Company Law - Corporate Law Reporter

Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs

CIRCULAR CIR/IMD/FIIC/21/ 2013 December 19, 2013 To, All Foreign Institutional Investors through their designated Custodians of Securities Dear Sir/ Madam, Sub: Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs. SEBI vide circular CIR/IMD/FIIC/1/2010 dated April 15, 2010 had mandated all Foreign Institutional Investors/ Sub Accounts to submit Declaration and Undertaking… Read More

Deposit Requirements for members of the Debt Segment

CIRCULAR CIR/MRD/DRMNP/37/2013 December 19, 2013 To All recognized Stock Exchanges and Clearing Corporations Dear Sir / Madam, Sub: Deposit Requirements for members of the Debt Segment 1. SEBI vide circular no CIR/MRD/DP/03/2013 dated January 24, 2013 prescribed guidelines for providing dedicated debt segment on stock exchanges. Subsequently, SEBI (Stock Brokers and Sub-Brokers) Regulations was amended to enable registration… Read More

Class Action Suits Under Companies Act, 2013

The concept of Class Action Suits is among one of the many novelties introduced by the Companies Act, 2013. Thought the concept per se is not new but in Indian context it has found statutory recognition and enforceability now only by means of Companies Act 2013. The first time class action suit came to the… Read More

Board Meetings Through Video Conferencing – Requirements and Procedure

In general parlance, meeting refers to formal or informal deliberative assembly of individuals called to debate certain issues and problems, and to take decisions. Formal meetings are held at definite times, at a definite place, and usually for a definite duration to follow an agreed upon agenda. Meeting can be understood as a meeting of minds, rather than a physical gathering of individuals at a common place, to discuss a common issue. With… Read More

Corporate Ethics and Corporate Governance – Who will guard the guards?

(Speech delivered by Dr. (Smt) Deepali Pant Joshi, Executive Director, Reserve Bank of India at the National Institute of Securities Markets, Kolkata on 11th December, 2013) Introduction At the outset, let me congratulate the organisers for this topical choice of subject, one which concerns us all. I thank Director, National Institute of Securities Markets, Dr.Sandip Ghose… Read More

Registered Valuers Under Companies Act, 2013

Registered Valuer is one among the many new concepts introduced by the Companies Act, 2013 to provide for a proper mechanism for valuation of the various assets and liabilities related to a company and to standardize the procedure thereof. This will not only help in eliminating doubts relating to arbitrary valuation and window dressing but… Read More

Provisions for Enquiring Into Irregularities of Corporates

No instance of Satyam Computers like corporate fraud and malfeasance has so for come to light. Giving this information in written reply to a question in the Lok Sabha today, Shri Sachin Pilot, Minister for Corporate Affairs, said that alleged irregularities are enquired into through the following measures: ¢ Conducting technical scrutiny of the Balance… Read More

MCA Measures to Prevent and Deal with Occurrence of Frauds

During the last three years and the current year (till date), the Ministry of Corporate Affairs has ordered investigations under section 235 and section 237 of the Companies Act, 1956 in 139 cases of alleged corporate frauds through the Serious Fraud Investigation Office (SFIO) of the Ministry. Giving this information in written reply to a question… Read More

Exemption from Competition Act

The Government, vide notification dated 08.01.2013 has already exempted a banking company in respect of which a notification under section 45 of the Banking Regulation Act, 1949 has been issued for its amalgamation with any other banking institution, from the provisions of section 5 and 6 of the Competition Act, 2002. Giving this information in… Read More

Most Recommendations of The Damodaran Committee Taken Into Account In The Companies Act, 2013

A Committee under the Chairmanship of Shri M. Damodaran was constituted to suggest measures for a roadmap for improving business climate in India. Giving this information in written reply to a question in the Lok Sabha today, Shri Sachin Pilot, Minister for Corporate Affairs, said that the Committee has since submitted its report to the… Read More

Amount Credited to the Investor Education and Protection Fund

Under Section 205C of the Companies Act, 1956, companies are required to transfer such amounts as have remained unclaimed and unpaid with them on account of dividends, matured deposits and debentures, for a period of seven years from the date that they became due for payment, to Investor Education and Protection Fund (IEPF). Giving this… Read More

SEBI International Advisory Board discusses Insider Trading, REIT, Cyber Security and other major issues

The third meeting of the International Advisory Board (IAB) of the Securities and Exchange Board of India (SEBI) was held on December 9 & 10, 2013 at Bangalore. Major issues discussed during the meeting are: i. Insider Trading: Global best practices and lessons for India IAB deliberated on insider trading prohibition frameworks in various jurisdictions and… Read More

Compliance of Secretarial Standards – Whether mandatory requirement for all companies?

Compliance of Secretarial Standards Whether mandatory requirement for all companies? PREAMBLE In accordance with the requirement of the Section 118(10) of the Companies Act, 2013 (˜the Act™), every company shall observe secretarial standards (˜SS™) with respect to general and Board meetings specified by the Institute of Company Secretaries of India (˜ICSI™). Insertion of this requirement… Read More