Corporate Laws Daily
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Welcome to Taxmann.com | Newsletter – Reporting the Facts with Taxmann's Analysis. Today's Edition Brings You Updates on Company & SEBI Laws | FEMA Banking & NBFCs | Insolvency & Bankruptcy Code (IBC) | Competition Laws.
SEBI proposes a review of Custodian norms and operational guidelines to ease operations and compliances
SEBI has released a Consultation Paper on the review of Custodian Regulations, 1996, and operational guidelines for Custodians. SEBI has proposed increasing the net worth requirement for custodians from Rs 50 crore to Rs 100 crore. Existing custodians who do not meet the revised net worth requirement must be given a period of 3 years to comply with the revised net worth requirement. Comments may be submitted by Nov 28, 2024.
SEBI proposes to raise the maximum investment limit for Angel Funds in start-ups from Rs 10 crore to Rs 25 crore
SEBI has released a Consultation Paper on reviewing the regulatory framework for Angel Funds in AIF Regulations. Angel Funds, a type of Category I AIFs—venture Capital Funds—provide capital to start-ups from Angel Investors. SEBI has proposed raising the maximum investment limit for Angel Funds in start-ups from Rs 10 crore to Rs 25 crore and reducing the minimum investment limit from Rs 25 lakh to Rs 10 lakh. Comments may be submitted by Nov 28, 2024.
SEBI exempts employee benefit trusts under UBEB scheme from one-year lock-in on units allotted to non-sponsor entities
Earlier, SEBI introduced a framework for the unit-based employee benefit (UBEB) scheme for REITs and InvITs, which included a lock-in requirement for units issued to non-sponsor entities, mandating a one-year lock-in from the date of trading approval. Now, to support employee benefit trusts in acquiring units and subsequently transferring them to employees under the UBEB scheme, SEBI now proposes that these lock-in restrictions will not apply to units allotted to an employee benefit trust.
SEBI proposes amendments w.r.t assigning responsibility for use of artificial intelligence tools by MIIs & intermediaries
SEBI has released a Consultation Paper on proposed amendments to assign responsibility for the use of artificial intelligence tools by Market Infrastructure Institutions (MIIs), registered intermediaries, and persons regulated by SEBI. The term “Artificial Intelligence” is understood to focus on executable programmes in machines and computers that can learn, reason and act in ways that would normally require human intelligence. Comments may be submitted by Nov 28, 2024.
AA’s order allowing amended petition on oppression & mismgmt. without giving chance to be heard was to be overturned: NCLAT
In the instant case, the respondent filed the Company Petition under Sections 241 and 242 of the Companies Act 2013, alleging oppression and mismanagement in the affairs of the appellant company.
The Respondent filed an application seeking to place on record an amended petition directly. The NCLT vide the impugned order allowed the said application. The appellant vide instant appeal alleged that the impugned order was passed contrary to principles of law relating to the amendment of pleadings contained in Order VI Rule 17 of CPC applicable to proceedings before the NCLT.
According to the appellant, the amended petition was filed by completely redrafting the original petition with additional grounds, and thus, it was a fresh petition in the guise of an amendment. Further, no opportunity was granted to the appellant to respond to the amended petition.
It was noted that amendments were substantial in nature. Admittedly, new reliefs had been added in the amended petition as also a new party being impleaded. For such substantial amendments, an application ought to have been moved with such proposed amendments and with liberty to appellants to rebut such proposed amendments and only thereafter, amended petition ought to have been brought on record.
The NCLAT held that since the impugned order did not adhere to principles of natural justice, it did not give an opportunity of being heard to the appellant. Thus, the impugned order was to be set aside. One more opportunity be given to the respondent to move an application for amendment, inclusive of proposed amendments with liberty to the appellant to respond to such application and thereafter the NCLT to decide it as per law. Thus, the instant appeal was to be allowed.
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6 天前Very informative