Whether SFIO needs to complete the investigation within the time specified by the Central Govt.?

The Apex Court held that the period that the Central Govt. may prescribe to complete investigation u/s.212(3) is directory and no fixed period is provided for completion of investigation by SFIO; transfer of investigation by other agencies to SFIO u/s.212(2) of the Companies Act 2013 is irrevocable; when accused is directed to remand by a … Continue reading Whether SFIO needs to complete the investigation within the time specified by the Central Govt.?

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THE BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019

Commencement, scope and overriding effect: The Ordinance called the Banning of Unregulated Deposit Schemes Ordinance, 2019 notified on 21st February 2019 came into force on the same date. It extends to the whole of India except the State of Jammu and Kashmir. The Ordinance is in addition to provisions of other law Sec.35[/efn_not]. The Ordinance … Continue reading THE BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019

Companies (Restriction on number of layers) Rules, 2017

Indian Companies can have only two layers of subsidiaries under the Companies Act 2013, with the government putting in place stricter norms as it continues with the clampdown on illicit fund flows. The Companies (Restriction on number of layers) Rules, 2017, notified (G.S.R. 1176(E)) by Central Government, came into effect from 20th September 2017. Meaning of … Continue reading Companies (Restriction on number of layers) Rules, 2017

Transition from High Court to NCLT, compromise, arrangement, winding-up and other matters

The Insolvency and Bankruptcy Code, 2016 (31 of 2016)   Key words of Preamble to the Insolvency and Bankruptcy Code, 2016 (IBC):- reorganization and insolvency resolution of- corporate person, partnership firms and individuals – in a time bound manner for maximization of value of assets to promote entrepreneurship availability of credit balance the interest of … Continue reading Transition from High Court to NCLT, compromise, arrangement, winding-up and other matters

Companies Amendment Bill 2016: Analysis

An attempt is made to present an analysis of the Companies Amendment Bill, 2016. Posting analysis of definitions only. Analysis on other provisions would be posted in staggering mode. CLC = Companies Law Committee of Ministry of Corporate Affairs (MCA) which submitted its report in February 2016. LODR = Securities and Exchange Board (Listing Obligations … Continue reading Companies Amendment Bill 2016: Analysis

What is the degree of proof required to hold brokers/sub-brokers liable for fraudulent/manipulative practice?

The Supreme Court of India, in its judgement in case of SEBI v. Kishore R. Ajmera delivered on 23 Feb. 2016, dealt with this question. Facts in brief: A broker with his sub-broker were allegedly involved in creation of artificial volumes in an illiquid scrip of Malvica Engineering Ltd, who matched volumes for their two … Continue reading What is the degree of proof required to hold brokers/sub-brokers liable for fraudulent/manipulative practice?

SEBI and insider trading

Gist of provisions of SEBI Act, 1992 dealing with Insider Trading. Section 12A(d) prohibits, inter alia, engaging in insider trading. Section 11(2)(g) empower SEBI to take appropriate measures to protect the interest of investors in securities and to promote the development of securities market and to regulate securities market. Such measure of SEBI includes, inter … Continue reading SEBI and insider trading

RBI approval for holding assets under Black Money Act

RBI approval for holding assets under Black Money Act Reserve Bank has issued the Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015 notified though Notification No. FEMA 348/2015-RB dated September 25, 2015 vide G.S.R. No. 738 (E) dated September 25, 2015. Accordingly, it is clarified that: a) … Continue reading RBI approval for holding assets under Black Money Act