September 2023 – Page 2 – Vinod Kothari Consultants

The G20 leaders in the recent G20 Summit held on 8th -10th September, 2023, endorsed the revised ‘G20/OECD Principles of Corporate Governance’ (‘Revised Principles’). The Revised Principles replace the extant set of principles released in 2015 in light of the evolution in capital markets and global economy, following a review of the erstwhile principles over a period from 2021-2023.

As stated in the Summit Declaration, the Revised Principles have been endorsed by the G20 leaders “with the aim to strengthen policy and regulatory frameworks for corporate governance that support sustainability and access to finance from capital markets, which in turn can contribute to the resilience of the broader economy.”

The Revised Principles, besides making alterations to the existing principles, also introduce two new chapters, viz.,

Chapter III – ‘Institutional investors, stock markets, and other intermediaries’ focussing on engagement of institutional investors with the investee company, essential disclosure requirement and management of conflict of interest pursuant to exercise of their key ownership rights.

Chapter VI – ‘Sustainability and resilience’ focussing on corporate governance policies for managing the risks and opportunities of sustainability and resilience

Below we summarise the key highlights of the Revised Principles.

Taxability of Corporate Guarantees under GST

September 16, 2023/0 Comments/in Financial Services /by Staff

– Dayita Kanodia, Executive | finserv@vinodkothari.com

A person who can’t pay gets another person who can’t pay, to guarantee that he can pay.

– Charles Dickens

Background

It is a common practice for companies to issue guarantees for loans taken by their group companies. When transactions happen between related parties, there is always a likelihood of them being not at arm’s length.

Accordingly, this has led to questions that whether such corporate guarantees given without any consideration shall be liable to GST. A Supreme Court ruling issued earlier this year has clarified that corporate guarantees issued without any consideration shall not be liable to service tax.

Therefore while the situation in case of levy of service tax has been clarified by the ruling, the same has led to a lot of ambiguities and questions for the levy of GST on such guarantees. This article aims to clarify the same.

REIT and InvIT unitholders with 10% aggregate holding get Board nomination rights

September 16, 2023/0 Comments/in Alternative investment Vehicles, Capital Markets, Corporate Laws, SEBI /by Team Corplaw

Avinash Shetty, Assistant Manager | corplaw@vinodkothari.com

REIT-and-InvIT-unitholders-with-10-aggregate-holding-get-Board-nomination-rights Download

Reporting of Fraud – Resource Centre

September 14, 2023/0 Comments/in Uncategorized /by Vinod Kothari Consultants

We, here at Vinod Kothari and Company, have curated all our materials and FAQs relating to fraud monitoring and reporting under Companies Act, 2013, SEBI Regulations and RBI Regulations to provide a single point access to our various resources. This page is intended to be a one stop solution to all your queries regarding the same. Hope that the readers find it useful.

Date	Title	Author	Link
September 12, 2023	FAQs on Reporting of Fraud	Team Corplaw & Finserv	https://vinodkothari.com/2019/11/faqs-on-fraud-reporting/
April 14, 2023	Classification of fraud and reporting	Rhea Shah	http://vinodkothari.com/2023/04/ classification-of-fraud-and-reporting/
March 31, 2022	Guidelines on Reporting and Monitoring of Frauds in Housing Finance Companies	Team Finserv	https://vinodkothari.com/2019/02/february-7-2019/
February 07, 2019	Actionables under the Fraud Reporting Framework for HFCs	Team Finserv	https://vinodkothari.com/wp-content/uploads/2019/02/ Actionables-under-the-Fraud-Reporting-Framework-for-HFC.pdf
February 19, 2016	Fraud reporting by NBFCs: RBI revised the threshold limit	Nidhi Parmar	https://vinodkothari.com/wp-content/uploads/2017/03 /Fraud_reporting_by_NBFCs-1.pdf
July 09th, 2016	Centralized Reporting of Frauds	Ameet Roy	https://vinodkothari.com/wp-content/uploads/2017/ 03/Centralized_reporting_of_frauds-1.pdf
February 17th, 2016	Fraud Reporting – Time To Act Now!	Arundhati Bose	https://vinodkothari.com/wp-content/uploads/2017 /03/Fraud_Reporting_Time_To_Act_Now-1.pdf
May 07th, 2015	Fraud Reporting Framework – A systematized way to detect fraud	Nidhi Bothra & Shruti Agarwal	https://vinodkothari.com/wp-content/uploads/ 2015/05/Article_Fraud_Reporting_Framework.pdf
January 25th, 2015	New registry and revised framework to monitor frauds	Abhirup Ghosh	https://vinodkothari.com/wp-content/uploads/2017/03/New_registry_and_revised_framework_to_monitor_fraud-1.pdf
September 20, 2014	Practical guide to Fraud Reporting	Esha Chakraborty	https://vinodkothari.com/wp-content/uploads/2017/03/A-Practical-Guide-to-Fraud-Reporting.pdf
March 07, 2014	Financial Frauds in India – An enquiry into their causes and cures	Vinod Kothari	https://vinodkothari.com/wp-content/uploads/2017/03/Financial_frauds_in_India.pdf
October 19, 2013	Little-noted provision of Companies Act 2013 gives NBFCs parity with banks	Vinod Kothari	https://vinodkothari.com/wp-content/uploads/2014/01/Little-noted_provision_of_Companies_Act_2013_gives_NBFCs_parity_with_banks_19th_October_2013.pdf

Responsible Lending Conduct – Release of Movable/Immovable Property Documents on Repayment/Settlement of Personal Loans

September 13, 2023/0 Comments/in Financial Services /by Team Finserv

– Eliza Bahrainwala & Shreshtha Barman, finserv@vinodkothari.com

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