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Vistra India Update 376

May 16 to May 31 2019

COMPANY LAW

1.    Companies (Prospectus and Allotment of Securities) 3rd Amendment Rules, 2019

Ministry of Corporate Affairs (MCA) has amended Companies (Prospectus and Allotment of Securities) Rules, 2014 to provide that every unlisted public company governed by these  rules shall submit Form PAS-6 (Reconciliation of Share Capital Audit Report (Half-yearly)) to the Registrar with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 within sixty days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice. The amendment also provides that the company shall immediately bring to the notice of the depositories any difference observed in its issued capital and the capital held in dematerialized form.

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2.    Companies (Appointment and Qualification of Directors)  Second Amendment Rules 2019

Ministry of Corporate Affairs (MCA) has made the following rules to amend Companies (Appointment and Qualification of Directors) Rules, 2014 namely , 

1.    Where a company governed by Rule 25A of the Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE, the Director Identification Number (DIN) allotted to its existing directors, shall be marked as “Director of ACTIVE non-compliant company”.
2.    Where the DIN of a director has been marked as “Director of ACTIVE non-compliant company”, such director shall take all necessary steps to ensure that all companies governed by rule 25A of the Companies (Incorporation) Rules, 2014, where such director has been so appointed, file e-form ACTIVE.
3.    After all the companies referred to in sub-rule (2) file the e-form ACTIVE, the DIN of such Director will be marked as “Director of ACTIVE compliant Company. 

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RBI AND FEMA

3.     Updated Master Direction - Know Your Customer (KYC) Direction, 2016

Reserve Bank of India has revised Master Direction – Know Your Customer (KYC) Direction, 2016 as applicable to Regulated Entities. These Directions require Regulated Entities to follow certain customer identification procedures while undertaking a transaction either by establishing an account-based relationship or otherwise and monitor their transactions. These Directions details valid identification documents and address proofs that are acceptable to different categories of customers viz., Individuals, Company, Trust, Partnership etc. Directions also specify who will be considered as Beneficial Owner (BO) in case of Companies and related documents to be obtained from such BO. 

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 CUSTOMS

4.    Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 37/2019 - 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 17th of May 2019 respectively.  

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