The Ministry of Corporate Affairs vide notification dated 16 August 2019, notified the Companies (Share Capital and Debentures) Amendment Rules 2019 (Amendment Rules). The Amendment Rules have amended the Companies (Share Capital and Debentures) Rules, 2014 (Original Rules).
The Ministry of Corporate Affairs (MCA) vide its circular dated 21 August 2019 (Ref: General Circular No. 09/2019 available at http://www.mca.gov.in/Ministry/pdf/GeneralCircular_21082019.pdf) (General Circular) clarified that appointed date as contemplated under Section 232(6) of the Companies Act 2013 (Act) can either be a specific calendar date or a date based on the trigger of a specific event.
In a much-awaited move, the Government of India (Government) vide press release dated 24 August 2019 (Press Release), announced withdrawal of the enhanced surcharge rates on income arising from the transfer of certain investments made in the Indian capital markets.
In State Bank of India v Moser Baer Karamchari Union [Company Appeal (AT) (Insolvency) Number 396 of 2019] (Moser Baer), the National Company Law Appellate Tribunal, New Delhi (NCLAT), ruled on the scope of ‘workmen’s dues’ under Section 53 of the Insolvency and Bankruptcy Code, 2016 (IBC) from the perspective of the dues of an employer towards provident fund, pension fund and gratuity.
The Bombay High Court has passed an unprecedented order in Nippon Steel & Sumitomo Metal Corporation Vs Kishor D Jain & Anr (Notice of Motion (L) No 810 of 2019 in COMIP (L) No 383 of 2019) imposing costs of INR 5 Crore to be paid by the defendants who were caught counterfeiting the Plaintiff’s mark and goods.
On 8 February 2019, the Ministry of Corporate Affairs (MCA) released the Companies (Significant Beneficial Owners) Amendment Rules 2019 (New SBO Rules) to revise and amend the Companies (Significant Beneficial Owners) 2018 (Old SBO Rules). As per the New SBO Rules, the first SBO-related filing is due on 12 May 2019.
The Union Cabinet on 28 August 2019 has issued a press release proposing some significant changes to the Foreign Direct Investment (FDI) policy of the Government of India, specifically relating to 4 (four) sectors as detailed below. Whilst the fine print of the revised policy is awaited, following are some of the key changes proposed:
Amidst the on-going hue and cry around the hotly debated ‘angel tax’ issue, the Department for Promotion of Industry and Internal Trade (DPIIT) had recently issued a notification (No. GSR 127(E) dated 19 February 2019) superseding its earlier notification. This notification had further relaxed the criteria applicable to an eligible start-up and the conditions to be fulfilled for claiming certain income-tax benefits (DPIIT Notification).
In its 33rd meeting held on 24 February 2019, the GST Council has recommended reduction in GST rates for under-construction residential properties. The GST Council has proposed a slab rate of 1% for the affordable housing segment and a slab rate of 5% in all other housing segments without benefit of the input tax credit (ITC) of GST paid on the inward supplies of goods and services. The change in rate is proposed to be made effective from 1 April 2019.
A Bench of Hon’ble Justices Arun Mishra and Navin Sinha of the Hon’ble Supreme Court vide judgement dated 28 February 2019 in the case of The Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir & Ors.
