11 - Legal & Regulation Updates - India

The Fertilizer (Control) Amendment Order, 2016
	The Ministry of Agriculture and Farmers Welfare, via notification dated September 23, 2016, has issued The Fertilizer (Control) Amendment Order, 2016 to amend the Fertilizer (Control) Order, 1985.
	RBI- Master Direction - Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has issued Master Directions on Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016. These Directions shall apply to all deposit taking non-banking financial companies and ‘systemically important non-deposit taking non-banking financial companies'. Vide these directions- The NBFCs shall put in place a reporting system for recording frauds without any delay. The NBFCs shall strictly adhere to the timeframe fixed in this Direction for reporting frau. The NBFCs shall disclose the amount related to fraud, reported in the company for the year in their balance sheets.   These directions shall come into force with immediate effect.
	RBI- Publishing of photographs of Willful defaulters
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has decided that- Through the mechanism set out in the RBI, lending institutions can publish the photographs of only those borrowers, including proprietors/ partners /directors / guarantors of borrower firms/ companies, who have been declared as willful defaulters. This shall not apply to the non-whole time directors who are exempted from being considered as willful defaulters unless the special conditions. The lending institutions shall formulate a policy with the approval of their Board of Directors which clearly sets out the criteria based on the decision taken by them of publishing the photographs of a person so that the approach is neither discriminatory nor inconsistent. The lending institutions shall not publish photographs of any other defaulting borrowers.
	RBI- Master Direction - Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has issued Master Directions on Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016. Vide these directions- The NBFCs shall put in place a reporting system for filing various returns within the prescribed timeframe. The compilation of the Return should be on the basis of the figures available in the books of account of the company. The returns shall be filed on-line by an authorized official of the NBFC, who will be specifically authorized in this regard by the Board of Directors. The NBFCs shall strictly adhere to the timeframe fixed in this direction for submitting returns to the Bank. These directions shall come into force with immediate effect.
	Guidelines regarding discontinuation of scheduled formulations under Para 21(2) of DPCO, 2013
	The National Pharmaceutical Pricing Authority, through a notice dated September 29, 2016 has issued Guidelines regarding discontinuation of scheduled formulations under Para 21(2) of DPCO, 2013.
	CBEC- Service Tax (Third Amendment) Rules, 2016
	Central Board of Excise and Customs (‘CBEC’) vide notification dated September 28, 2016 has further amended the Service Tax Rules, 1994. Vide this amendment; Form ST-3 is amended. The amendment shall come into force on the date of their publication in the Official Gazette.
	CBDT - Income-tax (23rd Amendment) Rules, 2016
	The Central Board of Direct Taxes vide notification dated September 29, 2016 has further amended the Income Tax rules 1962. Vide this amendment; clause 13 of form 3CD is amended. Clause 13 of Form 3CD is related to ‘income computation and disclosure standards’ This amendment shall come into force from April 1, 2017
	RBI- Investment by Foreign Portfolio Investors (FPI) in Government Securities
	Reserve Bank of India (RBI) vide notification dated September 30, 2016 has announced in the Medium Trade Framework (MTF), to increase the limit for investment by Foreign Portfolio Investors (FPI) in Central Government Securities for the next half year in two tranches each of Rs. 100 billion from October 3, 2016 and January 2, 2017 respectively. As in the previous half-year, the limits for State Development Loans (SDLs) are proposed to be increased in two tranches, each of Rs.35 billion, from October 3, 2016 and January 2, 2017 respectively.
	Maharashtra VAT- Extension in due date for filing of refund application for the year 2014-15 under Maharashtra Vat Act, 2002
	Maharashtra Sales Tax Department vide circular dated October 1, 2016 has extended the due date of filing of refund application for the year 2014-15 under section 51 of Maharashtra Value Added Tax Act, 2002 in Form e-501 upto October 8, 2016.
	MCA: Companies (Incorporation) Fourth Amendment Rules, 2016
	The Ministry of Corporate Affairs (“MCA”) through its Notification dated October 01, 2016 has amended the Companies (Incorporation) Rules, 2014. (‘Rules’). By virtue of this amendment the following changes have been introduced: Order of Tribunal for conversion of Public Company into Private Company. Introduction of Simplified Proforma for Incorporating Company Electronically (“SPICe”). Conversion of a Company limited by guarantee into a company limited by shares:
	IRDAI- Extension of timelines for the submission of comments on draft Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016
	The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated October 3, 2016 has extended the date of seeking comments from all the stakeholders on draft Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016 till October 9, 2016.
	SEBI - Investments by Foreign Portfolio Investors in Government securities.
	The Securities and Exchange Board of India (“SEBI”) vide its Circular dated October 03, 2016 has decided to  partially modify Para 2 of its Circular IMD/FPIC/CIR/P/2016/45 dated March 29, 2016 to enhance the limit for investment by Foreign Portfolio Investors (“FPIs”) in Government Securities, for the next six months. This circular has come into effect immediately.
	SEBI - Corporate Governance Issues in Compensation Agreements
	The Securities Exchange Board of India (“SEBI”) has issued a consultative paper, proposing the amendments to the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. The Consultative paper proposes to add new Sub-regulation 6 to Regulation 26, which provides for prior approval of Board of Directors and the shareholders by way of ordinary resolution, with regard to compensation or profit sharing agreement between the Employees, Key Managerial Personnel, Director or Promoter of a listed entity and any individual shareholder(s) or any other third party. Further, agreements entered into, prior to the date of proposed amendment i.e. October 04,2016 and which may continue beyond such date, shall be informed to the stock exchanges for public dissemination along with the approval obtained from shareholders by way of an ordinary resolution. In case where the approval from shareholders is not received, all such agreements shall be discontinued.
	MCA- Government Notifies The Insolvency and Bankruptcy Board of India
	Ministry of Corporate Affairs vide Notification dated October 1, 2016 has declared October 1, 2016 as the date of establishment of Insolvency and Bankruptcy Board of India. The head office of the Insolvency and Bankruptcy Board of India shall be at New Delhi.
	Public Utility Service – Banking Industry
	The Ministry of Labour and Employment, Central Government, through a notification dated September 28, 2016, has declared the Baking Industry to be a Public Utility Service. As per the notification dated March 29, 2016 it had declared that the service in Banking Industry under First Schedule, Item 2, Industrial Disputes Act, 1947, is industries to be considered as Public Utility Service for a period of six months with effect from April 21, 2016. The Central Government further extends the said period and declares the Banking Industry to be a Public Utility Service for a period of six months with effect from 21st October 2016.
	The Bihar Factories (Amendment) Rules, 2016
	The Governor of Bihar has issued a notification amending the Bihar Factories Rules, 1950. The Highlights of the amendment are as follows Rule 100 of the said Bihar Factories Rules, 1950 is substituted. https://innovatorsrace50.com/team/compliance-watcher.html#.WJxAx8FH6A4.gmail