Compliance Chambers

SPECIFIC RELIEF ACT,1963 The tremendous economic development have brought in enormous commercial activities in India including foreign direct investments, public private partnerships, public utilities infrastructure developments, etc.; which have prompted extensive reforms in the related laws to facilitate enforcement of contracts, settlement of disputes in speedy manner. Since the Act was not in tune with the rapid economic growth happening in our country and the expansion of infrastructure activities that are needed for the overall development of the country therefore the amendments have been enacted to match the changing environment. Legal Grounds The Specific Relief Act, 1963 (referred hereinafter as ‘the Act’) has been amended to increase the scope of the specific relief granted to the person aggrieved. The Act has done away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception sub...

In Companies Act, 2013, two types of disclosures of interest or concerned are prescribed under Section 184. 1). Disclosure of Interest or Concerned by director under Section 184(1); & 2). Disclosures of Interest by director under Section 184(2). Disclosure of Interest or Concerned by director under Section 184(1): Section 184(1) deals with the disclosure, requirements by each Director, to made at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, in such manner in Form MBP 1. Disclosure of Interest or Concerned by director under Section 184(2) In compliance with Section 184(2) of the Companies Act, 2013, disclosure of interest by every director who is in any way concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into with a bo...

On 5th July, 2018 the Ministry of Corporate Affairs notified the amended Companies (Appointment and Qualification) Rules, 2014. With effect of this notification it is mandatory for individuals possessing DIN shall file form DIR-3 KYC w.e.f 10th July, 2018. Rule 11 of the Companies (Appointment and Qualification) Rules states the cancellation or surrender or Deactivation of DIN and as per the amendment in rule 11, it is been renumbered as sub rule (1) of rule 11 and sub rule (2) and (3) are added as mentioned below:- The Central Government or Regional Director (Northern Region) shall deactivate the DIN of all those directors who do not intimate particulars in e-form DIR-3 KYC within time period as per Rule 12A. The deactivated DIN shall be activated only after e-form DIR-3-KYC has been filed along with fees. Rule 12A has been inserted after rule 12 stating that every individual who has been allotted DIN on 31st March of financial year shall file the form DIR-3-KYC on ...

The Reserve Bank of India today released the Financial Stability Report (FSR), 17th in the series. The FSR reflects the overall assessment of the stability of India’s financial system and its resilience to risks emanating from global and domestic factors. The Report also discusses issues relating to developments in and regulation of the financial sector. Global and domestic macro-financial risks ·         Global growth outlook for 2018 remains positive despite some recent softness. ·         Spillover risk from advanced financial markets to emerging markets, however, has increased. ·     Tightening of liquidity conditions in the developed markets alongside expansionary US fiscal policy and a strong US dollar have started to adversely impact emerging market currencies, bonds and capital flows. Firming commodity prices, evolving geopolitical developments and rising protectionist sentiments pose added risks. ·   ...

This article will be followed by series of articles  which will give you a complete perspective  of the concept of right issue of shares from the companies view point and from the stakeholders as well. Also, in future articles there will be overview of the SEBI regulations and compliance's. MEANING OF RIGHT ISSUE  When a company having share capital wants to increase their subscribed capital by issue of further shares then it can do so by offering shares to the existing shareholders in proportion to the paid up capital. DEFINITION AS PER COMPANIES ACT, 2013 As per Section 62(1)(a), where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer subjec...

A s per Section 469 of the Companies Act, 2013 (‘Act’) Central Government has the power to make rules for carrying out the provisions of this act. With the power of Section 469 of the Act, the CG has made Companies (Significant Beneficial Owners) Rules, 2018 for carrying out the provisions of Section 90 of the Companies Act, 2013 which is amended in Companies (Amendment) Act, 2017 under section 22. A s per section 90 , of the Act, every individual , who acting alone or together, or through one or more persons or trust, including a trust and persons resident outside India, holds beneficial interests, of not less than twenty-five per cent. or such other percentage as may be prescribed, in shares ( shares includes GDR, compulsory convertible preference shares or compulsory convertible debentures) of a company or the right to exercise, or the actual exercising of significant influence or control as defined in clause (27) of section 2 of the Act. Also as per section 2(6) ,...

The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March 2018 and by the Rajya Sabha on 22nd March 2018, has been brought in force on 29th March 2018. Background : The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons.  The main purpose of enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation or physical disablement or impairment of vital part of the body.  Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to the wage-earning population in industries, factories and establishments. 1.   The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar.  Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pensi...