CFO Certificate under CSR Rules _ Draft Format

 CFO Certificate under CSR Rules _ Draft Format

Date: ……….

The Board of Director,

………………………………

……………………………..

Sub: Certificate under Rule 4 of CSR Rules, 2014

Dear Sirs,

This is to certify that funds of Rs…Lakhs so disbursed for Corporate Social Responsibility (CSR) activity for financial year 2020-21 has been utilized for the purpose and in the manner as approved by the Board in their meeting held on………. as per the rules 4 of Companies (CSR) Rules, 2014 and Schedule VII of the Companies Act, 2013.

 Details of CSR expenditure are as follows:

Particulars	Rs. In Lakhs
Amount Outlay (Budgeted)
Amount spent on the projects
Amount unspent
Excess amount spent

Thanking You, Yours Faithfully,

 

for ……………………………

 

(Name)

Chief Financial Officer

Note:

According to provisions mentioned under The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, The Board of a company shall satisfy itself that the funds of CSR have been utilized for the purposes and in the manner as approved by it and the Chief Financial Officer or the person responsible for financial management shall certify to the effect.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. 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.

SEBI circular on Investor Grievance Redressal Mechanism

SEBI circular on Investor Grievance Redressal Mechanism

In order to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, Securities and Exchange Board of India (SEBI) vide Circular No. SEBI/HO/MIRSD/DOS3/P/CIR/2022/78 dated 03^rd June, 2022 has issued notification related to “Investor Redressal Grievance Mechanism” in exercise of the powers conferred under   Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Section 10 of the Securities Contract (Regulation) Act, 1956.

Main aim to introduce this circular is to further strengthen the Investor Grievance Redressal Mechanism.

Applicability:

·         Applicable with effect from July 01, 2022.

·         SEBI has amended Circular No. SEBI/HO/MIRSD/DOC/CIR/P/2020/226 dated November 6, 2020.

Key Highlights:

1.      SEBI has introduced a new framework for investor grievance redressal mechanism as part of its effort to strengthen the process.

2.      For any dispute between the member and the client relating to or arising out of the transactions in Stock Exchange, which is of civil nature, the complainant/ member shall first refer the complaint to the IGRC and/ or to arbitration mechanism provided by the Stock Exchange before resorting to other remedies available under any other law.

3.      It is clarified that the sole arbitrator or the panel of arbitrators, as the case may be, appointed under the Stock Exchange arbitration mechanism may consider any claim relating to any dispute between a stock broker and client arising out of the transactions in stock exchange, as per law, and shall always be deemed to have the competence to rule on its jurisdiction.

4.      A complainant/member, who is not satisfied with the recommendation of the IGRC shall avail the arbitration mechanism of the Stock Exchange for settlement of complaints within three months from the date of IGRC recommendation”.

5.      The time period of three months mentioned in the previous sub-clause for filing arbitration shall be applicable only for the cases where the IGRC recommendation is being challenged.

6.      For any arbitration application received without going through IGRC mechanism, the above time period of three months shall not apply, and for such cases the limitation period for filing arbitration shall be governed by the law of limitation, i.e., The Limitation Act, 1963.”

7.      Stock Exchanges and Depositories are advised to:

a)      Make necessary amendments to the relevant bye-laws, rules and regulations, operational instructions, as the case may be, for the implementation of the above circular; and

b)      bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website.

Source: Click Here

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. 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. 

RBI Clarification on new MSME definition

RBI Clarification on new MSME definition

Reserve Bank of India (RBI) vide Circular No. RBI/2022-23/52 FIDD. MSME & NFS.BC.No.7/06.02.31/2022-23 dated 19^th May, 2022 has issued notification related to “New Definition of Micro, Small and Medium Enterprises - Clarification”.

New Definitions – Enterprises-  (effective from 01.07.2020):

Previous Circulars:

circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020, FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020 and FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22 dated February 18, 2022, regarding revised criteria for classification of Micro, Small and Medium Enterprises.

RBI clarifications:

It has been clarified by the RBI that:

·         the existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) of the MSMEs obtained till June 30, 2020 shall remain valid till June 30, 2022 for classification as MSMEs; and

·         the validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 (RBI Circular FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017 – Click Here), for classification of MSMEs upto June 30, 2020, has been extended upto June 30, 2022.

Source: ClickHere

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. 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.

MCA Amends "Strike-off" Rules on 09.06.2022

MCA Amends Strike-off  Rules

Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022

 Ministry of Corporate Affairs (MCA) vide circular / notification dated 09^th June, 2022 has issued “Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022” further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, in exercise of the powers conferred under Section 248 (1), 248(2), 248(4) read with Section 469 of the Companies Act, 2013.

 q  Applicability:

From the date of their publication in the Official Gazette.

 q  Key Highlights:

1. Ministry has inserted following in rule 4, after sub-rule (3):

 ·         "(4) (a) Where the Registrar, on examining the application made in Form STK-2, finds that it is necessary to call for further information or finds such application or any document annexed therewith is defective or incomplete in any respect, he shall inform to the applicant to remove the defects and re-submit the complete Form within fifteen days from the date of such information, failing which the Registrar shall treat the Form as invalid in the electronic record, and shall inform the applicant, accordingly.

 ·         (b) After the re-submission of the Form or document, if the Registrar finds that the Form or document is defective or incomplete in any respect, he shall give further time of fifteen days to remove such defects or complete the Form, failing which the Registrar shall treat the Form as invalid in the electronic record and shall inform the applicant, accordingly.

 ·         (c) Any re-submission of the application in Form STK-2 made prior to the commencement of the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022 shall not be counted for the purposes of reckoning the maximum number of re-submissions of such Form.".

 2. Ministry has also revised MCA E – forms: Form No. STK 1, Form No. STK - 5 and Form No. STK-5A.

 Source: Click Here

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. 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.