SEBI Updates
SEBI has notified the Listing Obligations and Disclosure Requirements Regulations, 2015 (Third Amendment) Regulations, 2024 based on the recommendations of the Expert Committee. Some of the key amendments are listed below: Regulatory Updates
- Compliance Officer shall be an officer in whole time employment of the listed entity, not more than one level below the board of directors and shall be designated as a Key Managerial Personnel. Regulatory Updates
- Prior approval is to be obtained for the appointment/re-appointment of non-executive Directors who have attained the age of 75 years. Regulatory Updates Regulatory Updates
- It is henceforth optional for the listed entities to publish detailed advertisements on financial results in the newspaper. Instead, a small box advertisement along with a QR code and weblink to the page where full financial results of the listed entity are available shall be published for the benefit of investors. Regulatory Updates
- Shareholders’ approval is not required for the appointment or re-appointment of a director nominated by a financial sector regulator, Court or Tribunal to the board of the listed entity.
- SEBI has clarified that the Board of Directors must meet at least four times in a ‘financial’ Further, the audit committee, nomination and remuneration committee and stakeholders’ relationship committee shall meet at least four times, one time and two times in a ‘financial’ year respectively. Regulatory Updates
- Audit committee approval is not required for remuneration and sitting fees to a director, key managerial personnel or senior management, except a promoter, if it is not material as per the policy on materiality of related party transactions. Regulatory Updates
- Secretarial Audit can be conducted only by a Peer Reviewed Company Secretary. The term of appointment of the Secretarial Auditor, restrictions on appointment/ re-appointment, the procedure for filling of a casual vacancy, eligibility, qualifications and disqualifications of the Secretarial Auditor have also been added.
- The requirement to fill the vacancy to the office of an independent director within three months has been removed. Regulatory Updates
- Apart from the disclosures already specified, the listed entity should also disseminate the information relating to the Memorandum of Association and Articles of Association, a brief profile of the board of directors including directorship and full-time positions in body corporates on its website.
Click here to access the Regulation
Circular to carry consequential changes to the provisions of master circular ON LODR
Following the amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI has issued a circular dated December 31, 2024 to give effect to certain recommendations of the Expert Committee and carry out consequential changes to the provisions of the SEBI Master Circular on compliance with the LODR Regulations.
Click here to access the circular
Repository of documents relied upon by Merchant Bankers during the due diligence process in public issues
According to the SEBI (Merchant Bankers) Regulations, Merchant Bankers are required to preserve the records pertaining to due diligence exercised in both pre-issue and post-issue activities of issue management. Re Regulatory Updates gulatory Updates
In order to facilitate efficient maintenance and easy access of such records and documents, stock exchanges have set up an online Document Repository platform enabling them to upload and maintain the aforesaid documents electronically. Timelines for uploading documents have been provided in the Circular. Further, stock exchanges have been advised to inform Merchant bankers of the indicative list of documents to be uploaded. Regulatory Updates
Click here to access the circular
Enhancement in the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets
SEBI issued a circular on December 10, 2024, expanding the number of eligible scrips for trading under the optional T+0 settlement cycle and calls for participation by qualified stockbrokers and Market Infrastructure Institutions. All stock brokers are allowed to participate in the optional T+0 settlement cycle. Further, Stock Brokers are permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within the regulatory limit. Re Regulatory Updates gulatory Updates
Click here to access the circular
Upload of Draft Scheme Information Documents
The Master Circular on Mutual Funds was modified by way of a SEBI circular dated December 20, 2024 which mandates that the Scheme Information Documents receiving observations from SEBI shall be uploaded on the SEBI website for at least 8 working days for receiving public comments on the adequacy of disclosures. After this stipulated period, Asset Management companies may launch the scheme and file final offer documents. Regulatory Updates Regulatory Updates
Click here to access the circular
Introduction of a Mutual Funds Lite (MF Lite) framework for passively managed schemes of Mutual Funds
A relaxed regime with light-touch provisions “the MF Lite Framework” is being introduced for passive Mutual Fund schemes, with an intent to promote ease of entry, encourage new players, reduce compliance requirements, increase penetration, facilitate investment diversification, increase market liquidity and foster innovation. Consequently, the SEBI (Mutual Funds) Regulations, 1996 was amended. Regulatory Updates Regulatory Updates
Click here to access the circular
Industry Standards on Reporting of BRSR Core
To promote ease of doing business and ensure standardized implementation, the Industry Standards Forum (“ISF”) comprising representatives from ASSOCHAM, CII and FICCI, under the aegis of the Stock Exchanges and in consultation with SEBI formulated industry standards for effective implementation of the requirement to disclose Business Responsibility and Sustainability Report (BRSR) Core as required under LODR Regulations. This circular shall be applicable for FY 2024-25 and onwards. Regulatory Updates
Click here to access the circular
Allowing subscription to the issue of Non- Convertible Securities during the trading window closure period
According to SEBI (Prohibition of Insider Trading) Regulations, 2015 the trading window restrictions shall not apply in respect of transactions like acquisition by conversion of warrants or debentures, subscribing to rights issues, further public issues, offers for sale etc.
In addition to the existing list of transactions, SEBI has recently permitted the subscription to the issue of non-convertible securities, carried out in accordance with the framework specified by the Board.
Click here to access the circular
Income Tax Updates
CBDT notifies ‘International Institute of Information Technology, Hyderabad and ‘Sri Paripoorna Sanathana Ayurveda Medical College, Hospital and Research Centre for the purpose of relief u/s 35
The Central Board of Direct Taxes notifies the approval of ‘International Institute of Information Technology, Hyderabad’ under the category ‘Research Association’ and ‘Sri Paripoorna Sanathana Ayurveda Medical College, Hospital and Research Centre’ under the category ‘University, college or other institution’ for scientific research under section 35of the Income Tax Act,1961, which states that any sum paid to such Institute for carrying out scientific research be eligible to claim deduction of amount equivalent to the amount contributed/paid. Regulatory Updates
Click here to access the notification
CBDT Notification on Designation of Special Courts for Tax and Black Money Cases
CBDT designates Special Courts in Tamil Nadu and Puducherry under the Income Tax Act, 1961and the Black Money Act to expedite trials for tax offenses. Issued in consultation with the Madras High Court, it streamlines legal proceedings through dedicated courts in Chennai, Madurai, Coimbatore, and Puducherry.
Click here to access the notification
CBDT Notification Exempts CGTMSE from TDS on Payments
The Central Board of Direct Taxes exempts the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) from tax deduction at source (TDS) on any payments received, under Chapter XVII of the Income-tax Act, 1961. This exemption aims to facilitate CGTMSE’s operations in supporting micro and small enterprises. Regulatory Updates
Click here to access the notification
Guidance on Direct Tax Vivad se Vishwas Scheme, 2024
The CBDT provides detailed guidelines on the Direct Tax Vivad se Vishwas Scheme, 2024. The scheme aims to resolve pending income tax disputes by allowing taxpayers to settle their liabilities at a reduced rate. The scheme facilitates the settlement of disputes through a specified payment, with additional grounds considered for eligibility.
Click here to access the notification
Extension of Due Date under Direct Tax Vivad Se Vishwas Scheme, 2024
The CBDT, under section 97(2) of the Direct Tax Vivad Se Vishwas Scheme, 2024, has extended the due date for determining the payable amount as per section 90 of the Scheme from December 31, 2024, to January 31, 2025. For declarations filed on or after February 1, 2025, a higher payable amount will apply.
Click here to access the notification
CBDT extends the due date for furnishing belated/revised returns of Income AY 2024-25 for resident individuals.
The CBDT has extended the deadline for filing belated or revised income tax returns for the Assessment Year 2024-25 for resident individuals. The new due date is January 15, 2025, instead of the previous deadline of December 31, 2024. Regulatory Updates
Click here to access the notification
CBDT issues revised guidelines for compounding of offense
The revised guidelines shall come into effect from the date of issuance and shall apply to all applications which are either filed after the due date of issuance of the guidelines or were already filed but had not been disposed. For applications pending on the date of issuance of these guidelines, if compounding charges have already been determined and intimated but not fully paid, the compounding charges shall be re-determined, provided they are ower as per the revised guidelines. However, no refund or adjustment against other dues shall be made if the higher compounding charges, determined as per previous guidelines, have already been paid.
Applications may also be filed again, in case, applications under earlier guidelines were rejected only on account of curable defects such as non-payment of outstanding tax, interest, penalty or any other sum related to the offense, filing of the application in incorrect proforma, mention of incorrect assessment year/ financial year, the section under which the offense has been committed, non-payment or short payment of compounding charges, non-submission of undertaking regarding withdrawal of appeals etc.
CBDT notifies exemption under section 10(46) of the Act for Central Silk Board, Bengaluru.
The CBDT notifies exemption to Central Silk Board in respect of the following incomes:
(a) Grants/Funds received from the Centre/State/NGO or any other Statutory body by Central Silk Board, (b) Compensation received on account of sale, disposal, auction or acquisition of movable and immovable properties of Central Silk Board, (c) Royalty or any other income received for the technologies patented and intellectual property rights owned by the Central Silk Board, (d) Penalties and Levies collected under Government Statutes, (e) Fee/charges/receipt received on account of services rendered by Central Silk Board as per the provisions of the Central Silk Board Act, 1948 (LXI of 1948) as amended by the Central Silk Board (Amendment) Act, 2006 and the Central Silk Board Rules, 1955 as amended by the Central Silk Board (Amended) Rules, 2015, and (f) Interest earned on bank deposits; Regulatory Updates
The exemption is subject to the conditions that the Electricity Commission: (a) shall not engage in any commercial activity, (b) activities and the nature of the specified income shall remain unchanged throughout the financial years, and (c) shall file a return of income in accordance with Section 139(4C)(g); The Notification shall be deemed to apply for AYs 2024-2025 to 2028-2029.
CBDT Launches Electronic Campaign to Address ITR Mismatches and Enhance Tax Compliance
The CBDT has launched an electronic campaign to help taxpayers resolve mismatches between income and transactions reported in the Annual Information Statement (AIS) and Income Tax Returns (ITRs) for FY 2023-24 and FY 2021-22. Taxpayers are encouraged to file revised or belated ITRs by December 31, 2024 for FY 20223-24 and updated return by March 31, 2025 for FY 2021-22. The initiative, part of the eVerification Scheme, aims to enhance compliance and transparency using technology and third-party data.
Click here to access the press release
GST Updates
Clarification on Input Tax Credit for Electronic Commerce Operators under Section 9(5) of the CGST Act
CBIC clarifies the treatment of input tax credit (ITC) for Electronic Commerce Operators (ECOs) under section 9(5) of the CGST Act. It states that ECOs required to pay tax on specified services under section 9(5) do not need to reverse ITC for inputs and input services used for such supplies. However, the full tax liability must be paid in cash through the electronic cash ledger, and ITC cannot be utilized for this payment but can be used for the ECO’s own supplies. Regulatory Updates
Click here to access the notification
Clarification on Input Tax Credit for Ex-Works Contracts
CBIC clarifies that under Ex-Works (EXW) contracts, a buyer can claim an Input Tax Credit (ITC) once goods are handed over to a transporter at the supplier’s location, as ownership transfers at that point. Physical receipt at the buyer’s premises is not required for ITC eligibility, aligning tax provisions with modern supply chain practices. Regulatory Updates
Click here to access the notification
Clarification on Place of Supply for Online Services to Unregistered Recipients
CBIC mandates that suppliers of online services, including electronic commerce operators, must record the recipient’s state on tax invoices when providing services to unregistered individuals, regardless of transaction value. This ensures the place of supply is determined as the recipient’s location, facilitating accurate tax allocation to the appropriate state. Non-compliance may result in penalties under section 122(3)(e) of the CGST Act.
Click here to access the notification
Clarification on GST Treatment of Vouchers
CBIC clarifies that vouchers recognized as prepaid instruments by the RBI are considered “money” and are not subject to GST. Non-prepaid vouchers are treated as actionable claims and are also exempt from GST. Additionally, unredeemed vouchers, known as breakage, do not attract GST, as there is no underlying supply of goods or services.
