External Commercial Borrowings (ECB) for Civil Aviation Sector The Reserve Bank of India had earlier issued a circular in terms of which External Commercial Borrowings (ECB) could be raised by airline companies for working capital as a permissible end-use, under the approval route. The scheme was extended until 31st December, 2013. RBI has now vide …
1. Rules: The Ministry of Corporate Affairs (“MCA”) has on 31st March 2014 notified rules for 5 Chapters of the Companies Act 2013. Chapter X The Companies (Audit and Auditors) Rules, 2014 Chapter V The Companies (Acceptance of Deposits) Rules, 2014 Chapter XXII The Companies (Registration of Foreign Companies) Rules,2014 Chapter XIV The Companies (Inspection, …
FII/QFI investments in Commercial Papers SEBI circular CIR/IMD/FIIC/6/2013 dated April 01, 2013, SEBI had permitted FIIs and QFIs to invest upto US$ 3.5 billion in Commercial Papers within the Corporate Debt limit of US$ 51 billion. Pursuant to the RBI circular reducing the existing sub-limit for FII/QFI investment in Commercial Papers from USD 3.5 billion …
External Commercial Borrowings (ECB) – Reporting arrangements The Reserve Bank of India has issued the circular no. A.P.(DIR Series) Circular No. 105 dated 17th February, 2014 modifying the ECB 2 –Return to Capture the details of the financial hedges contracted by corporates, of their foreign currency exposure relating to ECB and their foreign currency earnings …
Notification relating to amendments of Schedule VII of Companies Act, 2013 The Ministry of Corporate Affairs (“MCA”) has issued notification dated 27th February, 2014 amending the Scheduled VII of Companies Act, 2013 by substituting the following items for item (i) to (x) : eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and …
Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity: RBI had vide its circular A.P. (DIR Series) Circular No. 15 dated October 1, 2004, informed that an Indian company can issue equity shares against External Commercial Borrowings (ECB) subject to conditions mentioned therein and pricing guidelines as prescribed by the Reserve Bank from time …
Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds: RBI had earlier imposed restrictions on persons resident in India who have borrowed in Rupees from a person resident outside India to the effect that such borrowed funds cannot be used for any investment, whether …
Rationalization of Periodic Call Auction for Illiquid Scrips SEBI had vide circular no CIR/MRD/DP/ 6/2013 dated February 14, 2013 issued guidelines for trading in the illiquid scripts through Periodic Call Auction session. After introduction of periodic call auction framework, representations had been received from market participants regarding the aforesaid circular. The issues raised by market …
Clarification with regard to holding of shares or exercising power in a fiduciary capacity – Holding and Subsidiary relationship under Section 2(87) of the Companies Act, 2013 : MCA has received a number of representations consequent upon notifying section 2(87) of the Companies Act, 2013 which defines “subsidiary company” or “subsidiary”. MCA has been asked …
Foreign Direct Investment in Financial Sector – Transfer of Shares As per the existing FEMA regulations, in case of transfer of shares from Residents to Non-Residents where the investee company is in the financial services sector, No Objection Certificate (NoC) is required to be obtained from the respective financial sector regulator/regulators of the investee company …
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