Hi Folks
Demonitisation, long queues, yester-year images of queues for rice-kerosene-sugar-oil, maara-maari in parliament, aakrosh divas, tears of patriotism, rationed cash, restricted gold, fake currencies, cashless ATMs, biased media reporting, naked truth from social media, people’s resilience & hope for better days, better life….this is the New Normal even as it in man-buns, yoga, sustainable farming, fresh food, organic food, shared resources, sharing economy, alumni meets etc. etc….
in less than 30 days there has been a paradigm shift in the Indian economy, in the thinking, in the actions. A never-before attempted scale of reforms, albeit shocks due to unpreparedness (or was it a well-thought-out and orchestrated cash squeeze?). As both the common man and corporates are grappling with the New Normal, let us do a Throw Back of the last 6 anniversary issues of Lexspeak ……
6th (2015) – ire on MCA which still continues. Last day of annual filing was a complete washout this year with MCA collapsing the whole day.
5th (2014) – Recalled what Neil Armstrong said when he landed on the moon “That’s one small step for (a) man, one giant leap for mankind.”
4th (2013) – Inauguration of the first Bharathiya Mahila Bank on Indira Gandhi’s birthday prompted me to recall what Franklin Adams said “The true republic: men, their rights and nothing more; women, their rights and nothing less.” This was also a tribute to my woman-dominated Lexspeak team, which still is.
3rd (2012) – Wondering how to make Lexspeak interesting, different & relevant. Still wondering !!
2nd (2011) – Start up energy which is young, out of the box, infectious & demanding……the ecosystem has got only better with time. New births and New deaths leading to innovative business opportunities.
1st (2010) – Pledge to continue, to change and to grow through knowledge sharing. The measure of our success is the value we add to you. Hoping we still do !
Day 0 (2009) – Started on 26th November, 20009, guided by “Tamasoma Jyotirgamaya”, in Sanskrit, which means “May the light of knowledge remove the darkness of ignorance”.
Well, an interesting journey for us and for you too, I believe. This 7th anniversary issue of Lexspeak carries interesting regulatory udpates, some of which are path-breaking in their impact. Plenty to read over the weekend.

Should you wish to refer to any of our older issues of Lexspeak, do visit our Resource Centre at sharadasc.com

Warm regards

Insolvency and Bankruptcy Board of India (Model Bye–Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 has been notified.

Key Highlights of the Regulations are:

•    Composition of the Governing Board
•    Model Bye-laws of an Insolvency Professional Agency consists of the following:
–    Duties and functions of Insolvency Professional Agency
–    Constitution of various committees
–    Eligibility and Process for enrolment as a Professional Member
–    Grievance Redressal Mechanism & Process of Disciplinary Proceedings
–    Process for surrender of membership or temporary surrender and expulsion from membership of a professional member
•    Manner and procedure for amendment in bye-laws
ICSI & ICAI have setup Section 8 Companies as insolvency professional agencies.
Previously for calculating the useful lives to compute depreciation for intangible assets, the provisions of the accounting standards for the time being in force were applicable. Now, relevant Indian Accounting Standards (Ind AS) shall apply. Where a company is not required to comply with the Ind AS, It shall comply with the relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006.
In order to make the cargo clearance process easier, the CBEC has decided to transact through paperless processing by doing away with the routine printing of certain documents, which are as follows:
•    GAR7 forms/TR-6 challans;
•    Transshipment Permit Copy;
•    Shipping Bill Exchange Control copy and Export Promotion copy; and
•    Exchange Control Copy of Bill of Entry.
All the above documents are under EDI process, ensuring “ease of doing business”.

Investment by Foreign Portfolio Investors (FPI) are permitted to invest only in listed or to-be-listed debt securities. Investment in unlisted debt securities is restricted only to companies in infrastructure sector. Now FPIs can invest in other eligible instruments under the corporate bond route by including the following:
•    Unlisted Corporate debt securities in the form of non-convertible debentures/bonds issued by public or private companies. Minimum residual maturity of 3 years with an end-use restriction on investment in real estate business, capital market and purchase of land.
•    Any certificate or instrument issued by a Special Purpose Vehicle set up for securitization of assets, where banks, FIs or NBFCs are originators;
•    Any certificate or instrument issued and listed in terms of the SEBI Regulations on Public Offer and Listing of Securitised Debt Instruments, 2008;
•    Investment in the unlisted corporate debt securities and securitized debt instruments shall not exceed Rs. 35,000 crore.
Regulations issued under the Foreign Exchange Management (Insurance) Regulations, 2000 has been revised w.e.f. 29th December, 2015. Accordingly, Memorandum of Foreign Exchange Management Regulations relating to General/Health Insurance and Life Insurance have also been suitably modified. Major changes effected can be found in the revised Regulations.
CBDT have clarified that premium paid by the firm on the Keyman Insurance Policy of a partner, to safeguard the firm against a disruption of the business, is an admissible expenditure under section 37 of the Income Tax Act, 1961.
Section 143(2) empowers the Assessing Officer or the Prescribed Authority to issue a notice to an Assessee to furnish particulars in support of the Return filed under Section 139 or 142(1). It is now notified that the ‘Prescribed Authority’ shall be an Income Tax Officer who has been authorised by the CBDT to act as income-tax authority for the purposes of sub-section (2) of section 143.
Considering the recommendations of “Alternative Investment Policy Advisory Committee” (“AIPAC”) and public comments thereon, the SEBI Board has approved following amendments to SEBI (Alternative Investment Funds) Regulations, 2012 with respect to ‘Angel Funds’:
•    The upper limit for number of angel investors in a scheme is increased from 49 to 200.
•    The definition of start-up for Angel Funds investments be similar to definition of DIPP as given in their start-up policy. Accordingly, Angel Funds will be allowed to invest in start-ups incorporated within five years, which was earlier 3 years.
•    The requirements of minimum investment amount by an Angel Fund in any venture capital undertaking is reduced from Rs. 50 lakhs to Rs. 25 lakhs.
•    The lock-in requirements of investment made by Angel Funds in the venture capital undertaking is reduced from 3 years to 1 year.
•    Angel Funds are allowed to invest in overseas venture capital undertakings upto 25% of their investible corpus in line with other AIFs.
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.

S. C. Sharada & Associates, Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034
sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]
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