• Search for:
20Jul
SEBI introduces Block Mechanism in demat account for sale transaction

After extensive consultations with Depositories, Clearing Corporations and Stock Exchanges, SEBI has issued a circular to provide a mechanism of block in the demat account of clients undertaking sale transactions. When the client intends to make a sale transaction, shares will be blocked in the demat account of the client in favour of Clearing Corporation. If sale transaction is not executed, shares shall continue to remain in the client’s demat account and will be unblocked at the end of the T day. Thus, this mechanism will do away with the movement of shares from client’s demat account for early pay-in and back to client’s demat account if trade is not executed.

Read More
11Jul
Limited purpose addition of Retail and Wholesale Trade in MSME

When the Minister of MSME Shri Nitin Gadkari announced on 2nd July, 2021 that the Government has decided to include Retail and wholesale trades as MSMEs and they are allowed to be registered on Udyam Registration Portal, the entire media got flooded with such newsreports; little knowing the fact that there is a rider with it too.

Read More
3Jul
Government includes retail & wholesale trade under MSMEs

Government has revised the guidelines to include retail and wholesale trade as MSME (micro, small and medium enterprises); meaning thereby extending to them the benefit of priority sector lending under RBI guidelines. In the year 2017, Retail and Wholesale trade were left out of the ambit of MSME, now they have been reinstated in this category.

Read More
30Jun
MCA grants extension of time for filing certain forms – General Circular dt 30th June, 2021

Continuing with the practice of issuing notification on last date, Ministry of Corporate Affairs (MCA) has given relaxation on levy of additional fees in filing of certain forms under the Companies Act,203 and LLP Act 2008 meaning thereby that Extension of time has been given in filing of certain forms.

MCA has issued a General Circular No.11/2021 dated 30th June, 2021 on receipt of various requests for extension of timelines specified in earlier issued General Circular No.06/2021 dt. 03.05.2021.

Read More
25Jun
MCA Clarification on passing of ordinary and special resolutions: General Circular No.10/2021

Ministry of Corporate Affairs (MCA) vide circular dated 23rd June, 2021 has allowed companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the prescribed Circulars upto 31st December, 2021.

The above stated MCA circular can be accessed at https://mca.gov.in/bin/dms/getdocument?mds=fYGpVQRhK8ssM3lRSs7fsg%253D%253D&type=open

25Jun
MCA notifies Accounting Standards for Small and Medium Sized Companies

The Ministry of Corporate Affairs (MCA) notified the accounting standards for small and medium companies (SMC) that revise the turnover and borrowing limits and help in making disclosure requirements less onerous. The Government notified on 23 June , 2021, the Companies (Accounting Standards) Rules, 2021. The notification has included the revised definition of SMCs. Under the revised SMC definition, the turnover limit has been increased from Rs 50 crore to not exceeding Rs 250 crore and with borrowings not exceeding Rs 50 crore. This is in addition to the requirements that such entities should be unlisted companies, which are not banks, financial institutions or insurance companies.

Read More
22Jun
DIN can’t be deactivated/cancelled solely for disqualification u/s 164 (2) of Companies Act, 2013: Kerala High Court

The Kerala High Court held that Director Identification Numbers (DINs) allotted under Rule 10 of the Companies (Appointments and Qualifications of Directors) Rules, 2014, are not liable to be deactivated or cancelled solely for the reason of disqualification for appointment / reappointment as Directors of Companies u/s Section 164(2) of the Companies Act, 2013.

The High Court also upheld the constitutionality of Sections 164 (2) and 167 (1) of the Companies Act, 2013, which deal with the disqualification of Directors from companies. The order further stated that Section 164(2) is not retrospective in operation.

Read More
19Jun
Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021

Ministry of Corporate Affairs (MCA) has vide its notification dated 18th June 2021 has amended the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.

Due to this amendment, it has been added that in case of delay on the part of an individual in applying to the Indian Institute of Corporate Affairs (IICA) under sub-rule (7) for inclusion of his name in the data bank of Independent Directors or in case of delay in filing an application for renewal thereof, the IICA shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 after charging a further fees of one thousand rupees on account of such delay.

MCA notification can be accessed at https://mca.gov.in/bin/dms/getdocument?mds=WKw7cnmeWvFV%252BpCpYpqgrg%253D%253D&type=open