Entries by Staff Publication

MCA revisits SBO Rules

-Notifies amendments to facilitate implementation of the SBO Rules CS Nikita Snehil (nikita@vinodkothari.com) Amendment to Section 89 and 90 is one of the key amendments brought in by the Companies (Amendment) Act, 2017 (‘Amendment Act’). While, the Amendment Act has been enforced in phases, stakeholders were given the option to provide the public comments on the […]

Notional income tax on issue of shares by closely held applicable not applicable under Sec.56(2) (vii a), clarifies CBDT

-Million dollar question: Can the same be extended to Sec. 56(2)(x) ? By Yutika Lohia (yutika@vinodkothari.com) The abolition of Gift Tax Act in the year 1998 paved way for one of the most dynamic sections of the Income Tax Act, 1961, – Section 56(2). Under this section all kinds of incomes and gains which were […]

Ombudsman Scheme for PPI issuers

By Simran Jalan (simran@vinodkothari.com) Introduction The payment technology has evolved and the number of digital transactions is increasing enormously. With this rapid adoption of digital mode of transactions, there was an emerging need for an expeditious grievance redressal mechanism for strengthening the consumer confidence in this channel. Consequently, the Reserve Bank of India (RBI) has […]

LIABILITY OF GUARANTOR AND PRINCIPAL DEBTOR IS CO-EXTENSIVE AND NOT IN ALTERNATIVE

By Richa Saraf (legal@vinodkothari.com) In the case of Sanjeev Shriya v. State Bank of India & Ors.[1], the Hon’ble Allahabad High Court has barred parallel proceedings in Debt Recovery Tribunal (DRT) and National Company Law Tribunal (NCLT). Below we discuss the implications and analyse the judgment:

Overlap in reporting of secretarial compliance

-Format under Regulation 24A By Pammy Jaiswal (corplaw@vinodkothari.com) Background The LODR (Amendment) Regulations, 2018 based on the recommendation of the Kotak Committee brought many changes on corporate governance. These changes included the requirement of annexing a secretarial audit report for both the listed entity and its material subsidiary in a specified format. Regulation 24A was […]

RBI Bi-monthly Credit Policy: NBFCs moved to a ratings-based risk weight regime

By Finacial Services Division (finserv@vinodkothari.com) The RBI’s Statement on Developmental and Regulatory Policies dated February 1, 2019 proposes that henceforth, bank lending to NBFCs will be risk-weighted based on the Basel II risk weights, based on the rating of the NBFC in question. This facility was earlier available only to asset finance companies, and has […]

Slump sale, a supply of goods or service under GST?

By Yutika Lohia (finserv@vinodkothari.com) Introduction India is en-route to turn itself into a 21st century super-economy fuelled by the unprecedented growth of its business enterprises. Business may grow in two ways – either in an organic way or inorganic. The former refers to the internal forces of the enterprises which are re-organised to bring in […]

Update 07.02.2019- Guidelines on Reporting and Monitoring of Frauds in HFCs

Guidelines on Reporting and Monitoring of Frauds in Housing Finance Companies   To facilitate the reporting and monitoring system relating to fraudulent transactions reported by HFCs, NHB issued “Guidelines on Monitoring of Frauds in Housing Finance Companies, 2018” (“Guidelines”) effective from February 05, 2019. The Guidelines shall apply to all Housing Finance Companies registered with the […]