Volume #16 | IssueNo. 307/2024 | December 2024
My Margazhi Hero!
Count down to the 25th year of the 21st century has begun. Undoubtedly it has been a quarter century of technological advancements that are at once life-transforming and life-engulfing in unimaginable ways. 2000 began with the Y2K millennium bug, which seemed gigantic back then. At 2025, we are grappling with the ubiquitous AI and ML issues, which again seem gargantuan. ‘Hoping hopelessly against hope’ that our human memory will continue to come in handy in the age of Google’s Willow, the latest quantum chip that will compute in under five minutes that would take one of today’s fastest supercomputers 10 septillion (that is, 1025) years — a number that vastly exceeds the age of the Universe.
Well, I don’t claim any familiarity with either Sundar Pichai or Satya Nadella or the growing number of Indian Americans who are in Trump’s A-list. I have nothing spectacular to share about technology either. My December month hero is Velusamy, a Chennai auto driver who beat Google Maps to safely drive 4 of us ladies on the treacherous Chennai roads to reach one of the many Margazhi (auspicious Tamil month for spiritual discourses and music festivals) month music concerts ! Where man-made G-map failed, God-made Memory-map triumphed. Let me share why Velusamy became our saviour.
Unlike the uncertain Bangalore cabs, the young, well dressed cab driver in Chennai promptly accepted our booking and started chatting up with us as we eagerly looked forward to reaching the music sabha to listen to the mellifluous flute of Vidwan Shashank. For the first few minutes we felt envious of the city flyovers, wide roads, absence of road humps and barely any traffic lights to keep our journey in check. But soon, the memory of Bangalore roads (of whatever is left !) started haunting us as we neared a dusty, metro construction, strewn with stones and gavel that made it extremely difficult for the cab to navigate. We were an optimistic and enthusiastic music-loving ‘quartet’ ready to brace the ‘oh-not-so-bad-chennai traffic’ to be in time for Shashank’s flute.
We didn’t take the driver seriously when he started complaining about the state of roads, unruly traffic and how he was doing us a favour by accepting the ride. He kept highlighting this and also complaining about the irresponsible auto drivers who will never-ever drive on these roads and if they really do, charge a top-up premium of ‘tonty rupees’. We thanked our stars that we were seated in an Uber gaadi and the driver would drop us exactly at the place we wanted. While he made us believe it, the driver suddenly realised that the lanes got so narrow that he couldn’t go any further.
With bedecked sabhas at all junctions and bejewelled mamis and girls alighting from multiple vehicles, we found ourselves in a road jam that resembled a chakravyuha ! Continuing to brainwash us with his talks, the driver suddenly announced that we had reached our destination and our journey was ‘Done’. He wouldn’t move an inch ahead. We were forced to alight in front of a music sabha that wasn’t our destination. An elderly uncle advised us that hopping on to an auto to cover rest of the 3-4 kms is the best way out of the logjam. While the ‘anti-autodriver-rhetoric’ rang in our ears, we found ourselves squeezing into an auto when Velusamy said “Amma, okkarungo (please sit). I will take you to Bheemasena street”.
Nether did he follow any maps nor did he turn the meter on. He just seemed to know the route. My tech-savvy niece who sat on her mother’s lap complaining of her crushed knee-caps, religiously tracked the journey on G-map. I joined her too. I was dismayed when what started as 5 minutes turned to 8, 3, 10, 12, sometimes 1 min to finally 20 mins. All the while I kept checking on Velu “Ungalku veli theriyuma ?” (do you know the way). Everytime he swerved left or right or tried avoiding a hump or some cattle or vehicle or pedestrian, my sceptical questioning increased until he said “Amma, naa ingada porandavan (born here). Grown and driven in Madras all my 50 years. I know every bend and every turn and every crater on the road. Trust me”. I know where Parthasarathy Sabha is. Know he did. It was exactly on the other side of where we had first alighted from the cab 20 mins ago. Felt greatly relieved to see the temple, Sabha and the music rasikas waiting for the recital to start. Not to mention the aromas from the kutchery-kitchen floating across the pandal that Madras Marghazi is so famous for !
Thanking Velu for safely bringing us to the concert, we paid him a grand 150 and also requested if he would come to the same spot an hour later to pick us up. He agreed and shared his mobile number too. Needless to say, no tech booking, no maps, Velu was promptly there to give us a ride again back to the hotel. I was guilty of judging Velu over G-map but happy with his tremendous patience (braving the dense traffic and a constantly nagging-me😊) and touched by his promise to come back again despite the narrow roads. Clearly google maps felt ‘LOST’ navigating the chaotic Chennai roads while Velu’s memory was ‘BANG ON’ ! This is just 2 weeks ago as we welcome the 25th year of the 21st century. This is what makes ‘YEH MERA BHARAT’ unique and experiential.
Velu is my Margazhi hero. As for the regulatory hero story of December, 2024 there is no 2nd thought about who it is – SEBI LODR 3rd Amendment is the winner all the way. It is being ‘celebrated’ through many articles and analysis as well as across the country workshops and webinars. Do catch the other updates from SEBI (on PIT, ESG debt securities, BRSR Core Industry Standards), DGFT, GST, IT and IBBI. For any previous issues of Samhita and the readers’ feedback, please visit http://www.sharadasc.com/resource-center/.
Reflect on the past with a clear conscience | Embrace the future with blooming aspirations |
|| Wishing you a Happy New Year 2025 with nature’s finest blossoms ||
SEBI LODR - Third Amendment 2024
Expert Committee for facilitating Ease of Doing Business and harmonization of ICDR and LODR had released its report in June 2024. The Committee had reviewed the provisions in light of facilitating ease of doing business, bringing in clarity and reducing the overall compliance burden, including cost of compliance while effectively balancing investor protection and compliance by listed entities. Further to the comments received from public, the changes have been notified in LODR based on the recommendations.
Vide Notification dated December 12, 2024, SEBI has notified major changes to the SEBI (Listing Obligation and Disclosure Requirements) in key areas such as :
- Related party transactions
- Compliance Officer
- Board and committee vacancy
- Appointment, eligibility and disqualification of Secretarial Auditor
- Integration of disclosures
- Timelines for disclosures under Regulation 30
- Streamlining of newspaper publications of financial results
For a summary of the LODR amendments, please click on the link below.
(Open highlights of SEBI LODR Amendments)
(Open SEBI Notification dt December 12, 2024)
SEBI Updates
SEBI, vide its Press Release dated December 18, 2024 has published various decisions taken at its Board meeting held on said date. These decisions are aimed at not only ensuring Ease of Doing Business but also strengthening investor protection and governance. Areas such as BRSR Reporting, SME Listing framework, listing of debt, functioning of intermediaries etc have been reviewed. The changes will be formally notified through amendments to relevant regulations. Highlights of the proposed changes are enclosed.
(Open SEBI Board meeting highlights)
(Open SEBI Press Release dt December 18, 2024)
SEBI vide notification dated December 11, 2024 has amended the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 to insert definition for Environment, Social and Governance Debt Securities (“ESG Debt Securities”) as follows:
Environment, Social and Governance Debt Securities or “ESG Debt Securities” means green debt securities, social bonds, sustainability bonds, sustainability-linked bonds, or any other type of bonds, by whatever name called, that are issued in accordance with such international frameworks as adapted or adjusted to suit Indian requirements that are specified by the Board from time to time, and any other securities as specified by the Board.
This is wider in scope compared to the concept of green debt securities that exists. The framework for issuance of ESG debt securities is yet to be notified by SEBI and the introduction of definition is only an enabling provision.
SEBI vide notification dated December 04, 2024 has amended the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. Pursuant to this amendment, the definition of Connected Person has been amended in light of relative of connected persons specified in clause (i) of Regulation 2(1) of PIT regulations who are deemed to be connected persons. The term ‘immediate relative’ has been replaced with ‘a relative’ of connected persons specified in clause (i). Further the term Relative has now been defined in the PIT Regulations as follows:
“relative” shall mean the following:
(i)spouse of the person;
(ii) parent of the person and parent of its spouse;
(iii) sibling of the person and sibling of its spouse;
(iv) child of the person and child of its spouse;
(v) spouse of the person listed at sub clause (iii); and
(vi) spouse of the person listed at sub -clause (iv)
This amendment provides clarity and is wider in definition than ‘Relative’ under the Companies Act, 2013.
In order to facilitate ease of doing business and to bring about standardization in implementation, the Industry Standards Forum (ISF consisting of ASSOCHAM, FICCI and CII) has formulated Industry standards, in consultation with SEBI, for effective implementation of the requirement to disclose Business Responsibility and Sustainability Reporting Core under Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015.
The listed entities shall follow the industry standards as and when notified by the ISF to ensure compliance with SEBI requirements on disclosure of BRSR Core. This circular shall be applicable from FY 2024-25 onwards.
IBBI Update
The IBBI has issued a circular dated December 02, 2024 further extending the deadline from November 30, 2024 to December 31, 2024 for filing various forms related to voluntary liquidation processes under the IBC Code, 2016. Initially set by Circular No. IBBI/LIQ/74/2024 on June 28, 2024, it introduced an online platform to submit various forms to IBBI instead of through email communication. These forms pertain to details of Corporate Debtor, Meetings of Contributories, dissolution application etc
Others
A draft Bill to curb unregulated lending activities, including digital lending has been released by the Finance Ministry. It imposes a ban on unregulated lending activities including Digital lending and issuing of any advertisement for such unregulated lending, directly or indirectly. Terms such as Digital Lending, Regulated Lending Activity, Public Lending Activity have been defined in the Bill. It may be noted that lending activities regulated by RBI, Companies Act and several other specific Acts governing banks and financial institutions are covered within the scope of Regulated Lending Activity. Accordingly, any activity outside the scope will be treated as Unregulated lending activity which is prohibited. Notably loan to relatives or friends could be impacted by this Act. Further, it provides for punishment for lending in contravention of the provisions which includes imprisonment for a term of 2 to 7 years and fine of 2 lakhs rupees which can extend up to 1 Crore. Public can share their comments on the Bill by February 13, 2025.
DGFT Updates
DGFT vide Trade Notice dated December 06, 2024 has notified the launch of revamped Preferential Certificate of Origin (eCoO) 2.0 for streamlining the certification process for exporters w.e.f December 21, 2024. A Preferential Certificate of Origin is issued by the Chambers of Commerce for goods having preferential tariff treatment. Through the new portal, exporters will be able to assign multiple users/applicants under a single Importer Exporter Code.
Vide Trade Notice dated December 20, 2024 the launch of portal has been rescheduled to January 17, 2025.
(Open DGFT Trade Notice dt December 06, 2024)
(Open DGFT Trade Notice dt December 20, 2024)
In furtherance to notification dated August 03, 2023 through which import of IT Hardware such as Laptops, Tablets, All-in-one personal computers etc were restricted, the DGFT has issued circular dated December 11, 2024 to provide for Import Management System of such restricted IT Hardware for year 2025. Following are the highlights:
- Importers shall apply in Import Management System for Import Authorization on DGFT website between the period 13.12.2024 to 15.12.2024
- Authorization issued shall be valid till 31.12.2025
Tax Update
Vide circular dated December 16, 2024 the CBDT has issued updated guidelines on the Direct Tax Vivad Se Vishwas Scheme (DTVSV) 2024 which are aimed at resolving pending income tax disputes. The updated guidelines clarify the eligibility criteria, the procedure for filing declarations, and the resolution process. The guidance also provides FAQs on appeal eligibility, filing deadlines, and conditions, such as appeals pending on July 22, 2024, tax assessments, and penalties.
GST Updates
From FY 2023-24 onwards, the total credit for inward supplies is auto-populated in Table 8A of Form GSTR-9 from GSTR-2B. Table 8C must be filled manually for ITC on inward supplies received during the FY but availed in the next FY. However, concerns were raised about potential mismatches between Tables 8A and 8C of Form GSTR-9 for FY 2023-24.
Unlike FY 2022-23, where values in Table 8A were auto-populated from GSTR-2A, for FY 2023-24, they will be from GSTR-2B. This would cause certain discrepancies in various scenarios. GSTN vide Advisory dated December 09, 2024 has issued clarifications on how to do the reporting in such scenarios.
(Open GSTN Advisory dt December 09, 2024)
GSTN vide Advisory dated December 17, 2024 has announced key changes to Eway Bill and E Invoicing Systems which include mandatory Multi-Factor Authentication (MFA) and restrictions on E-Way Bill (EWB) generation. MFA is currently mandatory for taxpayers with an Annual Aggregate Turnover (AATO) over Rs 100 Crores. Pursuant to the Advisory, MFA shall become applicable as follows:
- W.e.f January 01, 2025, it shall become mandatory for taxpayers with AATO exceeding Rs 20 Crores.
- W.e.f February 01, 2025, it shall become mandatory for taxpayers with AATO exceeding Rs 5 Crores
- W.e.f April 01, 2025, it shall become mandatory for all taxpayers and users.
The Advisory also lays down restrictions on time limit for generation of EWB.
In the 55th GST Council Meeting, held on December 21, 2024, significant decisions aimed at simplifying tax procedures, enhancing compliance, and providing sector-specific relief were announced. Issues relating to Compensation cess, GST on health insurance, GST exemption on certain goods and services, GST on sale of used vehicles, Invoice Management Framework etc were addressed in the meeting. Click on the link below to read a summary of the key decisions taken in the 55th GST Council Meeting.
(Open Highlights GST Council Meeting)
(Open Ministry of Finance Press Release dt Dec 21, 2024)
January 2025
Quote of the day
"There is neither a beginning nor an end. Life is a continuum. Celebrate every moment."
Disclaimer: 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. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.