Partners Column

Dear Friends,

As I started with this column, my thoughts tried to capture the important events during the month of June, 2014, the most remarkable one being the formation of Telengana as the 29th State of the Indian Union on 2nd June, 2014. It is strongly believed that the formation of new state will lead to an increase in the standard of living, more facilities wherein everyone will enjoy certain special privileges and create ample employment opportunities in Government and non- government organizations.  I wish that both Telengana and Andhra States grow independently at a rapid pace.

An overview of some Current Events:

FIFA World Cup

We all know that it is the season of ‘FIFA World Cup’, the “FOOTBALL BONANZA” held once in every 4 years. Irrespective of age, every individual is going crazy to witness this mega event.  In this regard, I would like to share a few lines.

It is an event staged on a scale of spectacular proportions. As the largest single sporting event and most-watched competition around the world,  it enjoys phenomenal interest of sports fans and business world alike. Many entities, organizations, businesses and non-commercial organizations are part of this event.

The ongoing Football World Cup tournament in Brazil is getting more and more exciting with every passing day as it inches closer to the finals. In the Round of 16 match on Tuesday July 1st, 2014, Argentina beat Switzerland 1-0 in a thriller to seal a berth in the quarter finals of the World Cup. Now, Belgium and Argentina will lock horns to make it to the semi-finals of the World Cup.

Now coming to the Corporate news, please note some of the noteworthy updates under Companies Act, 2013, SEBI and the reforms under Labor Laws:

Companies Act 2013-

Above all, the most encouraging news which will bring in a sigh of relief for all private limited companies is that the Ministry of Corporate Affairs has issued a draft circular providing certain exemptions to private companies. The comments on the draft circular are being sort by the MCA.

As stated above, with the formation of the State of Telangana, the CIN of existing companies were operated with “TG” instead of “AP”(with  effect from 2nd June,2014).

The Ministry of Corporate Affairs has also passed a circular in favor of “Governance Professionals” wherein it was notified that all the companies whose paid-up-capital is Rs.5 crore and above should appoint a Company Secretary. It’s time to gear up ourselves and realize the tremendous scope this offers for our professional growth.

SEBI provides clarity on employee stock option norms-

On the other hand , the Securities and Exchange Board of India said that companies were barred from acquiring shares from the secondary market under the employee stock option schemes till the new regulations in this regard were notified. SEBI has also extended the time line for companies to align their schemes as per the existing guidelines as the regulator is in the process of formulating new rules. SEBI Board has approved certain proposals framing a new set of regulations concerning employee benefit schemes dealing in shares of the company. The new regulations shall come into force as and when notified.

Labour Laws-

It is known fact that most of the labor related laws have become outdated, redundant and  impractical in today’s environment. As per the research articles it is understood that every year approx. 12 million people are added to the Indian workforce. India now needs  flexible labor laws to ensure freedom  from unemployment.

Rajasthan government has begun the reform in its labor laws so as to make them more industry friendly. As a part of it, some changes were made in  Industrial Disputes Act, Factories Act, and Apprentices Act. It is noteworthy that Indian Staffing Federation which is an apex body of staffing industry in India welcomed Rajasthan Government’s step towards said reforms.

Let us hope that such moves are replicated in other States as well.

With Best Regards,
CS Bhavani Raj

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