CORPORATE LAW UPDATES
CIRCULAR NO. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/631, DATED 29-09-2021
SEBI introduces ‘Swing Pricing Framework’ for open ended debt mutual fund schemes
Editorial Note: The SEBI has introduced swing pricing framework for open ended debt mutual fund schemes. Under this framework, the swing pricing framework will be made applicable only for scenarios related to net outflows from the schemes. The framework shall be a hybrid framework with partial swing during normal times and a mandatory full swing during market dislocation times for high risk open ended debt schemes.
NFRA’s comments on ICAI ‘Regulatory Impact Assessment’ for revision of Accounting Standards
Editorial Note: The Institute of Chartered Accountants of India (ICAI) had submitted to National Financial Reporting Authority (NFRA) an Approach Paper for revision of existing Accounting Standards of Companies that are not required to follow Indian Accounting Standards (Ind ASs). Consequently, NFRA has commended that Revised ASs will be applicable for Companies to whom the Ind Ass are not mandatory. As a result, these Revised ASs will be mandatory to large number of MSMCs and will replace the existing ASs.
NOTIFICATION NO. GSR. 665(E), DATED 27-09-2021
Ministry of Consumer Affairs notifies Central Consumer Protection Authority (Annual report) Rules, 2021
Editorial Note: The Ministry Of Consumer Affairs, Food and Public Distribution have notified the Central Consumer Protection Authority (Annual report) Rules, 2021. The norms require the Central Authority to prepare Annual Report in the prescribed Form, giving a true and full account of its activities performed in the year. As per norms, the Central Authority shall forward the annual report to the Central Govt. within a period of 180 days immediately following the close of the year for which it has been prepared
PRESS RELEASE NO. 28/2021, DATED 29-09-2021
SEBI approves framework for Gold Exchange
Editorial Note: The SEBI has approved the framework for Gold Exchange. The new framework’s gold-representing instrument will be known as the “Electronic Gold Receipt” (EGR), and it will be registered as “securities” under the Securities Contracts (Regulation) Act, 1956. EGRs will also have the same trading, clearing, and settlement features as other “securities.”
CIRCULAR NO. 15/2021, DATED 27-09-2021
MCA extends due date of filing of cost audit report in e-form CRA-4 for F.Y. 2020-21
Editorial Note: MCA has extended the due date for filing of Cost Audit Report for F.Y. 2020-21 with Central Govt. Now Companies can file Cost Audit report by Nov 30, 2021 if Cost Audit report is submitted by the Cost Auditor to Board by Oct 31, 2021. In case a company extended time for holding AGM then, e-form CRA-4 may be filed within 30 days of receipt of Cost audit report. Cost auditor is required to submit Cost Audit report to Board within 180 days of closure of books. u/r 6 (5) of the Cost Audit Rules.
CIRCULAR NO. SEBI/HO/IMD/IMD-1 DOF2/P/CIR/2021/630, DATED 27-09-2021
SEBI amends risk management framework for Mutual Fund
Editorial Note: With an objective of management of key risks involved in mutual fund operation, the SEBI has revised Risk Management Framework (RMF) for mutual fund. The new framework shall provide a set of principles or standards, which inter alia comprise the policies, procedures, risk management functions and roles & responsibilities of the management, the Board of AMC and the Board of Trustees.
SECTION 21 OF THE SECURITIES CONTRACTS (REGULATION) ACT, 1956 – CONDITIONS FOR LISTING
Where appellant, director of company ‘P’, had failed to disclose about non-redemption of FCCBs to Stock Exchange, appellant had violated clause 21 and clause 36 of Listing Agreement and, imposition of penalty upon appellant by Stock Exchange for said violation was justified; this will be so irrespective of fact that amendment in terms of FCCB redemption was notified to stock exchange – Gauravi Parikh v. SEBI, Mumbai – [2021] 130 taxmann.com 326 (SAT – Mumbai)
MCA directs RoCs to extend due date of AGM for F.Y. ending March 31, 2020- 2021 by two months
Editorial Note: The Central Govt. received representation seeking extension of Annual General Meetings for Financial Year 2020-21 due to many difficulties faced by stakeholders during the second wave of Covid-19 and consequent lockdown, accordingly, the Central Government has decided to advise Registrar of Companies (RoCs)to accord approval for extension of time for a period of two months beyond the due dates by which companies are required to conduct AGMs for the financial year 2020-21 ended on March 31, 2021.
Recent Comments