MCA Updates
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
The Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024, are the guidelines which present a regulatory framework aimed at governing the listing of equity shares of Companies in permissible jurisdictions (“International Financial Services Centre in India”).
Applicability of these Rules: regulatory updates
- Unlisted Public Companies;
- Listed Public Companies which issue their securities to list on permitted stock exchanges in permissible jurisdictions.
Listing on permitted Stock Exchanges in permissible jurisdictions: regulatory updates
An Unlisted Public Company which
- does not fall under rule 5 of these rules, (which deals with Companies not eligible under the said rules), and
- which does not have partly paid-up shares may issue equity shares (including an offer for the sale of equity shares by existing shareholders) for listing of equity shares on stock exchanges in permissible jurisdictions.
Other than the above-mentioned Companies, Unlisted Public Companies having the intention to list equity shares with any recognised stock exchange shall also comply with such conditions as may be specified by SEBI.
Further, the Unlisted Public Companies shall file the prospectus in e-Form LEAP-1 along with the fees within seven (7) days after finalizing and filing it in the permitted exchange.
Upon Listing, such Companies shall comply with (Indian Accounting Standards) Rules, 2015 at the time of preparation of the Financial Statements, in addition to any other accounting standard.
Companies not eligible for listing under these rules: regulatory updates
- Section 8 or Nidhi Companies;
- Company Limited by guarantee and also having a share capital;
- Has outstanding deposits accepted from the public;
- Has negative net worth;
- Has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holder or any other secured creditor, provided two (2) years have elapsed since the date of making good the default;
- Has made any applications for winding up or resolution either under the Act or under Insolvency and Bankruptcy Code, 2016 and proceedings pending under Insolvency and Bankruptcy Code, 2016;
- Has defaulted in filing of an annual return or financial statements under Section 92 and Section 137 of the Act respectively.
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Establishment of a central processing centre at the Indian Institute of Corporate Affairs, Haryana
The Central Government has established a Central Processing Centre at the Indian Institute of Corporate Affairs, Haryana having territorial jurisdiction all over India which shall process and dispose off the e-Forms filed and the same shall be effective from February 06, 2024.
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Policy for Pre-Legislative Consultation and comprehensive review of existing rules and regulationsregulatory updates
The Ministry has considered framing a policy for pre-legislative consultation concerning a comprehensive review of rules/ regulations which is advisory and not directive.
The policy aims towards carrying out public consultations both at the time of framing original rules and regulations and at the time of review.
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SEBI Updates
Extension of timeline for verification of market rumours by listed entities
The Securities and Exchange Board of India (SEBI) requires the top 100 listed entities by market capitalization and the top 250 listed entities by market capitalization to mandatorily verify and confirm, deny or clarify market rumours. SEBI issued a Circular on January 25, 2024, extending the timeline for verification of market rumours by listed entities.
In its earlier circular released on September 30, 2023, the aforementioned provision was applicable to top 100 listed entities by market capitalization from February 01, 2024, and to the top 250 listed entities by market capitalization from August 01, 2024.
Considering that certain amendments are under finalization and are required for the implementation of the aforesaid provision, it has been decided to extend the timeline for an effective date of implementation of these provisions for the top 100 listed entities by market capitalization, to June 01, 2024, and for top 250 listed entities by market capitalization, to December 01, 2024.
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Income Tax Updates
CBDT Notifies “Investment in Financial Products by Non-Residents” regulatory updates
The Central Board of Direct Taxes (CBDT) has notified that for Non- Residents investing in financial products through a market intermediary located in an International Financial Services Centre (IFSC) unit, the income from such investment must be received in the non-resident’s account with the Offshore Banking Unit of the respective IFSC to qualify for exemption under section 10 (4G) of the Act.
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CBDT notifies ITR-6 for AY 2024-25 regulatory updates
The Central Board of Direct Taxes (CBDT) has notified the new return form, ITR-6 for the Assessment Year 2024-25, applicable for companies other than the company claiming exemption under section 11. This form will come into effect from April 1, 2024.
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CBDT extends time-limit for processing ‘non-scrutiny ITRs’ up to AY 2020-21 till Apr’24
The Central Board of Direct Taxes (CBDT) has notified, to mitigate the hardships faced by the taxpayers related to the issue of refunds, the extension of orders under section 119 till April 30, 2024, in respect of returns of income validly filed electronically up to AY 2020-2021.
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IT Dept. enables e-filing of Form 15CD for FY 2023-24
The Central Board of Direct Taxes (CBDT) has introduced e-filing of Form 15CD for the Financial Year 2023-24 to be furnished by a unit of an International Financial Services Centre, as referred to in subsection (1A) of section 80LA, in respect of remittances made for the period.
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Surge in ITR filings for AY 2022-23
Reports indicate a record-breaking 8.18 crore ITRs filed for A.Y. 2023-2024 by December 31, 2023, marking a 9% surge from the previous year. AIS and TIS utilization streamlined ITR filing.
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Direct Tax Collection Updates up to 10-01-2024
As per the reports direct tax collections up to January 10, 2024, reached Rs. 17.18 lakh crore, a 16.77% increase from the same period last year. Net collections, after refunds, stand at Rs. 14.70 lakh crore, 19.41% higher. Corporate Income Tax (CIT) grew by 8.32%, while Personal Income Tax (PIT) increased by 26.11%. Refunds disbursed during the period totalled Rs. 2.48 lakh crore.
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GST Updates
Extension of the time limit of filing GSTR 3B – November 2023
The Government on the recommendations of the Council, hereby, extends the due date for furnishing GSTR 3B Return for November 2023 till 10th January 2024 for registered persons from the districts Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu who are required to file the return under section 39 (1) of the Act.
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Extending the time limit for filing GSTR 9 and 9B for FY 2022-2023
The Government on the recommendations of the Council, hereby, extends the due date for furnishing annual return GSTR 9 & 9B for the FY 2022-2023 till 10th January 2024 for registered persons from the districts Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu.
