Monthly Archives: April 2015

Bar Coding of Drugs Mandatory

The government has mandated bar-coding of mono cartons of drugs shipped out of the country from July as an additional measure to ensure that its reputation isn’t tarnished by medicines manufactured illicitly in other countries and passed off as made in India.

Bar-coding of mono cartons, which hold primary packs of drugs, will enable them to be traced back to the source, the ministry of commerce said in an order. Drug makers will also have to maintain evidence in a central portal, mainta ..

Leave a comment

Filed under Uncategorized

MD remuneration clarification

MCA has clarified vide its circular no. 7/2015 dated April 10, 2015 that managing directors of listed companies and their subsidiaries who were drawing remuneration in excess of the limits specified in Schedule XIII of the old Companies act, 1956 after following the conditions specified in the MCA notification dated 14/7/2011, can continue to do so until the end of their term which was approved before 1st April, 2014.

Click to access General_Circular_07_2015.pdf

Leave a comment

Filed under Uncategorized

CARO 2015

MCA has notified new CARO 2015 which is applicable for all companies from the date of its notification in the official gazette. The following companies however, are exempted from this CARO 2015

insurance companies
banking companies
section 8 companies
small companies as defined in section 2(85) of companies act, 2013
one person company
private company which has paid up share capital and reserves of not more than Rs.50 lakhs AND loan outstandings from banks/ financial institutions exceeding Rs.25 lakhs AND turnover exceeding Rs.5 crores AT ANY POINT OF TIME during the financial year.

Leave a comment

Filed under Uncategorized

Insurance FDI – sector specific conditions

RBI has issued a circular dated 8th April, 2015 which is basically reiterating the DIPP Press Note no. 3(2015) series. The sector specific conditions are as follows:

RBI circular is available at this link i.e. http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9652&Mode=0

The extant FDI policy for Insurance sector has since been reviewed and further liberalized. Accordingly, with immediate effect, FDI in Insurance sector shall be permitted up to 49% subject to the revised conditions specified in the Press Note 3 (2015 Series) dated March 2, 2015. Also, a new activity viz. “Other Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999 (41 of 1999)” has been included within the definition of ‘Insurance’.

3. Besides, the salient changes over the existing regime include:

  1. Foreign investment in Indian insurance company shall be limited up to forty-nine percent of the paid up equity capital;
  2. Foreign direct investment up to 26 percent shall be under automatic route and beyond 26 percent and up to 49 percent shall be with Government approval;
  3. Foreign investment in the sector is subject to compliance of the provisions of the Insurance Act, 1938 and the condition that companies bringing in FDI shall obtain necessary license from the Insurance Regulatory & Development Authority of India for undertaking insurance activities.
  4. An Indian insurance company shall ensure that its ownership and control remains at all times in the hands of resident Indian entities;
  5. Foreign portfolio investment in an Indian insurance company shall be governed by the provisions of Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 and provisions of the Securities Exchange Board of India (Foreign Portfolio Investors) Regulations.
  6. Any increase of foreign investment of an Indian insurance company shall be in accordance with the pricing guidelines specified by Reserve Bank of India under the Foreign Exchange Management Act, 1999.
  7. Terms ‘Control’, ‘Equity Share Capital’, ‘Foreign Direct Investment’ (FDI), ‘Foreign Investors’, ‘Foreign Portfolio Investment’, ‘Indian Insurance Company’, ‘Indian Company’, ‘Indian Control of an Indian Insurance Company’, ‘Indian Ownership’, ‘Non-resident Entity’, ‘Public Financial Institution’, ‘Resident Indian Citizen’, ‘Total Foreign Investment’ will have the same meaning as provided in Notification No. G.S.R 115 (E), dated 19th February, 2015

Leave a comment

Filed under Uncategorized

Appointment of women director on listed company boards

SEBI has levied fines for listed companies which have not complied with the provisions of Companies Act, 2013 relating to mandatory appointment of women directors on their Boards by 31st March, 2015. The slab wise fines are as under:

1) For compliance between 1st April to 30th June, 2015, fine is Rs.50,000/-

2) For compliance between 1st July 2015 to 30th September 2015 fine is Rs.50,000/- plus Rs.1000/- per day upto the date of appointment;

3) For compliance after 1st October, 2015, Rs.142,000/- plus Rs.5000/- per day upto the date of appointment.

For non-compliances after 30th September, 2015 SEBI is free to initiate any other action against the company, their promoters, directors etc.

SEBI circular is available at http://www.sebi.gov.in/cms/sebi_data/attachdocs/1428497356451.pdf

3 Comments

Filed under Uncategorized

Education regulator in Maharashtra

http://timesofindia.indiatimes.com/city/mumbai/Bill-to-check-donations-regulate-fees/articleshow/46869603.cms

To check the menace of donations and regulate admissions in colleges, the state government on Thursday introduced the ‘Maharashtra Unaided Private Professional Education Institutions (Regulation of Admission Fees) Act, 2015,’ in the assembly.

The bill, introduced by higher and technical education minister Vinod Tawde, proposes to establish two authorities: one to regulate admissions and conduct a common entrance test through centralized admission process, another to regulate fees in unaided private professional institutions. The two authorities, to be called the ‘Admission Regulating Authority (ARA)’ and ‘Fee Regulating Authority (FRA)’ respectively, will be headed by retired high court chief justices and comprise different sets of members. However, both will be controlled by the state higher and technical education department and the medical education and drugs department. A similar legislation was enacted by the Karnataka government in 2006.

Admissions to professional courses are currently conducted according to guidelines framed by the Supreme Court while delivering a landmark verdict in the case of TMA Pai Foundation versus the Karnataka government.

So far the common entrance test (CET) and admissions were conducted by the Directorate of Technical Education (DTE) and Directorate of Medical Education and Research (DMER). Once the bill is cleared by the assembly, the ARA will establish a CET cell and monitor its function. It will be headed by an officer of the rank of joint secretary, who will be designated as ‘commissioner of CET’.

Similarly, fees currently regulated by Shikshan Shulk Samiti will be fixed by the FRA for unaided colleges on the basis of various factors like infrastructure and facilities offered. It will have to complete the formalities within four months of receiving the proposal from a college. The FRA would also be responsible for verification and cancellation of admissions and will adjudicate disputes between stakeholders.

The government will have the power to appoint chairpersons and members for both authorities, who shouldn’t be associated with any private institution directly or indirectly. They will have a tenure of five years and won’t be eligible for reappointment. Interestingly, both will have powers of a civil court under the Code of Civil Procedure, 1908, and can levy hefty penalties.

Leave a comment

Filed under Uncategorized

Change in calculation of stamp duty – property

http://timesofindia.indiatimes.com/city/mumbai/Stamp-duty-on-registrations-to-go-up-fine-for-delayed-payment-to-double/articleshow/46869158.cms

MUMBAI: A delay in payment of stamp duty after property registration will now result in the state imposing a fourfold fine on the defaulter instead of the previous twofold.

Experts in registration matters said people may face a certain rise in stamp duty on property registrations, sale deeds and other agreements as the government had changed the method of calculation of stamp duty.

“Instead of calculating in parts of some thousands, the stamp duty will be charged at a percentage of the total value of that property as per the new amendment,” a veteran in the sector said.

The stamp duty of Rs 100 on certain transactions such as undertakings, agreements or administration bonds is to be increased to Rs 500 on each transaction.

In this season of increase in costs, the relief is that now transfer of property to a blood relation will attract a very nominal stamp duty.

If a person living abroad sells his property, he can pay the stamp duty online.

These measures will help the state earn about Rs 300 crore, said revenue minister Eknath Khadse.

The minister said that these decisions would bring in simplicity and clarity in the registration processes.

The legislature on Thursday passed all the above decisions as amendments to the Maharashtra Stamp Act. The move will increase revenue but put some burden on buyers, investors and businessmen. “Most importantly, it will bring efficiency and clarity in transactions,” Khadse said.

Leave a comment

Filed under Uncategorized

Real Estate Regulator

http://pib.nic.in/newsite/pmreleases.aspx?mincode=61

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders (consumer organizations, industry associations, academia, experts etc.) have also been included after extensive consultations.

The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.

The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The Bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters and allottees; establishment of Real Estate Regulatory Authority; establishment of fast track dispute resolution mechanism through adjudication; establishment of a Real Estate Appellate Tribunal; offences and penalties etc.

These measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide ‘Housing for All by 2022’, through enhanced private participation.

The Bill ensures mandatory disclosure by promoters to customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions. This in turn will enable the sector to access capital and financial markets essential for its long term growth. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.

The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.

The salient features of the Bill are as under:

  1. Applicability of the Bill:

The proposed initial Bill was applicable for residential real estate. It is now proposed to cover both residential and commercial real estate;

  1. Establishment of Real Estate Regulatory Authority:
  • Establishment of one or more ‘Real Estate Regulatory Authority’ in each State/ Union Territory (UT), or one Authority for two or more States/UT, by the Appropriate Government for oversight of real estate transactions,
  • To appoint one or more adjudicating officers to settle disputes and impose compensation and interest;
  1. Registration of Real Estate Projects and Registration of Real Estate Agents:

Mandatory registration of real estate projects and real estate agents who intend to sell any plot, apartment or building, with the Real Estate Regulatory Authority;

  1. Mandatory Public Disclosure of all project details:

Mandatory public disclosure norms for all registered projects such as details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals and disclosure of proforma agreements, names and addresses of real estate agents, contractors, architect, structural engineer etc.;

  1. Functions and Duties of Promoter:
  • Disclosure of all relevant information of project;
  • Adherence to approved plans and project specifications;
  • Obligations regarding veracity of the advertisement for sale or prospectus;
  • Rectify structural defects;
  • Refund money in cases of default;
  1. Compulsory deposit of 50 percent:

To compulsorily deposit 50 percent (or such lesser percent as notified by the Appropriate Government) of the amounts realized for the real estate project from the allottees in a separate account in a scheduled bank within a period of fifteen days to cover the cost of construction to be used for that purpose;

  1. Adherence to declared plans:
  • To bar the promoter from altering plans, structural designs and specifications of the plot, apartment or building without the consent of two-third allottees after disclosure;
  • However, minor additions or alterations permissible due to architectural and structural reasons;
  1. Functions of Real Estate Agents:
  • Real estate agents to sell properties registered with the Authority;
  • Maintain books of accounts, records and documents;
  • Not to involve in any unfair trade practices;
  1. Rights and Duties of Allottees:
  • Right to obtain stage-wise time schedule of project;
  • Claim possession as per promoter declaration;
  • Refund with interest and compensation for default by the promoter;
  • Allottees to make payments and fulfill responsibilities as per agreement;
  1. Functions of Real Estate Regulatory Authority:

The Authority to act as the nodal agency to co-ordinate efforts regarding development of the real estate sector and render necessary advice to the appropriate Government to ensure the growth and promotion of a transparent, efficient and competitive real estate sector;

  1. Fast Track Dispute Settlement Mechanism:
  • Fast track dispute resolution through adjudicating officers (District Judge);
  • Appellate Tribunal to hear appeals;
  1. Establishment of Central Advisory Council:

To advise the Central Government on implementation of the Act, recommend policy, protection of consumer interest and to foster growth and development of the real estate sector;

  1. Establishment of Real Estate Appellate Tribunal:

Real Estate Appellate Tribunal to hear appeals from orders of the Authority and the adjudicating officer.  The Appellate Tribunal is to be headed by a sitting or retired Judge of the High Court, with one judicial and one administrative/technical member;

  1. Punitive Provisions:

Punitive provisions including de-registration of the project and penalties in case of contravention of provisions of the Bill or the orders of the Authority or Tribunal;

  1. Bar of Jurisdiction Courts:

Provision for barring jurisdiction of court and any authority from entertaining complaints in respect of matters covered under the Bill;

  1. Power to make Rules and Regulations:
  • Appropriate Government to have powers to make rules over subjects specified in the Bill;
  • Regulatory Authority to have powers to make regulations;

 Background:

 Real estate development and housing construction was largely the concern of State institutions till the 1980s with very few private promoters and a nascent industry. With the liberalization of the economy, conscious encouragement was given to the growth of the private sector in construction, with a great deal of success, and the sector today is estimated to contribute substantially to the country’s GDP.

 Currently, the real estate and housing sector is largely unregulated and opaque, with consumers often being unable to procure complete information, or to enforce accountability against builders and developers in the absence of effective regulation.

Leave a comment

Filed under Uncategorized

Service tax regn – simplification

Govt. has simplified the procedures for service tax registration vide their order dated 28th February, 2015 gist of which is given below:

In supercession of Order No. 2/2011-Service Tax dated 13-12-2011, the Central Board of Excise and Customs specifies the following documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015.
2. General procedure
(i) Applicants seeking registration for a single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website www.aces.gov.in in Form ST-1.
(ii) Registration shall mandatorily require that the Permanent Account Number (PAN) of the proprietor or the legal entity being registered be quoted in the application with the exception of Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Departments shall not be granted registration in the absence of PAN. Existing registrants, except Government departments not having PAN shall obtain PAN and apply online for conversion of temporary registration to PAN based registration within three months of this order coming into effect, failing which the temporary registration shall be cancelled after giving the assessee an opportunity to represent against the proposed cancellation and taking into consideration the reply received, if any.
(iii) E-mail and mobile number mandatory: The applicant shall quote the email address and mobile number in the requisite column of the application form for communication with the department. Existing registrants who have not submitted this information are required to file an amendment application by 30-4-2015.
(iv) Once the completed application form is filed in ACES, registration would be granted online within 2 days, thus initiating trust-based registration. On grant of registration, the applicant would also be enabled to electronically pay service tax.
(v) Further, the applicant would not need a signed copy of the Registration Certificate as proof of registration. Registration Certificate downloaded from the ACES web site would be accepted as proof of registration dispensing with the need for a signed copy.
3. Documentation required
The applicant is required to submit a self attested copy of the following documents by registered post/ Speed Post to the concerned Division, within 7 days of filing the Form ST-1 online, for the purposes of verification:-
(i) Copy of the PAN Card of the proprietor or the legal entity registered.
(ii) Photograph and proof of identity of the person filing the application namely PAN card, Passport, Voter Identity card, Aadhar Card, Driving license, or any other Photo-identity card issued by the Central Government, State Government or Public Sector Undertaking.
(iii) Document to establish possession of the premises to be registered such as proof of ownership, lease or rent agreement, allotment letter from Government, No Objection Certificate from the legal owner.
(iv) Details of the main Bank Account.
(v) Memorandum/Articles of Association/List of Directors.
(vi) Authorisation by the Board of Directors/Partners/Proprietor for the person filing the application.
(vii) Business transaction numbers obtained from other Government departments or agencies such as Customs Registration No. (BIN No), Import Export Code (IEC) number, State Sales Tax Number (VAT), Central Sales Tax Number, Company Index Number (CIN) which have been issued prior to the filing of the service tax registration application.
4. Where the need for the verification of premises arises, the same will have to be authorised by an officer not below the rank of Additional /Joint Commissioner.
5. The registration certificate may be revoked by the Deputy/Assistant Commissioner in any of the following situations, after giving the assessee an opportunity to represent against the proposed revocation and taking into consideration the reply received, if any:
(i) the premises are found to be non existent or not in possession of the assessee.
(ii) no documents are received within 15 days of the date of filing the registration application.
(iii) the documents are found to be incomplete or incorrect in any respect.
6. The provisions of sub-rules (5A) and (6) of rule 4 of the Service Tax Rules, 1994 may be referred to regarding change in any information or details furnished by an assessee and transfer of business to another person, respectively. Similarly, sub rule (7) of the Service Tax Rules, 1994 may be referred to in case a registered person ceases to provide the service for which he has been granted registration.

Leave a comment

Filed under Uncategorized

External Audit of Mines made mandatory –

The Department of Mines has made external mandatory in addition to statutory inspection by state agencies and Indian Bureau of mines.

A meeting was recently held at the ministry of mines with all states to discuss the issues following the newly passed mining ordinance and sharing of best practices for overall mineral development and regulation in the country between the states and the centre.

This appointment of external auditors follows the issue of periodicity of inspections by the or State government.

It could be mentioned that the government recently notified 31 minerals as “minor” minerals and the entire regulation of these 31 minerals will be with the state governments.

In the meeting, the state governments have suggested that conservation and development of minerals in the first schedule, that is major minerals and notified minerals like iron ore, bauxite etc in the fourth schedule should be delegated to Indian Bureau of Mines and the States can be vested with the responsibility to look after development of remaining minerals, according to official sources.

In the meeting the State government of Kerala presented the legal framework and the auction scheme prepared for allotment of iron ore (category C) for the auction of 15 mines while the ministry asked the states to expedite the process of furnishing the list of non working mines.

One major issue which has raised considerable discontentment among the states, according to official sources, is the mandate of the ordinance requiring them to extend the tenure of the leases of those mines where the mineral is used for captive purpose or where the lease commenced before the commencement of Mines and Mineral Development and Regulation Amendment Ordinance 2015 even if the mineral is used for other than captive purpose.

According to states a major hurdle in this requirement is stamp duty. The centre in this regard assured the states that any action taken by the states in this regard owing to imposition of for extension of the lease should not impose any hindrance.

In fact the centre has assured that in order to expedite such renewals, the extension of environmental and forest clearances for such extension of leases has already been taken up with the ministry of environment.

Another issue that is posing difficulty, as per states, in implementing the concept of mineralisation as precondition to exploration is lack of data and information.

Leave a comment

Filed under Uncategorized

MCA – penalties for late filings

Section 403 of the Companies Act, 2013 is a wake up call for companies in India. Not any more they can afford to relax and file documents months and years after they are supposed to do so.

Section 403(1) provides that documents should be submitted, filed, registered or recorded within the time specified in the relevant section for the same. For eg. most of the forms require to be filed within 30 days of the event, save for a few provisions such as Auditors appointment within 15 days, annual return within 60 days and charge registration/ modification within 300 days of the event.

The first proviso to section 403(1) provides for additional time within which the documents can be filed by paying additional filing fees. This additional period is 270 days beyond the original period of filing. Therefore in most cases a 300 days period is given for filing the document by paying the normal fees and additional filing fees.

The second proviso to section 403(1) provides that such documents can be filed beyond the said 300 days but it says “without prejudice to any other legal action or liability under the Act”

Section 403(2) provides that where the company fails to submit/ deliver the documents within the time specified including the additional time given, the company and every officers of the company shall be liable for penalty or punishment provided under the Act. This is apart from the fees and additional filing fees payable by the company for filing the document.

The various sections give different penalties for delayed filing beyond the normal period and additional period given thereunder, for eg.

1) delayed filing of annual return under section 92 is liable for a penalty of minimum Rs.50,000 but which may extend to Rs.5 lakhs and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Rs.50,000/- but which may extend to Rs.5 lakhs or with both;
2) for failure to file documents required under section – minimum penalty is Rs.5 lakhs but which may extend to Rs.25 lakhs for the company and every officer of the company who is in default shall be punishable with fine which shall be minimum Rs.1 lakh but which may extend to Rs.5 lakhs;
3) Audited financial statements under section 137 – Fine of Rs.1000/- per day during which the failure continues but which shall not be more than Rs.10 lakhs and MD and CFO (or in the absence of MD/ CFO, any director who is charged by the Board of complying with this section, or in the absence of any such director, all directors of the company) shall be punishable with imprisonment for a term which may extend to six months or with fine, which shall not be less than Rs.1 lakh but which may extend to Rs.5 lakhs or both;

Apparently the system will not allow filings to take place after the period stipulated in section 403 unless the company applies for a an application for condonation of delay with the prescribed authorities which in this case is the REgistar of Companies of the respective jurisdiction.

Therefore Compliance is the Need of the Hour for every company in India. Gone are the days when the companies can sleep for years on end without doing any filings whatever.

Leave a comment

Filed under Uncategorized

KYC – bank accounts of proprietory firms

RBI’s KYC requirements for opening bank accounts of proprietory firms were way too stringent and cumbersome with the result that many proprietory firms were unable to open current accounts at all for starting their businesses. Proprietory firms are the simplest way of starting any business in India with the opening of current accounts being the first and main step in the process, other requirements such as registrations with tax authorities coming only after some threshold had been reached.

Now the RBI has eased its KYC requirements for opening bank accounts for proprietorship firms with the requirement that only of the two documents are required for doing so.

The extant guidelines on KYC for opening bank accounts for proprietorship concerns were as follows as the RBI Master Circular dated 1st July, 2014.

Accounts of proprietary concerns

Apart from following the extant guidelines on customer identification procedure as applicable to the proprietor, banks should call for and verify the following documents before opening of accounts in the name of a proprietary concern:

Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern), certificate/licence issued by the Municipal authorities under Shop & Establishment Act, sales and income tax returns, CST/VAT certificate, certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities, Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/Department. Banks may also accept IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT, the complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/acknowledged by the Income Tax authorities and utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern as required documents for opening of bank accounts of proprietary concerns.

Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.

Now the revised KYC norms provide any one of the above documents would suffice to open a bank account in the name of the proprietory concern.

The relevant portion of the RBI circular dated March, 13, 2015 states as under:

Reserve Bank has been receiving representations pointing out difficulties in complying with the requirement of furnishing two documents as activity proof while opening accounts of sole proprietary firms in certain cases. It is possible that in some types of activities there is genuine difficulty in procuring two such documents. The matter has, therefore, been reviewed with a view to ease the process of opening bank accounts of proprietary concerns in such cases. The default rule is that any two documents, out of those listed in paragraph 2.5 (h) of the Master Circular, should be provided as activity proof by a proprietary concern. However, in cases where the banks are satisfied that it is not possible to furnish two such documents, they would have the discretion to accept only one of those documents as activity proof.  In such cases, the banks, however, would have to undertake contact point verification, collect such information as would be required to establish the existence of such firm, confirm, clarify and satisfy themselves that the business activity has been verified from the address of the proprietary concern.

3. It is also clarified here that the list of registering authorities indicated in paragraph 2.5 (h) of the Master circular is only illustrative and therefore includes license/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute, as one of the documents to prove the activity of the proprietary concern.

A copy of the RBI circular is given in this link i.e. http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9599&Mode=0

Leave a comment

Filed under Uncategorized

Hongkong & Macau citizens barred from purchasing property in India

RBI has issued a circular dated 11th March, 2015 wherein it has barred citizens of Hongkong and Macau from acquiring or transferring immoveable property in India other than lease which does not exceed 5 years. Already citizens of Pakistan, Sri Lanka, Nepal, Afghanistan, China, Iran, Nepal and Bhutan are barred from acquiring immoveable property in India.

The gist of the RBI circular is given below:

Attention of Authorised Dealers in Foreign Exchange is invited to Regulation 7 of Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000 notified vide Notification No. FEMA 21/2000-RB dated 3rd May 2000 in terms of which no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years.

2. It has been observed that Macau and Hong Kong are the two Special Administrative Regions of China. As they are notified separately, it has been decided, in consultation with the Government of India, that citizens of Macau and Hong Kong will also be included in the list of countries which are prohibited to acquire/transfer immovable property in India in terms of Regulation 7 of FEMA ibid.

Leave a comment

Filed under Uncategorized

Government plans amendments to Merchant Shipping Act, may make vessels listing compulsory

The government is planning to empower itself to prescribe security measures for all vessels and ensure that all seagoing crafts irrespective of size, propulsion and area of operations are registered under a central system, a move aimed at plugging loopholes in legislation that can have an impact on national security.
A series of amendments proposed in the Merchant Shipping Act (1958) include stiffer penalties for violations, such as a stiff Rs 25 lakh fine for any vessel, Indian or f ..

Leave a comment

Filed under Uncategorized

Share Application Moneys

MCA has issued notification on 31st March, 2015 amending the Companies (Acceptance of Deposits) Rules, 2014 to provide that share application moneys which were disclosed as such in the accounts for year ended 31st March, 2014 and pending allotment as on 31st March, 2015 should be either allotted before 1st  June, 2015 or returned therewith to the allottees before the said date.

Further every eligible company i.e. every company which is eligible to receive deposits should obtain credit rating for deposits accepted by it in the manner specified from the specified rating agencies and a copy of the rating report should be furnished to the MCA in form DPT-3. So additional compliance requirement for companies which accept deposits.

Further the requirement of having a deposit insurance has been postponed to 31st March, 2016 or till such deposit insurance product is available on the market whichever is earlier.

Copy of the MCA notification is given below.

Click to access Acceptance_Deposits_AmendmentRules_01042015.pdf

Leave a comment

Filed under Uncategorized