Transaction & Regulatory Advisory Services Alert – October 2024
In this edition we have tried to bring to your notice, the latest amendments that followed in the month of October, 2024 issued by MCA and SEBI.
MCA UPDATE
The Companies (Indian Accounting Standards) Third Amendment Rules, 2024
As per said amended rules, an insurer or insurance company may provide its financial statement as per Ind AS 104 for the purposes of consolidated financial statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply.
To read more:
https://www.mca.gov.in/bin/dms/getdocument?mds=uACoyuaVbuLEUjj8ds3Erw%253D%253D&type=open
RBI/ FEMA Updates
Foreign Exchange (Compounding Proceedings) Rules, 2024
The amended Rules will supersede the existing Foreign Exchange (Compounding Proceedings) Rules, which were issued in 2000. As part of a broader initiative to streamline and rationalize existing rules and regulations to further facilitate ease of doing business, the compounding proceeding rules were comprehensively reviewed in consultation with the Reserve Bank of India.
To read more:
https://pib.gov.in/PressReleasePage.aspx?PRID=2054177
SEBI UPDATES
Timelines for disclosures by Social Enterprises on Social Stock Exchange (“SSE”) for FY 2023-24
SEBI has extended the outer timeline for annual disclosures under Regulation 91C(1) and annual impact report under Regulation 91E(1) of LODR Regulations by Social Enterprises on Social Stock Exchange, for FY 2023- 24 upto January 31, 2025.
To read more:
SEBI calls for stricter review of AIF investors
On October 08, 2024, SEBI issued a circular that AIFs should not facilitate investors who are ineligible for QIB status on their own from availing the benefits.
To read more:
Inclusion of Mutual Fund units in the SEBI (Prohibition of Insider Trading) Regulations, 2015
From November 01, 2024, AMCs shall disclose the details of the holdings of Designated Persons of AMCs, trustees and their immediate relatives on aggregate basis from November 1, 2024 on quarterly basis in the format prescribed in the circular. The holdings as on October 31, 2024 shall be disclosed on the platform of the Stock Exchanges by November 15, 2024.
To read more:
Miscellaneous Laws
IFSCA
Single Window IT System inter-alia for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI
IFSCA further directed that, from October 01, 2024, all the applicants, except those mentioned in the circular, shall submit/file their applications exclusively through Single Window IT System (SWITS) for seeking license, registration or authorisation, as the case may be, from IFSCA; approvals from SEZ Authorities and registration from GSTN; and No objection Certificate (NoC)/requisite approval from appropriate regulators.
To read more:
https://ifsca.gov.in/Legal/Index?MId=uj1eJOXeiyU
NFRA
Responsibilities of Principal Auditor and Other Auditors in Group Audits
NFRA has issued a Circular clarifying the Responsibilities of Principal Auditor and Other Auditors in Group Audits. The Circular is issued in public interest as the existing obligations on statutory auditors which as observed by NFRA are not being interpreted correctly by a section of auditors of the Public Interest Entities under NFRA’s purview.
To read more:
(Real Estate Investment Trusts) (Third Amendment) Regulations, 2024 and (Infrastructure Investment Trusts) (Third Amendment) Regulations, 2024
The amendments inter-alia include the reduction of the timeline for payment distribution to unit holders, requiring it within five working days from the record date, instead of fifteen. It also modifies voting provisions to calculate thresholds based on total votes cast rather than votes against, facilitating smoother unit holder meetings. A provision mandates video conferencing option for meetings and remote electronic voting. Additional regulations ensure that adequate backup systems and data integrity measures are in place for electronically maintained records. Overall, the amendments aim to enhance transparency, efficiency, and accessibility within the REIT/InvIT framework, aligning with evolving market practices and stakeholder needs.
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