MCA Updates
Security clearance required for appointment of Director or for DIN application

MCA vide notification dated 01.06.2022, notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022. The changes brought about by the Amendment Rules are as follows:

  • A person who is a national of a country sharing land borders with India is required to obtain security clearance from the Ministry of Home Affairs to obtain DIN and to be eligible to be appointed as a director.
  • In Form DIR-2 (Consent to act as director) and Form DIR-3 (DIN application) the proposed director / DIN holder should declare that:
    • He is not required to obtain security clearance, or
    • That necessary security clearance has been obtained and the same has been attached to the form being filed.
Open Notification No. G.S.R. 410(E) dtd.01.06.2022
One more resubmission available for Form STK-2

MCA vide notification dated 09.06.2022, has notified that companies that have filed form STK-2 for voluntary strike off will now be allowed 2 resubmissions if the Registrar finds the form defective. The form shall be resubmitted within 15days of receipt of resubmission remarks.
Earlier only 1 resubmission was allowed for Form STK-2.

Open Notification No. G.S.R. 436(E) dtd.09.06.2022
Restoration of name in ID Data Bank

Independent Directors (ID) whose names have been included in the Databank are required to clear an online proficiency test within 2 years of inclusion of their name in the Databank, failing which their names shall be removed from the Databank.
Vide notification dated 10.06.2022, a sub-rule has been inserted, allowing restoration of name of any individual whose name has been removed from the Databank, provided they clear the online proficiency self-assessment test within 1 year of restoration. Failing this, the individual will have to file a fresh application.

Open Notification No. G.S.R. 439(E) dtd.10.06.2022
No additional fees for event based LLP Forms and LLP Form 11

  • Considering the technical difficulties faced by stakeholders and based on the representations received, MCA vide circular dated 31.05.2022, has exempted the liability of additional fee on LLPs upto 30.06.2022 for the event based filings which were due during the period 25.02.2022 – 31.05.2022.
  • MCA vide Circular dated 29.06.2022 has relaxed the levy of additional fee on LLP Form 11 (Annual Return) till 15.07.2022.
Open General Circular No. 06/2022 dtd.31.05.2022
Open General Circular No. 07/2022 dtd.29.06.2022
No additional fees for LLP Forms with due date 25.02.2022 – 31.05.2022

Considering the technical difficulties faced by stakeholders and based on the representations received, MCA vide circular dated 31.05.2022, has exempted the liability of additional fee on LLPs upto 30.06.2022 for the event based filings which were due during the period 25.02.2022 – 31.05.2022.

Open General Circular No. 06/2022 dtd.31.05.2022
Due date for filing Form CSR-2 – extended upto 30.06.2022

MCA vide notification dated 31.05.2022, has extended the due date for filing Form CSR-2 from 31.05.2022 to 30.06.2022.
The notification also inserted another proviso under Rule 12(1B) of the Companies (Accounts) Rules, 2014, which states that Form CSR-2 for the FY 2021-22 shall be filed after filing of Form AOC-4/AOC-4 XBRL/AOC-4 NBFC (Ind AS), by 31.03.2023.

Open Notification No. G.S.R.407(E) dtd.31.05.2022
RBI Update
Restriction on storage of actual card data – timeline extended

RBI vide its Circular dated 17.03.2020 had imposed prohibition on storage of card data (COF) by the authorised non bank payment aggregators and merchants on-boarded by them from 30.06.2021 and upon receipt of various representations, the same was extended to 31.12.2021 and subsequently extended to 30.06.2022 vide RBI circular dated 23.12.2021.
The same has been further extended till 30.09.2022 vide RBI circular dated 24.06.2022, after which the data shall be purged.
RBI permitted Card on File Tokenisation vide its Circular dated 07.09.2021. Under this mechanism of tokenisation, the sensitive card data would be replaced by random numbers. In the RBI circular dated 23.12.2021 RBI had further clarified that industry stakeholders may use any other mechanism in addition to tokenisation for transactions that currently involve/requires storage of card data.

Open Notification No. RBI/2022-23/77 dtd.24.06.2022
Discontinuation of return on details of guarantee availed and invoked from non-resident entities

AD Banks were advised earlier in the year vide circular no.26 dtd.18.02.2022 about the proposed discontinuation of return on “Details of guarantee availed and invoked from non-resident entities”. The return was to be filed for issue and invoking of non-resident guarantee for fund based and non-fund based facilities (such as Letters of Credit/guarantees etc.) availed by one resident from another in India. The above return shall be discontinued w.e.f. quarter ending June 22.

Open Notification No. RBI/2022-23/69 dtd.09.06.2022
IBBI Updates
Complaint handling procedure – amended

  • To streamline the grievance handling procedure, IBBI has notified the IBBI (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022 and IBBI (Inspection and Investigation) (Amendment) Regulations, 2022. IBC and these Regulations offer a mechanism for redressal of complaints against IPs, IPAs and Insolvency Utilities (IU). Highlights of the changes as per the Press Release are as follows:
  • Timelines related to enforcement processes have been revised
  • Effective participation of IPAs in regulating the IPs through examination of grievances received against IPs.
  • Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.

The Amendment Regulations are effective from 14.06.2022.

Open Notification No. IBBI/2022-23/GN/REG086 dtd.14.06.2022
Open Notification No. IBBI/2022-23/GN/REG087 dtd.14.06.2022
Open Press Release
GST Updates
Late fee waived for Form GSTR4

CBIC vide notification dated 26.05.2022 seeks to waive the late fee under section 47 for the period from 01.05.2022 till 30.06.2022 for delay in filing Form GSTR4.

Open Notification No. 07/2022 dtd.27.05.2022
Income Tax Updates
Cost inflation index for FY 22-23 notified

CBDT has notified the cost inflation index for the Financial Year 2022-23 as 331, vide Notification dated 14.06.2022.

Open Notification No. 62/2022 dtd.14.06.2022
Clarification on Form 10AC

CBDT has issued clarification regarding Form No 10ACs issued in the past. It is clarified that where due to technical glitches, Form No. 10AC has been issued during FY 2021- 2022 with the heading “Order for provisional registration” or “Order for provisional approval” instead of “Order for registration” or “Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or approval”.

Open Circular No. 11/2022 dated 03.06.2022