Transaction & Regulatory Advisory Services Alert – June 2023

In this edition we have tried to bring to your notice the latest amendments that followed in the month of June, 2023 issued by MCA, RBI, SEBI, IBBI and others. 

SEBI LAWS

Master circular on scheme of arrangement by listed entities and relaxation under sub rule (7) of rule 19 of the securities contracts (regulation) rules,1957 

SEBI has notified the said master circular to enable the users to have access to the applicable circulars at one place. To read more 

https://www.sebi.gov.in/legal/master-circulars/jun-2023/master-circular-on-scheme-of-arrangement_72839.html

SEBI Board Meeting dated 28/06/2023 decisions:

  • Reduction of timeline for listing of shares in  Public  Issue  from existing T+6 days to T+3 days
  • Introduction of provisions in respect of (a) listing of non-convertible debt securities and (b) voluntary delisting of non-convertible debt securities

To read more: https://www.sebi.gov.in/media/press-releases/jun-2023/sebi-board-meeting_73278.html 

Introduction of ASBA (application supported by blocked amount) -like facility for secondary market trading 

With an aim to safeguard investors’ money from misuse and default by stock brokers, SEBI introduced a supplementary process for trading in the secondary market based on blocked funds in an investor’s bank account, instead of transferring them upfront to the trading member. To read more:

https://www.sebi.gov.in/legal/circulars/jun-2023/trading-supported-by-blocked-amount-in-secondary-market_73071.html

SEBI Releases Compliance Rules for REITs, INVITs

SEBI came out with disclosure formats for compliance reports on governance and annual secretarial for emerging investment vehicles – REITs and InvITs. To read more:

https://economictimes.indiatimes.com/markets/stocks/news/sebi-releases-compliance-rules-for-reits-invits/articleshow/101291668.cms

SEBI to digitize processing of investor service requests, complaints by RTAs

SEBI decided to provide a mechanism for processing of investors’ service requests and

complaints through online mode by RTAs and thereafter track the status as well as obtain periodical updates. To read more:

https://economictimes.indiatimes.com/markets/stocks/news/sebi-to-digitise-processing-of-investor-service-requests-complaints-by-rtas/articleshow/100854732.cms

Finmin notifies Delhi court to speed up trial in SEBI, DEPOSITORIES ACT offences

The finance ministry has notified a special court for speedy trial for those who have committed offences under the SEBI Act, 1992 and Depositaries Act, 1996. To read more:

https://www.moneycontrol.com/news/trends/legal/finmin-asks-delhi-court-to-speed-up-trial-in-sebi-depositories-act-offences-10748481.html

INSOLVENCY LAWS

The Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2023 issued on June 12, 2023.

These guidelines provide the procedure for preparing panel of Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees. To read More:

https://ibbi.gov.in/uploads/whatsnew/687c952472c361766b7d99aeea97215c.pdf

Non-applicability of Section14 (1) of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)

The Central Government hereby notifies that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply where the corporate debtor has entered into certain transactions. To read more:

https://www.mca.gov.in/bin/dms/getdocument?mds=igjGKv5zktdufUjKGZkigA%253D%253D&type=open

CORPORATE LAWS

Relaxation in paying additional fees in case of delay in filing DPT3 for Financial Year ended on 31st March 2023  to 31st July 2023-reg.

The Due date for filing Form DPT-3 (Return of deposits) has been extended to July 31, 2023. To read more:

https://www.mca.gov.in/bin/dms/getdocument?mds=GZbzY8G5s24kITjoGKWLQQ%253D%253D&type=open

Companies (Accounts) Second Amendment Rules, 2023.

Form CSR-2 shall be filed separately on or before 31st March, 2024 after filing Form No. AOC-4 or Form No. AOC-4-NBFC (Ind AS), as specified in these rules or Form No. AOC-4 XBRL as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015 as the case may be. To read more:

https://www.mca.gov.in/bin/dms/getdocument?mds=hkjC9jSSH4nRkzYxvO2a5w%253D%253D&type=open

Regulatory Order(s) 

MCA IMPOSES PENALTY OF RS. 20 LAKHS ON COMPANY AND ITS DIRECTORS FOR NON-APPOINTMENT OF WHOLE-TIME COMPANY SECRETARY

To Read More

PENALTY OF RS.350000 LEVIED ON COMPANY FOR DOING BUSINESS OF OBJECTS NOT MENTIONED IN MOA

To Read more:

PENALTY IMPOSED FOR NON-COMPLIANCE OF REGULATION 19 – NOMINATION AND REMUNERATION COMMITTEE UNDER SEBI LODR,2015 ON COMPANY 

To Read More:

https://taxguru.in/company-law/nomination-remuneration-committee-not-constituted-mca-imposes-penalty.html

DELAY IN FILING DECLARATION FORM-INC 20A: MCA IMPOSES PENALTY ORDERS”NO PENALTY “AS COMPANY FILES SUO-MOTO STRIKE OFF APPLICATION 

To Read More:

MCA IMPOSES PENALTY OF RS. 4 LACS FOR NON-FILING OF FORM 

 MGT-14 ON STARTUP COMPANY U/S 446B OF COMPANIES ACT

To Read More:

ROC IMPOSES PENALTY FOR VOILATION OF THE COMPANIES ACT ON PTC INDIA AND ITS MANAGING DIRECTORS

To read more:https://www.moneycontrol.com/news/business/roc-finds-pfs-md-pawan-singh-in-violation-of-companies-act-penalises-in-three-matters-10867431.html

 

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