Ergo Update

In a welcome move, the Competition Commission of India (CCI) has published the revised format of Form II (long form) to notify reportable transactions. While the overhauled format was published on 31 March 2022 by way of amendment to the CCI (Procedure in regard to the transaction of Business relating to Combinations) Regulations, 2011 (Combination Regulations), the requirement to comply will come into effect from 1 May 2022.

On 18 April 2020, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, by way of Press Note No.3 (2020 Series) (PN3), announced a critical change to the Consolidated Foreign Direct Investment Policy to curb opportunistic takeover of stressed and strategic assets, or Indian entities in light of the impact of COVID 19 pandemic. 

The Central Government in November 2021 had modified the labelling norms on packages for retail sale which were to come into effect from 1 April 2022.

The role of a Chairman of the Board of Directors appears to have an inherent conflict with that of a Managing Director (MD) / Chief Executive Officer (CEO).

In a landmark Judgement dated 15 March 2022 (Judgement) in Writ Appeal No. 383 of 2019: Walwhan Renewable Energy Limited vs. State of Andhra Pradesh & Ors.

The Securities and Exchange Board of India (SEBI) vide circular number SEBI/HO/DDHS/P/CIR/2022/0028 dated 8 March 2022 (Revision Circular), has amended the Operational Circular bearing number SEBI/HO/DDHS/P/CIR/2021/613 dated 10 August 2021, in respect of procedures pertaining to issue and listing of non-convertible securities, securitised debt instruments, security receipts, municipal debt sec

On 28 February 2022, the Competition Commission of India (CCI) directed the Director General (DG) to investigate Star India Private Limited (Star India), Disney Broadcasting (India) Limited (Disney India), and Asianet Star Communications Private Limited (Asianet Star) for charging discriminatory prices from TV distributors for its bouquet of indispensable TV channels in Kerala.

The Chandigarh bench of the Income Tax Appellate Tribunal (ITAT) in its recent decision in the case of Electra Paper and Board Pvt Ltd v. ITO [ITA NO.222/Chd./2021] has held that for computing the fair market value (FMV) of the shares of a company, for the purposes of section 56(2)(viib) of the Income-tax Act, 1961 (IT Act), the unaudited balance sheet drawn as on the valuation date should be sufficient, if such unaudited balance sheet is subsequently audited with there being no difference in the audited and unaudited numbers.