The Uber rape issue may seem a stray, unfortunate incident in the calendar of events that has hogged the limelight during 2014. This is not to take away the seriousness of what happened, rather what should not have happened at all. However ironically it has triggered varied reactions amongst the several stakeholders – general public, media, users, women’s groups, drivers, cab companies, taxi aggregators, government, parliamentarians etc. While the
issue has not been resolved and Uber and its like are not happy with the new regulations requiring them to get registered, it has at least got the Government to sit up and take note. While the entrepreneurs are ahead of the times with innovative solutions, unfortunately the Government is yet to catch up in creating the right kind of legal framework for them to operate. It is always a reaction to some deviation, some lapse, some fraud, some non-compliance – never a pro-active framework where the rules are clearly laid down before the game begins. Ease of doing business requires this amongst others. Equally, the onus also lies on the corporates to comply in letter and spirit and behave like responsible citizens. From small beginnings come great things – this is the law of nature. Let us ensure governance in small little things we do everyday, Great results will ensue in the form of strong, sustainable business and society.
Lexspeak 120th issue brings you the usual dose of regulatory updates and dates to remember. Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.
Welcome a fresh new year 2015 ! May it herald great joy, prosperity, good health and success in all that you do !!Warm regards
Much awaited “Scope of Secretarial Audit” has been clarified by ICSI (Institute of Company Secretaries of India). It shall include reporting on compliance of Companies Act, 2013, Securities Contracts (Regulation) Act, 1956, Depositories Act, 1996, FEMA and SEBI Act, 1992, other industry specific laws applicable to the company. labour and other laws need to be examined from a adequacy of systems and processes perspective. For fiscal laws, Secretarial Auditors can rely on statutory auditors or other designated professionals.
RTGS business hours have been revised by RBI to meet the market expectation. Revised timing will be 8.00 hours to 20.00 hours on week days and from 8.00 hours to 15.30 hours on Saturdays.
In terms of the new amendment, BG exemption will be available, even if the license holder has been penalized under certain Acts, if the jurisdictional commissioner is satisfied that 100% BG is not justified in absence of risk of revenue.
Till now, license holder had to execute 100% BG, even though there was no revenue risk, if the holder had been penalized during the previous 3 financial years.
CBEC has decided to restore the ACP status of the ACP clients which have either been withdrawn / not extended due to serving of show cause notice to them. However the said restoration after 3-6 months is subject to payment of duty demanded with interest and 25% penalty, as the case may be.
To deepen the reform process in the economy in general and the Insurance sector in particular, the Union Cabinet has approved Insurance Laws (Amendment) Ordinance 2014 to amend Insurance Act, 1938 and other relevant Acts. The objective is to remove archaic and redundant provisions in the Insurance Laws, empower IRDA to enable more effective regulation and enhance the foreign equity investment cap in an Indian Insurance Company from 26 to 49% with the safeguard of Indian ownership and control.
Certain procedural hindrances relating to documentation w.r.t. Deemed Export Benefits have been removed.
SEBI has passed an order providing the exit to Bangalore Stock Exchange Limited (BgSE) which had applied for exit through voluntary surrender of recognition as per the Exit Circular, 2012.
RBI has once again extended the due date for exchange of the pre-2005 currency notes till 30th June, 2015. Notes can be exchanged for their full value either in their bank account or at a bank branch convenient to them.
Authorised Dealer Banks have been authorised to permit creation of charge / pledge on the shares of the Joint Ventures (JV) / Wholly Owned Subsidiary (WOS)/ Step Down Subsidiary (irrespective of the level) of an Indian party in favour of a domestic or overseas lender for securing the funded and / or non-funded facility to be availed of by the Indian party or by its group companies / sister concerns / associate concerns or by any of its JV / WOS / SDS.
Similar permission has been given w.r.t. creation of charge on the domestic assets in favour of overseas lender and overseas assets in favour of domestic lender.
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.