Corporate Law Daily – Editorial Team
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Today’s newsletter analytically summarizes the top Corporate Law stories reported at taxmann.com.
MCA has notified the Companies (Registration of Charges) Amendment Rules, 2022. Amendments have been made in rule 3 (Registration of creation or modification of charge). ?
MCA notifies that the rule 3 shall not apply to any charge required to be created or modified by a banking company under section 77 (Duty to register charge) in favour of the Reserve Bank of India when any loan or advance made to it u/s 17 (4) (d) of the RBI Act, 1934. ?
Rule 3 cast a duty on the Company that the particulars of the creation/modification of the charges shall be filed with the Registrar of Companies in E form CHG-1 (for other than debentures) or CHG-9 (for debentures) as the case may be. ?
Section 17 of the RBI Act defines the manner in which the RBI (the central bank of India) can conduct business. As per section 17 (4) (d), the RBI can grant a loan against the security of promissory notes of any scheduled bank or State co-operative Bank, supported by documents of title to goods [such documents having been transferred], assigned, or pledged to any such bank as security for a [loan or advance made] for bona fide commercial or trade transactions, or for the purpose of financing agricultural operations or the marketing of crops. ?
SEBI vide. Notification No. SEBI/LAD-NRO/GN/ 2022/ 63, dated 14-1-2022 has notified the SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2022 whereby the amendments were made to Regulations no. 32, 49, 129, 145, Schedule XIII and XIV which shall be effective from April 1, 2022, for issues opening on or after April 1, 2022. ?
Now, the SEBI has specified the effective date of amendments. Amendments will be applicable depending upon the size of the public issue in the following manner: ?
(a) For public issues of size less than Rs 10,000 crore and opening on or after April 1, 2022 - will be effective from Apr 1, 2022; and ?
(b) For public issues equal to or more than Rs. 10,000 crore and opening on or after April 1, 2022, will be effective from July 1, 2022. ?
The IFSCA has issued a guidance framework on sustainable linked lending by Financial institutions wherein it has directed all IFSC Banking Units (IBUs) and Finance Company/Finance Units (FC/FUs) to develop a comprehensive Board approved policy on green/social/sustainable/sustainability-linked lending by Mar 31, 2023. As per the framework, from Apr 1, 2023, 5% of the gross loans and advances shall be directed towards green/social/sustainable/sustainability-linked sectors/facilities. In case, if the IBU or FC/FU is unable to meet the above targets it shall report to the Authority explaining reasons for non-compliance of the same and shall provide a future action plan towards ensuring compliance with this framework. ?
Further, an entity licensed/registered post issuance of this framework shall get a time period of 12 months, from the date of commencing its operations, to put in place a Board approved policy. ?
The framework is divided into four broad areas namely: ?
(a) Part A: Guidance on green/social/sustainable lending ?
(b) Part B: Guidance on sustainability linked lending. ?
(c) Part C: Guidance on short term financing/working capital finance (green/social/sustainable). ?
(d) Part D: Reporting framework. (The reporting will begin from half-year ending September 30, 2023. ?
The IFSCA has prescribed a framework for the authorization of the FinTechs in the IFSCS. The framework would be applicable to all eligible Domestic or Foreign entities, desirous of obtaining authorization as FinTech Entity (FE) from IFSCA, for participating in undertaking one or more of the permissible activities under this framework. FinTech Entity means an entity authorized by the authority under the appropriate framework and shall include both domestic and foreign FinTechs. ?
FinTech includes financial technology solutions which result in new business models, applications, process or products in financial services regulated by the Authority or advanced/innovative technology solutions that aid and assists activities in relation to financial products, financial services and financial institutions.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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