MCA Updates
Centre for Processing Accelerated Corporate Exit (C-Pace) (Regulatory Updates)
The Finance Minister Nirmala Sitharaman during the Union Budget speech 2022-23 had proposed the establishment of a Centre for Processing Accelerated Corporate Exit (C-PACE) with process re-engineering, to facilitate and speed up the voluntary winding-up of companies from the currently required 2 years to less than 6 months.
Accordingly, the Ministry of Corporate Affairs has notified the establishment of C-PACE to facilitate and speed up the voluntary winding-up of these companies.
C-PACE will be located at the Indian Institute of Corporate Affairs (IICA), Plot No. 6, 7, 8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin Code – 122050.
The notification will be effective from the 1st day of April 2023.
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Establishment of Special Courts(Regulatory Updates)
The Ministry of Corporate Affairs has made the following amendment with respect to the special court:
The Central Government, with the concurrence of the Chief Justice of Jharkhand, has designated Additional Judicial Commissioner-III of Ranchi, in the State of Jharkhand as a Special Court for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more as per clause (a) of sub-section (2) of section 435 of Companies Act, 2013. Earlier, Additional Judicial Commissioner, Ranchi was responsible for the same.
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Indian Accounting Standards(Regulatory Updates)
The Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amendment Rules, 2023 amending the Companies (Indian Accounting Standards) Rules, 2015. The amendments have come into effect from the 1st day of April 2023 i.e. FY2023-24. Companies that prepare their financial statements under Indian Accounting Standards (Ind AS) will be required to apply the changes/modifications as prescribed in the Rules from the financial year beginning from the 1st day of April 2023.
One of the major changes is that Companies shall disclose “material accounting policy information in their financial statements”, as against the current requirement of disclosing “significant accounting policies”.
The amendments have been made to the following Indian Accounting Standards:
| Ind AS-1 | Presentation of Financial Statements |
| Ind AS-8 | Accounting Policies, Changes in Accounting Estimates and Errors |
| Ind AS-12 | Income Taxes |
| Ind AS-34 | Interim Financial Reporting |
| Ind AS-101 | First-time Adoption of Indian Accounting Standards |
| Ind AS-102 | Share-based Payment |
| Ind AS-103 | Business Combinations |
| Ind AS-107 | Financial Instruments: Disclosures |
| Ind AS-109 | Financial Instruments |
| Ind AS-115 | Revenue from Contracts with Customers |
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SEBI Updates
Amendments to Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 (“Buy Back Regulations”)
SEBI notified an amendment to the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023, which shall be effective for all buy-back offers on or after the 30th day of the date of notification of this amendment in the official gazette (i.e. March 09, 2023) where the Board of Directors of the company approve the resolution with respect to buy-back.
Click here to access the relevant amendment
SEBI vide the circular dated March 09, 2023, specified the restrictions on placement of bids, price and volume for the companies undertaking to buy back through the stock exchange in accordance with Clause (vi) of Regulation 16 of the Buy-back Regulations.
Further, SEBI vide this circular has specified the margin requirement for deposit in Escrow Account as per sub-clause (c) of Clause (xi) of Regulation 9 and Clause (ii) of Regulation 20 of the Buy-back Regulations.
Click here to access the detailed circular
Securities and Exchange Board of India (Grant of Reward to Informant under Recovery Proceedings) Guidelines, 2023
SEBI introduced new guidelines to reward informants who provide credible information about a defaulter’s assets under recovery proceedings. The guidelines detail the scope, applicability, examination, rewards, committee formation, and determination of reward amount.
To view the guidelines, click here
Simplification of norms for processing Investor’s Service Requests by RTAs
SEBI issued a circular outlining simplified norms for processing investor service requests and norms for PAN, KYC details, and nomination. Based on the investor feedback and consultation with the Registrars Association of India (RAIN), the norms/procedure for processing service requests were updated.
The detailed SEBI circular with the relevant procedural changes in this regard can be accessed by clicking the link below.
To access the detailed Circular, click here
Master Circular on Surveillance of Securities Market
The Integrated Surveillance Department (ISD) of the Securities and Exchange Board of India (SEBI) has issued a number of circulars addressing effective securities market surveillance. In order to enable easy access to all the circulars relating to the Surveillance of the securities market, SEBI in this regard has issued the Master Circular on March 23, 2023.
The circular contains information on trading regulations, dematerialized shareholding, monitoring of unauthenticated news, disclosures, reporting, trading window etc relevant to this purpose and it shall come into force from March 23, 2023.
Click here to access the Master Circular
Operational Circular on Debenture Trustees Regulations
Under the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993 SEBI has outlined a broad framework for Debenture Trustees. However, SEBI has specified certain procedural/disclosure requirements and obligations through various circulars and has now decided to issue one Operational Circular on March 31, 2023, to provide clarity by eliminating repetitions and inconsistencies. The Operational Circular has come into effect from April 1, 2023.
The Board of Directors of the Debenture Trustees are directed to follow the conditions outlined in this circular and are entrusted with the responsibility of ensuring compliance with these provisions.
The detailed provisions pertaining to Debenture Trustee can be accessed by clicking on the following link:
Click here to access the detailed Circular
Extension of compliance period for Debt Fundraising by Large Corporates
SEBI vide its Non-Convertible Securities (NCS) Operational Circular dated August 10, 2021, mandated that a minimum of 25% of large corporate’s incremental borrowings in a Financial Year (FY) be raised through the issuance of debt securities, and the same must be met over a contiguous block of two-years from FY 2021-22. Various representations were received from market participants in order to extend the period.
In view of the same, SEBI vide it’s circular dated March 31, 2023, extended the contiguous block of two years to three years beginning from FY 2021-22 to FY 2023-2024.
To access the circular, click here
Income Tax Updates
Partial relaxation with respect to electronic submission of Form 10F by select category of taxpayers mandated vide Notification No. 3 of 2022
In view of the continued practical challenges and to mitigate the genuine hardship being faced in filing File Form 10F online, the relaxation provided to non-resident (NR) taxpayers who are not having PAN and are not required to have PAN as per relevant provisions of the Income-tax Act,1961 read with Income-tax Rules, 1962 are exempted from filing mandatory electronic filing of Form 10F till 30 September 2023 as against the earlier timeline of 31 March 2023.
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Rule 114AAA introduced to Income Tax, 1962 mandating linking of PAN with Aadhar
A person who has been allotted a permanent account number as of the 1st day of July 2017 and is required to intimate his Aadhaar number under sub-section (2) of section 139AA of the Act has failed to intimate the same on or before the 31st day of March 2022, the permanent account number of such person shall become inoperative, and he shall be liable for payment of a fee in accordance with sub-rule (5A) of rule 114.
After payment of a fee in accordance with sub-rule (5A) of rule 114 of the Act, the permanent account number shall become operative within 30 days from the date of intimation of the Aadhaar number.
A person, whose permanent account number has become inoperative, shall be liable for the following further consequences till it becomes operative:
- refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made;
- interest shall not be payable on such refund for the period, beginning with the date specified by the CBDT and ending with the date on which it becomes operative;
- where tax is deductible under Chapter XVIIB in case of such person, such tax shall be deducted at a higher rate, in accordance with provisions of section 206AA; and
- where tax is collectable at source under Chapter XVII-BB in case of such person, such tax shall be collected at a higher rate, in accordance with provisions of section 206CC;
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CBDT notifies the procedure for filing Form 15C or Form 15D to be filed electronically through TRACES
CBDT has notified detailed procedure and processing steps in respect of Form 15 C and Form 15D that are required to be filed before the Assessing officer in case of a non-deduction certificate. This can be accessed through the link provided below to the CBDT circular.
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GST Updates
Extension of time limit for application for revocation of cancellation of registration
As per Section 148 of CGST Act 2017, the Central Government notifies the registered person, whose registration has been cancelled under Section 29 of the said Act on or before the 31st of December 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified shall follow few special procedures with respect to revocation of cancellation of such registration.
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Waiver scheme for deemed withdrawal of assessment orders issued under Section 62
As per CGST Act 2017, the Central Government notifies that the registered person who failed to furnish a valid return within a period of 30 from the service of the assessment order issued on or before the 28th of February 2023 of section 62 of the said Act, as the classes of registered persons in respect of whom said assessment order shall be deemed to have been withdrawn if such registered persons follow the special procedures as specified in the notification.
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Rationalisation of late fee for GSTR 9 and waiver for GSTR 9
CBIC reduces Annual Return late fee for the financial year 2022-23 onwards which is attached in the notification. The late fee for the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22 if furnished between 1st April 2023 to 30th June 2023 is restricted to INR 20,000.
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Amnesty to GSTR 10 non-filers
The Central Government notifies to waive the amount of late fee in excess of INR 500 for a registered person who fails to furnish the final return in GSTR-10. GSTR 10 is filed by the registered person who has opted for cancellation of the GST registration.
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Extension of limitation under Section 168A of the CGST Act
CBIC extends the time limit for issuance of orders for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised for financial 2017-18,2018-19 and 2019-20.
