Reference: Ministry of Corporate Affairs
Update:
Invitation for Public Comments on the Competition (Amendment) Bill, 2020
MCA had constituted a Competition Law Review Committee (CLRC) to review and recommend a robust Competition regime by taking the inputs of key stakeholders and to suggest changes in both the substantive and procedural aspects of law. Accordingly, a Competition (Amendment) Bill, 2020 has been drafted for carrying out amendments in the Competition Act, 2002.
Implication:
Stakeholders shall submit their comments if any, online by end of business hours on 6th March, 2020 positively.
Reference: Central Board of Direct Taxes
Update:
No reassessment based on Supreme Court ruling that reversed legal position prevailing at time of regular assessment
The petitioner challenged that the reassessment notices were issued after expiry of four years from the end of the relevant assessment year. Assessing Officer (AO) could not establish that the information of alleged escaped income was not within his knowledge and was not considered at the time of passing of the assessment order under section 143(3) of the Income-tax Act, 1961.
Thus, it couldn’t be said that there was an omission or failure on the part of the assessee in disclosing fully and truly the material facts necessary for relevant assessment and reassessment notices were liable to be quashed.
Update:
Provision made for leave encashment on actuarial basis not to be added back while computing book profit under MAT
AO added the provision for leave encashment to the net profit of the assesse. Assessee claimed that provision for leave encashment was not for an ascertained liabiity, therefore, same was not liable to be added while computing book profits. Since this contention was rejected, on futher appeal, Mumbai ITAT held that if a business liability had definitely arisen in the accounting year, the deduction should be allowed, although the liability may have to be quantified and discharged at a future date.
Reference: Securities and Exchange Board of India
Update:
Monetary Penalty on Gordon Herbert (India) Limited
SEBI alleged that Gordon Herbert (India) Limited (Noticee) by failing to obtain SCORES authentication and to redress the one pending investor grievances, the Noticee has violated CIR/OIAE/1/2013 dated April 17, 2013 which stated that if SCORES authentication was not obtained within 30 days, it would not only be deemed as non redressal of investor grievances, but, also indicate wilful avoidance of the same read with CIR/OIAE/1/2014 dated December 18, 2014 which stated inter alia that existing listed companies which have failed to obtain authentication shall be dealt with in terms of the circluars issued earlier.
Hence, SEBI imposed monetary penalty of Rs. 1,00,000/- upon the Noticee i.e., Gordon Herbert (India) Limited for violation of SEBI Circulars No. CIR/OIAE/1/2013 dated April 17, 2013 read with CIR/OIAE/1/2014 dated December 18, 2014.
Implication:
The Noticee shall remit / pay the said amount of penalty within 45 days of receipt of this order.
Update:
Inclusion of Mauritius in the FATF list of “jurisdictions under increased monitoring”
Since Mauritius has made progress on a number of its MER recommended actions to improve technical compliance and effectiveness, including amending the legal framework to require legal persons and legal arrangements to disclose of beneficial ownership information and improving the processes of idenifying and confiscating proceeds of crimes.
SEBI has hence, placed Mauritius in the list of “jurisdictions under increased monitoring”, commonly referred to as the “grey list” and has asked it to work to implement its action plan, including by:
- Demonstrating that the supervisors of its global business sector and DNFBPs implement risk-based supervision.
- Ensuring the access to accurate basic and beneficial ownership information by competent authorities in a timely manner.
- Demonstrating that LEAs have capacity to conduct money laundering investigations, including parallel financial investigations and complex cases.
- Implementing a risk based approach for supervision of its NPO sector to prevent abuse for TF purposes.
- Demonstrating the adequate implementation of targeted financial sanctions through outreach and supervision.
Implication:
FPIs from Mauritius continue to be eligible for FPI Registration with increased monitoring as per FATF norms.
Update:
Review of Margin Framework for Cash and Derivatives segments (except for Commodity Derivatives segment)
With a view to keeping up pace with the changing market dynamics and to bring more efficiency in the risk management framework, a comprehensive review of the margin framework was done in consultation with the Risk Management Review Committee (RMRC) of SEBI. It has been decided to effect changes to the existing risk management framework.
Implication:
The provisions of this Circular shall come into effect from May 01, 2020.
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