Sunday, 22 June 2014

CCI COMPAT May 2014

Order/Appeal no. Date Parties Particulars
Appeal No. 116 of 2012  02-05-2014 i) M/s. Fast Way Transmission Pvt. Ltd.
ii)M/s. Hathway Sukhamrit Cable & Datacom
iii) M/s. Creative Cable Network Pvt. Ltd.
iv) Mr. Gurdeep Singh
And
i) Kansan News Pvt. Ltd.
ii) Competition Commission of India
The Appellants challenged the order passed by CCI on 03.07.2012 in Case No. 26/2011. In the case before CCI, the Respondents alleged that the Appellants had formed a cartel and denied market access to the Respondent and others in cable networks market. Hence, had acted in contravention of Sections 3 and 4 of the Act. The COMPAT set aside the order of CCI stating that the matter must be governed by TRAI and TDSAT.
Appeal No. 20 of 2011 19-05-2014 M/s. DLF Limited vs. CCI, Belaire Owners Associtaion and HUDA The appeal by DLF against the CCI order in the Belaire Owner's Association matter has been dismissed and the COMPAT has upheld and confirmed the penalty imposed on DLF by CCI in its order dated 31 January 2012 

MCA May 2014

Notification/Circular no. Date Subject Amendment
General_Circular_10_2014 07-May-14 General_Circular_10_2014 - Certifiaction of e-forms by practicing professionals.  It is provided that for forms certified by any practicing professional, if there appears to be any misrepresentation, fraud etc. the RD/ROC will be entitled to investigate against such professional and submit a report to the concerned institute governing the professional for any disciplinary action to be initiated against such professional
SO 1352 (E) 21-May-14 Delegation_of powers under section 458 of CA 2013 to RDs. Certain powers of the Central Givernment under the Companies Act, 2013 have been delegated to the RD, ROC and RD Noida, respectively. 
SO 1353 (E) 21-May-14 Delegation of powers under section 458 of CA 2013 to ROCs
SO 1354 (E) 21-May-14 Delegation of powers u-s 153 and 154 of CA 2013 to RD Noida
General_Circular_12_2014 22-May-14 General_Circular_12_2014 - Applicability of PAN requirement for foreign nationals.  It is clarified that foreign national need not possess a PAN unless they are required to under the provisions of Income Tax Act, 1961. Copy of passport of a foreign national would be a sufficient proof.

SEBI May 2014

Notification/Circular no. Date Subject Amendment
CIR/MRD/DP/15/2014 15-May-14 Risk management framework for Foreign Portfolio Investors (FPI) under the SEBI (Foreign Portfolio Investors) Regulations, 2014 Since the SEBI (Foreign Portfolio Investors) Regulations, 2014 shall commence with effect from June 01, 2014, SEBI has prescribed certain measures to be followed by stock exchanges and clearing corporations to
effect a smooth transition to the FPI regime
with regard totrading and risk management of FPI trades.

RBI May 2014

Notification/Circular no. Date Subject Amendment
A.P. (DIR Series) Circular No.117 02-May-14 RBI/2013-14/577
A.P. (DIR Series) Circular No.127 - Foreign Direct Investment (FDI) in India – Reporting mechanism for transfer of equity shares/ fully and mandatorily convertible preference shares/ fully and mandatorily convertible debentures
In cases where the NR investor including an NRI acquires shares on the stock exchanges, the investee company would now have to file form FC-TRS with the AD Category-I bank.
DBOD.AML.BC.No.103/14.01.001/2013-14  09-May-14 RBI/2013-14/585
A.P. (DIR Series) Circular No.129 - External Commercial Borrowings (ECB) Policy - Refinance / Repayment of Rupee loans raised from domestic banking system
Eligible Indian companies will now not be permitted to raise ECB from overseas branches / subsidiaries of Indian banks for the purpose of refinance / repayment of the Rupee loans raised from the domestic banking system in respect of the following:
a. Scheme of take-out financing.
b. Repayment of existing Rupee loans for companies in infrastructure sector.
c. Spectrum allocation
d. Repayment of Rupee loans.
DNBS (PD) CC.No.373/03.10.001/2013-14 13-May-14 RBI/2013-14/590
DPSS.CO.PD.No. 2366/02.14.006/2013-14 - Issuance and Operation of Pre-paid Payment Instruments in India – Consolidated Revised Policy Guidelines
Banks have been granted general permission to issue rupee denominated co-branded prepaid instruments
16-May-14 RBI/2013-14/594
A.P. (DIR Series) Circular No.130 - External Commercial Borrowings (ECB) from Foreign Equity Holder - Simplification of Procedure
 As a measure of simplification of the existing procedure, it has been decided to delegate powers to AD banks to approve the following cases under the automatic route:
(a) Proposals for raising ECB by companies belonging to manufacturing, infrastructure, hotels, hospitals and software sectors from indirect equity holders and group companies.
(b) Proposals for raising ECB for companies in miscellaneous services from direct / indirect equity holders and group companies. Miscellaneous services mean companies engaged in training activities (but not educational institutes), research and development activities and companies supporting infrastructure sector. Companies doing trading business, companies providing logistics services, financial services and consultancy services are, however, not covered under the facility.
(c) Proposals for raising ECB by companies belonging to manufacturing, infrastructure, hotels, hospitals and software sectors for general corporate purpose.ECB for general corporate purpose (which includes working capital financing) is, however, permitted only from direct equity holder.
(d) Proposals involving change of lender when the ECB is from FEH – direct / indirect equity holders and group company.
19-May-14 RBI/2013-14/595 A.P. (DIR Series) Circular No.131 - Overseas Direct Investments – Limited Liability Partnership (LLP) as Indian Party An LLP can now undertake financial commitment to / on behalf of a JV / WOS abroad in terms of the extant ODI Regulations
21-May-14 Notification No. FEMA 303/2014-RB - Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2014 A person resident outside India who is eligible to invest in securities as laid down in Schedules 2, 5, 7 and 8 of Foreign Exchange Management (Transfer or Issue of Security by a person resident outside India) Regulations, 2000 may  also enter into currency futures or exchange traded currency options contracts on a stock exchange recognised under section 4 of Securities Contracts (Regulations) Act, 1956 to hedge an exposure to risk, subject to such terms and conditions as may be prescribed.
22-May-14 Notification No.FEMA. 304/2014-RB -Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) (fifth Amendment) Regulations, 2014 A Non-resident Indian may, without limit, purchase on non-repatriation basis, listed non-convertible/redeemable preference shares or debentures issued in terms of Regulation 7 (2) of these Regulations
22-May-14 Notification No. FEMA.305/2014-RB - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Sixth Amendment) Regulations, 2014 Any person being a non-resident investor of a company registered in India and listed on a recognised stock exchange/s in India (resident investee company), may pledge the shares of that company, in favour of a Non-Banking Financial Company in India, to secure the credit facilities being extended to that resident investee company for bonafide business purposes, subject to the AD bank satisfying itself of the compliance of the conditions stipulated by the Reserve Bank, from time to time, in this regard.
A.P. (DIR Series) Circular No.119 26-May-14 RBI/2013-14/606 DNBS (PD) CC.No.376/03.10.001/2013-14 - Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFCs Prior written permission of the Reserve Bank of India shall be required for –
(i) any takeover or acquisition of control of an NBFC, whether by acquisition of shares or otherwise;
(ii) any merger/amalgamation of an NBFC with another entity or any merger/amalgamation of an entity with an NBFC that would give the acquirer / another entity control of the NBFC;
(iii) any merger/amalgamation of an NBFC with another entity or any merger/amalgamation of an entity with an NBFC which would result in acquisition/transfer of shareholding in excess of 10 percent of the paid up capital of the NBFC.
(iv) Prior written approval of the Reserve Bank would also be required before approaching the Court or Tribunal under Section 391-394 of the Companies Act, 1956 or Section 230-233 of Companies Act, 2013 seeking order for mergers or amalgamations with other companies or NBFCs.

Monday, 9 June 2014

CCI April 2014

Order no. Date Particulars
06 of 2014 15-04-2014 Shri Vishal Gupta                                             v.
 M/s Google Inc.
 M/s Google Ireland Limited
 M/s Google India private Limited 
Based on the information provided by the Informant, CCI has found a prima facies contravention of Section 4 of the Competition Act 2002 by Google in terms of its policies pertainig to Adwords Accounts. CCI has directed DG to investigate in the matter and present its report in 60 days from the date of reciept of order

74 of 2012 04-03-2014 Indian Exhibition Industry Association v. Ministry of Commerce & Industry
Indian Trade Promotion Organization  
A penalty of 6,75,03,540.00 INR was imposed on Indian Trade Promotion Organisation for indulging in anti-competitive practices
05, 07, 37 & 44 of 2013 15/04/2014  M/s Madhya Pradesh Power Generating Company Limited                                          AND
 M/s South Eastern Coalfields Ltd.
M/s Coal India Ltd.                                           WITH                                                                                                                           M/s Madhya Pradesh Power Generating Company Limited.
 And
 M/s South Eastern Coalfields Ltd.
 M/s Coal India Ltd.                                   
WITH                                                                  M/s West Bengal Power Development Corporation Ltd.
 And
M/s Coal India Ltd. 
M/s Eastern Coalfields Limited
M/s Bharat Coking Coal Limited
M/s Mahanadi Coalfields Limited            
WITH                                                           Sponge Iron Manufactures Association
And
M/s Coal India limited
M/s Central Coalfields Limited
M/s Eastern Coalfields Limited
M/s Western Coalfields Limited
M/s South Eastern Coalfields Limited
M/s Northern Coalfields Limited
M/s Mahanadi Coalfields Limited                                                               
The Commission also held the opposite parties was in contravention of the provisions of section 4(2)(a)(i) of the Act for imposing unfair/ discriminatory conditions and indulging in unfair/ discriminatory conduct in the matter of
supply of non-coking coal, as detailed in the order. The Opposite party, CIL was ordered to amend the Agreement with the consultation of the stakeholders and informants  No penalty was imposed on the Opposite parties as a penalty of Rs. 1773.05 Cr had been imposed on it earlier.

Sunday, 8 June 2014

MCA/ROC April 2014

Date Subject Amendment
 28-Apr-14 Companies (Registration Offices and Fees Amendment) Rules, 2014 These rules provide that certain form would require pre-certifiaction by a professional. 
 25-Apr-14 Availability of E-forms under Companies Act, 2013 It was informed to the general public about forms to be filled by stakeholders. These forms include forms for extension of date of AGM/ Accounting period, etc.
04-Apr-14 Commencement of provisions of the Companies Act 2013 with regard to maintenance of books of accounts and
preparations/adoption/filing of financial statements, auditor's report, Board report and attachments to such
statements and reports- Applicability with regard to relevant financial Year.
Pursuant to provisions that came into force on April 01,2014, regarding maintenance of books of accounts and financial statements, Auditor's report, Board's report etc. MCA clarified that the financial statements, auditors report and Board
report in respect of financial years that commenced earlier than 1st April, 2014 shall be governed by the relevant provisions/ Schedules/ rules of the Companies Act, 1956 and that in respect of financial years commencing on or after 1 April, 2014, the provisions of the new Act shall apply.
01-Apr-14 Table of Fees This notification prescribes fee for various form filings with ROC 

SEBI April 2014

Notification/Circular no. Date Subject Amendment
CIR/IMD/DF/07/2014 02-Apr-14 Disclosures pertaining to Assets Under Management
Changes in terms defined by, Circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 captioned 'Enhancing disclosures, investor education & awareness campaign, developing alternative distribution channels for Mutual Fund products, etc', the term 'Asset under Management (AUM)' shall be read as 'Monthly Average Asset under Management (Monthly AAUM)'. Accordingly, data to be disclosed as per the format at annexure A1 and A2 of the aforesaid circular shall be Monthly AAUM instead of AUM.
CIR/MRD/DP/11 /2014 07-Apr-14 Master Circular for Depositories Master Circular has been issued to consolidate all circulars passed upto 31.03.2014.
CIR/IMD/FIIC/8/2014 07-Apr-14 Change in investment conditions / restrictions for FII/QFI investments in government debt securities Pursuant to the announcements made in the First Bi-monthly Monetary Policy Statement, 2014-15 dated April 1, 2014 by the Reserve Bank of India (RBI), it has been decided as follows:
1. FIIs/QFIs shall henceforth be permitted to invest only in dated government securities having residual maturity of one year or above.
2. Existing FII/QFI investments in T-Bills shall be allowed to taper off on maturity/sale. No further purchases in T-Bills shall be permitted. The investment limits vacated at the shorter end shall be available at longer maturities.                                                                    3. The overall Government Debt investment limit for FIIs/QFIs shall remain unchanged at US$ 30billion. 
CIR/CFD/POLICY CELL/2/2014  17-Apr-14 Corporate Governance in listed entities - Amendments to Clauses 35B and 49 of the Equity Listing Agreement
SEBI has now amended provisions of Listing Agreement, in order to harmonise it with the new rules of Corporate Governance. These shall come into effect 01.10.2014.

DIPP April 2014

Notification/Circular no. Date Subject Amendment
D/o IPP F. No. 5(1)/2014-FC.I  17-Apr-14 Consolidated FDI Policy Consolidated FDI policy was put to effect by way of this Circular

RBI April 2014

Date Subject Amendment
04-Apr-14 Foreign Exchange Management Act, 1999 (FEMA)
Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999
Powers to compound the following offences has now been delegated to the regional offices of RBI: A) Delay in reporting inward remittance received for issue of shares.                                                                B) Delay in filing form FC(GPR) after issue of shares.       
C) Delay in issue of shares/refund of share
application money beyond 180 days,
mode of receipt of funds, etc.                                                                                           
D) Violation of pricing guidelines for issue
of shares.     
E) Issue of ineligible instruments such as
non-convertible debentures, partly paid
shares, shares with optionality clause,
etc.
F) Issue of shares without approval of RBI
or FIPB respectively, wherever
required                                                                                                     Kochi and Panaji Offices can compound the contraventions for amount of contravention below Rupees one hundred lakh 
03-Apr-14 Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/ Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – Harmonization of KYC norms for Foreign Portfolio Investors (FPIs) RBI has prescribed simplified norms, for the FPI's who are already registered under SEBI guidelines and  undergone the required KYC due diligence/verification prescribed by SEBI through a Custodian/Intermediary regulated by SEBI.Such FPI can approach a bank for opening a bank account for the purpose of investment under Portfolio Investment Scheme (PIS) for which KYC documents mentioned in this circular shall be required.
07-Apr-14 Investment through Alternative Investment Funds – Clarification on Calculation of NOF of an NBFC
While, explaining the meaning  and ambit of NBFC ( Non-Banking Financial Companies), explicitly declared that NBFCs must deduct investments made  in group entities before arriving at NOF (net owned funds).
07-Apr-14 Risk Management & Inter-Bank Dealings:
Booking of Forward Contracts - Liberalisation
RBI has  permitted all resident individuals, firms and companies, who have foreign exchange exposures, both actual and anticipated, to book foreign exchange forward contracts up to $250,000 on the basis of a simple declaration without any requirement of further documentation. However, Small and Medium Enterprises (SMEs) shall remain uneffected by this reformation.
07-Apr-14 Registration of Non-Operative Financial Holding Companies (NOFHCs) RBI has created a separate category of NBFCs, i.e, Non-Operative Financial Holding Company (NOFHC) which will hold bank as well as all other financial services companies regulated by RBI or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions. Through this category promoters/ promoter groups shall be enabled to set up new banks. NOFHC will be registered with the Department of Non-Banking Supervision (DNBS) of the Reserve Bank, while its regulatory and supervisory framework including prudential norms and submission of returns will be governed by the instructions issued by DBOD from time to time.
16-Apr-14 Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008 shall now be eligible to accept Foreign Direct Investment (FDI), subject to the specified conditions.
21-Apr-14 Foreign Direct Investment in Pharmaceuticals sector – clarification It has been decided by the RBI, that that the existing policy related to FDI in Pharmaceutical sector shall prevail with the condition that ‘non-compete’ clause would not be permitted except in special circumstances with the approval of the FIPB.
 22- Apr-14 Fund/Non-Fund based Credit Facilities to Overseas Joint Ventures / Wholly Owned Subsidiaries /Wholly owned Step-down Subsidiaries of Indian Companies  RBI has ordered overseas branches of domestic banks not to  extend ECBs to manufacturing
and infrastructure companies for repaying rupee loans. Similarly, it has been recommended that, banks, including overseas branches/subsidiaries of Indian banks, must not  issue standby letters of credit/guarantees/letter of comforts etc. on behalf of overseas JV/WOS/WoSDS of Indian companies for the purpose of raising loans/advances of any kind from other entities except in connection with the ordinary course of overseas business. 
 22- Apr-14 Scaling up of the Business Correspondent (BC) Model –Issues in Cash Management Bank boards have been ordered to review the operations of business correspondents (BCs) at least once every six months. This has been done to ensure that requirement of prefunding of corporate BCs and BC agents is taperred down with the passage of time. It was further ordered that banks must review the position of payment of remuneration of BCs and to lay down a system of monitoring by the top management of the bank.