Company Law - Corporate Law Reporter

Companies Bill, 2012 gets Presidential Nod – Industries welcome the “Companies Act, 2013” (18 of 2013)

Dear Professional Colleagues, We are delighted to inform that the Companies Bill has received the Hon™ble President™s assent on 30th August 2013, to become the Companies Act, 2013. The next steps would be to finalize the Rules and define the procedural aspects of this Act. The Ministry of Corporate Affairs is expected to put the… Read More

Revision of Clause 41 of Equity Listing Agreement

Discussion Paper on "Revision of Clause 41 of Equity Listing Agreement" Background: 1. Clause-41 of Equity Listing Agreement provides the framework for preparation, authentication and submission of Financial Results by listed companies. 2. Though sub-clauses of Clause-41 have been regularly updated as and when the need arose, revision of entire Clause-41 is proposed to be undertaken… Read More

SEBI (Investment Advisers) Regulations, 2013

The SEBI (Investment Advisers) Regulations, 2013 (IA Regulations) were notified on January 21,2013 and have come into effect from April 21, 2013. The IA Regulations are available on the SEBI website www.sebi.gov.in The details of the investment advisers registered and the details of the pending applications for grant of registration along with the status of the… Read More

Guidelines for dealing with Conflict of Interest for investment/ trading by CRAs, Access Persons and other employees

CIRCULAR CIR/MIRSD/6/2013 August 28, 2013 To All Credit Rating Agencies (CRAs) registered with SEBI Sub: Guidelines for dealing with Conflict of Interest for investment/ trading by CRAs, Access Persons and other employees 1. SEBI (Credit Rating Agencies) Regulations, 1999 (hereinafter referred to as "the Regulations") and SEBI circular dated May 3, 2010 require every CRA to formulate the… Read More

General Guidelines for dealing with Conflicts of Interest of Intermediaries, Recognised Stock Exchanges, Recognised Clearing Corporations, Depositories and their Associated Persons in Securities Market

CIRCULAR CIR/MIRSD/5/2013 August 27, 2013 To Registered Intermediaries Recognised Stock Exchanges Recognised Clearing Corporations Depositories Sir/ Madam, Sub: General Guidelines for dealing with Conflicts of Interest of Intermediaries, Recognised Stock Exchanges, Recognised Clearing Corporations,… Read More

SEBI (Alternative Investment Funds) Regulations 2012 (AIFR) Certain Critical Issues

By Uday N Kajaria Chartered Accountant and Company Secretary uday.kajaria@gmail.com Introduction SEBI (Alternative Investment Funds) Regulations 2012 (hereinafter referred to as ˜AIFR™) notified on 21st May, 2012 provides a platform to the investor to pool their resources for investment in specified sectors such as start-ups, early stage ventures, SME, Infrastructure sector, subscribing to unsubscribed portion… Read More

Guidelines on CSR and Sustainability for the Central Public Sector Enterprises

The Government has said that the Corporate Social Responsibility (CSR) & Sustainability Guidelines for the Central Public Sector Enterprises (CPSEs) may have to be modified to align with the provisions of the Companies Bill, recently passed by the Parliament, once enacted and notified. Giving this information in written reply to a question in the Rajya… Read More

Spending on Corporate Social Responsibility by Companies

There is no provision for Corporate Social Responsibility (CSR) spending by companies in the present company law i.e. Companies Act, 1956. However, the new Companies Bill, 2012 has a provision of CSR under Clause 135 which states that every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore… Read More

Investigations by the Serious Fraud Investigation Office

The Serious Fraud Investigation Office (SFIO), which is a multi-disciplinary organization under the Ministry of Corporate Affairs, has investigated 55 cases of serious fraud during the last 3 years i.e. 2010-11. 2011-12 and 2012-13. Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, informed… Read More

Cases of Fraud and Cheating by the Chit Fund Companies

˜Chit Fund™ companies indulging in cheating of investors are to be proceeded against under the Chit Funds Act 1982 and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 under which investigations are to be carried out by the State Police authorities. Giving this information in written reply to a question in the Lok… Read More

Measures to Check the Incidents of Vanishing Companies

Presently, there are 87 companies falling under the category, Vanishing Companies. Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said that the FIRs have been lodged against all 87 companies and their Directors to trace their whereabouts and also to take action under… Read More

Factors Leading to Corporate Frauds and the Measures Taken by the Government to Check them

The Government has said that the reports appearing in a section of media indicate that a Section 25 Company, Thought Arbitrage Research Institute has published a study indicating inter alia occurrence of frauds in companies due to factors like inadequate internal control procedures, diversion of funds by promoters/ top management, failure of audit in detection… Read More

Fast Track Exit Mode for Defunct Companies

The Ministry of Corporate Affairs launched Fast Track Exit Mode on 03.07.2011 to provide an opportunity for defunct companies under Section 560 of the Companies Act, 1956 for getting their names struck off from the register of companies, to facilitate the exit of such defunct companies without getting into the process of winding up. Giving this… Read More