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India – Recent Regulations.

16 June, 2014

 


SEBI Permits Acquisition Of Shares To NRs/NRIs


A non-resident (NR) [Or a Non Resident Indian (NRI)], who has acquired and continues to hold control in an Indian company in accordance with SEBI (Substantial Acquisition of shares and Takeover) Regulations, has been permitted, under the FDI scheme, to acquire shares of that company on a stock exchange in India through a registered broker.

 

Source: http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8859&Mode=0

 

RBI Simplifies Documentation For NBFC Registration

 

The Reserve Bank of India has simplified the documentation for Non-Banking Financial Companies (NBFCs). Now, there will be a common application form for NBFCs, Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs), NBFC-Factors and Infrastructure Development Finance- Non-Banking Financial Companies (IDF-NBFCs). The application form for Core Investment Companies (CICs) has been redesigned and there are two checklists of documents – one for registration as Non-Banking Financial Company-International Finance Corporation (NBFC-IFC) and the other for registration as IDF-NBFC.

 

Source: http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31234

 

Corporate Governance In Listed Entities – Amendments To Clauses 35B And 49 Of The Equity Listing Agreement

 

The requirements under the Companies Act, 2013 and the rules notified on March 27, 2014 would be applicable to every company or a class of companies (both listed and unlisted). It has been decided to review the provisions of the Listing Agreement with the objective to align it with the provisions of the Companies Act, 2013, adopt best practices of corporate governance and to make the corporate governance framework more effective. The revised Clause 49 would be applicable to all listed companies with effect from October 01, 2014. However, the provisions of Clause 49(VI)(C) as given in Part-B shall be applicable to top 100 listed companies by market capitalisation as at the end of the immediate previous financial year. The revised Clause 35B would be applicable to all listed companies and the modalities would be governed by the provisions of Companies (Management and Administration) Rules, 2014.

 

Source: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1397734478112.pdf

 

Applicability Of PAN Requirement For Foreign Nationals

 

Attention of Ministry has been drawn to difficulties being faced by Foreign Nationals while filing Incorporation form (INC-7) due to mandatory requirement of submission of PAN details of intending Directors at the time of filing the application for incorporation. It is clarified that PAN details are mandatory only for those foreign nationals who are required to possess “PAN” in terms of provisions of the Income Tax Act, 1961 on the date of application for incorporation. Where the intending Director who is a Foreign National is not required to compulsorily possess PAN, it will be sufficient for such a person to furnish his/her passport number, along with undertaking stating that provisions of mandatory applicability of PAN are not applicable to the person concerned.


Source: http://www.taxmanagementindia.com/visitor/detail_circular.asp?ID=52817&t=Applicability-of-PAN-requirement-for-Foreign-Nationals

 

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For more information, please contact:

 

Dipak Rao, Partner, Rajani, Singhania & Partners

dipak.rao@rsplaw.in

 

Ravi Singhania, Partner, Rajani Signhania & Partners

ravi.singhania@rsplaw.in

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