Amendment by MCA, RBI and SEBI: October 2020

In this edition we have tried to bring to your notice the latest amendment that followed in the month of October, 2020 issued by MCA, RBI and SEBI.

Amendments issued by MCA

• Extension of relaxation in minimum residency requirements of 182 days in India by at least one director in every Company for the financial year 2020-2021. Read for More: http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.36_20102020.pdf

• Extension of Companies Fresh Start Scheme, LLP Settlement Scheme and Charge related fillings under the Companies Act, 2013 till 31st December 2020.

• Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020 Through this amendment the proviso has been inserted under Rule 14 to provided that in case of offer or invitation of any securities to qualified institutional buyers, it shall be sufficient if the company passes a previous special resolution only once in a year for all the allotments to such buyers during the year. Read for More: http://mca.gov.in/Ministry/pdf/SecuritiesAmendmentRules_16102020.pdf

Amendments issued by RBI

• RBI releases FAQs on Resolution Framework for Covid-19 related stress pertaining to the one-time loan restructuring scheme announced on August 6. These FAQ’s are subsequent to the recommendations of the KV Kamath-led committee on the issue. The scheme allows banks to restructure loans of borrowers that were regular in their repayments and did not have more than 30 days overdue as of March 1, 2020, without downgrading their asset classification to a non-performing asset. Read for More: https://www.rbi.org.in/Scripts/FAQView.aspx?Id=137

Amendments issued by SEBI

• The SEBI has issued the clarification on the procedure for handling certain types of complaints by the Stock Exchanges as well as the standard operating procedure for actions to be taken against listed companies in case of failure to redress investor grievances. Read for More: https://www.sebi.gov.in/legal/circulars/oct-2020/clarification-on-sebi-circular-sebi-ho-oiae-igrd-cir-p-2020-152-dated-13-august-2020-on-investor-grievances-redressal-mechanism-handling-of-scores-complaints-by-stock-exchanges-and-standard-operati-_47953.html

• SEBI has issued Revised FAQs on SEBI (Prohibition of Insider Trading) Regulations, 2015. Read for More: https://www.sebi.gov.in/enforcement/clarifications-on-insider-trading/oct-2020/revised-faqs-on-sebi-prohibition-of-insider-trading-regulations-2015_47816.html