Ergo Update

The Competition (Amendment) Act, 2023 (CAA23) which significantly amended the Competition Act, 2002 (Act) was enacted on 11 April 2023. A detailed overview of the CAA23 along with our views are available here, here, here and here. The CAA23 is being implemented in a staggered manner. Certain provisions which do not require supporting regulations for their implementation were notified on 18 May 2023, while the remaining provisions are expected to be notified once the Competition Commission of India (CCI) finalises the attendant regulations.

The buzz word ‘finfluencers’ has reportedly been making the rounds in the hallways of Securities and Exchange Board of India (SEBI) since early 2022. 

On 31 July 2023, the Central Analysis and Intelligence Unit (CAIU) of the Employees’ Provident Fund Organisation (EPFO) released the Standard Operating Procedure (SOP) for inspection of establishments (July Circular) covered under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act). The July Circular was issued to give effect to the SOP set out in an earlier circular dated 21 March 2023 (March Circular), which in turn found its roots in an old circular dated 26 June 2014 (2014 Circular).

The Karnataka Real Estate Regulatory Authority (Authority) on 19 July 2023 issued a notification (Notification) which has inter alia added to the scrutiny of funds (borrowed from lenders) raised in connection with real estate projects.

The Insolvency and Bankruptcy Board of India (IBBI) had previously via the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2022 (Fifth Amendment) inserted Regulation 31A(1) which introduced a regulatory fee payable to IBBI.

In our previous ERGO, we had analysed the impact of the amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) approved by the Securities and Exchange Board of India (SEBI) in its board meeting dated 29 March 2023 (SEBI Board Meeting) aimed at introducing enhanced governance and disclosure standard for Alternative Investment Funds (AIFs).

On 17 July 2023, the Hon’ble Supreme Court delivered its judgement in Paschimanchal Vidyut Vitran Nigam Ltd. v. Rarman Ispat Private Limited & Ors., 2023 SCC OnLine SC 842 (Raman Ispat). The specific issue of whether Paschimanchal Vidyut Vitran Nigam Ltd. (Appellant) could enforce a security interest created over the assets of Raman Ispat Private Limited (Corporate Debtor) outside of the liquidation proceedings under the Insolvency and Bankruptcy Code, 2016 (Code) was settled in the negative.

The Securities and Exchange Board of India (SEBI) on 5 July 2023, has notified the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) (Second Amendment) Regulations, 2023 (Second Amendment Regulations) which amends the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations) and is effective immediately.

The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) came into force on 16 May 2023. The CBAM aims to target carbon leakage, which the European Commission defines as occurring when industries transfer polluting production to countries with less strict climate policies. The CBAM will cover the import of goods from all non-EU countries. However, certain third countries that participate in the EU’s Emissions Trading System (ETS) will be excluded from the mechanism.