Reference: Securities and Exchange board of India
Update:
Mapping of Unique Client Code (UCC) with demat account of the clients
SEBI has asked brokers to link the unique client code (UCC) of investors to the investors Demat accounts.
UCC allotted by the trading member (TM) to the client shall be mapped with the Demat account of the client.
A client may trade through multiple TMs in which case each such UCC shall be mapped with one or more Demat account(s).
Stock Exchanges shall share the UCC data with the Depositories which shall include the PAN, segment, TM/CM code and UCC allotted. Such UCC data shall be shared with the Depositories on a one-time basis by November 30, 2019, and subsequently, incremental data in respect of new UCCs created shall be shared on a daily basis.
SEBI also stated that Stock Exchanges and Depositories shall have a mechanism in place to address clients’ complaints with regard to UCC mapping with their Demat accounts.
Stock Exchanges and Depositories shall map the existing UCCs with the Demat account of the clients’ latest by December 31, 2019.
Implication:
Stock exchanges and depositories should share data by 30th November 2019 and the complete process to link UCC with PAN and other data should be in place by 31st December, 2019
Update:
Monitory penalty on Vinayaka Finlease Private Limited:
SEBI has imposed a penalty of Rs. 5 Lakh on Vinayaka Finlease Private Limited for indulging in execution of reversal trades in Stock Options with same entity on the same day, thereby creating artificial volume, leading to false and misleading appearance of trading in the illiquid stock options at BSE thus violating provisions of Regulations 3(a), (b), (c), (d) and 4(1), 4(2) (a)of PFUTP Regulations.
Implication:
The entity shall pay the amount mentioned in order within a period of 45 days from the date of service of this order.
Reference: Central Board of Indirect Taxes and Customs
Update:
Goods supplied through Public Distribution System are liable to GST
Dipeet Agarwal, In re – [2019] 111 taxmann.com 228 (AAR – WEST BENGAL)
The applicant supplies consumer goods such as biscuits, soaps, etc., earmarked for ‘FOR PDS SUPPLY ONLY’ to fair price shops or PDS distributors. It has sought an advance ruling to determine GST applicability on supply of such goods.
The Authority for Advance Rulings, West Bengal observed that the goods supplied through Public Distribution System (PDS) are not covered under the exemption notification for goods under GST. Also, such supply is not included in Schedule-III of the CGST Act, 2017 which covers activities or transactions which are neither treated as supply of goods nor as a supply of services. Therefore, GST is applicable on supply of goods through PDS.
The Authority for Advance Rulings, West Bengal held that goods supplied through PDS are liable to GST.
Reference: Ministry of Corporate Affairs
Update:
Company Law Committee-2019 submits its report to Finance Minister:
The Company Law Committee was constituted by the Ministry of Corporate Affairs in September, 2019, inter alia, to further decriminalise the provisions of the Companies Act, 2013 based on their gravity and to take other concomitant measures to provide further Ease of Living for corporates in the country.
The committiee has submitted its report on The main recommendations of the Committee in are as follows
-Re-categorising 23 offences out of the 66 remaining compoundable offences under the Act, to be dealt with in the in-house adjudication framework wherein these defaults would be subject to a penalty levied by an adjudicating officer. In addition, the quantum of penalties recommended are lower than the quantum of fines presently provided in the Act.
-Omitting, altogether, 7 compoundable offences; limiting punishment for 11 compoundable offences to only fine by removing provision for imprisonment and recommending that 5 offences be dealt under alternative frameworks;
-Reducing the quantum of penalties in respect of 6 provisions, which were shifted to the in-house adjudication framework through the recently passed Companies (Amendment) Act, 2019;
-Retention of status-quo in case of the non-compoundable offences.
Update:
Insolvency regime for personal guarantors to corporate debtors from December 1
As per MCA notification the insolvency regime for individual guarantors to corporate debtors will be in force from December 1.
The provisions for resolution for individuals under the Insolvency and Bankruptcy Code (IBC) is being implemented in a phased manner.
MCA on 15th November 2019 said that the provision pertaining to personal guarantors to corporate debtors would come into force from December 1.
Reference: Reserve Bank of India
Update:
Five NBFCs surrender their Certificate of Registration to RBI:
The following five NBFCs have surrendered the Certificate of Registration granted to them by the Reserve Bank of India. The Reserve Bank of India, has therefore cancelled their Certificate of Registration.
Protech Financials Private Limited
Teesons Fincap Private Limited
Hilman Capital Finance Limited
(previously known as Jaykay Capital Finance Limited)
Gaylord Impex Limited
VAG Holdings Pvt. Ltd.
Implication:
As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Update:
RBI cancels Certificate of Registration of 25 NBFCs:
The Reserve Bank of India has cancelled the Certificate of Registration of the following companies
Hindon Investment Ltd.
Shinam Estate & Finvest Private Limited
STS Finvestment Private Limited
Zuha Financial Services Limited
DBG Leasing and Housing Limited
Kiran Securities Private Limited
Astha Fincap Private Limited
Bharat Ekansh Limited
Amardeep Constructions (P) Ltd.
Sunrays Properties and Investment Company Private Limited
BKB Securities Private Limited
APJ Financial Services Private Limited
Amba Credit and Investment Private Limited (previously known as Point Securities Private Limited)
Saral Fincap Private Limited
Welken Traders Limited
Yaduvansi Leasing & Hire Purchase Private Limited
Ameri Properties and Investments (P) Ltd.
Archit Securities Private Limited
Aryabhat Financial Services (P) Ltd.
ABD Securities Private Limited
Elegant Finvest Private Limited
Beeaarjay Fincon Private Limited
Annupriya Finance Limited
Gera Leasing & Finance Limited
N.K. Textile Industries Limited
Implication:
As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
