Transaction & Regulatory Advisory Services Alert August 2024
In this edition we have tried to bring you notice the latest amendment that followed in the month of August, 2024 issued by MCA, RBI and SEBI.
SEBI UPDATE
SEBI (Alternative Investment Funds) (Fourth Amendment) Regulations, 2024 (August 06, 2024)
SEBI vide this notification amended Regulation 13(5) of SEBI (Alternative Investment Funds) Regulations, 2012 by permitting a large value fund for accredited investors to extend its tenure up to five years subject to the approval of two-thirds of the unit holders by value of their investment in the large value fund for accredited investors. However, the extension in tenure of any existing scheme of a large value fund for accredited investors shall be subject to such conditions as may be specified by the SEBI from time to time. Also, the investment conditions for Category I and II of Alternative Investment Funds as provided in Regulation 16(1)(c) and Regulation 17 (c) have also been modified with ‘Category I Alternative Investment Funds [Regulation 16(1)(c)]/ Category II Alternative Investment Funds [Regulation 17(c)]/ shall not borrow funds directly or indirectly or engage in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by the SEBI from time to time’.
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MINISTRY OF CORPORATE AFFAIRS
Companies (Registration of Foreign Companies) Amendment Rules, 2024 (August 12, 2024)
In exercise of the powers conferred by section 381, section 385, clause (a) of section 386, section 389 and section 390, read with section 469 of the Companies Act, 2013 the Central Government has notified Companies (Registration of Foreign Companies) Amendment Rules, 2024 which shall come into force with effect 09th day of September, 2024. MCA has operationalized Central Processing Centre (CPC) for Centralised Processing of Corporate Filings that processes applications in time-bound and faceless manner on the lines of Central Registration Centre (CRC). In order to implement the same amendments are made in Companies (Registration of Foreign Companies) Rules, 2014. As per the amendment, in rule 3, in sub-rule (3) a foreign company within a period of thirty days of the establishment of its place of business in India shall now file with the Registrar, Central Registration Centre Form FC-1 with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014. Accordingly, changes are also made in in rule 8, in sub-rule (1), by inserting the following proviso: “Provided that the documents for registration by a foreign company referred to in sub-rule (3) of rule (3) shall be delivered in Form FC-1 to the Registrar, Central Registration Centre.”
To read more:
https://egazette.gov.in/(S(qubbd5aaaoqhziuanui0pzmd))/V iewPDF.aspx
RBI tightens rules for deposit-taking HFCs (August 13, 2024)
The Reserve Bank of India on August 12, 2024 released revised rules for deposit-taking Housing Finance Companies (HFCs), requiring them to maintain 15% liquid assets against public deposits held by them in a phased manner, up from 13% at present. The new rules, which will be applicable from January 1, are aimed at bringing deposit-taking HFCs on par with Non-Banking Financial Companies (NBFCs), the central bank said.
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Companies (Indian Accounting Standards) Amendment Rules, 2024 (August 12, 2024)
In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013, the Central Government, in consultation with the National Financial Reporting Authority, have notified Companies (Indian Accounting Standards) Rules, 2024. According to the amendments following changes are made in Companies (Indian Accounting Standards) Rules, 2015: 1. Indian Accounting Standard (Ind AS) 117 which relates to Insurance Contracts is being inserted to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows. 2. In order to correspond with Indian Accounting Standard (Ind AS) 117, modifications are also made to Indian Accounting Standard (Ind AS) 101, (Ind AS) 103, (Ind AS) 105, (Ind AS) 107, (Ind AS) 109, and (Ind AS) 115.
To read more:
https://www.mca.gov.in/bin/dms/getdocument?mds=4iwngdxt9oFj%252Bpp05r1EZA%253D%253D&type=open
Miscellaneous Laws
SEBI (Research Analysts) (Second Amendment) Regulations, 2024
SEBI has notified the SEBI (Research Analysts) (Second Amendment) Regulations, 2024 on August 19, 2024, which shall come into force on the date of their publication in the Official Gazette. Vide this notification, SEBI has prescribed that the Research Analyst will be entitled to charge fees for providing research services from a client including an accredited investor in the manner as specified by SEBI.
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