SEBI Clarification Related to Trading Window Closure dt. 31.03.2020

SEBI Clarification Related to Trading Window Closure

Securities and Exchange Board of India (SEBI) vide notification No. LIST/COMP/71/2019-20 dated March 31, 2020 issued and has published Clarification Related to Trading Window Closure.

·        Overview:

SEBI vide its Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 had relaxed the compliance with respect to certain provisions of the SEBI (LODR) Regulations, 2015 due to the CoVID-19 virus pandemic.

The said relaxations inter alia included relaxation in the timeline for filing of Annual Financial Results by listed entities upto June 30, 2020.

·        Stakeholders Requests received by SEBI

In light of the said relaxation, SEBI had received requests seeking relaxation in trading restriction period applicable in terms of Clause 4(2) of Schedule B to SEBI (Prohibition of Insider Trading) Regulations, 2015. The said clause 4 (2) of Schedule B to the PIT Regulations, inter alia, states as follows:

“Trading restriction period shall be made applicable from the end of every quarter till 48 hours after the declaration of financial results. The gap between clearance of accounts by audit committee and board meeting should be as narrow as possible and preferably on the same day to avoid leakage of material information.”

·        SEBI Reply on seeking relaxation in trading restriction period

No Extension, SEBI has informed the Exchange that these requests seeking relaxation in applicability of trading window restrictions with regard to financial results for Quarter / FY ending March 31, 2020, have not been acceded to.

All Listed entities are requested to take note of the same and comply accordingly.

Link: https://www.bseindia.com/corporates/Displaydata.aspx?Id=e149deab-edf0-4c95-9336-2d3eb35f2ac3&Page=cir

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION

MODIFIED LLP SETTLEMENT SCHEME, 2020

Modified LLP Settlement Scheme, 2020.

·     

  Overview

MINISTRY OF CORPORATE AFFAIRS (MCA) vide General Circular No. 13/2020 and File No. F. No. 17/61.2016-CL-V-Pt-I issued dated 30^th March, 2020, has modified the provisions related to LLP SETTLEMENT SCHEME, 2020.

·        Revised Timeline : Applicable w.e.f. 01.04.2020

And shall remain into Force upto 30.09.2020.

·         Previous Scheme: LLP SETTLEMENT SCHEME , 2020 vide General Circular No. 6/2020 dated 04.03.2020

(Link: http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf )

·         Applicability of the this Scheme: Any Defaulting LLP is permitted to file belated documents, which were due for filing till 31.08.2020 in accordance with the provisions of this Scheme.

·         Manner of payment of fees and additional fee on filing belated document for seeking immunity under the Scheme – The defaulting LLPs may themselves avail of the scheme for filing documents which have not been filed or registered in time on payment of fee as payable for filing of such document / return.

Provided that no additional fees shall be payable for filing and belated documents under this scheme.

·         Immunity from prosecution in respect of document(s) filed under the scheme - The defaulting LLP, which have filed their belated documents till 30.09.2020 and made good the default shall not be subjected to prosecution by the Registrar of such defaults.

·         The Scheme shall not apply : This Scheme shall not apply to LLPs which has made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.

·         After 30.09.2020, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner.

Link: http://www.mca.gov.in/Ministry/pdf/Circular13_30032020.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

IBBI amends CIRP Regulations due to COVID19

IBBI amends CIRP Regulations to provide relief in corporate insolvency resolution process due to COVID-19 outbreak

The Insolvency and Bankruptcy Board of India (IBBI) amended the CIRP Regulations vide Press Release No. IBBI/PR/2020/06 dated 29th March, 2020 to provide that the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to the lockdown, in relation to a corporate insolvency resolution process. This would, however, be subject to the overall time-limit provided in the Code.

The IBBI amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) on 29th March 2020.

It is difficult for the insolvency professionals to continue to conduct the process, for members of committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, during the period of lockdown. Therefore, it may be difficult to complete various activities during a corporate insolvency resolution process within the timelines specified in the CIRP Regulations.

Link: https://ibbi.gov.in//uploads/press/92797aa5f444ab7215707834d4821409.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Amendments to Indian Stamp Act, 1899 applicable wef 01.07.2020

Changes VIDE Section 11 of Finance ACT

Amendments to Indian Stamp Act, 1899 which were notified by Finance Act, 2019 (7 of 2019).

Applicable from 01.07.2020

·       Overview

MINISTRY OF FINANCE vide  Gazette id No. CG-DL-E-30032020-218957  and GSR No. S.O. 1226(E) issued dated 30^th March, 2020, has published amendments in the notification of the Government of India, Ministry of Finance, published in the Gazette of India vide S.O. 115 (E), dated the 8th January, 2020 namely in exercise of the powers conferred by section 11 of the Finance Act.

·       Applicability:

They shall come into force on the date of their publication in the Official Gazette, i.e. 30^th day of March, 2020.

·       Change via this amendment

Amendments to Indian Stamp Act, 1899 which were notified by Finance Act, 2019 (7 of 2019).

In the said notification, for the words and figures “the 1st day of April 2020, the words, figures and letters “the 1st day of July 2020” shall be substituted.

·         In the previous notification Ministry of Finance, published in the Gazette of India vide S.O. 115 (E), dated the 8th January, 2020 it was written as :

(http://voiceofca.in/siteadmin/document/AmendmenttotheIndianStampAct.pdf )

In the said notification, for the words and figures “the 9 day of January, 2020”, the words, figures and letters “the 1st day of April, 2020” shall be substituted.

Read full notification / gazette with formats at :

http://egazette.nic.in/WriteReadData/2020/218957.pdf

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O. 4419 (E), dated the 10th December, 2019 and subsequently amended vide notification dated 8th January, 2020, published vide number S.O.115 (E) dated the 8th January, 2020.

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

INDIAN STAMP (SECOND AMENDMENT) RULES, 2020.

Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) (Second Amendment) Rules, 2020.

MINISTRY OF Finance, department of Revenue vide Gazette ID CG-DL-E-30032020-218954            dated 30.03.2020 has issued the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2020, in exercise of the powers conferred by  section 73A of the Indian Stamp Act, 1899 (2 of 1899), the Central Government hereby makes the following rules to further amend the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019

Applicability : with immediate effect from 30.03.2020

In the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019, as amended by the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, clearing Corporations and Depositories) (Amendment) Rules, 2020, in rule (1), in sub-rule (2), for the words and figures “1st day of April 2020” the words, figures and letters “1st day of July 2020”shall be substituted.

 Link: http://egazette.nic.in/WriteReadData/2020/218954.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

EPF (AMENDMENT) SCHEME, 2020.

Employees’ Provident Funds (Amendment) Scheme, 2020.

MINISTRY OF LABOUR AND EMPLOYMENT vide Gazette ID CG-DL-E-28032020-218950 dated 28.03.2020 has issued Employees’ Provident Funds (Amendment) Scheme, 2020 in exercise of the powers conferred by section 5 read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

Applicability : with immediate effect from 28.03.2020

In the Employees’ Provident Funds Scheme, 1952, in paragraph 68L, after sub-paragraph (2), the following sub-paragraph shall be inserted, namely:-–

(3) The Commissioner or, where so authorized by the Commissioner, any officer subordinate to him, may, on an application from any member of this Scheme employed in any establishment or factory located in an area declared as affected by outbreak of any epidemic or pandemic by the appropriate Government, permit a non-refundable advance from the provident fund account of such member not exceeding the basic wages and dearness allowances of that member for three months or up to seventy-five per cent. of the amount standing to his credit in the Fund, whichever is less.

Link: http://egazette.nic.in/WriteReadData/2020/218950.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.