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The MCA amends norms relating to useful life and residual value, clarifies certain aspects of capitalisation of costs
01 September 2014

Recently, the Ministry of Corporate Affairs (MCA) has issued certain amendments and clarifications relating to the application of certain provisions of the Companies Act, 2013 (the Act) relating to computation of depreciation expenditure (useful lives and residual values) and capitalisation of costs for power projects.

This issue of First Notes summarises the important aspects arising from amendments to schedule II of the Act, and the MCA clarification on capitalisation of costs by companies engaged in power projects

 

SEBI’s discussion paper on material events and price sensitive information
22 August 2014

The Securities and Exchange Board of India (SEBI) has observed disparities in disclosures made under clause 36 and other related clauses of the Equity Listing Agreement. The discussion paper issued by the SEBI on 19 August 2014 aims to improve continuous disclosure requirements and reduce disparity in disclosures which primarily stem from a perceived lack of clarity on the term ‘materiality’ and ‘price sensitive information’. Comments are invited on the discussion paper by 12 September 2014.

 

The MCA amends shareholder approval norms for related party transactions
19 August 2014

The Companies Act, 2013, though largely operationalised with effect from 1 April 2014, has thrown up various implementation challenges for corporate India, and one of them relates to provisions concerning ‘related party transactions’. The Ministry of Corporate Affairs, vide notification dated 14 August 2014, has amended the Companies (Meetings of Board and its Powers) Rules, 2014 (Rules).

Related party transactions – certain clarifications by the MCA
01 August 2014

The Central Board of Direct Taxes has amended Form No. 3CA, Form No. 3CB and Form No. 3CD2 of the Income-tax Rules, 1962. The amended rules would come into force on the date of their publication in the Official Gazette.

 

Related party transactions – certain clarifications by the MCA
18 July 2014

The Companies Act, 2013 (the Act), though largely operationalised with effect from 1 April 2014, has thrown up various implementation challenges for corporate India, and one of them relates to provisions concerning ‘related party transactions’. The Ministry of Corporate Affairs (MCA), vide general circular no. 30/2014, dated 17 July 2014, has provided clarifications on the matters relating to related party transactions under section 188 of the Act.

 

The government proposes to make Ind AS mandatory from the financial year 2016-17
10 July 2014

The Finance Minister has announced a roadmap and definite dates for convergence with IFRS for Indian companies as part of his Union Budget speech on 10 July 2014.

 

The MCA proposes to ease certain norms for private companies
27 June 2014

The Companies Act, 2013 (the Act) is largely operationalised with effect from 1 April 2014. The Act contains a number of provisions which, hitherto, did not apply to private companies.

 

The MCA provides clarity on Corporate Social Responsibility under the Companies Act, 2013
23 June 2014

The Ministry of Corporate Affairs (MCA) has received several references and representation from various stakeholders seeking clarifications.

 

Deferment of provisions relating to voting through e-means and other significant clarifications and amendments
18 June 2014

The Companies Act, 2013 (the Act) was largely operationalised with effect from 1 April 2014. However, there are a number of implementation issues on which various stakeholders have sought clarifications from the Ministry of Corporate Affairs (MCA). On 9 June 2014, the MCA provided clarifications on the matters relating to pecuniary relationships, appointment and tenure of independent directors. Recently, the MCA has provided further clarifications and has amended certain Rules.

 

Clarifications relating to independent directors
12 June 2014

The Companies Act, 2013 (the Act) was largely operationalised with effect from 1 April 2014. However, there are a number of implementation issues on which various stakeholders have sought clarifications from the Ministry of Corporate Affairs (MCA). The MCA vide general circular no. 14/2014 dated 9 June 2014 has provided clarifications on the matters relating to pecuniary relationships, appointment and tenure of independent directors (IDs).

 

The RBI clarifies certain provisions of the unhedged foreign currency exposure guidelines
05 June 2014

The Reserve Bank of India (RBI) had issued guidelines on ‘capital and provisioning requirements for exposures to entities with unhedged foreign currency exposure’ (‘the Guidelines’) on 15 January 2014. The guidelines effective from 1 April 2014 prescribed the methodology to be followed for calculating incremental provisioning and capital requirements for bank exposures to entities with unhedged foreign currency exposures (UFCE).

 

Revision in the Rules on creation of debenture redemption reserve
19 May 2014

The Companies (Share Capital and Debentures) Rules, 2014 (‘Rules’) issued by the Ministry of Corporate Affairs (MCA) on 27 March 2014, required companies to create debenture redemption reserve (DRR) equivalent to at least fifty per cent of the amount raised through the debenture issue.

 

SEBI’s amendments to corporate governance norms
22 April 2014

The Securities and Exchange Board of India (SEBI) with the objective to align its provisions to the recently notified provisions of the Companies Act, 2013, (‘the Act’) has specifically reviewed clause 49 of the Listing Agreement, to adopt leading industry practices on corporate governance and to make the corporate governance framework more effective.

 

RBI’s framework for revitalising distressed assets in the economy for NBFCs
25 March 2014

The Reserve Bank of India (RBI) released a ‘Framework for Revitalising Distressed Assets in the Economy’ on 21 March 2014 which sets out guidelines for the early recognition of financial distress, taking prompt steps for resolution and ensuring fair recovery for NBFCs.

 

Notification of provisions relating to corporate social responsibility under the Companies Act, 2013
28 February 2014

The Ministry of Corporate Affairs (MCA) has vide its notification dated 27 February 2014, notified 1 April 2014 as the date on which the provisions of section 135 and Schedule VII of the Companies Act, 2013 shall come into force.

 

RBI releases guidelines relating to framework on stressed asset resolution
28 February 2014

The Reserve Bank of India (RBI) had on 30 January 2014, released a ‘Framework for Revitalising Distressed Assets in the Economy’ effective from 1 April 2014, which laid down guidelines for early recognition of financial distress, taking prompt steps for resolution and thereby ensuring fair recovery for lending institutions (refer First Notes edition dated 31 January 2014). For operationalising this framework, the RBI has vide two notifications dated 26 February 2014, released detailed guidelines on refinancing of project loans, sale of NPAs by banks and other regulatory measures and on formation of joint lenders’ forum (JLF) and adoption of corrective action plan (CAP).

 

Clarification on section 185 of the Companies Act, 2013
17 February 2014

The Ministry of Corporate Affairs (MCA) has issued a clarification with reference to the applicability of section 372A of the Companies Act, 1956 vis-à-vis section 185 of the Companies Act, 2013.

 

SEBI's amendments to corporate governance norms
14 February 2014

The SEBI Board has on 13 February 2014, approved the proposals to amend the corporate governance norms for listed companies in India to be effective from 1 October 2014. Most of these amendments are in line with the requirements of the Companies Act, 2013.

 

RBI circular on utilisation of floating provisions
10 February 2014

The Reserve Bank of India (RBI) has released a circular dated 7 February 2014, under which it has permitted banks to utilise up to 33 per cent of countercyclical provisioning buffer/floating provisions held by them as on 31 March 2013, for making specific provisions for non-performing assets, as per the policy approved by their Board of Directors.

 

SEBI Regulations on Shelf Prospectus
3 February 2014

The Securities Exchange Board of India (SEBI) has issued the SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2014 which prescribes the classes of companies or entities who may file shelf prospectus under section 31 of the Companies Act, 2013. These regulations permit not only existing listed companies meeting certain criteria but also banks, infrastructure debt funds, public financial institutions etc to file a shelf prospectus which would save time and efforts of all those involved in the public issue of debt securities and their listing.

 

RBI framework on stressed asset resolution
31 January 2014

The Reserve Bank of India (RBI) released a ‘Framework for Revitalising Distressed Assets in the Economy’ on 30 January 2014 which sets out guidelines for the early recognition of financial distress, taking prompt steps for resolution and ensuring fair recovery for lending institutions. The new framework reiterates the RBI’s focus on putting assets to work and incentivising the speedy resolution of NPA or NPA like exposures in the banking system and also introduces a set of structural reforms such as the setting up of the Central Repository of Information on Large Credits (CRILC) to facilitate the dissemination of information on large credits. It also lays emphasis on the co-ordination of lender actions through the establishment of Joint Lenders’ Forums within the lending system.

First Notes - 01 August 2104
First Notes - 01 September 2014
First Notes - 10 July 2014
First Notes 12 June 2014
First Notes - 17 February 2014
First Notes - 18 July 14
First Notes - 18 June 2014
First Notes - 19 August 2014
First Notes - 19 May 2014
First Notes - 22 April 2014
First Notes - 22 Aug 14
First Notes - 23 June 2014
 First Notes 25 March 2014