Hi Folks
It is raining, it is pouring… … … … really ? At least, the drenched, dripping white petals say so.Alas, the reality is starkly different. While some parts of the country are receiving heavy rains, most parts are bone dry. Bangalore seems cursed again with abysmal rains and a number of mysterious viruses causing serious throat and respiratory illnesses. If you introspect, the reasons are not difficult to fathom – each one of us is a cause in some way or the other. Soon we may need to contend ourselves with ‘feeling the rain’ by looking at pictures and dreaming of rainy days or singing this nursery rhyme… … … …
It’s raining; it’s pouring.
The old man is snoring.
He went to bed and bumped his head,
And he wouldn’t get up in the morning
Who knows some geek may even come up (or must have already come up) with a wearable device that can help you experience different seasons at the touch of a button or a screen or by just visualizing the same. Dreadful to think that something as normal and welcome as rain could also move into virtual reality !
It is raining, it is pouring… … … ..nay it is flooding… … … .notifications and clarifications by MCA. After brining in a half-baked legislation, at least the Government is now listening and trying to pick up lost ground. However, the damage has been done due to lack of transitional provisions and it has got as messy and slushy as it could. Be that as it may, there is much news that this 110th issue of Lexspeak carries. Do read over the weekend.
Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.Warm regards

  • Independent Directors of a holding Company and their relatives in reference to a Company are excluded from the ambit of Related Party definition.
  • Anomaly in sec 2(76)(iv) of the Act relating to Related Party definition has been rectified by including the words ‘or his relatives’ after ‘Manager’. ‘Relatives’ was missing earlier though included in other clauses.
  • Provision relating to declaration of beneficial interest in any shares is not applicable to Trust created for setting up of Mutual Fund or Venture Capital Fund or other funds as approved by SEBI.
  • The words ‘either value or volume of shares’ in Rule 13 of the above Rules relating to filing the Return of changes of 2% increase or decrease in shareholding position of each promoters and top 10 shareholders by a Listed Company has been omitted. There is better clarity now.
  • Maintenance of records and documents in electronic form by a Listed Company or a Company having not less than 1000 security holders made optional.
An Individual appointed as CEO by Public Companies engaged in multiple businesses with multiple CEOs, having paid up capital of Rs.100 crores or more and annual turnover of Rs.1000 crores or more can be appointed as Chairperson, which was hitherto restricted. This is a breather for large Companies.
  • The term “Related Party” for contract or arrangement requiring special resolution is clarified.
  • RPT provisions are not applicable to transactions arising out of Compromises, Arrangements and Amalgamations.
  • Contract entered under CA1956 does not require fresh approval under CA2013 unless modified after 01.04.2014.
  • All pending applications or forms filed with ROC / RD before 01.04.2014 to be disposed of as per the Rules made under CA1956.
  • Resolutions passed during the period from September 2013 to March 2014 shall be implemented as per CA1956.
  • Transition period available for such resolutions for implementation is 1 year from the date of passing of such resolution or 6 months from the commencement of corresponding provisions of CA2013. Any amendment made to the same must be as per CA2013.

Liberalized Remittance Scheme (LRS) with increased remittance limit of USD 1,25,000 per financial year can now be used by resident individuals for acquisition of immovable property outside India.
NIC 2008 version to be used by Companies for RBI reporting on allotment of securities in Form FCGPR and for transfer of securities between resident and non-resident holders in Form FCTRS. Hitherto RBI was insisting on reporting in NIC 1987 version.
  Senior Citizen Saving Scheme Rules (SCSS)

  • Death of Depositor:In Joint Account, the spouse who is the sole nominee may continue the account on same terms and conditions or shall close the account and claim refund of deposit with interest.
  • Mode of Deposit: Deposits in the form of cash up to Rs.1 lakh and payment through electronic mode permitted. Earlier Cash, Cheque or DD was accepted.
  • Interest on Deposit: Interest shall be payable from the date of deposit to 31st March / 30th June / 30th September / 31st December on 1st working day of April / July / October / January as the case may be.

  Public Provident Fund Scheme Rules (PPF)

  • Initial subscription amount has been increased from Rs.5/- to Rs.100/- and account holder shall be issued Statement of Account in place of Passbook.
The all-in-cost ceiling of ECBs over 6 months LIBOR of 350 bps (3 – 5 years) and 500 bps (above 5 years) which was fixed in March, 2012 and extended from time to time will continue till December, 2014. All other conditions remain unchanged..
Form Nos. 3CA, 3CB and 3CD relating to Tax Audit u/s 44AB of the Income Tax Act, 1961 have been revised.
Note: The contents of this
Newsletter are only a summary and has not dealt with any issue in detail. Any action
taken or proposed to be taken must be in consultation with professionals and not
merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

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