Sunday, 16 September, 2018 - Tuesday, 30 October, 2018

Vistra India Update 360

COMPANY LAW

Companies (Indian Accounting Standards) Second Amendment Rules, 2018

Ministry of Corporate Affairs (MCA) has amended Ind AS 12 (Accounting treatment for income taxes), Ind AS 16 (Accounting treatment for Property, Plant and Equipment), Ind AS 20 (Accounting and disclosure of government grants) and Ind AS 38 (Accounting treatment for intangible assets that are not dealt with specifically in another Standard) to provide method of accounting and presentation of the same in the financials for the activities in relation to grants received from Government.

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Companies (Registered Valuers and Valuation) Third Amendment Rule 2018

Ministry of Corporate Affairs (MCA) has amended Companies (Registered Valuers and Valuation) Rules, 2017 to permit a person rendering valuation services under the Act, to continue render valuation services without a certificate of registration under these rules up to 31st January, 2019. Earlier the due date was 30th September, 2018. The amended rules also provides that if a company has appointed any valuer before such date and the valuation or any part of it has not been completed before 31st January, 2019, the valuer shall complete such valuation or such part within three months thereafter.

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Extension of time to complete KYC requirement.

Ministry of Corporate Affairs (MCA) has extended the time limit for updating the KYC by directors with nominal fees of INR 500 from 21st September, 2018 to 5th October, 2018. Accordingly, MCA has amended the Directors appointment of Qualification Rules and Registration of offices and fees Rule.

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CSR Policy Amendment Rules 2018

Ministry of Corporate Affairs has amended Companies CSR Rules to bring more clarity to the Companies CSR policy framing and CSR activities. Hitherto, the rules provided that Companies CSR policy to indicate the activities to be undertaken by the company as specified in Schedule VII.  Now, the rules has been amended to provide that the policy to indicate the activities to be undertaken in areas or subjects specified in Schedule VII.

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Notification of Effective date for Section 37 of Companies Amendment Act, 2017

Ministry of Corporate Affairs appoints 19th September, 2018 as the effective date on which section 37 of Companies Amendment Act, 2017 will be effective. With this amendment, among other changes, the criteria for applicability of CSR obligations to be tested every year instead of making it compulsory for all years if the conditions are met in one year.

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RBI AND FEMA

External Commercial Borrowings (ECB) Policy - Liberalization

Reserve Bank of India (RBI) has reduced average maturity period for ECB loans upto $50 Million by manufacturing companies from three years to one year. In another liberalization RBI has now permitted Indian banks to participate as arrangers/underwriters/market makers/traders in Rupee Denominated Bonds (RDBs) issued overseas subject to applicable prudential norms. Hitherto Indian banks can act as arranger and underwriter for RDBs issued overseas and in case of underwriting an issue, their holding cannot be more than 5 per cent of the issue size after 6 months of issue

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Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations 2018

Reserve Bank of India (RBI) has notified Form DI for reporting downstream investments by an Indian Entity or Investment Vehicle where such investment is considered as indirect foreign investment for the investee Indian entity in terms of Regulation 14 of these Regulations. Reporting by investing entity in Form DI should be completed within 30 days from the date of allotment of capital instruments. In another amendment to the said Regulations Form InVi is notified which should be filed by an Investment Vehicle which has issued its units to a person resident outside India within 30 days from the date of issue of units.  Both these forms are introduced with effect from 1st September, 2018.

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CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 81 /2018 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 21st September. 2018.  The Notification is appended below for reference:

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