ICSI-NIRC Ghaziabad Chapter MAY 2021 e-Newsletter

Ghaziabad Chapter

ICSI-NIRC Ghaziabad Chaptere-Newsletter

MAY 2021

GHAZIABAD CHAPTER E-NEWSLETTER Page 01

Ghaziabad ChapterOf NIRC Of ICSI

ChairpersonCS Sonal Jain

Vice-ChairpersonCS Pooja Bhasin

SecretaryCS Nimisha Madan

TreasurerCS Charu Gupta

MembersCS Arjunn Kr. Tyagi

CS Sakshi Mittal

Editors for this issueCS Arjunn Kr. Tyagi

CS Pooja Bhasin

Ghaziabad Chapter of NIRC of ICSI,

B-23, Nehru Apartment, Nehru Nagar,

Ghaziabad – 201 001Tel: 0120-4559681

Email ID: [email protected]

Chapter Office StaffMr. Vinay Kumar

Mr. Anil Upadhyay

From the Desk of the Chairperson,Ghaziabad Chapter of NIRC of ICSI

"Ultimately, the greatest lessonthat COVID-19 can teachhumanity is that we are all in thistogether."- Kiran Mazumdar-Shaw

Dear Professional Colleagues,I hope this message finds you andyour families safe and in goodhealth amidst these uncertaincircumstances.

There are certain things aProfessional imbibes in his dailylife: the value of time, the successof perseverance, the pleasure ofworking, the dignity of simplicity,the worth of character, theinfluence of example, the virtueof patience, the improvement oftalent, the joy of originating andthe power of kindness. While atthe same time, the pandemiccontinues to take anunprecedented toll on thecitizenry in various forms, andprofessionals and students suchas ourselves are at a higher risk ofsuffering from mental fatigue andburnout, having to deal with therealities of the pandemic. So,while we’re expected and keen todo so much, it is also important

for us to allow ourselves to take astep back and pace ourselves.

“All power is within you; you cando anything and everything.”–Swami VivekanandaA brief about May 2021programs so far

Keeping in mind the mental andemotional toll the pandemic istaking on all of us, a virtualmeeting on Ghaziabad Chapterhad conducted webinars withtheme #RESLOVETO RISE and#LETSFIGHTCORONA with thespirit of same back to backwebinars were conducted to with


aim to make member fight with their biggest fear inCOVID by way of expression and interaction.

FIGHT WITH YOUR FEAR - LET'S FACE COVID-19 byPRIYANKA KATHURIA (Psychologist) LET'S TALKWITH DOCTORS AND COVID WARRIORS* by Dr.NIPUN CHAUDHAR ( Apollo Hospital) & Dr. RAJNISHBHARTI ( M.D.Physician & Diabetologist )

Earlier 3 webinars were conducted on ongoingtopics like Unpacking the Nuances of Oppressionand Mismanagement, Conceptual Understanding:Compounding, Adjudication and Condonationunder Companies Act, 2013, Salient features ofCompanies (Auditor's Report) Order, 2020.

Apart from webinars, 15 days successful EDP wasconducted along with PDP.

The Chapter is also currently in the process oforganizing a vaccination camp exclusively for itsmembers and their family. More details will beshared as and when made available to us.

Incidentally, when the pains of pandemic werefading, the corona virus is spreading with increasedseverity. Akin to the seas characterized by hightides and low tides, the day by dusk and dawn, thewheel of life continues to cycle through the goodand bad, one instant after another. We are suresdsd

this second bout of the virulent spread will alsobe over soon. I request all you to take allprecautions including vaccination as suggestedby the government to save human life and takebest actions to safeguard the business andeconomy.

Last but not least on behalf of TEAMGHAZIABAD CHAPTER of NIRC of ICSI, I humblyrequest all the professional colleagues toextend fullest support for all activities ofGHAZIABAD CHAPTER during the year. Youractive support is the constant factor whichencourages us to plan and perform in the daysto come. I also look forward to your views andsuggestions on any matters which you feel maystrengthen the profession and improve qualityof services of the members and students.

I will sign off of with a Quote:

"Be strong now, because things can get better.It might be stormy now, but it can't rainforever"

Happy Reading,Yours sincerely,

CS Sonal Jain, ChairpersonGhaziabad Chapter of NIRC of ICSI

Thank you, stay safe, and make sure youdouble mask!

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MAY 2021

MAY 2021


S. No Particulars Page No.1. Chairperson’s Message 012. Past Events Photographs 043. Members & Students Corner

(i) Pre-packaged Insolvency Resolution Process Develops First Time in India by Sushil Kumar Antal 10

(ii) Corporate Social Responsibility by CS Ankit Malhotra 22(iii) Painting by Ms. Prabhjot Kaur, CS Student 25

4. Corporate Compliance Calendar by CS Lalit Rajput 265. Rules for the Articles of e-Newsletter 74

INDEX


MAY 2021

Webinar organized by Ghaziabad Chapter of NIRC of ICSI on “Unpacking the Nuances of Oppression and Mismanagement " on April 03, 2021


MAY 2021

Webinar organized by Ghaziabad Chapter of NIRC of ICSI on “Conceptual Understanding: Compounding, Adjudication and Condonation under

Companies Act, 2013 " on April 16, 2021


MAY 2021

Webinar organized by Ghaziabad Chapter of NIRC of ICSI on “Salient features of Companies (Auditor's Report) Order, 2020" on April 30, 2021


MAY 2021

Professional Development Programme organized by Ghaziabad Chapter of NIRC of ICSI on May 10, 2021

MAY 2021


15 days Classroom Executive Development Programme organized by Ghaziabad Chapter of NIRC of ICSI on from April 01 to April 18, 2021


02 Webinars organized by Ghaziabad Chapter of NIRC of ICSI on “Fight with your Fear – Let’s Face” and “Let’s Talk with Doctors and Covid Warriors” on

May 08 and 24, 2021

MAY 2021

I hope that you all are aware about theOrdinance i.e. Insolvency and Bankruptcy Code(Amendment) Ordinance, 2021 which has beencome into effective at once, promulgated byPresident on 4th April, 2021.This Ordinanceamends the Insolvency and Bankruptcy Code2016 (‘IBC or Code’) to allow the CentralGovernment to notify such pre-packagedprocess for defaults up to Rupees One Crores. Asper said amendment, in the Insolvency andBankruptcy Code, 2016, in section 4, after theproviso, the following proviso shall be inserted-

“Provided further that the Central Governmentmay, by notification, specify such minimumamount of default of higher value, which shallnot be more than one crore rupees, for mattersrelating to the pre-packaged insolvencyresolution process of corporate debtors underChapter III-A.”.

Further, a new Chapter III-A PRE-PACKAGED INSOLVENCY RESOLUTIONPROCESS is inserted, after Chapter III by theaforesaid amendment.

Micro, Small and Medium Enterprises are criticalfor India’s economy as they contributesignificantly to its gross domestic product andprovide employment to a sizeable population. It isconsidered necessary to urgently address thespecific requirements of micro, small and mediumenterprises relating to the resolution of theirinsolvency, due to the unique nature of theirbusinesses and simpler corporate structures.Further, it is considered expedient to provide anefficient alternative insolvency resolution processfor corporate persons classified as micro, small

and medium enterprises under the Insolvency andBankruptcy Code, 2016, ensuring quicker, cost-effective and value maximising outcomes for allthe stakeholders, in a manner which is leastdisruptive to the continuity of their businessesand which preserves jobs. In order to achievethese objectives, it is considered expedient tointroduce a pre-packaged insolvency resolutionprocess for corporate persons classified as micro,small and medium enterprises.

Further, it is necessary to inform you that a sub-committee of the Insolvency Law Committee(‘ILC’) was constituted by the government videorder dated 24th June, 2020, in order tostructure the pre-pack framework. The ILC hasdesigned a pre-pack framework within the basicstructure of the IBC for the Indian market. Thesame has been detailed in their report dated 31stOctober, 2020. The Ministry of Corporate Affairs(‘MCA’) vide a notice dated January 8, 2021, alsoinvited public comments and views on itsproposed Pre-packaged Insolvency ResolutionProcess (PIRP). Please refer the detailed report ofOctober 31, 2020 submitted by ILC for your kindperusal.

Now, the Government has used the Ordinanceroute to introduce PIRP for companies classifiedas micro, small and medium enterprises undersub-section (1) of Section 7 of the Micro, Smalland Medium Enterprises Development Act, 2006.

With the aforesaid amendment, many readersknew, first time, about the word Pre- PackagedInsolvency. Apparently, the said word Pre-Packaged Insolvency does not describe the exactmeaning in itself. It appears that ‘pre-pack’ has no

MAY 2021


Adv. Sushil Kumar AntalLLM, ACS, CA(F), MBA(FIN), MCOM

PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS DEVELOPS FIRST

TIME IN INDIA

statutory definition. It is probably because it hasevolved over the time, differently in differentjurisdictions and every jurisdiction has a uniquevariant(s) of pre-pack, which allows thestakeholders to modify it further to an extent tosuit their needs. It has different nomenclaturesuch as Pre-packaged Insolvency Resolution, Pre-arranged Insolvency Resolution and Pre-plan Salein the USA, Pre-pack Sale in the UK, Scheme ofArrangement in Singapore, etc. As nomenclaturesuggests, Pre-pack is a Restructuring Plan which isagreed to by the debtor and its creditors prior tothe insolvency filing, and then sanctioned by thecourt on an expedited basis. In the UK context, itgenerally refers to a pre-agreed business sale byan insolvency practitioner which does not requireprior court and/or creditor sanction.Recently, many professionals have asked me toexplain the term Pre-Packaged Insolvency, but Icould not be able to define the same in a verysmooth way in one shot unless and until they havesomething knowledge about the purpose ofexisting Code, its success rate till date andunpredicted conditions of market as such due toCovid-19 Pandemic.Today, I am trying, by this article, tounderstand the term Pre-Packaged Insolvency.But going ahead, we have to understand thebackground of those companies which are understress. What endeavours may be taken torescue the life of these companies havingserious threat to its life? We all, would never liketo see corporate death, revert this will put our allefforts to save the life of company, as we knowabout the bad impacts of corporate death in theeconomy. Our existing Code is also doing the samework by Corporate Resolution Insolvency Process(CIRP) i.e. to save the life of corporate with asuitable resolution, till the company reached onventilator and there is no further hope. Moreover,existing code is also trying to realise themaximum value of the asset of corporate sothat promoters could grab the next opportunity.When the life of corporate cannot be save, then

existing Code try to realise the maximum value ofthe asset of corporate by order of liquidation.Now, it is necessary to review the objective of theCode and if some unfavourable circumstances areprevailing, in which the objective of the Code isnot achieving, then, what may be the bestoptions to achieve these objectives. I would like tosubmit that after reading this article, we will beable to find out a new option (Pre-PackagedInsolvency) to achieve the objectives of existingCode.Now, I start my discussion with a question“Whether we should close companies understress and release their resources? It means anycompany which is under financially stress shouldbe close immediately and release their resourcesfor further opportunity. In another way, supposemy business is not doing well, then, should I closethe same and sell all the assets of business toinvest in next business?

To take the decision of closure, first we shouldcheck the viability of the busines despite of thebusiness is not doing well. There is lots of reasonsof failing of a company in market economy. Oneof them is failure due to on account of innovationand competition. We can put here the majorexample of Nokia, Kodak etc. and now LG (MobileBusiness closed). Where such companies areunviable, then it is necessary to facilitate theirclosure and release their resources for othercompeting uses or business purposes and grabthe emerging opportunities.However, there may be many cases where theindustry is doing well, but the company inquestion is not doing well for many reasons suchas inefficiency of the management to compete atmarketplace. Moreover, most such companies aregenerally viable. Other cases may be that acompany may not be doing well for force majeurecircumstances such as coronavirus disease(COVID-19). As most such companies are viable,therefore, they would start earning profits as soonas the circumstances become normal.

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The question is still pending- ‘whether weshould close such viable business/companiesand release their resources for other competinguses or business purposes and grab theemerging opportunities?’We know very well that closure of such viablebusiness/company is not in the interest of thestakeholders i.e. shareholders, creditors,employees, suppliers, and customers and alsothe economy. But, if the closure is not in theinterest of stakeholders, then, what to do for or bysuch companies?For this, it is necessary to facilitate stakeholders toresolve the stress well in time before the financialstress converted into economic stress otherwiseresolution (i.e. revival plan) may be impossible.Generally, a company in stress often resolvesstress on its own by improving its competitivenessat marketplace. But it is not necessary that itwill succeed always. In other way, the companymay sit across a table with its stakeholders,either individually or collectively, to work out aplan to resolve stress.Out of the options available to the company, thereare two court supervised statutory options, andtwo out-of-court options. The Court supervisedstatutory options are as under-(a) CIRP under the Insolvency and BankruptcyCode, and(b) Scheme of Compromise or Arrangement(‘SoA’) under the Companies Act, 2013.

The two out-of-court options are -(a) the RBI’s prudential framework for resolutionof stressed assets; andinformal understanding between a debtor andcreditor, with /without help of a mediator. Acreditor has access to these options to resolvestress of its debtors, in addition to several optionsfor recovery of its loans.

CIRP under the CodeThe Insolvency and Bankruptcy Code, 2016 hasbeen passed after great deliberationand

pursuant to various committee reports, the mostimportant of which is the report of the BankruptcyLaw Reforms Committee of November, 2015. TheStatement of Objects and Reasons of the Codereads as under:

“STATEMENT OF OBJECTS AND REASONS1. There is no single law in India that deals

with insolvency and bankruptcy. Provisionsrelating to insolvency and bankruptcy forcompanies can be found in the SickIndustrial Companies (Special Provisions)Act, 1985, the Recovery of Debt Due toBanks and Financial Institutions Act, 1993,the Securitisation and Reconstruction ofFinancial Assets and Enforcement of SecurityInterest Act, 2002 and the Companies Act,2013. These statutes provide for creation ofmultiple fora such as Board of Industrial andFinancial Reconstruction (BIFR), DebtRecovery Tribunal (DRT) and NationalCompany Law Tribunal (NCLT) and theirrespective Appellate Tribunals. Liquidationof companies is handled by the High Courts.Individual bankruptcy and insolvency is dealtwith under the Presidency Towns InsolvencyAct, 1909, and the Provincial Insolvency Act,1920 and is dealt with by the Courts. Theexisting framework for insolvency andbankruptcy is inadequate, ineffective andresults in undue delays in resolution,therefore, the proposed legislation.

2. The objective of the Insolvency andBankruptcy Code, 2015 is to consolidate andamend the laws relating to reorganizationand insolvency resolution of corporatepersons, partnership firms and individuals ina time bound manner for maximization ofvalue of assets of such persons, to promoteentrepreneurship, availability of credit andbalance the interests of all the stakeholdersincluding alteration in the priority ofpayment of government dues and to

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1. establish an Insolvency and incidentalthereto. An effective legal framework fortimely resolution of insolvency andbankruptcy would support development ofcredit markets and encourageentrepreneurship. It would also improve Easeof Doing Business, and facilitate moreinvestments leading to higher economicgrowth and development.

3. The Code seeks to provide for designatingthe NCLT and DRT as the AdjudicatingAuthorities for corporate persons and firmsand individuals, respectively, for resolutionof insolvency, liquidation and bankruptcy.The Code separates commercial aspects ofinsolvency and bankruptcy proceedings fromjudicial aspects. The Code also seeks toprovide for establishment of the Insolvencyand Bankruptcy Board of India (Board) forregulation of insolvency professionals,insolvency professional agencies andinformation utilities. Till the Board isestablished, the Central Government shallexercise all powers of the Board or designateany financial sector regulator to exercise thepowers and functions of the Board.Insolvency professionals will assist incompletion of insolvency resolution,liquidation and bankruptcy proceedingsenvisaged in the Code. Information Utilitieswould collect, collate, authenticate anddisseminate financial information tofacilitate such proceedings. The Code alsoproposes to establish a fund to be called theInsolvency and Bankruptcy Fund of India forthe purposes specified in the Code.

4. The Code seeks to provide for amendmentsin the Indian Partnership Act, 1932, theCentral Excise Act, 1944, Customs Act, 1962,Income-Tax Act, 1961, the Recovery of DebtsDue to Banks and Financial Institutions Act,1993, the Finance Act, 1994, the

3. Securitisation and Reconstruction ofFinancial Assets and Enforcement of SecurityInterest Act, 2002, the Sick Industrial Companies(Special Provisions) Repeal Act, 2003, thePayment and Settlement Systems Act, 2007, theLimited Liability Partnership Act, 2008, and theCompanies Act, 2013.

5. The Code seeks to achieve the aboveobjectives.” (Emphasis Supplied)

One of the important objectives of the Code isto bring the insolvency law in India under asingle unified umbrella with the object ofspeeding up of the insolvency process.

There are several laws which regulate ‘InsolvencyResolution’ for Companies in India. These include(i) Sick Industrial Companies Act, 1985, (ii)Recovery of Debt Due to Banks and FinancialInstitutions Act, 1993 (DRT Act, 1993), (iii)Securitisation and Reconstruction of FinancialAssets and Enforcement of Security InterestAct, 2002 (SARFAESI), and Companies Act, 2013.These laws provide for the restructuring of debt,seizure and sale of the debtor’s assets forrepayment of outstanding loans. Similar laws suchas the Presidency Towns Insolvency Act, 1909and the Provincial Insolvency Act, 1920 regulateinsolvency resolution for individuals. While theselaws specify processes for resolving Insolvency, acreditor may also approach civil courts forrecovery of debt.The Insolvency and Bankruptcy Code (‘Code’)seeks to consolidate the existing framework byrepealing the Presidency Towns Insolvency Act,1909 and the Provincial Insolvency Act, 1920. Inaddition, it amends 11 laws including CompaniesAct, 2013, DRT Act, 1993 and SARFAESI Act, 2002.The Preamble of the Code states that it is “An Actto consolidate and amend the laws relating toreorganisation and insolvency resolution ofcorporate persons, partnership firms andindividuals in a time bound manner for

MAY 2021


maximisation of value of assets of such persons, topromote entrepreneurship, availability of creditand balance the interests of all the stakeholdersincluding alteration in the order of priority ofpayment of Government dues and to establish anInsolvency and Bankruptcy Board of India, and formatters connected therewith or incidentalthereto.”

We know that the first and foremost objective ofthe Code is reorganisation and InsolvencyResolution of Corporate Debtor (‘CD’). It meansrevival of companies is prime objective andcurrent code envisages rescue of a CD as a ‘goingconcern’. It means current Code never like deathof Corporate except in adverse conditions for itsliquidation.The current Code has been recognised in resolvingCorporate Insolvencies, which is “creditorfriendly” as against the previous “debtorcontrolled” regime. The Code benefited both, theCreditors and CD. It is pertinent to note thatCode endeavours to rescue the life of a companywhen it is under serious threat to its life.

We all know that in a company, there is two mainstakeholders say one Shareholders and otherCreditors. The shareholders have complete controlover the company and the creditors, despite ofloan given to company, have no involvement inthe business. Shareholders take the decisions torun the business. But in case where the companyfails to pay the debt on time, the control of thecompany should shift to the creditors for resolvinginsolvency. It has been seen in last many yearsthat several companies, including large ones,changed hands consequently i.e. from CD tocreditor. The current Code redefined the debtor-creditor relationship.In old regime, there was no such concept. Thecreditors had to wait till cows come home to getmilk i.e. their debt. For more understanding, thecreditors have to wait for realisation in theprocess of liquidation. Now, we can say that the

current Code redefined the balance of poweramong the stakeholders of a company in terms oftheir interests and rights.Under the current Code, stakeholder has right totrigger Corporate Insolvency Resolution Process(CIRP) of the CD in case where a threshold amountof default of debt (i.e. Minimum Rs. 1 crore as ondate). If CIRP has been triggered the CD movesaway from ‘debtor- in-possession’ to ‘creditor-in-control’ and management of debtor and itsassets vest in an Interim Resolution Professional(IRP) and then to a Resolution Professional (RP)and later to a successful Resolution Applicant(RA). An IRP/RP runs the CD as going concern,prohibits suspension or termination of supply ofessential and critical services, mandatescontinuation of licences, permits and grants, staysexecution of individual claims, enables raising ofinterim finances for running the CD andconstitutes a Committee of Creditors (CoC) totake commercial decisions in respect of the CD.In this process, IRP/RP insulates ResolutionApplicants (RAs) from the misdeeds of the CDunder the erstwhile management, etc. and invitesfeasible and viable resolution plans from eligibleand credible RAs for resolution of insolvency ofthe CD. IRP/RP allows only capable and crediblepersons to submit resolution plans, which has thepotential to expel the current promoters.A resolution plan envisages limitless possibilitiesof resolution and may entail a change ofmanagement, technology, or product portfolio;acquisition or disposal of assets, businesses orundertakings; restructuring of organisation,business model, ownership, balance sheet;strategy of turn-around, buy-out, acquisition,takeover; and so on.

If the CoC approves a resolution plan within thestipulated time with 66% voting share, the CDcontinues as a going concern. If the CoC does notapprove a resolution plan with the required votingshare within this period, the CD mandatorilyundergoes liquidation.

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Thereafter, a resolution plan approved by theAdjudicating Authority (AA) is binding on allstakeholders, including Central Government,State Governments, and any Local Authority towhom the CD owes debt under any law. CDenjoys several privileges like moratorium, andbinding outcome, and regulatory benefits suchas, exemption from public offer under takeoverCode, set off of brought forward loss againstbook profits for the purpose of MinimumAlternate Tax, etc.It is also notable that CD can also initiate CIRPvoluntarily in case of stress. But the dataindicate that less than 3% of CIRPs thatcommenced during 2019-20 were self- initiatedby CDs.

The second objective of current Code ismaximising value of assets of the company. Toachieve this object, the Code mandates revival ofa company in a time-bound manner, as unduedelay is likely to reduce the enterprise value ofthe company. When the company is not in soundfinancial health, the possibility of resolution maybe impossible or remote, in case there is longuncertainty about its ownership and control i.e.long period of IRP/RP in CIRP. The strict adherenceto timelines is of essence to both the triggeringprocess and the insolvency resolution process. Itis mandatory to complete a CIRP within 180days, with a onetime extension of up to 90 days.The current Code and regulations provide a modeltimeline for each task in the process, which needsto be followed as closely as possible.

In the earlier regime, the CD could indefinitelycontinue to enjoy the protection given underSection 22 of the Sick Industrial Companies Act,1985 or under other such enactments which hasnow been forsaken. In the new approach, there isa calm period followed by a swift resolutionprocess to be completed within 270 days (outerlimit) failing which, initiation of liquidation processhas been made inevitable and mandatory.

Recently, it has been seen that non-co-operation by the current promoters andmanagement in some CIRPs are leading tointense litigation. The litigation anddetermination of several issues, includingavoidance transactions, has been a challenge tothe limited capacity of the AA. For severalreasons, including litigation, it has generally notbeen possible to adhere to timelines envisagedunder the Code as regards commencement ofCIRPs as well as their closure. From the databank, 250 CIRPs, which have yielded resolutionplans by the end of June, 2020, took, onaverage 380 days (after excluding the timeexcluded by the AA), for conclusion. Similarly,the 955 CIRPs, which ended in orders forliquidation, took, on average 312 days, forconclusion. The longer a CD stays in the state ofinsolvency, the higher is the cost, both directand indirect.The Third objective of current Code is promotingentrepreneurship, availability of credit andbalancing the interests of all stakeholders.Therefore, if there is a RA who can continue torun the CD as a going concern, every effort mustbe made to try and see that this is made possible.Even after an order for liquidation is made, theCode enables the liquidator to sell the CD as agoing concern. It enables revival and continuationof the CD by protecting it from its ownmanagement and from death by liquidation.CIRP requires an RA to rescue a failing companythrough a resolution plan. When every company,every industry and every economy is understress, the likelihood of finding an RA to rescue afailing company is remote. If all failing companieswere to undergo insolvency proceeding, most ofthem may end up with liquidation for want ofsaviours to rescue them. Upon such liquidation,the companies would have a premature death andthe assets would have distress sale, therefore,would less realisation for creditors. This neitherresolves the stress nor maximises the value ofassets and, hence is not consistent with the

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objectives of the Code. In view of non-availabilityof RAs, the Code made another course correctionto suspend filing of applications for initiation ofCIRP in respect of defaults arising during COVID-19 period.We should also note that CIRP is not available inrespect of defaults arising during COVID-19period. It is not available in respect of defaultsof less than Rs.1 crore as well as for stress beforedefault. Further, the availability of RAs wouldcontinue to be a concern for quite some time,as the business conditions are unlikely toreturn to pre-pandemic levels soon. Theinevitable consequence when a CIRP fails to findan RA discourages the stakeholders to resort toCIRP.

Schemes under the Companies Act, 2013Another Court supervised statutory options isScheme of Compromise or Arrangement (‘SoA’)under the Companies Act, 2013 (CA 2013). Section230 of the CA 2013 offers Scheme of Arrangement(SoA), which enables a company to restructure itsliabilities and/or capital structure to turnaroundthe business, with the approval of NCLT. Though,his concept has genesis in the English Law, it hasevolved in India through the Indian CompaniesAct, 1882, the Indian Companies Act, 1913, theCompanies Act, 1956 and eventually theCompanies Act, 2013. Consequently, it hasacquired a substantial body of rich jurisprudence.The Courts have given a very wide interpretationto the terms ‘compromise’ and ‘arrangement’ toinclude a wide array of transactions of the natureof financial and corporate restructuring.SoA is an in-court framework, where anapplication is made by the company, any creditor,any member, or the liquidator before the NCLTproposing a compromise or arrangement betweena company and its (i) creditors or any class ofthem; (ii) members or any class of them. Uponsuch application, the NCLT may order meeting ofcreditors or class of creditors, or members or

class of members, as the case may be. It maydispense with the meeting of creditors or class ofcreditors where such creditors or class of creditorshaving at least 90% value confirm, by way of anaffidavit, to the SoA. A notice of the meeting issent to all creditors and members along with thedetails of the proposed SoA, apart from publishingit on the website of the company and in thenewspaper. Notice is also sent to CentralGovernment, Income-tax authorities, respectiveStock Exchange, SEBI, Competition Commissionof India, if necessary, and such other regulator orauthorities which are likely to be affected by theSoA and are required to make representations, ifany, within a period of thirty days from the dateof receipt of the notice, failing which it ispresumed that they have no representations tomake on the proposed SoA.

Any objection to the SoA can be made only bypersons holding at least 10% of the shareholdingor having at least 5% of the total outstandingdebt. If the SoA is approved by three-fourths (3/4)in value of creditors or class of creditors, ormembers or class of members, as the case maybe, and is also sanctioned by the NCLT, itbecomes binding on the company, all thecreditors or class of creditors, members or classof members, as the case may be, and also theliquidator and the contributories of the company.Further, NCLT, while approving the SoA or at anytime, thereafter, may make any modifications inthe SoA for proper implementation of thescheme. Where it is satisfied that the sanctionedscheme cannot be implemented satisfactorily, itmay order winding up of the company.

Though SoA has certain advantages such as widerscope, availability for stress prior to default, lessdisruption to business, cram down and bindingeffect, in practice, it has not gathered much gripas a tool for resolution of financial stress. Some ofthe reasons attributed for this are:

MAY 2021


(a) The absence of any calm period, likemoratorium in case of CIRP, often leads to fasttracking of suits, proceedings, and enforcementactions by stakeholders against the companyduring the process;(b) An SoA requires approval by three-fourths(3/4) in value of creditors or members, which ischallenging at times, as compared to thresholdof 66% voting share of creditors under the Code;(c) An SoA is binding on the company, all thecreditors or class of creditors, members or classof members, as the case may be, unlikeeveryone in case of CIRP; and(d) There is no time limit within which theprocess must be completed and has thepotential of misuse, particularly as it is based ondebtor-in-possession model.

RBI’s Prudential FrameworkOne of the out-of-court options is RBI’s prudentialframework for resolution of stressed assets. TheRBI provides a prudential framework for earlyrecognition, reporting and time bound resolutionof stressed assets. The framework applies toentities such as banks and non-banking financialcompanies (NBFCs) regulated by RBI. It requiresthe lenders to put in place its Board approvedpolicies for resolution of stressed assets,including the timelines for resolution.In case of default by any of the borrowers, thelenders are required to undertake a review of theborrower’s account and decide on the resolutionstrategy, including nature of resolution plan withinthe review period, which is thirty days from suchdefault. The lenders may also choose to initiatelegal proceedings for insolvency or recoveryunder the law.In cases where the resolution plan is to beimplemented, the framework requires the lendersto enter into an inter-creditor agreement (ICA)during the review period. In respect of largeaccounts, where aggregate exposure of borrowerto the lenders is above Rs.1500 crore, theresolution plan needs to be implemented within 1

80 days from the end of the review period.

Where a viable resolution plan in respect of aborrower is not implemented within the specifiedtimelines, the lenders are required to makeadditional provisions as percentage of totaloutstanding. However, the framework introducescertain incentives once resolution is pursuedunder the Code. It provides that half of theadditional provisions would be reversed on filingof insolvency application and the remaining uponadmission into CIRP. It also incentivises thelenders to provide interim finance to CDsundergoing CIRP by allowing them to treat suchfinance as ‘standard asset’ during CIRP. But theprudential framework is affected with certainchallenges, which include:

(a) The framework is available in respect of

stress of a CD which has RBI regulated

creditors;

(b) The framework hinges on an ICA to provide

that any decision by lenders representing

75% by value of total outstanding credit

facilities and 60% of lenders by number

shallbe binding upon all the lenders. This has

been difficult to obtain, particularly from

creditors like insurance companies, mutual

funds, debenture holders, real estate

allottees, offshore creditors, etc., who are

outside RBI’s domain. Such creditors may

invoke the formal insolvency resolution

process under the Code that jeopardises

resolution under the prudential framework;

(c) Being out-of-court mechanism, the

framework does not provide for breathing

space in the form of a moratorium on suits,

proceedings, and recovery actions against

the CD during the restructuring;

MAY 2021


d) The plan binds only those FinancialCreditors (FCs) who are signatories to the ICA. Itdoes not also bind Operational Creditors (OCs).This limits the scope of the plan to only financialrestructuring, which may not be adequate toresolve stress.

The framework has been recently modified toprovide a special window to resolve pandemicinduced stress, without change of ownership,within the said prudential framework. Thisenvisages lenders to implement resolution plansof eligible borrowers, having stress on accountof COVID-19, without change in ownership,while classifying such exposures as ‘standard’,subject to specified conditions. This is indeparture to the norms whereunder a resolutionplan involving any concession to the borrowerrequires an asset classification downgrade,except when it is accompanied by a change inownership. This framework applies to bothpersonal loans and corporate exposures. Withrespect to corporates, only those accountswhich were classified as standard and not indefault for more than 30 days with any lendinginstitution as on 1st March, 2020 (i.e., notbeyond SMA-0) and which continues to bestandard till invocation of resolution process, areeligible.The resolution process is invoked with anagreement between the borrower and the lendinginstitution, in cases involving single lendinginstitution, and between the borrowers and thelenders representing 75% by value and 60% bynumber, in cases involving multiple lendinginstitutions. The resolution under this frameworkis to be invoked not later than 31st December,2020 in case of corporate loans and must beimplemented within 180 days from the date ofinvocation. In cases involving multiple lendinginstitutions, where resolution process is invokedall lending institutions are required to sign the ICAwithin 30 days. It is open to lenders not covered bythe framework also to sign ICA if they so desire. If

lending institutions representing minimum ofthreshold do not sign the ICA, the process ends,and it cannot be invoked again under theframework. The framework also incentivisesthe lenders to sign ICA, by prescribing differentnorms of additional provisioning and reversal ofsuch provisioning in respect of non-signatoriesto ICA.The framework, inter alia, envisages constitutionof an Expert Committee by RBI to makerecommendations on the required financialparameters to be factored in the resolution plans,with sector specific benchmark ranges for suchparameters. The Expert Committee shall alsoundertake the process validation for theresolution plans to be implemented under thisframework, without going into the commercialaspects, in respect of all accounts with aggregateexposure of Rs.1500 crore and above at the timeof invocation.

The RBI has also extended its existing scheme ofone-time restructuring in respect of existing loansto MSMEs which are classified as ‘standard’. Thisis made available to those MSMEs whoseaggregate exposure to banks and NBFCs do notexceed Rs.25 crore as on 1st March, 2020 and itwas a standard asset as on that date. It providesasset classification benefits by allowing borroweraccount classification to be retained as standardand allowing upgradation of classification asstandard in respect of those accounts whichslipped into NPA category between 2nd March,2020 and date of implementation. Therestructuring needs to be implemented by 31stMarch, 2021. It is, however, early to see theoutcome of resolution framework introduced on6th August, 2020.

Informal Options or Bilateral NegotiationsAnother option to remove stress is where thedebtor and creditors may address the stressoutside any formal framework, whether there isa default or not. They may sit across a table to

MAY 2021


work out a resolution that meets theirrequirements, with or without assistance ofmediators. Since implementation of the currentCode, there is a preference to resolve stresswithout resorting to a formal framework. It is tobe noted that 14,510 applications filed with NCLTfor initiation of CIRP were withdrawn at pre-admission stage, indicating resolution arrived atby the relevant parties.However, such informal resolutions are notpopular for reasons like the stakeholders find itdifficult to travel on an unguided path, there isno moratorium, resolutions arrived at by themdo not enjoy the sanctity and benefits of aresolution arrived under a formal framework,etc.

Pre-packaged InsolvencyIn the background of above, it can be said thateach of the resolution options has certainadvantages as also limitations. The option underthe Code is more comprehensive in terms ofparties involved and scope and strategies forresolution of stress and usually includes anelement of restructuring. It offers certainadvantages and privileges such as moratoriumduring resolution period, binding nature ofresolution plan, clean slate post resolution,regulatory benefits, etc., which are not available incase of other options. This explains marketpreference for CIRP as a mode of resolution anddemand to revoke suspension on filing ofapplicationsfor initiation of CIRPs.While the preferred option for resolution, namely,CIRP has difficulties at this hour, the liabilities ofthe debtor in respect of defaults - COVID-19induced or otherwise - under various other lawsare not suspended, except to the extent ofmoratorium allowed by RBI. This has twoconsequences - either the company remainsunder stress for too long without any resolutionor the creditors seek every means to recovertheir dues. In either case, the company may notbe able to survive.

It is pertinent to mention that the process underthe Code requires both time and money to fructifyconsidering the direct and indirect costs involved.Litigation would be an initial cost in terms ofengaging lawyers, accountants, RPs and theirteams; indirect costs would include loss ofbusiness of the corporate debtor and loss ofbusiness because a company is undergoing CIRP,loss of goodwill, etc. In view of these, manydebtors today prefer to resolve stress at earlystages and are making best effort to avoidconsequences of CIRP: they are resolving stresswhen it is imminent, on receipt of a notice forrepayment but before filing an application toinitiate CIRP, after filing application but before itsadmission, and even after admission of theapplication. The evidence is withdrawal ofapplications filed for initiation of CIRP in respectof 14,510 CDs at pre-admission stage, closure ofCIRPs of 218 CDs under section 12A of the Code,termination of CIRPs by the AA, closure of CIRPson taking note of settlement recorded by themediator, and even settlements at the level of theApex Court - where the parties worked out aresolution amicably resulting in swift revival ofthe CDs.A fair debtor-creditor relationship, induced by thecurrent Code, has prompted several resolutions inits shadow or on its account. Both empirical andanecdotal evidence suggest that the Code hasrebalanced the relationship between debtors andcreditors to a large extent and is leading to moreresponsible decision making by both debtors andcreditors which is encouraging a large number ofout-of-court workouts. The relationship betweencreditor and debtor continues evolving worldwideand is about to be tested all over again.

A formal framework (Resolution under CIRP) has aset process and, therefore, some amount ofrigidities. However, market prefers flexibility towork out a tailor-made resolution best suited tothe circumstances. The options available forresolution today, as discussed above, are either

MAY 2021


fully formal or fully informal and, therefore, theymay not be conducive for all circumstances. Thebusiness needs an alternate option for resolution,which is between formal and informal options.In this regard, Pre-pack has emerged as aninnovative corporate rescue method thatincorporates the virtues of both informal (out-of-court) and formal (judicial) insolvencyproceedings. It seems as a semi-formal orhybrid option which has an element ofinformality, but sanctity and advantages of aformal process. It empowers stakeholders toresolve the stress of a CD as going concern, withthe minimum assistance of the State. It isconsidered fast, cost efficient, and effective inresolution of stress. It starts with an informalunderstanding, engages the stakeholders inbetween, and ends with a judicial blessing of theoutcome. Because of its very nature, a pre-packhas to have a very high level of support from itsstakeholders, thereby ensuring the highestchances of revival of the company. This is anecessity as without promoter cooperation; itwould be nearly impossible to negotiate a pre-pack.A pre-pack is the resolution of the debt of adistressed company through an agreementbetween secured creditors and investorsinstead of a public bidding process. Under thepre- pack system, financial creditors will agree toterms with a potential investor and seekapproval of the resolution plan from NCLT. Theapproval of a minimum of 66 per cent offinancial creditors that are unrelated to the CDwould be required before a resolution plan issubmitted to the NCLT. Further NCLTs are alsorequired to either accept or reject anyapplication for a pre-pack insolvency proceedingbefore considering a petition for a CIRP.

What is Pre-Packaged Insolvency ResolutionProcess (PIRP)?PIRP is a quasi-formal procedure which integratesthe essence of an out of court private

restructuring and that of a formal bankruptcy. Itis a pre-planned insolvency procedure where aresolution plan is formulated and finalised priorto the initiation of formal proceedings.An application for initiating pre-packagedinsolvency resolution process may be made inrespect of a corporate debtor classified as a micro,small or medium enterprise under sub- section (1)of section 7 of the Micro, Small and MediumEnterprises Development Act, 2006.Where a corporate debtor meets therequirements of section 54A, a corporateapplicant thereof may file an application with theAA for initiating pre-packaged insolvencyresolution process. The pre-packaged insolvencyresolution process shall be completed within aperiod of one hundred and twenty days from thepre-packaged insolvency commencement date.The AA shall declare a moratorium and cause apublic announcement during pre-packagedinsolvency resolution process. The CD shall, withintwo days of the pre-packaged insolvencycommencement date, submit to RP list of claimsand preliminary information memorandum.

During the pre-packaged insolvency resolutionprocess period the management of the affairs ofthe corporate debtor shall continue to vest inthe Board of Directors or the partners, as thecase may be, of the corporate debtor, subject tosuch conditions as may be specified. The Board ofDirectors or the partners, as the case may be, ofthe corporate debtor, shall make every endeavourto protect and preserve the value of the propertyof the corporate debtor, and manage itsoperations as a going concern.The resolution professional shall, within sevendays of the pre-packaged insolvencycommencement date, constitute a CoC, based onthe list of claims confirmed under clause (a) ofsub-section (2) of section 54F. Where CoC, at anytime during the pre-packaged insolvencyresolution process period, by a vote of not lessthan sixty-six per cent. of the voting shares,

MAY 2021


resolves to vest the management of CD with theRP, RP shall make an application for this purposeto the AA, in such form and manner as may bespecified.

If the AA is satisfied that the resolution plan asapproved by CoC under sub-section (4) or sub-section (12) of section 54K, as the case may be,subject to the conditions provided therein, meetsthe requirements as referred to in sub-section (2)of section 30, it shall, within thirty days of thereceipt of such resolution plan, by order approvethe resolution plan. Any appeal from an orderapproving the resolution plan shall be on thegrounds laid down in sub- section (3) of section61.

Remark: PIRP require a much higher degree ofexpertise of IP, as under such option, they havea much higher degree of control. Moreover,creditors will have to develop a level of trust notonly in such IP but also the framework put intoplace so that there is cohesion betweencreditors at the time of negotiation andapproval of plans. At the same time, CD have tobe aware of their own self-worth as they haveto identify and execute proper decisions toundergo pre-pack insolvency without resortingto desperate acts of litigation to prevent it. Withthe increase in the trend of out of courtsettlements, pre-pack insolvency may be thenext alternative to regular CIRP proceedings.

Disclaimer: Nothing contained in this documentis to be construed as a legal opinion or view ofeither of the authors whatsoever and thecontent is to be used strictly for educativepurposes only.

MAY 2021


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MAY 2021


CS Ankit MalhotraCompany secretaries

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility can be defined asa Company’s sense of responsibility towards thecommunity and environment in which it operates.The Company Act 2013 has formulated Section135, Companies (Corporate Social Responsibility)Rules 2014 and Schedule VII which prescribesmandatory provisions for Companies to fulfil theirCSR.MCA vide its notification dated January 22, 2021has amended the Companies (Corporate SocialResponsibilityPolicy) Rules, 2014 by notifying the Companies(Corporate Social Responsibility Policy)Amendment Rules, 2021.LINK OF THE ABOVE NOTIFICATION -http://www.mca.gov.in/Ministry/pdf/CSRAmendmentRules_22012021.pdf

HIGHLIGHTS OF THE AMEThe provisions ofCorporate Social Responsibility (“CSR”) were firstintroduced under the Companies Act, 1956 (the“erstwhile Act”) on discretionary basis whichwere further formalized and made applicable forqualifying companies under the Companies Act,2013 (the “Act”) making India as one of the firstcountry to make CSR mandatory with anobjective to align organizational growth withthat of social and environmental growth.At present, provisions under section 135 of the Actregulate large companies i.e. (a) companies havingnet worth of INR 500 crores or more; (b) turnoverof INR 1,000 crores or more; or (c) net profit ofINR 5 crore or more, during the immediatelypreceding financial year, to spend at least 2% ofthe average net profits during the threeimmediate preceding financial years towards CSRactivities. Additionally, constitution of a dedicatedboard level CSR Committee to oversee CSR gamutincluding inter-alia formulation of CSR Policy,recommendation of expenditure towards CSR

(giving preference to local areas) and monitor CSRpolicy.However, on account of lenient provisions andabsence of penal provisions, the intent of CSR couldnot be abundantly achieved. Therefore, companiesfailing to comply with CSR provisions could merelystate the fact of such non-compliance along withjustification in the board’s report, which left adoorway open for companies to ‘non-comply’ and‘explain’ to get away with this requirement.

Paradigm shift in CSRIn year 2019 and 2020, Companies AmendmentAct, 2019 and Companies Amendment Act, 2020(“Amended Acts”) were introduced with an intentto ensure more accountability and betterenforcement to strengthen the compliancemanagement in corporate sector and corporategovernance norms. To make companies morecompliant in their CSR spending / compliances andpush them to allocate their funds in timely mannerand plan effectively to adhere to CSR provisions,following changes were incorporated under theAct:NDMENTS ARE:

“Corporate Social Responsibility (CSR)” means theactivities undertaken by a Company as specified inschedule VII but SHALL NOT include

1. Activities undertaken in pursuance of normalcourse of business of the company.2. Any activity undertaken by the companyoutside India.3. Contribution of any amount directly orindirectly to any political party.4. Activities benefitting employees of thecompany activities supported by the companies onsponsorship basis for deriving marketing benefitsfor its products or services.5. Fulfilment of any other statutory obligations.

http://www.mca.gov.in/Ministry/pdf/CSRAmendmentRules_22012021.pdf

MAY 2021


• Mandating companies to transfer unspentCSR amount in an escrow account of thecompany or fund specified under schedule VII,depending upon whether the unspent amountrelates to any ongoing project or not.• Allowing companies to carry forward andset off additionally spent expenditure towardsCSR in succeeding financial years.• Making non-compliance of CSR punishablewith penalty for the first time, up to INR 1 crorefor companies and up to INR 2 lakh for officers-in-default.In addition to above, Ministry of Corporate Affairs(“MCA”) has issued the Companies (CorporateSocial Responsibility Policy) Amendment Rules,2021 (the “Amended Rules”) on 22 January 2021,effective from the same date, which amended theexisting Companies (Corporate SocialResponsibility Policy) Rules, 2014 and introducedsignificant changes:

• New definitionAmended Rules have revised the definition ofCorporate Social Responsibility, which sets outthat activities undertaken pursuant to ordinarycourse of business by the companies woulddisqualify for CSR except for prescribed class ofentities engaged in development and research ofvaccine or drug related to COVID-19 for certainperiod. The revised definition also prohibits anyactivity undertaken outside India to be eligible forCSR unless the activity pertains to training ofIndian sports personnel representing at nationalor international level. Further, any direct / indirectdonation to the political parties, activitiesbenefitting employees of the company oractivities carried out with an intent to fulfilstatutory obligations under any other law wouldalso disqualifyfrom the ambit of CSR.

• ImplementationAccording to the Amended Rules, companiesmay implement CSR by (a) itself; (b) registerednot for profit organization; (c) registered trust or

society; or (d) entity established under an Act ofParliament or a State legislature. Further, everyentity intending to undertake or implement CSRactivities shall be required to make an applicationwith the central government electronically inForm CSR-1, following which a unique CSRregistration number will be allotted to theimplementing entity. Further, a company mayengage international organizations for monitoring,designing and evaluation of CSR projects but theyare not explicitly permitted to carry outimplementation related activities. Moreover, theBoard is additionally entrusted to overlook theimplementation of projects and other CSR relatedmatters.

• Annual action planAmended Rules prescribe that CSR committeeshall formulate an annual action plan which willinter-alia include list of CSR projects, executionplan, implementation schedules, reportingmechanism and impact assessment.

• CSR expenditureAmended Rules tighten up the requirementsrelating to CSR expenditure since earlier,provisions were open ended any most of theexpenditure including overheads towards CSRwere eligible under CSR expenditure. It has nowbeen clarified and an upper limit i.e. five percentof the CSR expenditure is stipulated foradministrative overheads for a financial year.

• CSR reportingReporting format for annual report on CSR hasbeen updated basis amended provisions. Further,qualifying foreign companies are mandated tocontain an annual report on CSR under thefinancials filed with the MCA. In addition to this,specified companies (having average CSR obligationof INR 10 crore or more in 3 immediately precedingfinancial years) shall undertake an impactassessment through independent agency and suchreport shall be made part of annual report of CSR.

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• CSR for COVID-19 related activitiesThe MCA earlier issued a circular dated 23 March2020, stating that the amount of CSR funds spenttowards COVID-19 would be an eligible CSRactivity. In continuation to it, MCA has nowissued another circular dated 5 May 2021,clarifying and widening the areas for spendingCSR funds by eligible companies under scheduleVII of the Act.Few additional areas for CSR are introduced byMCA wherein expenditure on creating healthinfrastructure, manufacturing & supply of oxygenincluding concentrators, cylinders, ventilators,establishment of oxygen storage plants or othersimilar activities are eligible CSR expenditure.Further, contribution towards prescribed researchand development projects, contribution to publicfunded universities and certain Organisationsengaged in conducting research in science,technology, engineering, and medicine shall alsobe considered as eligible CSR activities.

Current position of CSRNow, with the introduction of Amended Acts,Rules and Ministry of Corporate Affair’samendment notifications, CSR provisions arestreamlined at large and most of the modified

provisions are effective as on date and accordingly,qualifying companies are under mandatoryobligation to comply with the CSR provisions andmake required contributions and follow the stricterregime around CSR. Companies can no longer getaway with the requirement of CSR by providingjustification under the board’s report. Companiesfailing to spend the required amount by the end offinancial year must transfer such amount in escrowaccount of the company or specified fund in thisregard within the prescribed timelines. Any non-compliance may now lead to significant exposurefor the companies as well as officers-in-default.

ConclusionIn present time, companies work in a give and takeenvironment and they are accountable towards theenvironment and society they work in and makeprofit from. Central Government also intend tohave the CSR amount utilized by eligible companies,either by spending for society well-being, doing theexpenditure on COVID-19 related activities or bytransferring it to prescribed funds. It has nowbecome unavoidable for companies to just befocused on their own growth but to also befacilitators for growth of the society at large.

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MAY 2021


Ms. Prabhjot KaurCS Student

“YOUCARRYYOUROWN UNIVERSE INSIDE YOU…

DRAW ITWITH BEAUTIFUL COLOURS …”

CORPORATE COMPLIANCE CALENDAR

PCS LALIT RAJPUT

MAY 2021


ABOUT ARTICLE :

This article contains various Compliance requirements for the Month of May, 2021 under Statutory Laws.Compliance means “adhering to rules and regulations.” Compliance is a continuous process of following laws,policies, and regulations, rules to meet all the necessary governance requirements without any failure.

If you think compliance is expensive, try non‐ compliance”

Compliance Requirement Under

1. Income Tax Act, 1961 (page no. 27)

2. Goods & Services Tax Act, 2017 (GST) and Important Updates / Circulars (page no. 31)

3 Foreign Exchange Management Act, 1999 (FEMA) and Important Notifications (page no. 36)

4. Companies Act, 2013 (MCA/ROC Compliance) and Notifications (page no. 40)

5. Other Statutory Laws and Updates (page no. 44)

6. SEBI (Listing Obligations & Disclosure Requirements) (LODR) Regulations, 2015 (page no. 47)

7. SEBI Takeover Regulations 2011 (page no. 56)

8. SEBI (Prohibition of Insider Trading) Regulations, 2015 (page no. 57)

9. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (page no. 57)

10. SEBI (Buyback of Securities) Regulations, 2018 (page no. 58)

11. SEBI (Depositories and Participants) Regulations 2018) and Circulars / Notifications (page no. 59)

12. Stamp duty rates w.e.f. 1st July 2020 & AIF update (page no. 59)

13. Insolvency and Bankruptcy Board of India (IBBI) Updates (page no. 63)

14. NBFC Compliance Overview (page no. 65)

15. NCLT & NCLAT Updates (page no. 67)

16. MSME Key Updates (page no. 69)

17. IRDAI – Insurance Sector Updates (page no. 74)

MAY 2021


1. COMPLIANCES REQUIREMENT UNDER INCOME TAX ACT, 1961

Sl. Compliance Particulars Due Dates

1 Deposits of TDS /TCS for the month of April 21. 07-05-2021

2Equalisation levy payment due date for the month of April 21 in respect ofequalisation levy on “specified services”.

07-05-2021

3 TDS Certificate issue due date for tax deducted under section 194-IA in the month of March 2021. 15-05-2021

4 TDS Certificate issue due date for tax deducted under section 194-IB in the month of March 2021. 15-05-2021

5 TDS Certificate issue due date for tax deducted under section 194-IM in themonth of March 2021.

15-05-2021

6 TCS quarterly return for the quarter ended on March 2021. 15-05-20217 Form no 3BB by a Stock Exchange for month of April 2021. The said to be furnished by Stock

Exchange in respect of transactions in which client codes been modified after registering in thesystem.

15-05-2021

8 Due Date by Government’s office for furnishing of Form 24G. (TDS for themonth of April 21 without challan production)

15-05-2021

9 Form No 49C statement submission by non-resident having a liaison office in India for theFinancial year 2020-21.

30-05-2021

10 Due date for furnishing of challan cum statement in respect of tax deductedunder section 194-IA in the month of April 2021.

30-05-2021

11 Due date for furnishing of challan cum statement in respect of tax deducted under section 194-IBin the month of April 2021.

30-05-2021

12 Due date for furnishing of challan cum statement in respect of tax deductedunder section 194-IM in the month of April 2021.

30-05-2021

13 TCS certificates issue for the quarter ended on March 2021 of Financial year 2020-21. 30-05-2021

14 Quarterly TDS return for the quarter ended on March 2021 of F.Y 2020-21. 31-05-202115 Return of Tax Deduction from contributions paid by the trustees of an superannuation fund. 31-05-2021

16 Statement of financial transaction due date in Form 61A under section285BA(1) of F.Y. 2020-21.

31-05-2021

17 Due date for e-filing of annual statement of reportable accounts as required to be furnishedunder section 285BA(1)(k) (in Form No. 61B) for calendaryear 2020 by reporting financial institutions.

31-05-2021

18 Application for allotment of PAN in case of non-individual resident person, which enters into afinancial transaction of Rs. 2,50,000 or more during FY 2020-21 and hasn’t been allotted anyPAN.

31-05-2021

19 Application for allotment of PAN in case of person being managing director, director, partner,trustee, author, founder, karta, chief executive officer, principal officer or office bearer of theperson referred to in Rule 114(3)(v) or any person competent to act on behalf of the personreferred to in Rule114(3)(v) and who hasn’t allotted any PAN.

31-05-2021

20 Filing belated return of income tax u/s 139(4) for F.Y. 2019-20 extended to 31st May 2021 (whichended on 31st March 2021)

31-05-2021

❑ IMPORTANT UPDATES – APRIL-2021:

1. ITR forms for FY 2020-21 notified by the govtThe government has notified the income tax return filing forms for the financial year 2020-21 via anotification dated March 31, 2021. As per the notification, some of the new elements in the forms are:ITR-1 cannot be used by an individual for whom income tax is deferred on ESOPs; if the return isbeing filed in response to any tax notice then DIN has to be mentioned.

ITR-1 has to be filed by individuals whose total income does not exceed Rs 50 lakh in a financial year.The income sources for ITR 1 include income from salaries, one house property, other sources suchas interest income etc. and agriculture income up to Rs 5,000. The ITR-2 also asks for the DIN number ifthe ITR-2 is filed in the response to any tax notice from the tax department.

MAY 2021


21 Filing revised return of income tax u/s 139(5) for F.Y. 2019-20 extended to 31st May 2021 (whichended on 31st March 2021)

31-05-2021

22 Return filled in response to section 148 of Income tax Act – where income tax return had to befiled on or after 1st April 2021 – can now be filed upto 31st May 2021

31-05-2021

23 Relaxation of Filing Appeal dates for Appeals to CIT (Appeals) extended to 31st May, 2021 (wheresuch last date was 1st April, 2021 or after)

31-05-2021

24 Payments of TDS deducted u/s 194IA, 194IB and 194M and filing of challan-cum-statement onthe same may be furnished on or before 31st May,2021 (earlier date 30th April, 2021)

31-05-2021

25 Equalisation levy payment due date for the month of April 21 in respect ofequalisation levy on “specified services”.

31-05-2021

26 TDS Certificate issue due date for tax deducted under section 194-IA in the month of March 2021. 31-05-2021

27 TDS Certificate issue due date for tax deducted under section 194-IB in the month of March 2021. 31-05-2021

28 TDS Certificate issue due date for tax deducted under section 194-IM in the month of March2021.

31-05-2021

Notes:1. TheTaxationandOtherLaws(RelaxationandAmendmentofCertainProvisions)Act, 2020hasextendedduedates for compliance falling during the period from 20-03-2020 to 31-12-2020. Readers are requested to pleasechecktherelevantdocumentsfrombelowlinks:

The Taxation and Other Laws (Relaxation and Amendmentof Certain Provisions) Act, 2020.

https://www.incometaxindia.gov.in/Lists/LatestNews/Attachments/419/taxation_other_laws_relaxation_amed_certain_provisions_act_2020.pdf

Notification No. 88/2020 [F. No. 370142/35/2020-TPL] /SO 3906(E) dated29 October, 2020.

https://www.incometaxindia.gov.in/communications/notification/notification_88_2020.pdf

https://www.incometaxindia.gov.in/Lists/Latest%20News/Attachments/419/taxation_other_laws_relaxation_amed_certain_provisions_act_2020.pdf


MAY 2021


2. Tax Alert! TDS to be levied at higher rate for non-filers ofFor those who have not filed their income tax return (ITR) but their income is liable for TDS deduction,there will be a levy of TDS at a higher rate. And, in case one does not have the PAN, the rate of taxdeduction will even be higher. This new TDS rule will be effective from July 2021 as per the Budgetannounced by the Finance Minister. Archit Gupta, Founder and CEO, ClearTax explains the new TDSrule, whom it will impact and who all are excluded from it.

3. Cabinet gives ex-post facto approval for amendments to Finance Bill, 2021The Union Cabinet on Tuesday gave ex-post facto approval to the official amendments to the FinanceBill, 2021, which were aimed at clarifying and rationalising tax proposals for 2021-22. The Finance Billbecame the Finance Act, 2021 on March 28, 2021 after receiving the President’s nod. An official releasesaid that the government’s amendments to the Finance Bill, 2021 tried to address the concerns of thestakeholders with regard to the tax proposals for the fiscal.

4. Government extends certain timelines in light of the raging pandemicIn view of the severe Covid-19 pandemic raging unabated across the country affecting the lives of our people,and in view of requests received from taxpayers, tax consultants & other stakeholders that various timebarring dates, which were earlier extended to 30th April, 2021 by various notifications, as well as under theDirect Tax Vivad se Vishwas Act, 2020, may be further extended, the Government has extended certaintimelines today:

i. Time limit for passing of any order for assessment or reassessment under the Income- tax Act,1961(hereinafter called 'the Act' ) the time limit for which is provided under section 153 or section 153Bthereof;

ii. Time limit for passing an order consequent to direction of DRP under sub-section (13) of section 144C of theAct;

iii. Time limit for issuance of notice under section 148 of the Act for reopening the assessment where income hasescaped assessment;

iv. Time Limit for sending intimation of processing of Equalisation Levy under sub- section (1) of section 168 ofthe Finance Act 2016.

It has also been decided that time for payment of amount payable under the Direct Tax Vivad se VishwasAct, 2020, without an additional amount, shall be further extended to 30th June, 2021.

❑ IMPORTANT NOTIFICATIONS – For the month of April - 2021:

Sl. Particulars of the Notification(s) File No. / Circular No. Link(s)

1.Extension of time lines related tocertain compliances by the Taxpayersunder the Income-tax Act 1961

Circular No. 08/2021 https://www.incometaxindia.gov.in/communications/circular/circular_no_8_2021.pdf

https://www.incometaxindia.gov.in/communications/circular/circular_no_8_2021.pdf

MAY 2021


2.Format, Procedure and Guidelines forsubmission of Statement of FinancialTransactions (SFT) for MF Transactionsby Registrar and Share Transfer Agent

Notification No. 4 of2021

https://www.incometaxindia.gov.in/communications/notification/notification_4_2021_mutual_fund_transaction.pdf

3.Format, Procedure and Guidelines forsubmission of Statement of FinancialTransactions (SFT) for DepositoryTransactions


https://www.incometaxindia.gov.in/communications/notification/notification-3_2021_depository_transaction.pdf

4. the Income-tax (12th Amendment)Rules, 2021

Notification No.40/2021] [F.No.370142/8/2021-TPL

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/VC_and_Seek_adjournment_FAQ.pdf

5. The Income-tax (11th Amendment)Rules, 2021.

Notification No.37/2021/ F. No.370142/28/2020-TPL


6. The Income-tax (7th Amendment) Rules,2021

Notification No. 21/2021


7Facilitation of the conduct of FacelessAssessment proceedings under section144B of the said Act,

Notification No.22/2021/F. No.187/3/2020-ITA-I


8To facilitate the conduct of FacelessAssessment proceedings under section144B of the said Act



9 Central Board of Direct Taxes Notification No.24/2021/F.No. 187/3/2020-ITA-I


10The Central Board of Direct Taxeshereby authorises the AssistantCommissioner of Income-tax/DeputyCommissioner of Income- tax (NaFAC)



11 The Income-tax (eighth Amendment)Rules, 2021.

Notification No. 28/2021/F. No 370142/9/2018-TPL


12Agreement between the Governmentof the Republic of India and theGovernment of the Islamic Republic ofIran for the avoidance of doubletaxation and prevention of fiscalevasion with respect to taxes on income

NotificationNo.29/2021/F.No.501/03/92- FTD-II


13CBDT authorizes the Director ofIncome Tax(Centralized ProcessingCentre), Bengaluruand Commissioner of

Income-Tax (Exemption),Bengaluru for various matters

Notification No. 30/2021/F.No. 370142/4/2021- TPL


https://www.incometaxindia.gov.in/communications/notification/notification_4_2021_mutual_fund_transaction.pdf

https://www.incometaxindia.gov.in/communications/notification/notification-3_2021_depository_transaction.pdf

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/VC_and_Seek_adjournment_FAQ.pdf










MAY 2021


2. COMPLIANCE REQUIREMENT UNDER GST, 2017

Filling of GSTR-3B

A. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

14 The Income-tax (9th Amendment) Rules,2021

Notification No. 31/2021 / F.No.370142/19/2019-TPL


15The Income-tax (10th Amendment)Rules, 2021

Notification No.32/2021/FNo.370142/28/2020-TPL


16Number of unique investors acrossMutualFund schemes also increased by 10% inFY 2020-21

Twitter Updateshttps://twitter.com/FinMinIndia/status/1382194000598159362

17The Central Government herebyspecifies the sovereign wealth fund

Notification No.33/2021/ F. No.370142/6/2021- TPL


18Format, Procedure &Guidelines forsubmissionofStatementof FinancialTransactions (SFT) for Dividend income


https://www.incometaxindia.gov.in/communications/notification/notification_1_2021_dividend_income.pdf

19Format, Procedure andGuidelines forsubmission of Statementof Financial Transactions (SFT)for Interest income


https://www.incometaxindia.gov.in/communications/notification/notification_2_2021_interest_income.pdf

20The Central Government herebyspecifiesthe pension fund, namely, the CanadaPension Plan Investment Board

Notification No.34/2021/F. No.370142/39/2020-TPL


Tax period Due Date No interestpayable till

Interest payable @ 9%from & till

Interest payable @18% from

April, 2021 20th May,2021

- - -

B. Taxpayers having aggregate turnover upto Rs. 5 Cr. in preceding FY (Group A)


Interest payable @ 9% from& till

Interest payable @18% from

April, 2021 22nd May, 2021

Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu,Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands,Lakshadweep



https://twitter.com/FinMinIndia/status/1382194000598159362


https://www.incometaxindia.gov.in/communications/notification/notification_1_2021_dividend_income.pdf

https://www.incometaxindia.gov.in/communications/notification/notification_2_2021_interest_income.pdf


MAY 2021


C. Taxpayers having aggregate turnover upto Rs. 5 Cr. in preceding FY (Group B)


Interest payable @ 9%from & till

Interest payable @ 18%from

April, 2021 24th May, 2021

Group B States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar PradeshBihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, Wes Bengal,Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

D. Filling Form GSTR-1:

Tax period Due Date RemarksTaxpayers having an aggregate turnover of Morethan Rs. 1.50 Crores (> Rs 1.50 Cr) or opted to

Monthly return (March,2021)

11.04.2021 file Monthly Return(Monthly Filing of GSTR – 1 for the month of April 2021for taxpayer who does not opt QRMP Scheme under GST.)

E. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

Form No. Compliance Particulars Timeline Due Date

GSTR-5 &5A

Non-resident ODIAR services provider fileMonthly GST Return

20th of succeeding month 20.05.2021

GSTR -6 Every Input Service Distributor (ISD) 13th of succeeding month 13.05.2021

GSTR -7 Return for Tax Deducted at source to be filed by TaxDeductor

10th of succeeding month 10.05.2021

GSTR -8 E-Commerce operator registered under GST liable to TCS 10th of succeeding month 10.05.2021

F. GST Refund:

Form No. Compliance Particulars Due Date

RFD -10 Refund of Tax to Certain Persons 18 Months after the end of quarter for which refund is to be claimed

GST Relaxations – given by CBIC due to spike in Covid-19 Pandemic

A. Rate of Interest reduced for late payment of Taxes with returns for March-21 and April-21

Sl Category of Tax Payer Reduced Rate of Interest1. Tax payers having Turnover more than Rs. 5

Cr. in preceding F.Y9% for first 15 days and 18%thereafter

2. Taxpayer having Turnoverless than Rs.5 Cr.In preceding F.Y.(This includes quarterly filers and

composition taxpayers for quarter ending March,2021)

Nil for the first 15 days from thedue date, 9per cent for the next 15 days, and18 per cent thereafter

Notification No. 08/2021- Central Tax, Dated 1st May, 2021

MAY 2021


B. Waiver of Late fees for filing return:

Sl. Category of TaxPayer Tax Period Waiver of Late Fees1. Tax payers having Turnover more thanRs.

5 Cr. In preceding F.Y.March, 2021 and April,2021

Waiver of late fees for 15 days fromthe due date of furnishing return

2 Taxpayer having Turnover less than Rs.5Cr. In preceding F.Y.

March, 2021 and April,2021

Waiver of late fees for 30 days fromthedue date of furnishing return

3. Taxpayer having Turnover less thanRs.5 Cr. In preceding F.Y. andQuarte filers

January-21 to March-21 Waiver of late fees for 30 days fromthe due date of furnishing return


C. The due date for furnishing return in Form GSTR-4 by Composition taxpayers forF.Y. 2020-21 has been extended from 30/04/2021 to 31/05/2021. Notification No. 10/2021- Central Tax,Dated 1st May, 2021

4. The due date for furnishing quarterly details of challans in respect of goods dispatched to a job workeror received from a job worker in FORM GST ITC-04 for January-21 to March-21 has been extended from25/04/2021 to 31/05/2021. Notification No. 11/2021- Central Tax, Dated 1st May,2021

5. The time limit for furnishing the details of outward supplies in FORM GSTR-1 for April, 2021 extendedtill the 26/05/2021.


6. Restriction on ITC u/s 36(4) relaxed to calculate the same cumulatively forApril-21 and May-21:Restriction on availing input tax credit u/r 36(4) of CGST Rules that the ITC should in GSTR 3B should notexceed more than 5% of the total amount of ITCas per GSTR 2A in one return period has been relaxed forreturn of April-21 to calculate the same cumulatively for April-21 and May-21 at the time of filing returnfor May-21. This means the said restriction on claiming ITC has to be calculated cumulatively for April-21and May-21 at the time of filing return for May-21.


7. Due date for furnishing details of out ward supplies (using IFF) by quarterly return filers for the monthof April-2021which was 13/05/2021 has been extended to 28/05/2021 for the month of April-21.


8. Limitation period ending on any date between 15/04/2021 to 30/05/2021 has been extended till31/05/2021. Time limit for completion or compliance of any action by any officer or any person whichfalls during the period from 15/04/2021 to 30/05/ 2021, has been extended till 31/05/2021. The saidcompliances shall include fallowing:

▪ Completion of any proceeding or passing of any order or issuance of any notice, intimation▪ Filing of any appeal, reply or application or furnishing of any report, document, return, statement or

such other record

MAY 2021


It is specified that, the above extension of limitation shall not be applicable for following provisions:

• Chapter – IV of the CGST Act i.e. provisions of Time of supply and valueof supply.• Section 10(3) which specifies that composition shall lapse once registered person exceeds prescribed

turnover for eligibility of composition scheme.• Section 25 – limitation period for registration under GST Laws.• Section 27 – Limitation periods applicable for casual taxable person andnon- resident taxable person.• Section 31 - the time of raising Tax Invoices cannot be postponed.• Section 37 – Furnishing of outward supplies• Section 47 – Levy of late fees• Section 50 – Interest on late payment of taxes• Section 69 – Power of arrest• Section 90 - Liability of partners of firm to pay tax.• Section 122 – Penalty for certain offences• Section 129 – Detention search and seizer• Section 39 – returns• Section 68 – E-way bill

Further limitation periods under Rule 9 of CGST Act with respect to approval of application for GSTregistration fall during the period from 01/05/2021 to31/05/2021, then the same shall be extended up to15/06/2021.Notification No. 14/2021- Central Tax, Dated 1st May, 2021

KEY UPDATE(s):

1. Taxpayers registered under Companies Act, 2013, can now file their Form GSTR-1 and GSTR-3B with EVCalso, apart from using DSC, on GST Portal.

2. Auto-population of e-invoice details into GSTR-1

For the month of March, 2021, the auto-population of e-invoices into GSTR-1 (of March, 2021) is still inprogress and is likely to take some more time.

Hence, notified taxpayers who are reporting e-invoices, are hereby advised not to wait for the completeauto-population, and instead proceed with preparation and filing of GSTR-1 for March, 2021 (by the duedate), based on actual data as per their records.

• To check whether a HSN Code is valid or not, please visit GST Portal: www.gst.gov.in > Services > UserServices > Search HSN Code

• The HSN Master for download in excel format will also be published shortly on the same page.

• If HSN of any Goods/Service is otherwise valid but not available in the HSN master, kindly raise a ticket onGST Self-Service Portal: https://selfservice.gstsystem.in/

https://www.gst.gov.in/

https://services.gst.gov.in/services/searchhsnsac

https://selfservice.gstsystem.in/

MAY 2021


3. 6-digit HSN code mandatory in invoices for biz with over Rs 5 crore turnoverBusinesses with turnover of more than Rs 5 crore will have to furnish six-digit HSN or tariff code on theinvoices issued for supplies of taxable goods and services from April 1, the Finance Ministry said onWednesday. Those with turnover of up to Rs 5 crore in the preceding financial year would be required tomandatorily furnish four-digit HSN code on B2B invoices. Earlier, the requirement was four-digits and two-digits respectively. “With effect from the 1st April, 2021, GST taxpayers will have to furnish HSN (HarmonisedSystem of Nomenclature Code), or Service Accounting Code (SAC) in their invoices, as per the revisedrequirement, the Ministry said in a statement.

4. GST officers to be soon armed with real-time data on vehicles moving without e-way billsWith effect from Janaury 1, 2021, the government has integrated RFID/FasTag with the e- way bill systemand a transporter is required to have a RFID tag in his vehicle and details of the eway bill generated for goodsbeing carried by the vehicle is uploaded into the RFID. In the electronic way (e-way) bill system, businessesand transporters have to produce before a GST inspector the e-way bill, if asked. In the 2020-21 fiscal, endedMarch, 2021, 61.68 crore e-way bills were generated, of which 2.27 crore was picked up for verification.

5. Flavoured milk taxable at 12% under GST: AAR rules in Amul dairycaseFlavoured milk is basically ‘beverage containing milk’ and will attract 12 per cent GST, the GujaratAuthority for Advance Rulling (AAR) has said.

Gujarat Co-operative Milk Marketing Federation Ltd, which markets dairy product under Amul brand, hadapproached the AAR on the taxability under the Goods and Services Tax (GST) of flavored milk which thecompany sells under trade name Amul Kool /Amul Kool Cafe.

The applicant had submitted before the AAR that the process of the flavoured milk is standardization of freshmilk according to the fat contents and then heating at certain temperature followed by filtration,pasteurisation and homogenisation and then mixing of sugar and various flavours and finally bottling.

GST UPDATES FROM 01.04.2020 TO 30.04.2021:

Sl. Notification Particulars Notification No. Link(s)1. Module wise new functionalities deployed on the

GST Portal for taxpayersGSTN Circular 455 https://www.gst.gov.in/newsand

updates/read/455

2.Seeks to waive penalty payable for non-complianceof provisions of Notification No. 14/2020 dated 21st

March 2020.

06/2021-CentralTax dated30.03.2021

https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-06-central-tax-english-2021.pdf

3. Auto-population of e-invoice details into GSTR-1 GSTN Circular 460 https://www.gst.gov.in/newsandupdates/read/460

4. Clarification on reporting 4-digit/6-digit HSNs GSTN Circular 463 https://www.gst.gov.in/newsandupdates/read/463

5. New features of Form GSTR-2B & GSTR-3B madeavailable to taxpayers under QRMP Scheme

GSTN Circular 464 https://www.gst.gov.in/newsandupdates/read/464

6 Updates in Forms GSTR-1, GSTR-3B and MatchingOffline Tool for taxpayers in QRMP Scheme

GSTN Circular 466 https://www.gst.gov.in/newsandupdates/read/466

https://www.gst.gov.in/newsandupdates/read/455

https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-06-central-tax-english-2021.pdf





MAY 2021


3. COMPLIANCES UNDER FEMA / RBI

7Seeks to waive penalty payable for non-compliance of provisions of NotificationNo. 14/2020 dated 21st March 2020.

06/2021-CentralTax dt 30.03.2021

https://www.cbic.gov.in/htdocs-cbec/gst/notfctn-06-central-tax-english-2021.pdf

8 Widening the net: How e-invoicing isboosting GST compliance

News update https://economictimes.indiatimes.com/small-biz/gst/widening-the-net-how-e-invoicing-is-boosting-gst-compliance/articleshow/82000603.cms

9 CBIC extends customs duty andintegrated GST exemptions till March 31,2022

News update https://economictimes.indiatimes.com/small-biz/gst/cbic-extends-customs-duty-and-integrated-gst-exemptions-till-march-31-2022/articleshow/81830735.cms

10 Seeks to make second amendment(2021) to CGST Rules..

07/2021-Central Taxdated27.04.2021


ApplicableLaws/Acts

Due Dates Compliance Particulars Forms / (Filingmode)

FEMA1999

ACT 15 July every year Annual Return on Foreign liabilities and assets.The FLA return is required to be submitted by thecompanies who have received Foreign directinvestment (FDI) and/or made Foreign directinvestment abroad in the previous year(s) includingthe current year

FLA Returnthrough FlairPortal:https://flair.rbi.org.in/fla/

FEMA1999

ACT Monthly Basis External Commercial Borrowings Borrowers arerequired to report all ECB transactions to the RBI on amonthly basis through an AD Category – I Bank in theform of ‘ECB 2 Return’.

ECB 2 Return

FEMA1999

ACT Not later than 30 daysfrom the date of issueof Capital instrument

FC-GPR is a form filed when the Indian companyreceives the Foreign Direct Investment and thecompany allots shares to a person resident outsideIndia.

Form FC-GPR

FEMA1999

ACT With in 60 days ofreceipt/ remittanceof funds or transferof capital instrumentswhichever is earlier.

Reporting of transfer of shares and other eligiblesecurities between residents and non-residents andvice- versa is to be made in Form FC-TRS.The onus of reporting shall be on the residenttransferor/ transferee.

Form TRS. FC-

FEMA1999

ACT within 30 days fromthe date of receipt ofthe amount ofconsideration.

A Limited Liability Partnership receiving amount ofconsideration and acquisition of profit shares isrequired to submit a report in the Form FDI LLP-1

Form LLP-I FDI


https://economictimes.indiatimes.com/small-biz/gst/widening-the-net-how-e-invoicing-is-boosting-gst-compliance/articleshow/82000603.cms

https://economictimes.indiatimes.com/small-biz/gst/cbic-extends-customs-duty-and-integrated-gst-exemptions-till-march-31-2022/articleshow/81830735.cms


https://flair.rbi.org.in/fla/

MAY 2021


❑ All applicants before raising any queries to RBI, may contact the respective AD bank as per the contactdetails provided under Contact Us. It may be noted that all Business user registrations as well as forms inSMF are processed at AD level. AD shall always be the first point of contact. All AD banks shall ensure thatthe queries from the applicants are answered correctly and in the timely manner.

❑ IMPORTANT UPDATES, APRIL-2021:

1. RBI caps bank MD, CEO tenure at 15 yrs, puts upper age limit of 70 yrsThe Reserve Bank of India (RBI) on Monday capped the tenure of MD, CEO and whole-time director (WTD) ofprivate sector banks at 15 years and said the upper age limit for these posts will be 70 years. The central bankalso fixed the maximum age limit for chairman and non- executive directors (NED) at 75 years.

"Subject to the statutory approvals required from time to time, the post of the MD and CEO or WTD cannotbe held by the same incumbent for more than 15 years. Thereafter, the individual will be eligible for re-appointment as MD and CEO or WTD in the same bank, if considered necessary and desirable by the board,after a minimum gap of three years, subject to meeting other conditions,“

During the three-year cooling period, the individual cannot be appointed or associated with the bank or itsgroup entities in any capacity, either directly or indirectly.

2. RBI Monetary Policy: Key Highlights

• Monetary Policy Committee decides to retain its 'Accommodative' policy stance.

• the monetary policy in which it has kept the repo rate unchanged at 4%. Monetary Policy Committeedecides to retain its 'accommodative' policy stance.

• the central bank will remain accommodative as long as necessary to sustain growth on a durable basis.

• RBI’s bend towards looking through inflationary pressures in current uncertain times and err in favour ofgrowth

• RBI’s commitment to ensure smooth execution of government’s huge borrowing program by a separate G-sec Acquisition Program to purchase government bonds in FY22. This should help bond marketsentiments.''

FEMA1999

ACT within 60 days fromthe date of receipt offunds in

A Limited liability Partnership shall reportdisinvestment/ transfer of capital contribution orprofit share between a resident and a non resident(or vice versa)

Form LLP-II FDI

FEMA1999

ACT within 30 days fromthe date of allotmentof capital instruments

The domestic custodian shall report the issue/transfer/ of sponsored/ unsponsored depositoryreceipts

Downstreamstatement Form DI &reporting at FIFP too

MAY 2021


3. RBI's audit diktat difficult to implementIn a notification released on Tuesday, RBI said that banks and NBFCs cannot continue with the same auditorbeyond three years down from four years earlier and lower than the five years permitted by the companies act.Moreover, an audit firm has to compulsorily have a cooling off period of six after auditing a bank for one tenure,which means banks will have to hunt for a new auditor every three years.As India has only a handful of quality audit firms, it might be difficult to operationalize central bank directions onsystemic oversight at high-street lenders. Mint Road has capped audit tenures at banks and NBFCs, sought jointaudits, and limited the number of firms an auditor can oversee.

4. RBI Committee on ARCs invites views, suggestions from stakeholders by May 31

The RBI Committee on Asset Reconstruction Companies, which will review the existing legal and regulatoryframework applicable to ARCs, on Wednesday invited views and suggestions from stakeholders. The suggestionscould be given to the committee till May 31, 2021.

On April 19, 2021, RBI had set up a committee to undertake a comprehensive review of the working of assetreconstruction companies (ARCs) in the financial sector ecosystem and recommend suitable measures forenabling them to meet the growing requirements.

5. RBI sets up RRA to streamline regulations and reduce complianceThe Reserve Bank on Thursday set up the second Regulatory Review Authority (RRA 2.0) with a view tostreamlining regulations and reducing compliance burden of regulated entities. Reserve Bank of India DeputyGovernor M Rajeshwar Rao has been appointed as the Regulations Review Authority, the central bank said in astatement.The RRA would be set up for a period of one year from May 1, 2021, unless its tenure is extended by theReserve Bank. The recommendations of the RRA enabled streamlining and increasing the effectiveness ofseveral procedures, simplifying regulatory prescriptions, paved the way for issuance of master circular andreduced reporting burden on regulated entities.The RRA 2.0 will focus on streamlining regulatory instructions, reduce compliance burden of the regulatedentities by simplifying procedures and reduce reporting requirements, wherever possible. To reduce thecompliance burden on regulated entities by streamlining the reporting mechanism; revoking obsoleteinstructions if necessary and obviating paper-based submission of returns wherever possible, is another majorterms of reference of the panel.

❑ RBI CIRCULARS / NOTIFICATIONS: APRIL, 2021

Sl. Particulars of the Circulars Link

1 Sale of Electoral Bonds 2018 at Authorised Branchesof State Bank of India (SBI)

https://pib.gov.in/PressReleseDetail.aspx?PRID=1708520

2 Foreign Trade Policy 2015-2020 extended for 6months till September 2021


3 Government measures increase FDI inflows in thecountry;






MAY 2021

4 Rs 2,74,034 crore Foreign Portfolio Investments (FPI) inflows inIndian equity markets


5 Finance Minister Smt. Nirmala Sitharaman attends PlenaryMeeting of International Monetary and Financial Committee(IMFC) of IMF through video-conference


6 Investment by Foreign Portfolio Investors (FPI): Investment limits https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12049&Mode=0

7 GuidelinesGateways

on Regulation of Payment Aggregators and Payment

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12050&Mode=0

8 Framework for processing of e-mandates for recurring onlinetransactions


9 Master Circular – Facility for Exchange of Notes and Coins https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12052&Mode=0

10. MasterCircular –Schemeof Penaltiesfor bank branches includingCurrency Chests based on performance in rendering customerservice to the members of public


11. Master Direction on Levy of Penal Interest for Delayed Reporting /Wrong Reporting / Non-Reporting of Currency Chest Transactionsand Inclusion of Ineligible Amounts in Currency Chest Balances


12 Master Circular - Disbursement of Government Pension by AgencyBanks


13 Amendment to Master Direction (MD) on KYC – KYC norms for SelfHelp Groups (SHGs)


14 Master Circular – Lead Bank Scheme https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12064&Mode=0

15 Gold Monetization Scheme (GMS), 2015 https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12067&Mode=0

16 Priority Sector Lending (PSL) - Lending by banks to NBFCs for On-Lending


17 External Commercial Borrowings (ECB) Policy – Relaxation in theperiod of parking of unutilised ECB proceeds in term deposits


18 Asset Classification and Income Recognition following the expiry ofCovid-19 regulatory package


19 Reporting and Accounting of Central Government transactions ofMarch 2021 – Change of date of closure


20 Enhancement of limit of maximum balance per customer at end ofthe dayfrom ₹1 lakh to ₹2 lakh – Payments Banks (PBs)


21 Interest Equalization Scheme on Pre and Post Shipment RupeeExport Credit- Extension


22 RTGS System Upgrade - Non-Availability of Service – 00.00 Hrs to14.00 Hrs. on Sunday, April 18, 2021

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51409




















MAY 2021


4. COMPLIANCE REQUIREMENT UNDER COMPANIES ACT, 2013 AND RULES MADETHEREUNDER:

23 Overseas Direct Investment for March 2021 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51410

24 RBI Governor meets MD & CEOs of Public and Private SectorBanks over Video Conference


25 Constitution of the Regulations Review Authority 2.0 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51421

26 RBI releases Names of Applicants under the Guidelines for‘on tap’ Licensing of Universal Banks and Small Finance Banksin the Private Sector


27 Directions under Section 35 A read with Section 56 of theBanking Regulation Act, 1949 (AACS) – United CooperativeBank Limited, Bagnan Station Road (North), P.O. – Bagnan,Dist- Howrah, West Bengal– Extension of Period


28 Reserve Bank of India – Bulletin Weekly Statistical Supplement–Extract


29 RBI launches Quarterly Order Books, Inventories and CapacityUtilisation Survey: January-March 2021 (Round 53)


30 Formation of new district in the State of Tamil Nadu –Assignment of Lead Bank Responsibility


ApplicableLaws/Acts

Due Dates Compliance Particulars Forms / Filing mode

CompaniesAct, 2013

Within 180 DaysFrom The Date OfIncorporation Of TheCompany (one timecompliance only)

As per Section 10 A (Commencement of Business) of theCompanies Act, 2013, inserted vide the Companies(Amendment) Ordinance, 2018 w.e.f. 2nd November,2018, a Company Incorporated after the ordinance andhaving share capital shall not commence its business orexercise any borrowing powers unless a declaration isfiled by the Director within 180 days from the date ofIncorporation of the Companywith the ROC.

MCA E- Form INC20A(one timecompliance)

CompaniesAct, 2013

First declarationwithin 90 days fromthe date ofnotification Dt.08.02.2019

A person having Significant beneficial owner shall file adeclaration to the reporting companyhttp://www.mca.gov.in/Ministry/pdf/CompaniesOwnersAmendmentRules_0802 0219.pdf

Form BEN-1 DraftFormat availableathttps://enlightengovernance.blogspot.com/2019/07/draft-format-for-ben-1-sbo-rules-2018.html









http://www.mca.gov.in/Ministry/pdf/CompaniesOwnersAmendmentRules_08020219.pdf



https://enlightengovernance.blogspot.com/2019/07/draft-format-for-ben-1-sbo-rules-2018.html

MAY 2021


i.e. within 90 days of the commencement of the Companies(Significant Beneficial Owners) Amendment Rules, 2019 i.e.08.02.2019In case Subsequent Acquisition of the title of SignificantBeneficial Owner / Any Change therein a declaration in FormNo. BEN-1 required to be filed to the reporting company, within30 days of acquiring such significant beneficial ownership or anychange therein.

CompaniesAct, 2013

within 30 days ofacquiringbeneficialinterest

Filing of form BEN-2 under the Companies (SignificantBeneficial Owners) Rules, 2018.(the date of receipt of declaration in BEN-1 )

http://www.mca.gov.in/Ministry/pdf/GeneralCircular_24092019.pdf

Form BEN – 2(e-formdeployed byMinistry (ROC))on 01.07.2019

CompaniesAct, 2013

One timeCompliance

Filing of the particulars of the Company & its registered office.(by every company incorporated on or before the 31.12.2017.)

Active Form INC -22A

CompaniesAct, 2013

AnnualCompliance

*DIN KYC through DIR 3 KYC Form is an Annual Exercise.Last date for filing DIR-3 KYC for Financial year 2020-21 is 30thSeptember, 2021Annual Exercise:http://www.mca.gov.in/Ministry/pdf/DIR3KYCcompleteMessage_13042019.pdf Penalty after due date is Rs. 5000/-(onetime)

E-Form DIR – 3KYC(Web Based andE-form)

CompaniesAct, 2013

Within 270 daysfrom the date ofdeployment ofthis Form

Annual Return To Be Filed By Auditor With The NationalFinancial Reporting Authorityhttp://www.mca.gov.in/Ministry/pdf/Circular_06032020.pdfhttp://www.mca.gov.in/Ministry/pdf/Circular19_30042020.pdfhttp://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.26_06072020.pdfNote on NFRA -2https://enlightengovernance.blogspot.com/2020/06/note-on-form-nfra-2-auditors-return.html

NFRA-2(NFRA-2 e-Formlive since 9thDecember2019.)

CompaniesAct, 2013

Within 15 daysof appointmentof an auditor.

The Ministry in its General Circular No. 12/2018 dated 13thDecember, 2018 clarified that filing of Form NFRA-1 isapplicable only for Bodies Corporate and ruled out filing byCompanies as defined under sub-section (20) ofSection 2 the Act.

E – FormNFRA -1

CompaniesAct, 2013

Within 30 daysof the boardmeeting

Filing of resolutions with the ROC regarding Board Report andAnnual Accounts. The details of the resolutions passed shouldbe filed.

MGT-14(Filing ofresolution withMCA)

http://www.mca.gov.in/Ministry/pdf/GeneralCircular_24092019.pdf

http://www.mca.gov.in/Ministry/pdf/DIR3KYCcompleteMessage_13042019.pdf

http://www.mca.gov.in/Ministry/pdf/Circular_06032020.pdf

http://www.mca.gov.in/Ministry/pdf/Circular19_30042020.pdf

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.26_06072020.pdf

https://enlightengovernance.blogspot.com/2020/06/note-on-form-nfra-2-auditors-return.html

MAY 2021


❖ MCA Clarification: CSR related activities

MCA issues clarification on spending CSR funds for setting up makeshift hospitals and temporary COVID carefacilities:

The Ministry of Corporate Affairs vide its notification dated 22nd April 2021 has clarified that spending of CSRfunds for setting up “makeshift hospitals and temporary Covid care facilities” would be treated as an eligibleCSR activity.The companies may undertake the activities of setting up makeshift hospitals and temporary Covid carefacilities in consultations with the State governments. This will be allowed so long as companies comply withthe Companies (CSR Policy) rules 2014.

❑ KEY UPDATES – APRIL 2021:

1. Ministry of Corporate Affairs nudges SEBI on startup listing rules

Currently, the market regulator has created a particular platform to cater to the startups on the lookout for alisting, which is named Innovators Growth Platform (IGP). This is a distinct segment platform that may solely beaccessed by massive ticket establishments and rich traders, and therefore has restricted liquidity incomparison with the mainboard the place all of the bluechip shares commerce.

A startup that has listed on the IGP platform can migrate to the mainboard supplied the corporate meets anumber of situations, together with a profit of at the very least Rs 15 crore within the final three years.

However, if the startup doesn’t have the revenue monitor document, it will possibly nonetheless migrate tothe mainboard supplied 75% of the shareholders of the corporate are institutional traders. Several startupsand VC corporations made representations to SEBI looking for a rest to this rule because it was tough to realize75% institutional holding.

Even among the many blue-chips, solely a handful of corporations have such excessive institutional holding.Based on the trade suggestions, SEBI proposed to decrease the edge to 40% from 70%.

❖ LLP COMPLIANCE:

CompaniesAct, 2013

Within 60(sixty) daysfrom theconclusion ofeach half year.

Reconciliation of Share Capital Audit Report (Half-yearly)Pursuant to sub-rule Rule 9A (8) of Companies (Prospectus andAllotment of Securities) Rules, 2014To be filed all unlisted companies, deemed public companiesTill further clarification to be filled in GNL-2

E-Form PAS – 6

ApplicableLaws/Acts

Due Dates Compliance Particulars Forms / Filingmode

LLP Act, 2008 within 60 days fromthe closure of thefinancial year

LLP Annual Filing- An annual statement for submittingdetails of the business of the LLP and its partners for theFY 2020-21

Form LLP-11

MAY 2021


Even among the many blue-chips, solely a handful of corporations have such excessive institutional holding.Based on the trade suggestions, SEBI proposed to decrease the edge to 40% from 70%.

However, MCA opposed this rest saying the restrict was too lenient and as an alternative beneficial that theedge ought to be 50%. Sebi finally agreed. Emails despatched to Sebi and MCA remained unanswered.

“MCA has commented that the 40% dilution is too low and must be reviewed so that the Company does nottake unfair advantage of having first listing with IGP and then getting moved to Mainboard,” mentionedminutes of Sebi board assembly dated March 25,2021. “In view of the comments from MCA…we may reducethis stipulation of 75% of capital with QIBs (qualified institutional investors) to 50% instead of 40% as proposedin the consultation paper.”

❑ Important Updates

o MCA MONTHLY UPDATE CALENDER: APRIL, 2021

Sl. Particulars of the Circulars Link

1 E-form INC-6 revised as per Companies (Incorporation)Second Amendment Rules, 2021 is now available for filing.

http://www.mca.gov.in/

2 CSR-1 Form is now available for filing as e - Form. http://www.mca.gov.in/3 Companies (Audit and Auditors) Second Amendment Rules,

2021http://www.mca.gov.in/Ministry/pdf/AuditAuditorsAmendmentRules_01042021.pdf

4 Company (Accounts) Second amendment Rules, 2021 http://www.mca.gov.in/Ministry/pdf/AccountsAmendmentRules_01042021.pdf

5. MCA registers 1.55 lakh company incorporations in FY 2020-21, an increase of 27% year-on-year


6. Fund raising for Public Issues and Rights Issues registered anincrease of 115% and 15% respectively in FY 2020-21


7 The Companies (Audit and Auditors) Second AmendmentRules, 2021

http://www.mca.gov.in/Ministry/pdf/AuditAuditorsSecondAmendmentRules_13042021.pdf

8 The Companies (Accounts) Second Amendment Rules, 2021. http://www.mca.gov.in/Ministry/pdf/AccountsSecondAmendmentRules_13042021.pdf

9 The Insolvency and Bankruptcy Code (Amendment)Ordinance, 2021

http://www.mca.gov.in/Ministry/pdf/IBCAmedOrdinanceBill_06042021.pdf

10 The Insolvency and Bankruptcy Code (Amendment)Ordinance, 2021 – Provision notified

http://www.mca.gov.in/Ministry/pdf/Notification_1204021.pdf

11 The Insolvency and Bankruptcy (prepackaged insolvencyresolution process) Rules, 2021

http://www.mca.gov.in/Ministry/pdf/InsolvencyandBankruptcyRules_12042021.pdf

12 Publication of notice u/s 75 of the LLP Act, 2008 read withRule 37 (2) of Limited Liability Partnership Rules, 2009

http://www.mca.gov.in/Ministry/pdf/RocHimachalRule37_13042021.pdf

13 MCA Appeal http://www.mca.gov.in/14 Clarification on spending of CSR funds for setting up

temporary COVID Care facilities and makeshift hospitals-reg.

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo5_22042021.pdf



http://www.mca.gov.in/Ministry/pdf/AuditAuditorsAmendmentRules_01042021.pdf

http://www.mca.gov.in/Ministry/pdf/AccountsAmendmentRules_01042021.pdf



http://www.mca.gov.in/Ministry/pdf/AuditAuditorsSecondAmendmentRules_13042021.pdf

http://www.mca.gov.in/Ministry/pdf/AccountsSecondAmendmentRules_13042021.pdf


http://www.mca.gov.in/Ministry/pdf/Notification_1204021.pdf

http://www.mca.gov.in/Ministry/pdf/InsolvencyandBankruptcyRules_12042021.pdf



http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo5_22042021.pdf

MAY 2021


5. COMPLINACE UNDER OTHER STATUTORY LAWS

❑ Key Update:

1. From 15th Feb.,2020, new Companies registered through MCA Portal, www.mca.gov.in need not complywith provisions of ESI Act till they reach threshold limit of ESI coverage or initial 6 months whichever isearlier. For further details login to ' www.esic.in . Submission of Mobile Number and Bank Account details(Bank Name, Branch Name & IFSC) shall be mandatory for registration of New employee. For moreupdates: Click here

2. Labour ministry notifies draft rules under Occupational Safety, Health and Working Conditions CodeThe labour ministry has notified draft rules pertaining to setting up of a technical committee under theOccupational Safety, Health and Working Conditions Code (OSH&WC Code), 2020. The committee is expectedto help the government or the national board to be set up under the Code in discharging safety and otherrelated measures across industrial establishments. The Codes have been passed by the Parliament and thegovernment has finalised the Rules under the four Codes.The ministry has invited suggestions on the draft Rules in the next 45 days following which the above Rules willbe finalised. This would enable the government to put in place the required technical committee for smoothimplementation of the OSH&WC Code.

3. Big breather for India Inc as government defers implementation of labour codesThe government has deferred implementation of the labour codes, including the Code on Wages, beyond April1, giving companies more time to revamp their salary structures and human resource-related policies, whichcould have led to higher employee costs.

15 Publication of notice u/s 75 of the LLP Act, 2008 read withRule 37 (2) of Limited Liability Partnership Rules, 2009


16 Cabinet approves Amendments to the Finance Bill, 2021 https://pib.gov.in/PressReleseDetail.aspx?PRID=1712856

Applicable Laws/Acts Due Dates Compliance Particulars Forms /(Filing mode)

EPF (The Employees’Provident Funds AnMiscellaneous ProvisionsAct, 1952)

15.05.2021 PF Payment ECR

ESIC(Employees’ StateInsurance Act, 1948)

15.05.2021 ESIC Payment ESI CHALLAN

Contract Labour(Regulation & Abolition)Act, 1970

Within 15 Days ofcommencement/ completionof contract work

Return/Notice within 15 days ofcommencement/ completion of eachcontract by the Principal employer

Form VI-B

Payment of GratuityRule

Within 30 Days of applicabilityof the Act & any change

Notice of applicability of the Act &any change

Form A or B


http://www.esic.in/



MAY 2021


The labour ministry had amalgamated 29 labour laws into four Codes to significantly reduce complianceburden, improve the ease of doing business, greater ease of hiring and firing of workers and enhancedflexibility to employers in terms of work hours. The delay in implementation of labour codes is a breather forIndia Inc as resurgence of Covid-19 cases in major industrial states have raised apprehensions that economicrecovery seen so far could be stalled or even reversed if the cases continue to go up.

4. New Labour Laws: Big news for employees regarding overtimeAfter the completion of working hours, if an employee works for even 15 more minutes, the company willhave to pay for it.The Ministry of Labor is preparing to implement the new Labor Law in the next financial year. The process isunderway to finalize it. After the new laws are implemented, a round of improved rules will start in thecountry's labour market. Along with this, the government is also trying to clear the doubts that have arisen dueto the new labour laws.

Overtime for working even 15 extra minutes: According to a report in the Hindustan Times, the governmentmay change the existing time limit of overtime under the new Labour Law and working more than 15 minutesbeyond the scheduled hours will be considered overtime. Companies will have to pay their employees for this.That is, after the completion of working hours, if an employee works for even 15 more minutes, the companywill have to pay for it.

❑ UPDATES TRACKER UNDER LABOUR LAWS – APRIL, 2021:

Sl. Particulars Link1 Labour Minister flags off Field Work of All India Survey on

Migrant Workers and the AQEEShttps://pib.gov.in/PressReleseDetail.aspx?PRID=1708684

2 Labour Bureau launches two of the five all-India surveys https://pib.gov.in/PressReleseDetail.aspx?PRID=1709013

3 Ministry of Labour & Employment set up Expert Committeesfor suggesting standards under the OSH&WC Code, 2020


4 Bringing into effect the provisions of the Code on Wages, 2019relating to Central Advisory Board

https://labour.gov.in/sites/default/files/cab.pdf

5 Office Order No.A-19011/05/2018-W.I dated 06.04.2021 https://labour.gov.in/sites/default/files/Office_Order_Additional_Charge-WC_Allahabad.pdf

6 Clarification regarding full and final settlement of bills claimspertaining to LTC Special Cash Package Scheme.

https://www.esic.nic.in/attachments/circularfile/2c5b4a9d922006d88f83595bf2e24321.pdf

7 Introduction/FAQs on Atal Beemit Vyakti Kalyan Yojana(ABVKY).

https://www.esic.nic.in/attachments/publicationfile/4ea1be1aa73b1f590ab4f1e0a4e72403.pdf

8 Labour laws of Maharashtra, Haryana and UP to be reviewed https://economictimes.indiatimes.com/news/economy/policy/labour-laws-of-maharashtra-haryana-up-to-be-reviewed/articleshow/81957113.cms




https://labour.gov.in/sites/default/files/cab.pdf

https://labour.gov.in/sites/default/files/Office_Order_Additional_Charge-WC_Allahabad.pdf

https://www.esic.nic.in/attachments/circularfile/2c5b4a9d922006d88f83595bf2e24321.pdf

https://www.esic.nic.in/attachments/publicationfile/4ea1be1aa73b1f590ab4f1e0a4e72403.pdf

https://economictimes.indiatimes.com/news/economy/policy/labour-laws-of-maharashtra-haryana-up-to-be-reviewed/articleshow/81957113.cms

MAY 2021


9 Big breather for India Inc as government defersimplementation oflabour codes

https://economictimes.indiatimes.com/news/economy/policy/big-breather-for-india-inc-as-govt-defers-implementation-of-labour-codes/articleshow/81774812.cms

10 Labour Ministry finalises new job rules under 4codes, reform to be areality soon

https://economictimes.indiatimes.com/news/economy/policy/labour-ministry-finalises-job-rules-under-4-codes-reform-to-be-a-reality-soon/articleshow/80906084.cms

11 Three days Online Training Programme on AllIndia Survey of Migrant Workers&All IndiaQuarterly Establishment based EmploymentSurvey (AQEES)For Field Enumerators,Supervisors/ State Government Officials/ StateNodal Officers


12 Additional Office of Labour Bureau opened atSalt Lake City, Kolkata forconducting All India Surveys


13 Filling up of 2 posts of Director of Mines Safety(Mechanical) in DGMS, Dhanbad

https://labour.gov.in/sites/default/files/Advertisement.pdf

14 Circular regarding extension of time lines forsubmission of APAR in respect of Gr. A, B and COfficers for the year 2020-21

https://www.esic.nic.in/attachments/circularfile/f1eb7c98142f715577215bd5755522e5.pdf

15 Labour ministry notifies draft rules underOccupational Safety, Health and WorkingConditions Code

https://economictimes.indiatimes.com/news/economy/policy/labour-ministry-notifies-draft-rules-under-occupational-safety-health-and-working-conditions-code/articleshow/82099916.cms

16 Labour laws of Maharashtra, Haryana and UP tobe reviewed


17 Why provident fund is so important? https://twitter.com/socialepfo/status/1383979033528991755

18 Get PPO number using Bank Account Number orPF Number

https://twitter.com/socialepfo/status/1382608354996981760

19 EPFO adds 12.37 lakh net subscribers in themonth of February, 2021


20 Rejuvenation of 20 control rooms set up toaddress grievances of workers


21 Service measures taken by ESI Corporationduring recent surge of COVID- 19 pandemic


22 Preventive measures to contain spread ofCOVID-19

https://www.esic.nic.in/attachments/circularfile/1661c8755f8bb4c638a8a1af8e8321d9.pdf

23 Extension of the scheme ABVKY and relaxation inits eligibility conditions

https://www.esic.nic.in/attachments/circularfile/67bab4e15e54e6ace67bfe21f6db7ed3.pdf

24 Regarding provision of adequate covid andother medical services to ESI beneficiaries

https://www.esic.nic.in/attachments/circularfile/335d27eabbce6940403b2378a05514de.pdf

https://economictimes.indiatimes.com/news/economy/policy/big-breather-for-india-inc-as-govt-defers-implementation-of-labour-codes/articleshow/81774812.cms

https://economictimes.indiatimes.com/news/economy/policy/labour-ministry-finalises-job-rules-under-4-codes-reform-to-be-a-reality-soon/articleshow/80906084.cms



https://labour.gov.in/sites/default/files/Advertisement%20.pdf

https://www.esic.nic.in/attachments/circularfile/f1eb7c98142f715577215bd5755522e5.pdf

https://economictimes.indiatimes.com/news/economy/policy/labour-ministry-notifies-draft-rules-under-occupational-safety-health-and-working-conditions-code/articleshow/82099916.cms







https://www.esic.nic.in/attachments/circularfile/1661c8755f8bb4c638a8a1af8e8321d9.pdf

https://www.esic.nic.in/attachments/circularfile/67bab4e15e54e6ace67bfe21f6db7ed3.pdf

https://www.esic.nic.in/attachments/circularfile/335d27eabbce6940403b2378a05514de.pdf

MAY 2021


25 Get PPO number using Bank Account Number orPF Number


26 Why provident fund is so important? https://twitter.com/socialepfo/status/1383979033528991755

27 EPFO launches Electronic Facility for PRINCIPALEMPLOYERS to view EPF compliances of theircontractors.


28 50% limit under Labour Code: India Inc wantscap on allowances relaxed

https://economictimes.indiatimes.com/news/economy/policy/india-inc-wants-cap-on-allowances-relaxed/articleshow/82150365.cms

6. SEBI – SECURITIES EXCHANGE BOARD OF INDIA

COMPLIANCE REQUIREMENT UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)(LODR) REGULATIONS, 2015

FILLING MODE(s):• For BSE : BSE LISTING CENTRE• For NSE : NEAPS Portal

❑ Timeline Extended – Regulatory Compliance

Regulation reference Timeline For the quarterended March

Regulation 24A read with circular No.CIR/CFD/CMD1/27/2019 dated February 8, 2019relating to Annual Secretarial Compliance report

Within 60 days from the end of theFY. 30th June, 2021

Reconciliation of Share Capital Audit Report: (Reg. 76 –D & P Reg.)

Within 30 days from the end of thequarter.

By 30-April

Regulation 33 (3) – Quarterly financial results / Annualaudited financial results

45 days from end of the quarter / 60days from end of the financial year 30th June, 2021

Regulation 32 (1) read with SEBI circular No.CIR/CFD/CMD1/162/2019 dated December 24, 2019on Statement of deviation or variation in use of funds

Along with the financial results(within 45 days of end of eachquarter / 60 days from end of thefinancial year)

30th June, 2021

❑ Half Yearly Compliances

Sl. Compliance Particulars Timeline1 Regulation 7 (3) – Compliance Certificate certifying

maintaining physical & electronic transfer facilityWithin one month of end of each half of the FY.

2 Regulation 40 (9) – Certificate fromPracticing Company Secretary.

Within one month of the end of each half of the FY

3 Regulation 23(9) Submission of disclosure on Relatedparty transactions under

The listed entity shall submit within 30 days from thedate of publication of its




https://economictimes.indiatimes.com/news/economy/policy/india-inc-wants-cap-on-allowances-relaxed/articleshow/82150365.cms

MAY 2021


standalone and consolidated financial results forthe half year, disclosures of related partytransactions on a consolidated basis, in the formatspecified in the relevant accounting standards forannual results to the stock exchanges.

❑ Regular / Annual Compliance

REG NO REGULATION NO PARTICULARS TIMELINE47Advertisementsin Newspapers.

47 (3)Advertisements inNewspapers

Financial results at 47 clause (b) of sub-regulation (1), shall bepublished within 48 hours of conclusion of the meeting ofboard of directors at which the financial results wereapproved.

48 HOURS

23 Related partytransactions.

Reg 23(9) Relatedparty transactions

The listed entity shall submit within 30 days from the date ofpublication of its standalone and consolidated financial resultsfor the half year, disclosures of related party transactions on aconsolidated basis, in the format specified in the relevantaccounting standards for annual results to the stockexchanges and publish the same on its website

30 days

24ASecretar

ial Audit.

Red 24A Every listed entity and its material unlisted subsidiariesincorporated in India shall undertake secretarial audit and shallannex with its annual report, a secretarial audit report, givenby a company secretary in practice, in such form as may bespecified with effect from the year ended March 31, 2019.(within 60 days from the Closure of FY)

60 daysfrom theClosure ofFY

36 Documents& Informationto shareholders.

36(1) The listed entity shall send annual report referred to in sub-regulation 36(1), to the holders of securities, not less thantwenty-one days before the annual general meeting

21 daysbeforeAGM

46 Website 46(2)(s) The listed entity shall disseminate the following informationunder a separate section on its website separate auditedfinancial statements of each subsidiary of the listed entity inrespect of a relevant financial year, uploaded at least 21 daysprior to the date of the annual general meeting which has beencalled to inter alia consider accounts of that financial year.]

21 daysprior 1days priorto thedate ofAGM

❑ Quarterly Compliance which included half year compliance except FR

REG NO REGULATION PARTICULARS TIMELINE

Intimation Reg 29 readwith Reg 33

intimation regarding item specified in clause 29(1) (a)to be discussed at the meeting of board of directorsshall be given at least five days in advance (excludingthe date of the intimation and date of the meeting),and such intimation shall include the date of suchmeeting of board of directors

at least 5 working daysin advance, excluding thedate of the intimationand date of the meeting

MAY 2021


Intimations andDisclosure ofevents orInformation toStock Exchanges.

87B: Intimations andDisclosure of events orinformation to StockExchanges. READ WITHPART E OF Schedule III

The listed entity shall first disclose to stockexchange(s) of all events or information, as specifiedin Part E of Schedule III, as soon as reasonablypossible but not later than twenty four hours fromoccurrence of the event or information:

24 HOURS

Valuation, Ratingand NAVdisclosure.

87C(1) (iii) An issuer whose security receipts are listed on astock exchange shall ensure that: the net asset valueis calculated on the basis of such independentvaluation and the same is declared by the assetreconstruction company within fifteen days of theend of the quarter.

15 Days

❖ Event Based Compliance

30 Disclosure ofevents orinformation.

30(6) ANDPart A ofSchedule III

The listed entity shall first disclose to stock exchange(s) of all events,as specified in Part A of Schedule III, or information as soon asreasonably possible and not later than twenty four hours from theoccurrence of event or information

24 HOURS

30 Disclosure ofevents orinformation.

30(6) ANDsub-para 4 ofPara A of PartA of ScheduleIII

The listed entity shall disclose to the Exchange(s), within 30 minutesof the closure of the meeting held to consider the following:

a) dividends and/or cash bonuses recommended or declared orthe decision to pass any dividend and the date on which dividendshall be paid/dispatched;

b) any cancellation of dividend with reasons thereof;c) the decision on buyback of securities;d) the decision with respect to fund raising proposed to be

undertakene) increase in capital by issue of bonus shares throughcapitalization including the date on which such bonus shares shallbe credited/dispatched;

f) reissue of forfeited shares or securities, or the issue of sharesor securities held in reserve for future issue or the creation in anyform or manner of new shares or securities or any other rights,privileges or benefits to subscribe to;

g) short particulars of any other alterations of capital, includingcalls;

h) financial results;i) decision on voluntary delisting by the listed entity from stockexchange(s).

30MINUTES

31A:Conditions forre-classificationof any person aspromoter /public

31A(8) The following events shall deemed to be material events and shallbe disclosed by the listed entity to the stock exchanges as soon asreasonably possible and not later than twenty four hours from theoccurrence of the event:

(a) receipt of request for re-classification by the listed entity fromthe promoter(s) seeking re- classification;

24 HOURS

MAY 2021


31A:Conditions forre-classificationof any person aspromoter /public

31A(8) b) minutes of the board meeting considering such request which wouldinclude the views of the board on the request;

c) submission of application for re-classification of status aspromoter/public by the listed entity to the stock exchanges;

d) decision of the stock exchanges on such application ascommunicated to the listed entity;

24 HOURS

34 AnnualReport.

34(1)(b) in the event of any changes to the annual report, the revised copy alongwith the details of and explanation for the changes shall be sent not laterthan 48 hours after the annual general meeting.]

48 HOURS

44 Meetings ofshareholdersand voting

44(3) The listed entity shall submit to the stock exchange, within forty eighthours of conclusion of its General Meeting, details regarding the votingresults in the format specified by the Board.

48 HOURS

47Advertisementsin Newspapers.

47 (3)Advertisements inNewspapers

The listed entity shall publish the information specified in 47(1) in thenewspaper simultaneously with the submission of the same to the stockexchange(s). The same is reproduced below47(1) (a) notice of meeting of the board of directors where financialresults shall be discussed (c )statements of deviation(s) or variation(s) asspecified in sub-regulation (1) of regulation 32 on quarterly basis, afterreview by audit committee and its explanation in directors reportin annual report;(d) notices given to shareholders by advertisement

Simultaneously

- SCHEDULE IIIPARTPART A7(A)

resignation of the auditor of the listed entity, detailed reasons forresignation of auditor, as given by the said auditor, shall be disclosed bythe listed entities to the stock exchanges as soon as possible but not laterthan twenty four hours of receipt of such reasons from the auditor

24 HOURS

- SCHEDULE IIIPARTPART A7(B)

In case of resignation of an independent director of the listed entity,within seven days from the date of resignation, the following disclosuresshall be made to the stock exchanges by the listed entities:

i. Detailed reasons for the resignation of independent directors asgiven by the said director shall be disclosed by the listed entities tothe stock exchanges.

ii. The independent director shall, along with the detailed reasons, alsoprovide a confirmation that there is no other material reasons otherthan those provided.

iii. The confirmation as provided by the independent director aboveshall also be disclosed by the listed entities to the stock exchanges alongwith the detailed reasons as specified in sub-clause (i) above.]

7 days fromthe date ofresignation

7 ShareTransferAgent.

Reg 7(4)& (5)ShareTransferAgent.

The listed entity shall intimate any change or appointment of a new sharetransfer agent, to the stock exchange(s) within seven days of entering intothe agreement.

7 DAYS

MAY 2021


29 Reg29(1)

The intimation required under 29 (1), shall be given at least two workingdays in advance, excluding the date of the intimation and date of themeeting Reg 29(1) is reproduced below: (b) proposal for buyback ofsecurities ; (c) proposal for voluntary delisting by the listed entity fromthe stock exchange(s); (d) fund raising by way of further public offer,rights issue, American Depository Receipts/Global DepositoryReceipts/Foreign Currency Convertible Bonds, qualified institutionsplacement, debt issue, preferential issue or any other method and fordetermination of issue price:Provided that intimation shall also be given in case of any annual generalmeeting or extraordinary general meeting or postal ballot that is proposedto be held for obtaining shareholder approval for further fund raisingindicating type of issuance. (e) declaration/ recommendation of dividend,issue of convertible securities including convertible debentures or ofdebentures carrying a right to subscribe to equity shares or the passingover of dividend. (f) the proposal for declaration of bonus securities wheresuch proposal is communicated to the board of directors of the listedentity as part of the agenda papers:

at least 2workingdays inadvance,excludingthe date oftheintimationand dateof themeeting

31 Holding ofspecifiedsecurities andshareholdingpattern.

Reg 31(1)(a)

The listed entity shall submit to the stock exchange(s) a statementshowing holding of securities and shareholding pattern separately foreach class of securities, in the format specified by the Board from time totime - one day prior to listing of its securities on the stock exchange(s);

1 day priorto listing ofitssecuritiesonthe stockexchange(s

31 Reg 31(1 (c)

within ten days of any capital restructuring of the listed entity resulting ina change exceeding two per cent of the total paid-up share capital:

within 10days of anycapitalrestructurin g

31AConditions forre- classificationof any person aspromoter /public

Reg 31A an application for re-classification of a promoter/ person belonging topromoter group to public to the stock exchanges has to be made by thelisted entity consequent to the following procedures and not later thanthirtydays from the date of approval by shareholders in general meeting

30 daysfrom thedate ofapproval byshareholdersingeneralmeeting

37Draf

t Schemeof

Arrangement &Scheme ofArrangement.

37(1) Draft Scheme of Arrangement & Scheme of Arrangement before forobtaining Observation Letter or No-objection letter, before filing suchscheme with any Court or Tribunal, in terms of requirements specified bythe Board or stock exchange(s) from time to time.

Beforefilling thesame withany courtor tribunal

MAY 2021


39 Issuance ofCertificates orReceipts/Letters/Advices forsecurities anddealing withunclaimedsecurities.

39(2) The listed entity shall issue certificates or receipts oradvices, as applicable, of subdivision, split,consolidation, renewal, exchanges, endorsements,issuance of duplicates thereof or issuance of newcertificates or receipts or advices, as applicable, incases of loss or old decrepit or worn out certificatesor receipts or advices, as applicable within a period ofthirty days from the date of such lodgement.

30 Days

39 Issuance ofCertificates orReceipts/Letters/Advices forsecurities anddealing withunclaimedsecurities

39(3) The listed entity shall submit information regardingloss of share certificates and issue of the duplicatecertificates, to the stock exchange within two days ofits getting information.

2 days of its gettinginformation.

40 Transfer ortransmission ortransposition ofsecurities.

40 (3) On receipt of proper documentation, the listed entityshall register transfers of its securities in the name ofthe transferee(s) and issue certificates or receipts oradvices, as applicable, of transfers; or issue any validobjection or intimation to the transferee ortransferor, as the case may be, within a periodof fifteen days from the date of such receipt ofrequest for transfer.

15 days


40 (3) the listed entity shall ensure that transmissionrequests are processed for securities held indematerialized mode within seven days after receiptof the specified documents:

7 Days


40 (3) the listed entity shall ensure that transmissionrequests are processed for securities held in physicalmode within twenty one days after receipt of thespecified documents:

21 Days

- SCHEDULE VII:TRANSFER OFSECURITIE S(PART B (1))

In case of minor differences in the signature of thetransferor(s), the listed entity shall follow thefollowing procedure for registering transfer ofsecurities:(a) the listed entity shall promptly send to the firsttransferor(s), via speed post an intimation of theaforesaid defect in the documents and inform thetransferor(s) that objection, supported by valid proof,is not lodged by the transferor(s) with the listed entitywithin fifteen days of receipt of the listed entity’sletter, then the securities shall be transferred

15 Days

MAY 2021


42 Record Date orDate of closure oftransfer books.

42(2) The listed entity shall give notice in advance ofatleast seven working days (excluding the date ofintimation and the record date) to stock exchange(s)of record date specifying the purpose of the recorddate:

7 working daysadvance intimationexcluding the dateof the intimationand date of themeeting


42(2) in the case of rights issues, the listed entity shallgive notice in advance of atleast three working days(excluding the date of intimation and the recorddate).]

3 working daysadvance intimationexcluding the dateof the intimationand date ofthe meeting


42(3) The listed entity shall recommend or declare alldividend and/or cash bonuses at least five workingdays (excluding the date of intimation and therecord date) before the record date fixed for thepurpose.


46 Website 46 (3)(b) The listed entity shall update any change in thecontent of its website within two working days fromthe date of such change in content.

2 working days

50 Intimation tostock

exchange(s).

50(1) The listed entity shall give prior intimation to thestock exchange(s) at least eleven working daysbefore the date on and from which the interest ondebentures and bonds, and redemption amount ofredeemable shares or of debentures and bonds shallbe payable.

11 working days

50 Intimation tostock

exchange(s).

50(3) The listed entity shall intimate to the stockexchange(s), at least two working days in advance,excluding the date of the intimation and date of themeeting, regarding the meeting of its board ofdirectors, at which the recommendation ordeclaration of issue of non convertible debtsecurities or any other matter affecting the rights orinterests of holders of non convertible debtsecurities or non convertible redeemablepreference shares isproposed to be considered.


52 FinancialResults.

52 (4) & (5) The listed entity shall, within seven working daysfrom the date of submission of the informationrequired under sub- regulation (4), submit to stockexchange(s), a certificate signed by debenturetrustee that it has taken note of the contents

7 working days

MAY 2021


52 FinancialResults.

52 (4) &(8)

The listed entity shall, within two calendar days of the conclusionof the meeting of the board of directors, publish the financialresults and statement referred to in reg 52 (4), in at least oneEnglish national daily newspaper circulating in the whole orsubstantially the whole of India.

two calendardays of theconclusion of themeeting

57 Othersubmissions tostockexchange(s).

57(1) The listed entity shall submit a certificate to the stock exchangewithin two days of the interest or principal or both becoming duethat it has made timely payment of interests or principalobligations or both in respect of thenon convertible debt securities

within 2 days

60 Record Date 60(2) The listed entity shall give notice in advance of at least sevenworking days (excluding the date of intimation and the recorddate) to the recognised stock exchange(s) of the record date or ofas many days as the stock exchange(s) may agree to or requirespecifying the purpose of the record date.

7 working daysadvanceintimationexcluding thedate of theintimation anddate of themeeting

78 Record Date. 78(2) The listed entity shall give notice in advance of at least fourworking days to the recognised stock exchange(s) of record datespecifying the purpose of the record date

notice inadvance of atleast 4 workingdays

82 Intimationand filings withstockexchange(s).

82(2) The listed entity shall intimate to the stock exchange(s), at leasttwo working days in advance, excluding the date of the intimationand date of the meeting, regarding the meeting of its board oftrustees, at which the recommendation or declaration of issue ofsecuritized debt instruments or any other matter affecting therights or interests of holders of securitized debt instruments isproposed to be considered.

2 working days inadvance,excluding the dateof the intimationand date of themeeting,

82 Intimationand filings withstockexchange(s).

82(3) The listed entity shall submit such statements, reports orinformation including financial information pertaining to Schemesto stock exchange within seven days from the end of the month/actual payment date, either by itself or through the servicer, on amonthly basis in the format as specified by the Board from timetotime: Provided that where periodicity of the receivables is notmonthly, reporting shall be made for the relevant periods.

within 7 days

87 Record Date. 87(2) The listed entity shall give notice in advance of atleast sevenworking days (excluding the date of intimation and the recorddate) to the recognised stock exchange(s) of the record date or ofas many days as the Stock Exchange may agree to or requirespecifying the purpose of the record date


MAY 2021


87E RecordDate.

87E(2) The listed entity shall give notice in advance of at least sevenworking days (excluding the date of intimation and the recorddate) to the stock exchange(s) of the record date or of as manydays as the stock exchange may agree to or require specifying thepurpose of the record date.


❖ Relaxation in Compliance norms w.r.t. Trading Members / Clearing Members / Depository Participants / KYC Registration Agencies

SEBI decided to extend the timelines for compliance with the following regulatory requirements by theTrading Members / Clearing Members / Depository Participants / KYC Registration Agencies, as under:

S. Compliance Extended timeline/ Period ofexclusion

1. Maintaining call recordings of orders / instructionsreceived from clients.

Till June 30, 2021

2. KYC application form and supporting documents of theclients to be uploaded on system of KRA within 10working days.

Till June 30, 2021, documents may be uploadedon to the system of KRA within 15 working days.*A 30-day time period is provided to SEBIRegistered Intermediary afterJune 30, 2021 toclear the backlog

3. Issue of Annual Global Statement to clients. Till June 30, 2021.*Relaxation isprovided only if the client hasrequested for a physical statement.

4. Submission of Internal Audit Report for HYE March-2021

Till July 31, 2021

5. Net worth certificate in Margin Trading for CM Segmentfor HYE March 31, 2021

Till July 31, 2021

6. Net worth certificate for all members for HYE March2021.

Till July 31, 2021

7. Reporting of Risk based supervision Till July 31, 20218. Risk Assessment Template Till July 31, 20219. Reporting for Artificial Intelligence (AI)

and Machine Learning (ML) applicationsTill July 31, 2021

10. Client Funding Reporting Till June 30, 202111. Submission of System Audit Report for the period ended

March 2021Till July 31, 2021

12. Submission of Cyber Security & Cyber Resilience AuditReport for the period ended March 2021

Till July 31, 2021

13. To operate the trading terminals from designatedalternate locations.

Till June 30, 2021

MAY 2021


14. Compliance certificate for Margin Trading for CMSegment for HY ended March 31, 2021

Till July 31, 2021

15. System Audit /Cyber Audit Report – Algo / Type IIIMembers for the period ended March 31, 2021

Till July 31, 2021

16. Action taken/follow-on audit report for System Audit/Cyber Audit Report for 2019-20

Till July 31, 2021

❖ Relaxation in time period for certain activities carried out by Depository Participant:

Sl. Compliance Extended timeline / Period of exclusion1. BO Grievances Report Till May 31, 2021 for the month of April 2021 and tillJune 30, 2021, for the

month of May 2021.2. Redressal of investor grievances During period from April 01, 2021 to June 30, 2021 timeline permitted

for redressal of grievances extended to 30 days.3. Closure of demat account During period from April 01, 2021 to June 30, 2021 may be excluded in

timelines of 30 days provided no charges shall be levied for the periodafter receipt of closurerequest.

4. Processing of demat requests During period from April 01, 2021 to July 31, 2021 timeline of 15 days.

7. SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS,2011

Securities and Exchange Board of India (SEBI) vide notification / Circular No.SEBI/HO/CFD/DCR1/CIR/P/2020/49 issued and publish dated 27th March 2020, has published Relaxationfrom compliance with certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers)Regulations, 2011 due to the COVID-19 pandemic.".

Sl.No.

Regulation No. Compliance Particular Compliance Period (Due Date)

1 Regulation 30(1) Every person, who together with persons actingin concert with him, holds shares or voting rightsentitling him to exercise 25% or more of thevoting rights in a target company, shall disclosetheir aggregate shareholding and voting rights asof the 31st day of March, in such target companyin such form as may be specified.

The disclosures required under sub-regulation (1) and sub-regulation (2)shall be made within seven workingdays from the end of each financialyear to;

• every stock exchange wherethe shares of the target companyare listed; and

• the target company at itsregistered office

2 Regulation 30(2) The promoter of every targetcompany shall together with persons acting inconcert with him, disclose their aggregateshareholding and voting rights as of the thirty-first day of March, in such target company in suchform as may

MAY 2021


3. Regulation 31(1) read withRegulation 28(3) of TakeoverRegulations AUGUST 7, 2019CIRCULARhttps://www.sebi.gov.in/legal/circulars/aug-2019/disclosure- of-reasons-for-encumbrance- by-promoter-of-listed-companies_43837.html

The promoter of every listedcompany shall specifically disclosedetailed reasons for encumbrance ifthe combined encumbrance by thepromoter along with PACs with himequals or exceeds: a) 50% of theirshareholding in the company; or b)20% of the total share capital of theCompany

within 2 (two) working days

4. Regulation 31(4) Disclosure of encumbered shares Promoter of every target companyshall together with persons actingin concert with him, disclose theiraggregate shareholding and votingrights as of the 31st March, in suchtarget company in such form asmay be specified

8. SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015

Sl.No.

RegulationNo.

Compliance Particular Compliance Period (DueDate)

1 Regulation7(2)“ContinualDisclosures”

Every promoter, employee and director of every companyshall disclose to the company the number of such securitiesacquired or disposed of within two trading days of suchtransaction if the value of the securities traded, whether inone transaction or a series of transactions over any calendarquarter, aggregates to a traded value in excess of ten lakhrupees (10,00,000/-) or such other value as may be specified;

Every company shall notify;within two trading days ofreceipt of the disclosure orfrom becoming aware of suchinformation

9. SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018

Sl.No.

Regulation No. Compliance Particular Compliance Period(Due Date)

1 Schedule XIX –Para (2) of ICDRRead with Reg108 of SEBILODR

“The issuer shall make an application for listing from the date ofallotment, within such period as may be specified by the Boardfrom time to time, to one or more recognized stock exchange(s)”.In regard to above, it is specified that Issuer shall make anapplication to the exchange/s for listing in case of further issue ofequity shares from the date of allotment within 20 days (unlessotherwise specified).

Within 20 days fromthe date of allotment

2 Regulation 162 The tenure of the convertible securities of the issuer shall notexceed eighteen months from the date of their allotment.

Within 18 monthsfrom date ofallotment

https://www.sebi.gov.in/legal/circulars/aug-2019/disclosure-of-reasons-for-encumbrance-by-promoter-of-listed-companies_43837.html





MAY 2021


3 SEBI CIRCULAR Aug 19, 2019https://www.sebi.gov.in/legal/circulars/aug-2019/non-compliance-with-certain-provisions-of-sebi-issue-of-capital-and-disclosure-requirements-regulations-2018-icdr-regulations-_43941.html

Application for trading approval to thestock exchange Listed entities shall makean application for trading approval to thestock exchange/s within 7 working daysfrom the date of grant of listing approvalby the stock exchange/s.

Within 7 working days fromgrant of date of listingapproval

4 Regulation 76 Application for rightsissue

The issuer along with lead managers and other parties related to theissue shall constitute an optional mechanism (non-cash mode only) toaccept the applications of the shareholders to apply to rights issuesubject to ensuring that no third-party payments shall be allowed inrespect of any application.

5. Regulation 77Service of Documents

In case if the company fails to adhere to modes of dispatch throughregistered post or speed post or courier services due to Covid-19conditions it will not be treated as non-compliance during the saidperiod. The issuers shall publish required & necessary documents onthe websites of the company, registrar, stock exchanges and the leadmanagers to the rights issue.

6 Regulation 84Advertisement

Issuer has the flexibility to publish the advertisement in additionalnewspapers above those required in Regulation 84. Theadvertisement should also be made available on:

A. Website of the Issuer, Registrar, Lead Managers, and StockExchanges.

B. Television channels, radio, the internet, etc. to spreadinformation related to the process.

10. SEBI (BUYBACK OF SECURITIES) REGULATIONS, 2018(BUYBACK REGULATIONS)

Sl.No.

RegulationNo.

Compliance Particular Compliance Period (Due Date)

1 Regulation11 and 24(iv)

Extinguishment of equity shares in connection withBuyback The particulars of the security certificatesextinguished and destroyed shall be furnished bythe company to the stock exchanges where theshares or other specified securities of the companyare listed within seven days of extinguishment anddestruction of the certificates

7 days of extinguishment anddestruction of the certificates

2 Regulation24(i) (f)

Minimum time between buyback and raising offunds

Temporary relaxation in the period ofrestriction provided in Regulation 24(i)(f)from “one year” to “six months”Applicable up to December 31, 2020only

https://www.sebi.gov.in/legal/circulars/aug-2019/non-compliance-with-certain-provisions-of-sebi-issue-of-capital-and-disclosure-requirements-regulations-2018-icdr-regulations-_43941.html







MAY 2021


The amended provisions of the Indian Stamp Act, 1899 brought through Finance Act, 2019 and Rules madethereunder shall come into force w.e.f 1st July, 2020. The stamp duty rates being implemented through theAmended Indian Stamp Act w.e.f. 01/07/2020 are:

11. SEBI (DEPOSITORIES AND PARTICIPANTS) REGULATIONS, 2018

Sl. No. Compliance Particulars Due Date

1.Regulation 76 (Quarter, January – March 2021) Reconciliation of Shares and CapitalAudit

31.07.2021

2.Regulation 74 (5): Processing of demat requests form by Issuer/RTAs - CertificateReceived from Registrar

31.07.2021

12. STAMP DUTY RATES W.E.F. 1ST JULY 2020 & AIF UPDATE

Instruments RateIssue of Debenture 0.005%Transfer and Re-issue of debenture 0.0001%Issue of security other than debenture 0.005%Transfer of security other than debenture on delivery basis; 0.015%Transfer of security other than debenture on non-delivery basis 0.003%Derivatives–(i) Futures (Equity and Commodity) 0.002%(ii) Options (Equity and Commodity) 0.003%(iii) Currency and Interest Rate Derivatives 0.0001%(iv) Other Derivatives 0.002%Government Securities 0%Repo on Corporate Bonds 0.00001%

REFER FAQ ON STAMP DUTY: https://www.sebi.gov.in/sebi_data/faqfiles/jun-2020/1593534237938.pdf

AIFS, WHERE RTAHAVE NOT BEEN APPOINTEDSO FAR, SHALL APPOINT RTA, AT THE EARLIEST, BUTNOTLATERTHAN JULY 15, 2020 TO ENABLE COLLECTION OF APPLICABLE STAMP DUTY ON ISSUE, TRANSFER AND SALEOFUNITS OF AIFS IN COMPLIANCE WITH THE APPLICABLE PROVISIONS OF THE INDIAN STAMP ACT, 1899 ANDTHE RULES MADE THEREUNDER: CIRCULAR : https://www.sebi.gov.in/legal/circulars/jun-2020/collection-of-stamp-duty-on-issue-transfer-and-sale-of-units-of-aifs_46983.html

❑ SEBI Circulars Tracker: 01.04.2021 to 30.04.2021

Sl Particulars Link

1Disclosure of the following only w.r.t schemes whichare subscribed by the investor: (a) risk-o-meter of thescheme and the benchmark along with theperformance disclosure of the scheme vis-à-visbenchmark and (b) Details of the portfolio

https://www.sebi.gov.in/legal/circulars/apr-2021/disclosure-of-the-following-only-w-r-t-schemes-which-are-subscribed-by-the-investor-a-risk-o-meter-of-the-scheme-and-the-benchmark-along-with-the-performance-disclosure-of-the-scheme-vis-vis-ben-_49992.html

https://www.sebi.gov.in/sebi_data/faqfiles/jun-2020/1593534237938.pdf

https://www.sebi.gov.in/legal/circulars/jun-2020/collection-of-stamp-duty-on-issue-transfer-and-sale-of-units-of-aifs_46983.html

https://www.sebi.gov.in/legal/circulars/apr-2021/disclosure-of-the-following-only-w-r-t-schemes-which-are-subscribed-by-the-investor-a-risk-o-meter-of-the-scheme-and-the-benchmark-along-with-the-performance-disclosure-of-the-scheme-vis-vis-ben-_49992.html

MAY 2021


2 COMPREHENSIVE FAQs ON SEBI (PIT)REGULATIONS, 2015

https://www.sebi.gov.in/enforcement/clarifications-on-insider-trading/apr-2021/comprehensive-faqs-on-sebi-pit-regulations-2015_49999.html

3 Relaxation from compliance with certainprovisions of the SEBI (Listing ObligationsDisclosure Requirements) Regulations,2015 due to the CoVID- 19 pandemic

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-from-compliance-with-certain-provisions-of-the-sebi-listing-obligations-disclosure-requirements-regulations-2015-due-to-the-covid-19-pandemic_50000.html

4Relaxation from compliance with certainprovisions of the SEBI (ListingObligations Disclosure Requirements)Regulations, 2015 / other applicablecirculars due to the CoVID-19 pandemic

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-from-compliance-with-certain-provisions-of-the-sebi-listing-obligations-disclosure-requirements-regulations-2015-other-applicable-circulars-due-to-the-covid-19-pandemic_50001.html

5 Addendum to SEBI Circular on “Relaxationin adherence to prescribed timelines issuedby SEBI due to Covid 19” dated April 13,2020

https://www.sebi.gov.in/legal/circulars/apr-2021/addendum-to-sebi-circular-on-relaxation-in-adherence-to-prescribed-timelines-issued-by-sebi-due-to-covid-19-dated-april-13-2020_50006.html

6. Relaxation in timelines for compliance withregulatory requirements

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-in-timelines-for-compliance-with-regulatory-requirements_50007.html

7. Timelines for updation of SchemeInformation Document (SID) and KeyInformation Memorandum (KIM)

https://www.sebi.gov.in/legal/circulars/apr-2021/timelines-for-updation-of-scheme-information-document-sid-and-key-information-memorandum-kim-_50020.html

8. Mutual Funds-Aditya Birla Sun Life FixedTerm Plan-Series TI to Series TM

https://www.sebi.gov.in/filings/mutual-funds/mar-2021/aditya-birla-sun-life-fixed-term-plan-series-ti-to-series-tm_49684.html

9. Circular on Guidelines pertaining toSurrender of FPI Registration

https://www.sebi.gov.in/legal/circulars/mar-2021/circular-on-guidelines-pertaining-to-surrender-of-fpi-registration_49687.html

10. Adjudication Order in respect of KunvarjiFinstock Pvt. Ltd.in the matter of KunvarjiFinstock Pvt. Ltd.

https://www.sebi.gov.in/enforcement/orders/mar-2021/adjudication-order-in-respect-of-kunvarji-finstock-pvt-ltd-in-the-matter-of-kunvarji-finstock-pvt-ltd-_49701.html

11. Securities And Regulations, 2021Exchange Board Of India (Underwriters)(Repeal)

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-underwriters-repeal-regulations-2021_49746.html

12. Securities And Exchange Board Of India(Stock Brokers) (Amendment) Regulations,2021

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-stock-brokers-amendment-regulations-2021_49747.html

13. Securities And Exchange Board Of India(Merchant Bankers) (Amendment)Regulations, 2021

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-merchant-bankers-amendment-regulations-2021_49748.html

14. BNK Capital Markets Limited https://www.sebi.gov.in/filings/takeovers/mar-2021/bnk-capital-markets-limited_49704.html

15. Adjudication Order in respect of UmaBansal in the matter of Dealings in IlliquidStock Options at BSE

https://www.sebi.gov.in/enforcement/orders/mar-2021/adjudication-order-in-respect-of-uma-bansal-in-the-matter-of-dealings-in-illiquid-stock-options-at-bse_49721.html

https://www.sebi.gov.in/enforcement/clarifications-on-insider-trading/apr-2021/comprehensive-faqs-on-sebi-pit-regulations-2015_49999.html

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-from-compliance-with-certain-provisions-of-the-sebi-listing-obligations-disclosure-requirements-regulations-2015-due-to-the-covid-19-pandemic_50000.html

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-from-compliance-with-certain-provisions-of-the-sebi-listing-obligations-disclosure-requirements-regulations-2015-other-applicable-circulars-due-to-the-covid-19-pandemic_50001.html

https://www.sebi.gov.in/legal/circulars/apr-2021/addendum-to-sebi-circular-on-relaxation-in-adherence-to-prescribed-timelines-issued-by-sebi-due-to-covid-19-dated-april-13-2020_50006.html

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxation-in-timelines-for-compliance-with-regulatory-requirements_50007.html

https://www.sebi.gov.in/legal/circulars/apr-2021/timelines-for-updation-of-scheme-information-document-sid-and-key-information-memorandum-kim-_50020.html

https://www.sebi.gov.in/filings/mutual-funds/mar-2021/aditya-birla-sun-life-fixed-term-plan-series-ti-to-series-tm_49684.html

https://www.sebi.gov.in/legal/circulars/mar-2021/circular-on-guidelines-pertaining-to-surrender-of-fpi-registration_49687.html

https://www.sebi.gov.in/enforcement/orders/mar-2021/adjudication-order-in-respect-of-kunvarji-finstock-pvt-ltd-in-the-matter-of-kunvarji-finstock-pvt-ltd-_49701.html

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-underwriters-repeal-regulations-2021_49746.html

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-stock-brokers-amendment-regulations-2021_49747.html

https://www.sebi.gov.in/legal/regulations/mar-2021/securities-and-exchange-board-of-india-merchant-bankers-amendment-regulations-2021_49748.html

https://www.sebi.gov.in/filings/takeovers/mar-2021/bnk-capital-markets-limited_49704.html

https://www.sebi.gov.in/enforcement/orders/mar-2021/adjudication-order-in-respect-of-uma-bansal-in-the-matter-of-dealings-in-illiquid-stock-options-at-bse_49721.html

MAY 2021


16. Reduction in unblocking/refund ofapplication money

https://www.sebi.gov.in/legal/circulars/mar-2021/reduction-in-unblocking-refund-of-application-money_49722.html

17 Declaration of highest bidder in thematter of Arise Bhoomi Developers Ltd. &its Directors in e-auction - Sr. No. 3 – Tal.Vikramgad, Wada, District – Palghar

https://www.sebi.gov.in/enforcement/auction-notice-under-recovery-proceedings/apr-2021/declaration-of-highest-bidder-in-the-matter-of-arise-bhoomi-developers-ltd-and-its-directors-in-e-auction-sr-no-3-tal-vikramgad-wada-district-palghar_49745.html

18 Securities Contracts (Regulation) Act, 1956(As amended by the FinanceAct, 2021 (13 of 2021) w.e.f. April 1, 2021)

https://www.sebi.gov.in/legal/acts/apr-2021/securities-contracts-regulation-act-1956-as-amended-by-the-finance-act-2021-13-of-2021-w-e-f-april-1-2021-_49750.html

19 Securities and Exchange Board of India Act1992 (As amended by the InternationalFinancial Services Centres Authority Act,2019 w.e.f. October 01, 2020)

https://www.sebi.gov.in/legal/acts/apr-2021/securities-and-exchange-board-of-india-act-1992-as-amended-by-the-international-financial-services-centres-authority-act-2019-w-e-f-october-01-2020-_49751.html

20 InvIT Private Issues - National HighwaysInfra Trust

https://www.sebi.gov.in/filings/invit-private-issues/apr-2021/national-highways-infra-trust_49759.html

21 Notice For Meeting on Schemes -Motherson Sumi Systems Limited - Noticeof meeting of the shareholders

https://www.sebi.gov.in/reports-and-statistics/notice-for-meeting-on-schemes/apr-2021/motherson-sumi-systems-limited-notice-of-meeting-of-the-shareholders_49749.html

22 Chairman’s speech dated April 06, 2021 at14th CII Corporate Governance Summit

https://www.sebi.gov.in/media/speeches/apr-2021/chairman-s-speech-dated-april-06-2021-at-14th-cii-corporate-governance-summit_49762.html

23 Setting up of Limited Purpose ClearingCorporation (LPCC) by Asset ManagementCompanies (AMCs) of Mutual Funds

https://www.sebi.gov.in/legal/circulars/apr-2021/setting-up-of-limited-purpose-clearing-corporation-lpcc-by-asset-management-companies-amcs-of-mutual-funds_49770.html

24 "SEBI Order for Compliance" – RecoveryCertificate No. 2532 of 2019 (Mr. AnilBagaria) – Release Order

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/-sebi-order-for-compliance-recovery-certificate-no-2532-of-2019-mr-anil-bagaria-release-order_49771.html

25 Public Issues - Macrotech DevelopersLimited – Prospectus

https://www.sebi.gov.in/filings/public-issues/apr-2021/macrotech-developers-limited-prospectus_49811.html

26 Circular on Reporting Formats for MutualFunds

https://www.sebi.gov.in/legal/circulars/apr-2021/circular-on-reporting-formats-for-mutual-funds_49813.html

27 Notice of Attachment of Bank Accountsand Demat Accounts 6569 & 6570 of 2021dated April 12, 2021 against CorporateProfessionals Capital Pvt. Ltd. [Defaulter]PAN: AABCC7247B in the matter of ECEIndustries Ltd. under Recovery CertificateNo. 3376 of 2021

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/notice-of-attachment-of-bank-accounts-and-demat-accounts-6569-and-6570-of-2021-dated-april-12-2021-against-corporate-professionals-capital-pvt-ltd-defaulter-pan-aabcc7247b-in-the-matter-of-ece-i-_49821.html

28 SEBI cautions investors againstimpersonation

https://www.sebi.gov.in/media/press-releases/apr-2021/sebi-cautions-investors-against-impersonation_49823.html

29 Buybacks - Aarti drugs Limited - Letter ofoffer

https://www.sebi.gov.in/filings/buybacks/apr-2021/aarti-drugs-limited-letter-of-offer_49825.html

https://www.sebi.gov.in/legal/circulars/mar-2021/reduction-in-unblocking-refund-of-application-money_49722.html

https://www.sebi.gov.in/enforcement/auction-notice-under-recovery-proceedings/apr-2021/declaration-of-highest-bidder-in-the-matter-of-arise-bhoomi-developers-ltd-and-its-directors-in-e-auction-sr-no-3-tal-vikramgad-wada-district-palghar_49745.html

https://www.sebi.gov.in/legal/acts/apr-2021/securities-contracts-regulation-act-1956-as-amended-by-the-finance-act-2021-13-of-2021-w-e-f-april-1-2021-_49750.html

https://www.sebi.gov.in/legal/acts/apr-2021/securities-and-exchange-board-of-india-act-1992-as-amended-by-the-international-financial-services-centres-authority-act-2019-w-e-f-october-01-2020-_49751.html

https://www.sebi.gov.in/filings/invit-private-issues/apr-2021/national-highways-infra-trust_49759.html

https://www.sebi.gov.in/reports-and-statistics/notice-for-meeting-on-schemes/apr-2021/motherson-sumi-systems-limited-notice-of-meeting-of-the-shareholders_49749.html

https://www.sebi.gov.in/media/speeches/apr-2021/chairman-s-speech-dated-april-06-2021-at-14th-cii-corporate-governance-summit_49762.html

https://www.sebi.gov.in/legal/circulars/apr-2021/setting-up-of-limited-purpose-clearing-corporation-lpcc-by-asset-management-companies-amcs-of-mutual-funds_49770.html

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/-sebi-order-for-compliance-recovery-certificate-no-2532-of-2019-mr-anil-bagaria-release-order_49771.html

https://www.sebi.gov.in/filings/public-issues/apr-2021/macrotech-developers-limited-prospectus_49811.html

https://www.sebi.gov.in/legal/circulars/apr-2021/circular-on-reporting-formats-for-mutual-funds_49813.html

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/notice-of-attachment-of-bank-accounts-and-demat-accounts-6569-and-6570-of-2021-dated-april-12-2021-against-corporate-professionals-capital-pvt-ltd-defaulter-pan-aabcc7247b-in-the-matter-of-ece-i-_49821.html

https://www.sebi.gov.in/media/press-releases/apr-2021/sebi-cautions-investors-against-impersonation_49823.html

https://www.sebi.gov.in/filings/buybacks/apr-2021/aarti-drugs-limited-letter-of-offer_49825.html

MAY 2021


30 Public Issues - G R Infraprojects Limited -Draft Red Herring Prospectus

https://www.sebi.gov.in/filings/public-issues/apr-2021/g-r-infraprojects-limited-draft-red-herring-prospectus_49840.html

31 Circular on Guidelines for warehousingnorms for Agricultural and Agri- processedgoods and non-agricultural goods (onlybase and industrial metals)

https://www.sebi.gov.in/legal/circulars/apr-2021/circular-on-guidelines-for-warehousing-norms-for-agricultural-and-agri-processed-goods-and-non-agricultural-goods-only-base-and-industrial-metals-_49838.html

32 Informal Guidance sought by Paytm MoneyLimited regarding SEBI (InvestmentAdvisers) Regulations, 2013

https://www.sebi.gov.in/enforcement/informal-guidance/apr-2021/informal-guidance-sought-by-paytm-money-limited-regarding-sebi-investment-advisers-regulations-2013_49853.html

33 Mutual Fund - UTI Focused Equity Fund https://www.sebi.gov.in/filings/mutual-funds/apr-2021/uti-focused-equity-fund_49863.html

34 Adjudication Order in respect of MayfairInfosolution Private Ltd. in the matter ofEsteem Bio Organic Food processing Ltd.

https://www.sebi.gov.in/enforcement/orders/apr-2021/adjudication-order-in-respect-of-mayfair-infosolution-private-ltd-in-the-matter-of-esteem-bio-organic-food-processing-ltd-_49845.html

35 Confirmatory Order in the matter ofMinance Investment Advisors PrivateLimited

https://www.sebi.gov.in/enforcement/orders/apr-2021/confirmatory-order-in-the-matter-of-minance-investment-advisors-private-limited_49881.html

36 "SEBI Order for Compliance" – Notice ofAttachment of Bank account under APNo. 6575 and 6577 of 2021 in RC No.2476 & 2513 of 2019 Against Mr.Deepak Todkar

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/-sebi-order-for-compliance-notice-of-attachment-of-bank-account-under-ap-no-6575-and-6577-of-2021-in-rc-no-2476-and-2513-of-2019-against-mr-deepak-todkar_49882.html

37 Right Issues - Sundaram Finance HoldingsLimited

https://www.sebi.gov.in/filings/rights-issues/apr-2021/sundaram-finance-holdings-limited_49893.html

38 Relaxations relating to procedural matters–Issues and Listing

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxations-relating-to-procedural-matters-issues-and-listing_49900.html

39 InvIT Public Issues - POWERGRIDInfrastructure Investment Trust

https://www.sebi.gov.in/filings/invit-public-issues/apr-2021/powergrid-infrastructure-investment-trust_49909.html

40 Takeovers - Shalimar Agencies Ltd https://www.sebi.gov.in/filings/takeovers/apr-2021/shalimar-agencies-ltd_49903.html

41 Buybacks - Quick Heal Technologies Limited- Public Announcement

https://www.sebi.gov.in/filings/buybacks/apr-2021/quick-heal-technologies-limited-public-announcement_49904.html

42 SEBI Bulletin - March 2021 [MSWord][MSExcel]

https://www.sebi.gov.in/reports-and-statistics/publications/apr-2021/sebi-bulletin-march-2021_49910.html

43 Notice For Meeting on Schemes - PhoenixMills Limited - Notice to EquityShareholders

https://www.sebi.gov.in/reports-and-statistics/notice-for-meeting-on-schemes/apr-2021/phoenix-mills-limited-notice-to-equity-shareholders_49918.html

44 Adjudication Order in respect of 6 Noticeesin the matter of Asian Granito India Limited

https://www.sebi.gov.in/enforcement/orders/apr-2021/adjudication-order-in-respect-of-6-noticees-in-the-matter-of-asian-granito-india-limited_49927.html

https://www.sebi.gov.in/filings/public-issues/apr-2021/g-r-infraprojects-limited-draft-red-herring-prospectus_49840.html

https://www.sebi.gov.in/legal/circulars/apr-2021/circular-on-guidelines-for-warehousing-norms-for-agricultural-and-agri-processed-goods-and-non-agricultural-goods-only-base-and-industrial-metals-_49838.html

https://www.sebi.gov.in/enforcement/informal-guidance/apr-2021/informal-guidance-sought-by-paytm-money-limited-regarding-sebi-investment-advisers-regulations-2013_49853.html

https://www.sebi.gov.in/filings/mutual-funds/apr-2021/uti-focused-equity-fund_49863.html

https://www.sebi.gov.in/enforcement/orders/apr-2021/adjudication-order-in-respect-of-mayfair-infosolution-private-ltd-in-the-matter-of-esteem-bio-organic-food-processing-ltd-_49845.html

https://www.sebi.gov.in/enforcement/orders/apr-2021/confirmatory-order-in-the-matter-of-minance-investment-advisors-private-limited_49881.html

https://www.sebi.gov.in/enforcement/recovery-proceedings/apr-2021/-sebi-order-for-compliance-notice-of-attachment-of-bank-account-under-ap-no-6575-and-6577-of-2021-in-rc-no-2476-and-2513-of-2019-against-mr-deepak-todkar_49882.html

https://www.sebi.gov.in/filings/rights-issues/apr-2021/sundaram-finance-holdings-limited_49893.html

https://www.sebi.gov.in/legal/circulars/apr-2021/relaxations-relating-to-procedural-matters-issues-and-listing_49900.html

https://www.sebi.gov.in/filings/invit-public-issues/apr-2021/powergrid-infrastructure-investment-trust_49909.html

https://www.sebi.gov.in/filings/takeovers/apr-2021/shalimar-agencies-ltd_49903.html

https://www.sebi.gov.in/filings/buybacks/apr-2021/quick-heal-technologies-limited-public-announcement_49904.html

https://www.sebi.gov.in/reports-and-statistics/publications/apr-2021/sebi-bulletin-march-2021_49910.html

https://www.sebi.gov.in/reports-and-statistics/notice-for-meeting-on-schemes/apr-2021/phoenix-mills-limited-notice-to-equity-shareholders_49918.html

https://www.sebi.gov.in/enforcement/orders/apr-2021/adjudication-order-in-respect-of-6-noticees-in-the-matter-of-asian-granito-india-limited_49927.html

MAY 2021


❑ LIST OF BSE Circulars – APRIL, 2021:

Circulars Date

Addendum to SEBI Circular on “Relaxation in adherence to prescribedtimelines issued by SEBI due to Covid 19” dated April 13, 2020

April 30, 2021

Relaxation from compliance with certain provisions of the SEBI (LODR) Regulations, 2015 /other applicable circulars due to the CoVID-19 pandemic April 30, 2021

Relaxation from compliance with certain provisions of the SEBI (LODR) Regulations, 2015 due tothe CoVID-19 pandemic

April 30, 2021

Public Issue of POWERGRID Infrastructure Investment Trust (PG InvIT)- Allocation to AnchorInvestors

April 28, 2021

Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations,2021

April 28, 2021

Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)Regulations, 2021

April 27, 2021

Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)(Amendment) Regulations, 2021

April 27, 2021

Relaxations relating to procedural matters- Issues and Listing April 23, 2021

Guidance note with respect to Regulations 50(3) and 51 (2) of Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 April 15, 2021

Reduction in unblocking/refund of application money April 2, 2021

Guidance note as per Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 23(9) on disclosure of related party transactions April 1, 2021

13. IBBI UPDATES (INSOLVENCY AND BANKRUPTCY BOARD OF INDIA)

❖ Centre promulgates IBC amendment ordinance to allow pre-packaged insolvency for MSMEs

The Central Government has promulgated Insolvency and Bankruptcy Code (Amendment) Ordinance 2021 toallow pre-packaged insolvency process for MSMEs. In June 2020, the government promulgated an ordinancethat suspended initiation of new insolvency proceedings for defaults.

The Ordinance, in essence, has amended the Insolvency and Bankruptcy Code 2016 and allows the CentralGovernment to notify such pre packaged process for defaults of not more than Rs 1 crore.

A pre-packaged resolution essentially translates to a company preparing a restructuring plan with its creditorsbefore initiating insolvency proceedings. This helps to cut down the time and costs in the overall process. Thegovernment had been looking to offer a pre-packaged resolution framework for stressed companies underthe IBC.

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20210430-7























MAY 2021


❑ Important Notifications and Circulars Tracker (April 2021)

Sl. Notification(s) Link(s)

1. IBBI (Model Bye-Laws and Governing Board of

Insolvency Professional Agencies) (Second Amendment)

Regulations, 2021

https://www.ibbi.gov.in/uploads/legalframwork/cc46284330f773a4c2e4515c03d78d6d.pdf

2. IBBI (Insolvency Professionals) (Amendment)

Regulations, 2021

https://www.ibbi.gov.in/uploads/legalframwork

/c91c364ba5f65d67f1fd3c1e8e3cf4df.pdf3 Insolvency and Bankruptcy Code (Amendment)

Ordinance, 2021http://www.mca.gov.in/Ministry/pdf/IBCAmedOrdinanceBill_06042021.pdf

4 Corrigenda-Insolvency Ordinances, 2021 and

Bankruptcy Code (Amendment)

http://www.mca.gov.in/Ministry/pdf/CorrigendaIBCAmedOrdinances_06042021.pdf

5 President promulgates Insolvency and Bankruptcy Code

(Amendment) Ordinance, 2021


6 Insolvency and Bankruptcy Board of India notifies the

Insolvency and Bankruptcy Board of India (Pre-

packaged Insolvency Resolution Process) Regulations,

2021.


7 Panel of IPs prepared in accordance with 'Guidelines forAppointment of IPs as Administrators under the SEBI(Appointment of Administrator and Procedure forRefunding to the Investors) Regulations, 2018' forappointment as Administrator for a period from April 1,2021 to September 30, 2021

https://www.ibbi.gov.in/uploads/whatsnew/11d770df4ce9e008dd4bb1ad8ddaae2f.pdf

8 IBBI QUARTERLY NEWSLETTER FOR OCT-DEC, 2020 https://www.ibbi.gov.in/uploads/whatsnew/9c804e45a2741e109a6cab56f48a140b.pdf

9 Notification under section 4 of the Insolvency and

Bankrutpcy Code, 2016 for Chapter III-A

https://www.ibbi.gov.in/uploads/whatsnew/11

d770df4ce9e008dd4bb1ad8ddaae2f.pdf10 NCLT to take up regular hearing through Video

conference w.e.f. 12th April, 2021

https://www.ibbi.gov.in/uploads/whatsnew/cb1

d977c1d6f103ab0eff261f3c40836.pdf11 Corporate Insolvency Resolution Processes Ending With

Order ofLiquidation: As on 31st December, 2020

https://www.ibbi.gov.in/uploads/whatsnew/53

bd5ac6197fde3b3bcb597656ee1e8d.pdf

12 Corporate Insolvency Resolution Processes Yielding

Resolution: As on 31st December, 2020

https://www.ibbi.gov.in/uploads/whatsnew/a4815defe743ad9db42d20f93ef18ac2.pdf

13 IBBI notifies the IBBI (Pre-packaged Insolvency

Resolution Process) Regulations, 2021

https://ibbi.gov.in/uploads/press/2c3259202fdd

122cabc6ef77d88c994c.pdf14 Notice- Extension of last date of applications for ED https://www.ibbi.gov.in/uploads/whatsnew/f91

c4b21d3b24033e422d09ecf039da2.pdf15 IBBI (Information Utilities) (Amendment) Regulations,

2021https://www.ibbi.gov.in/uploads/legalframwork/874c1870a61be056ec690a5ecb928ef0.pdf

16 Information Brochure: Insolvency Professional - A Key

To Resolution

https://www.ibbi.gov.in/uploads/whatsnew/2021-04-13-163323-pt2ei-a56e6e185a5c5b7e8c7355f7a68f612f.pdf

https://www.ibbi.gov.in/uploads/legalframwork/cc46284330f773a4c2e4515c03d78d6d.pdf

https://www.ibbi.gov.in/uploads/legalframwork/c91c364ba5f65d67f1fd3c1e8e3cf4df.pdf


http://www.mca.gov.in/Ministry/pdf/CorrigendaIBCAmedOrdinances_06042021.pdf




https://www.ibbi.gov.in/uploads/whatsnew/9c804e45a2741e109a6cab56f48a140b.pdf


https://www.ibbi.gov.in/uploads/whatsnew/cb1d977c1d6f103ab0eff261f3c40836.pdf

https://www.ibbi.gov.in/uploads/whatsnew/53bd5ac6197fde3b3bcb597656ee1e8d.pdf

https://www.ibbi.gov.in/uploads/whatsnew/a4815defe743ad9db42d20f93ef18ac2.pdf

https://ibbi.gov.in/uploads/press/2c3259202fdd122cabc6ef77d88c994c.pdf

https://www.ibbi.gov.in/uploads/whatsnew/f91c4b21d3b24033e422d09ecf039da2.pdf

https://www.ibbi.gov.in/uploads/legalframwork/874c1870a61be056ec690a5ecb928ef0.pdf

https://www.ibbi.gov.in/uploads/whatsnew/2021-04-13-163323-pt2ei-a56e6e185a5c5b7e8c7355f7a68f612f.pdf

MAY 2021


14. NBFC COMPLIANCE OVERVIEW

Non-Banking Financial Companies (NBFCs) is a Company registered under the Companies Act 2013 engagedin the businesses) of providing financial services including loans & advances, leasing, hire purchase etc. Theyprovide loans and advances and other credit facilities to business people or budding entrepreneur whereBank/Financial Institution are not comfortable, or say it is an alternative source of finance to businessman.NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Chapter IIIB of theReserve Bank of India Act, 1934 and any rules made thereunder or any directions issued by it under the Act.

A. NBFC MONTHLY COMPLIANCES SUBMITTED BY ALL NON-DEPOSIT TAKING NBFCS

17 In the matter of Ghanashyam Mishra and Sons Pvt. Ltd.

Through Authorised Signatory Vs. Edelweiss Asset

Reconstruction Company Ltd. Through the Director &

Ors. Civil Appeal No. 8129 of 2019 and other appeals.

https://www.ibbi.gov.in/uploads/order/ecaeca64f566cdaa84f535bce42f1232.pdf

18 Summary - Judgment dated 13th April 2021 of the Hon’ble

Supreme Court of India in the matter of Ghanashyam

Mishra and Sons Pvt. Ltd. Vs. Edelweiss Asset

Reconstruction Company Ltd. & Ors. [Civil Appeal No.

8129 of 2019 with WP (Civil) No. 1177 of 2020 and other

appeals]

https://www.ibbi.gov.in/uploads/legalframwork/e4abe155c7c4a5e6eb66291650fdee24.pdf

19 Clarification - Consideration of matters / issues by thecommittee of creditors on request by members of thecommittee

https://www.ibbi.gov.in/uploads/legalframwork/c829e44873898f6f8bd534454c351710.pdf

20 In the matter of Asset Reconstruction Company (India)Ltd. Vs. Bishal Jaiswal & Anr. Civil Appeal No. 323 of 2021with 4 other civil appeals

https://www.ibbi.gov.in/uploads/order/6f46d35423eabba10c230c216c6c78d9.pdf

21 In the matter of Mr. Venkataramanarao Nagarajan,Insolvency Professional

https://www.ibbi.gov.in/uploads/order/429e28f26385420ea0676c74e7f93f13.pdf

22 Reimpose moratorium on taking cos to NCLT under IBCdue to COVID: Assocham to govt

https://economictimes.indiatimes.com/news/economy/policy/reimpose-moratorium-on-taking-cos-to-nclt-under-ibc-due-to-covid-assocham-to-govt/articleshow/82102432.cms

23 Spectrum sale under IBC after clearing government dues:NCLAT

https://economictimes.indiatimes.com/industry/telecom/telecom-news/spectrum-sale-under-ibc-after-clearing-govt-dues/articleshow/82057668.cms

NAME PURPOSE OF THE FORM DEPARTMENTMonthlyReturn

Monthly Return on NBFC-NDSI with asset size of Rs.100 CR. & above RBI

NBS_ALM1 Statement of Short term dynamic liquidity to be filed within 10 days ofthe closer month

RBI

https://www.ibbi.gov.in/uploads/order/ecaeca64f566cdaa84f535bce42f1232.pdf

https://www.ibbi.gov.in/uploads/legalframwork/e4abe155c7c4a5e6eb66291650fdee24.pdf

https://www.ibbi.gov.in/uploads/legalframwork/c829e44873898f6f8bd534454c351710.pdf

https://www.ibbi.gov.in/uploads/order/6f46d35423eabba10c230c216c6c78d9.pdf

https://www.ibbi.gov.in/uploads/order/429e28f26385420ea0676c74e7f93f13.pdf

https://economictimes.indiatimes.com/news/economy/policy/reimpose-moratorium-on-taking-cos-to-nclt-under-ibc-due-to-covid-assocham-to-govt/articleshow/82102432.cms

https://economictimes.indiatimes.com/industry/telecom/telecom-news/spectrum-sale-under-ibc-after-clearing-govt-dues/articleshow/82057668.cms

MAY 2021


To be submitted by all deposit-taking NBFC’s having asset size above Rs. 100 crores or public deposits ofRs. 20 crores and aboveNBS6 Monthly Return stating Exposure to Capital Market RBI

B. NBFC COMPLIANCE UNDER COMPANIES ACT, 2013

FORM NAME PURPOSE OF THE FORM DEPARTMENTE-Form MGT-7 Annual Return (Within 60 days of conclusion AGM) ROC

E-Form AOC-4 Filing of annual financials i.e. Balance Sheet & Profit & Lossstatement (Within 30 days of conclusion of AGM)

ROC

E-Form DIR-12 If there is any change in Directors (Within 30 days of the date ofthat change)

ROC

And any other Event based Compliance like DIR 3 KYC, ADT-1 etc.

C. NBFC Compliance Checklist for Non-Deposit & Deposit-taking Company

S. No Particulars Time LimitAnnual Compliances1. Unaudited March Monthly return/NBS-7 On or before 30th June2. Statutory Auditors certificate on Income & Assets On or before 30th June

3.Information about Companies having FDI/Foreign Funds

On or before 30th June4. Audited March Monthly return/NBS-7 Upon completion

5. File audited annual balance sheet and P&L AccountOne month from the date ofsignoff

6. Resolution of Non-Acceptance of Public DepositBefore the commencement of the newFinancial year

7.Declaration of Auditors to Act as Auditors of theCompany Annual basis

Monthly Compliance1. Monthly Return By 7th of every month2. Upload Monthly Return By 7th of every monthPeriodical Compliances1. Appointment of Director (Annexure III) Within 30 days of appointment2. Resignation of Director (DIR-12 + Challan report) Within 30 days of appointment

3.Adoption of any notification in the ensuing Board Meetingand filing the certified copy with RBI

• NBFC Updates – April, 20211. Extend MSME recast scheme: NBFCs to RBI

Non-bank lenders have approached the Reserve Bank of India (RBI) and sought to extend theMSME recast scheme by more than a year, in light of the fresh surge in Covid cases. NBFCs havetold the RBI that since the MSMEs have been unable to revive their business activities, they are in

MAY 2021


urgent need of financial support. FIDC has also requested that the recast scheme be extended toall those MSME clients that had got payment relief under the scheme during the first Covid wave.Most MSMEs’ cash-flows are under deep stress with top line shrinkage of 30-40% in FY21. Industry estimatessuggest that Covid-19 could push revenue growth for MSMEs to -17% to - 21% in FY21.

2. NBFCs to get funds under on tap TLTRO scheme for incremental lending: RBIThe Reserve Bank of India (RBI) on Friday proposed to provide funds to non-banking finance companies(NBFCs) from banks under on tap TLTRO scheme for lending to some stressed sectors. In October last year,the RBI had announced on tap targeted long term repo operations (TLTRO) scheme for banks. It had said toconduct on tap TLTRO with tenors of up to three years for a total amount of up to Rs one lakh crore at afloating rate linked to the policy repo rate. The scheme was available till March 31, 2021.

3. Reinstate subvention for MSME loans: NBFCsNon-bank lenders have appealed to the finance ministry and MSME minister Nitin Gadkari to bring back theinterest subvention scheme that allows the 2% subvention on incremental loans to medium and smallenterprises. These lenders have also requested the government to rollback changes made to the creditguarantee scheme and reinstate the guarantee cover to 75% which was brought down to 50%.“These are nibbling matters at the macro level, which cannot be ignored,” said a senior executive, who isinvolved in discussions with the ministry.As per recent changes made to the scheme, CGTMSE guarantee coverage is reduced to 50 per cent for NBFCs.Earlier, loan loss was covered to the extent of 75 per cent. Also, the payout cap is revised downwards to twotimes of receipts (guarantee fee paid plus recoveries remitted through the year). It was earlier capped atthree times of receipts.

4. Non-banks seek debt recast for small peersConsidering the severity of the second wave of covid-19, retail borrowers, small businesses, and retail andwholesale trading industries shall be in urgent need of support from lenders Non-bank financiers have urgedthe Reserve Bank of India to allow small lenders with assets of less than ₹500 crore to get their loansrestructured, which will help them overcome any possible asset-liability mismatch.

15. NCLT & NCLAT UPDATES (UPDATES-APRIL, 2021)Sl. Particulars Link

1 Constitution of Special Bench at NCLT Hyderabadorder dated 31.3.2021

https://nclt.gov.in/sites/default/files/January2021/circulars/Constitution of Special Bench at NCLT Hyderabad orderdated 31.3.2021.pdf

2 Declaration of Holiday on 14.04.2021- Birthday ofDr. B.R. Ambedkar.

https://nclt.gov.in/sites/default/files/January2021/circulars/img20210409_17220785.pdf

3 Declaration of holiday on 14th April, 2021-Birthday of Dr. B.R. Ambedkar

https://nclt.gov.in/sites/default/files/January2021/circulars/img20210409_17220785_0.pdf

4 Special Bench at NCLT, New Delhi- Court No. III https://nclt.gov.in/sites/default/files/January2021/circulars/img20210412_17230503.pdf

5. NCLT- Urgent matters through Video Conferenceorder dated 19.4.2021

https://nclt.gov.in/sites/default/files/January2021/circulars/Adobe Scan Apr 19%2C 2021.pdf

https://nclt.gov.in/sites/default/files/January2021/circulars/Constitution%20of%20Special%20Bench%20at%20NCLT%20Hyderabad%20%20order%20dated%2031.3.2021.pdf


https://nclt.gov.in/sites/default/files/January2021/circulars/img20210409_17220785_0.pdf


https://nclt.gov.in/sites/default/files/January2021/circulars/Adobe%20Scan%20Apr%2019%2C%202021.pdf

MAY 2021


1. NCLT approves Kalyan Toll's resolution plan for Lanco Hoskote HighwayThe National Company Law Tribunal (NCLT) has approved the Rs 201.89 crore resolution plan proposed byKalyan group firm Kalyan Toll Infrastructure for the Lanco group’s Bengaluru-Hoskote-Mulbagal toll roadproject. The Lanco Hoskote Highway L (LHHL) project will be the first national highway asset to change handsthrough the corporate insolvency resolution process mechanism.The National Company Law Tribunal (NCLT) has approved the Rs 201.89 crore resolution plan proposed byKalyan group firm Kalyan Toll Infrastructure for the Lanco group’s Bengaluru-Hoskote-Mulbagal toll roadproject.

2. Two top lenders file petitions against McNally Bharat in NCLTEngineering, procurement and construction company McNally Bharat Engineering is facing an Insolvency andBankruptcy Code (IBC) test as two major financial creditors, Bank of India and Canara Bank have lodgedpetitions at NCLT to trigger insolvency proceedings against the company, as per court filings.McNally Bharat had succeeded in fending off a similar threat of bankruptcy proceedings in 2019 when TataCapital dragged it to NCLT.A consortium of banks that include public sector lenders, private sector banks and foreign banks are owedaround ₹4,000 crore by the company. The dues comprise both long term and short term loans as well as non-fund based facilities such as letters of credit and bank guarantees.

3. MCA moves NCLT against former management of CG PowerThe Ministry of Corporate Affairs (MCA) has approached the Mumbai bench of the National Company LawTribunal (NCLT) against the erstwhile management Avantha Group-owned CG Power & Industrial Solutionsseeking its intervention to recover the money that “the erstwhile management had allegedly collected andseeking to distribute it to the victim of fraud”. Power equipment major CG Power did not comment.In 2019, the board of CG Power & Industrial Solutions had to restate its earnings after finding suspected

fraudulent transactions by its chairman and few confidantes had removed its chairman Gautam Thaparalleging misappropriation of funds. Thapar refuted the allegations and claimed he had repaid Rs 4,000 croreto many lenders since 2015.

4. 86% insolvency cases pending over 270 daysOver 85% of the ongoing corporate insolvency cases have dragged beyond 270 days, which was the upperlimit for finalisation of the process. Latest data released by the Insolvency & Bankruptcy Board of India (IBBI)on Monday showed that up to December, 1,481 of the 1,717 pending cases had extended beyond 270 days.

The four-year-old Insolvency & Bankruptcy Code — which is credited with changing the debt repaymentculture —had provided for resolution within 180 days, with a possible extension of another 90 days. But,adjournments and multiple legal challenges in cases have meant that they usually go past the prescribedtimelines.Of the over 600 cases, in 279 a settlement had been reached with the creditor, IBBI data showed. In any case,by all accounts nearly 75% of the applications for insolvency action are resolved before the admission stageitself as promoters have paid up fearing that they would be ousted from their company the moment NCLTappointed a resolution professional.

6. fixing next date of hearing in pending matters https://nclt.gov.in/sites/default/files/January2021/circulars/Adobe Scan 27 Apr 2021 %282%29.pdf

https://nclt.gov.in/sites/default/files/January2021/circulars/Adobe%20Scan%2027%20Apr%202021%20%282%29.pdf

MAY 2021


5. NCLT starts hearing Arunachalam’s plêArunachalam is the eldest daughter of the former family patriarch, the late MV Murugappan. She hadaccused other shareholders of the diversified group of ignoring her claims for a board seat at the holdingcompany, Ambadi Investments Ltd (AIL), over her gender. Arunachalam and her mother, MV ValliMurugappan, hold an 8.21 per cent stake in AIL, short of the 10 per cent required to seek legal remedyagainst such alleged oppression.The National Company Law Tribunal on Wednesday began hearing a petition by Valli Arunachalam and hermother, seeking a waiver on the minimum shareholding requirement to raise their claims of oppression andmismanagement against the management of the Murugappa Group’s holding company.

6. IL&FS board revises debt recovery target upwards to Rs 61,000 croreSo far, the board of IL&FS has addressed Rs 43,100 crore, which represents more than 70 per cent of theoverall revised targeted recovery value of Rs 61,000 crore. Infrastructure Leasing and Financial Services(IL&FS) has upped its estimates on the aggregate debt that will be addressed to Rs 61,000 crore from Rs56,000 crore earlier, in its quarterly update on the resolution process of the assets of the conglomerate.This will help the firm, which created a major disruption in the shadow banking sector after it went bust in2018, resolve 62 per cent of the total overall fund based and non-fund based group debt of around Rs 99,000crore.Currently, out of 347 entities that the IL&FS group had under its umbrella at the beginning of the resolutionprocess, 186 entities stand resolved, liquidated, or closed and the resolution of the rest 161 entities is goingon. Post-September, the board is of the view that the number of entities would come down below 100 andthe process of achieving this would be: liquidation of entities that are not operational currently closure ofmany of these entities, and sale of many of these entities.

16. MSME (MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES)

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industriesare the backbone of the economy.

MSME – Merged Criteria: Investment and Annual TurnoverRevised Classification applicable w.e.f 1st July 2020

Classification Micro Enterprise Small Enterprise Medium Enterprise

Manufacturing Enterprisesand Enterprises renderingServices

Investment in Plantand Machinery orEquipment:Not more than Rs.1crore and AnnualTurnover ; not morethan Rs. 5 crore

Investment in Plantand Machinery orEquipment:Not more than Rs.10crore and AnnualTurnover ; not morethan Rs. 50 crore

Investment in Plant andMachinery or Equipment: Notmore than Rs.50 crore andAnnual Turnover ; not more thanRs. 250 crore

MAY 2021


❖ Key Updates – For the month of April, 2021

1. Assocham MSME chairman urges Centre to relax norms in view of second waveThe second Covid-19 wave has hit the MSME sector, particular the micro and small enterprises who were justabout recovering from the first wave, said Manguirish Pai Raiker, chairman, National Council for MSME ofAssociated Chambers of Commerce and Industry of India (Assocham).Assocham along with other national and regional organisations have urged the Centre to extend the deadlinefor statutory filings in view of the surge in cases and the economic slowdown brought about by the pandemicin the first month of 2021-22.

Manguirish Pai Raiker, said that there are over 63 crore MSMEs registered across India of which 11-12% havemost likely closed while another 10% are struggling to stay afloat.

2. NBFCs seek extension of MSME restructuring scheme till March 2022

Non-banking finance companies (NBFCs) have requested the Reserve Bank to extend the one-time

restructuring scheme of MSME advances till March 31, 2022, as these players are unable to revive their

businesses. In February last year, the Reserve Bank had permitted onetime restructuring of existing MSME

advances, classified as 'standard' without downgrade in the asset classification subject to certain additional

provisioning and other compliances. The time limit for implementation of the scheme was till December 31,

2020.

In a recent letter written to RBI Governor Shaktikanta Das, FIDC, an industry body of NBFCs, said due to thesevere second wave of COVID-19, the micro, small and medium enterprises (MSMEs) have not been able torevive their economic activities and are in urgent need of support from the lenders.

3. Government fast-tracks MSME insolvencyThe Union Cabinet on Wednesday recommended promulgation of an ordinance to fast-track insolvencyresolution of micro, small and medium enterprises (MSMEs), a plan that was first announced last year. Thepromoter of small businesses will be given an opportunity to participate in the resolution process, includingsubmitting a plan.The plan involves a "prepack" insolvency resolution scheme for MSMEs, leaving the promoter in the saddle,while the resolution proposal is finalised. Besides, the promoter of small businesses will be given anopportunity to participate in the resolution process, including submitting a plan.

❖ Key Updates – For the month of April, 2021

Sl. Particulars Link

1 Upgradation of paperless process for grant of Industrial EntrepreneurMemorandum (IEM)


2 Cabinet approves Processing Industry Production Linked IncentiveScheme for Food


3 Credit Guarantee Scheme for Subordinate Debt (CGSSD) extended upto30.09.2021


4 Amidst Covid Gloom, KVIC Blooms; Generates Highest Ever Employmentunder PMEGP; MSME Minister Shri Nitin GadkariHails Performance






MAY 2021


17. IRDAI – INSURANCE SECTOR UPDATES

IRDAI directs insurers to decide on COVID-19 claims within 60 minsDirection issued in view of Delhi HC order asking IRDAI to tell insurers to communicate their cashlessapprovals within 30 to 60 minutes so that there is no delay in discharge of patients.Regulator IRDAI on Thursday directed insurers to decide on cashless COVID-19 treatment claims within 60minutes of the receipt of final bill so that the hospital bed can be quickly made availabhosle to anotherwaiting patient. The Insurance Regulatory and Development Authority of India (IRDAI) also directed allgeneral and health insurers to communicate their decision on authorisation for cashless treatment for COVID-19 claims to the hospital within 60 minutes from the time of receipt of request along with all necessaryrequirements from the hospital.

5 Status of Production-Linked Incentive Schemes; https://pib.gov.in/PressReleseDetail.aspx?PRID=1710134

6 Minister for RTH and MSME, Shri Nitin Gadkari HailsKVIC's Innovative Project RE-HAB (Reducing Elephant –Human Attacks Using Bees); Project to be Replicated inAll Elephant-affected States


7 EFC Memo for Khadi Gramodyog Vikas Yojana, KGVY forcontinuation during the period 2021-22 to 2025-26, i.e.co-terminus with 15th Finance Commission cycle-regarding

https://msme.gov.in/whatsnew/efc-memo-khadi-gramodyog-vikas-yojana-kgvy-continuation-during-period-2021-22-2025-26-ie-co

8 NBFCs seek extension of MSME restructuring scheme tillMarch 2022

https://economictimes.indiatimes.com/small-biz/sme-sector/nbfcs-seek-extension-of-msme-restructuring-scheme-till-march-2022/articleshow/82137508.cms

9 Government fast-tracks MSME insolvency https://economictimes.indiatimes.com/small-biz/sme-sector/government-fast-tracks-msme-insolvency/articleshow/81867230.cms

10 Covid-19: Rescuing The MSME Sector https://www.bloombergquint.com/coronavirus-outbreak/covid-19-rescuing-the-msme-sector

11 Register "FREE OF COST" at Udyam Registration, to availvarious

benefits of Schemes implemented by the Ministry ofMSME.

https://twitter.com/minmsme/status/1381837472141746176

12 NBFCs seek extension of MSME restructuring scheme tillMarch 2022


13 MSMEs can initiate bankruptcy resolution with ₹15,000fee

https://www.livemint.com/news/india/msmes-can-initiate-bankruptcy-resolution-with-rs-15-000-fee-11618294350204.html



https://msme.gov.in/whatsnew/efc-memo-khadi-gramodyog-vikas-yojana-kgvy-continuation-during-period-2021-22-2025-26-ie-co


https://economictimes.indiatimes.com/small-biz/sme-sector/government-fast-tracks-msme-insolvency/articleshow/81867230.cms

https://www.bloombergquint.com/coronavirus-outbreak/covid-19-rescuing-the-msme-sector

https://twitter.com/minmsme/status/1381837472141746176


https://www.livemint.com/news/india/msmes-can-initiate-bankruptcy-resolution-with-rs-15-000-fee-11618294350204.html

MAY 2021


IRDAI directs insurers to decide on COVID-19 claims within 60 minsDirection issued in view of Delhi HC order asking IRDAI to tell insurers to communicate their cashlessapprovals within 30 to 60 minutes so that there is no delay in discharge of patients.Regulator IRDAI on Thursday directed insurers to decide on cashless COVID-19 treatment claims within 60minutes of the receipt of final bill so that the hospital bed can be quickly made availabhosle to anotherwaiting patient. The Insurance Regulatory and Development Authority of India (IRDAI) also directed allgeneral and health insurers to communicate their decision on authorisation for cashless treatment for COVID-19 claims to the hospital within 60 minutes from the time of receipt of request along with all necessaryrequirements from the hospital.

In the wake of prevailing conditions of COVID-19 cases in the form of second wave and in line with aforesaiddirections of the High Court, IRDAI has issued the following directions to all insurers:

a) Decision on authorization for cashless treatment for COVID-19 claims shall be communicated to thenetwork provider (hospital) within a period of 60 minutes from the time of receipt of authorizationrequest along with all necessary requirements from the hospital.

b) Decision on final discharge of patients covered in COVID-19 claims shall be communicated to the networkprovider within a period of one hour from the time of receipt of final bill along with all necessaryrequirements from the hospital.

❖ Key Updates – April, 2021

Sl. Particulars Link

1 Norms on settlement of COVID-19 health insuranceclaims

https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo4465&flag=1

2 Standard products on Fire and Allied perils insurancebusiness

https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4428&flag=1

3 Dividend Criteria for Equity Investment under“Approved Investment”


4 Comments / suggestions of the stakeholders on drafton IRDAI (General Insurance Products) Regulations,2021


5 RTI - Frequently Asked Questions (FAQs)-Department wise


6 Final order in the matter of M/s Muthoot RiskInsurance and Broking Services Pvt. Ltd.


7 Draft Guidelines on Trade Credit Insurance https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4438&flag=1

8 Investment in Alternative Investment Fund (AIFs) https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4441&flag=1

9 IRDAI (Regulatory Sandbox) (Amendment)Regulations, 2021

Click here

10 IRDAI (Insurance Advertisements and Disclosure)Regulations, 2021











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This article is updated till 31st April, 2021 with all Laws / Regulations and their respective amendments.

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MAY 2021


Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors

may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care

of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental

damage resulting from or arising out of or in connection with the use of this information.

**********************

11 Order in the matter of Future Generali IndiaInsurance Co Ltd


12 Standard Prodcuts-Health Insurance https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4407&flag=1

14 Order in the matter of M/s SBI General InsuranceCompany Ltd.


15 Order in the matter of M/s Royal Sundaram GeneralInsurance Co. ltd.


16 Order in the matter of M/s Bajaj Allianz GeneralInsurance Company Ltd.


17 Gross premium underwritten by non-life insurerswithin India (segment wise) : For the month / uptothe Month Of March, 2021 (Provisional &Unaudited)


18 Granting cashless facility for treatment of Covid-19 https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4456&flag=1

19 Facilitation by the Insurers for Cashless services atnetwork hospitals


20 Investments in Debt Securities of InvITs and REITs https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4454&flag=1

21 Communication on Health Insurnace Claims https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4458&flag=1

22 IRDAI (Manner of Assessment of Compensation toShareholders or Members on Amalgamation)Regulations, 2021














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MAY 2021