micro, Small & Medium Enterprises

Notification under Section 7 of Aadhaar Act 2016 to identify the targeted beneficiaries byAadhaar Authentication in in respect of ESDP Scheme

The Central Government hereby notifies the following, namely: – (i) an individual eligible for receiving the benefits under the Scheme shall hereby be required to furnish proof of possession of the Aadhaar number or undergo Aadhaar authentication; (ii) any individual desirous of availing benefits under the Scheme, who does not possess the Aadhaar number or has not yet enrolled for Aadhaar, shall be required to make application for Aadhaar enrolment and in case such person is entitled to obtain Aadhaar as per section 3 of the said Act, such individual may visit any Aadhaar enrolment centre (iii) the Implementing Agencies shall offer Aadhaar enrolment facilities for the beneficiaries who are not yet enrolled for Aadhaar and in case there is no Aadhaar enrolment centre located in the respective Block or Taluka or Tehsil, the Implementing Agencies shall provide Aadhaar enrolment facilities at convenient locations in coordination with the existing Registrars of UIDAI or by becoming UIDAI Registrar themselves by applying under regulation 21 of the Aadhaar (Enrolment and Update) Regulations, 2016 and contact Regional Offices of UIDAI for the said purpose.

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