The threshold limits for monthly wages under the Employee Compensation Act for the purpose of calculation of compensation to an employee in case of disablement or death as per the given table in the said Act, stands increased from Rs. 8,000 to Rs. 15,000 w.e.f. 03.01.2020. Rs. 15,000 is the wages for calculation of compensation across the board for all employees, irrespective of their salary drawings. It is pertinent to note that this compensation is only available to employees not covered under the ESI Act.

Originally the amendments made to the Indian Stamp Act, 1899 vide Finance Act, 2019 were effective from 09.01.2020. However the effective date now stands as 01.04.2020 through the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) (Amendment) Rules, 2020.

Highlights of the amendments to the Indian Stamp Act, 1899 vide Finance Act, 2019 are as follows:

• Clause (b) of Section 8A amended – Transfer of securities from a registered owner to a depository (de-materialization) or a depository to a beneficial owner (re-materialisation) shall not be liable to duty.
• Clause (c) of Section 8A omitted – Earlier Clause (c) had exempted the transfer of beneficial ownership in securities from duty i.e. transfer of securities dealt in dematerialized form were exempt from payment of stamp duty. Post the above omission; duty may be levied on such transactions.
• Section 9A inserted – Stamp duty shall be levied on transaction of securities done on a recognised stock exchange or through off market transfers / over the counter transactions through a depository. Stock exchanges, depositories and such other persons prescribed by the Central Government are authorised to collect duties levied. This is covered under the Indian Stamp Rules, 2020 referred to above.
• Section 9B inserted – Duties shall be levied on issue and transfer of securities held in physical form (transactions not on the stock exchange or depositories). In case of issue of securities, stamp duty shall be as per the rate prescribed by the State Govt. where the registered office of the issuer is situated and market value shall be considered for calculating the stamp duty payable. In case of transfer of securities, the seller shall pay the stamp duty calculated on the consideration received against sale or transfer.

Earlier w.e.f. 01.04.2020 top 500 listed entities were required to ensure that the Chairperson of their Board is a non-executive director who is not related to the MD or CEO. However vide SEBI (LODR) (Amendment) Regulations, 2020, the date has been deferred to 01.04.2022, giving them a breather of 2 more years to comply with the “One person, One role” principle.

To enable Regulated Entities (RE) in undertaking Customer Identification Processes (CIPs) and Customer Due Diligences (CDDs) for individuals in a seamless manner, the RBI has prescribed an additional option for REs i.e. a Video based CIP (V–CIP) which shall be Aadhaar based verification. The V–CIP shall be conducted by the RE through a live video based application. The Master Direction on KYC has undergone changes to incorporate this process. It also prescribes the procedure and security measures to be followed by the REs during the use of V–CIP.

Highlights of the IBBI (Liquidation Process) (Amendment) Regulations, 2020 are listed below:

1. “Corporate Liquidation Account” means the liquidation account maintained by the Board. As notified vide Circular dated 09.01.2020, IBBI has this account with Punjab National Bank which is to be used for deposit of unclaimed dividends and / or undistributed proceeds of liquidation process. Liquidator to deposit unclaimed or undistributed dividend to the ‘Corporate Liquidation account’ before submission of the Final Report. Regulations also contain details about deposit, withdrawal and operation of the Corporate Liquidation Account.
2. A person who is ineligible under the IBC to submit a resolution plan is prohibited from being a party to any compromise or arrangement during liquidation process.
3. ‘Register of unclaimed dividends and undistributed proceeds’ to be maintained and preserved by the liquidator along with other registers and books required to be maintained.
4. Secured Creditor who realises his security interest shall:
1. Pay his share of the insolvency resolution process cost and liquidation cost and workmen’s dues under section 53, as he was expected to pay if he had relinquished the security interest, within 90 days from commencement of liquidation; and
2. Pay the excess of realised value over the amount of his claim to the liquidator, within 180 days from the date of commencement. If the amount payable is not ascertained within the prescribed time, the liquidator to estimate the amount payable.
5. Secured creditor not to sell or transfer an asset which is subject to security interest to any person who is not eligible to submit a resolution plan under the insolvency process.

On the heels of prohibiting the promoters and their related parties from submitting a resolution plan during the insolvency resolution process and participating in mergers and arrangements during the liquidation process, now they are also barred from acquiring an asset, which is subject to security interest, from the secured creditor, during liquidation process.

A clarificatory amendment has been issued to make it certain that RCM (Reverse Charge Mechanism) on renting of motor vehicle will apply only when the service provider (other than a body corporate), making supply to a body corporate does not issue an invoice charging GST @12% (with ITC) w.e.f. 01.10.2019.