LKS Corporate Amicus, November 2023

Article

Cross-border payments for Indian businesses – Impact of RBI’s new guidelines

The RBI has recently issued a new regulatory framework for Payment Aggregators of Cross Border Transactions, which brings all entities facilitating cross-border payment transactions for import and export of goods and services under direct regulation of the RBI. Deliberating on the question of the need of such regulation, the article discusses plugging of the issue of alternative methods, tapping of illegal cross border transactions, due diligence by RBI, relaxation on import of services, and how this will ensure monitoring of revised TCS on Liberalised Remittance Scheme. According to the author (Astha Sinha), all companies engaged in cross-border payments systems such as e-commerce entities, global direct-to-customer entities will be required to re-look at their payment partner agreements, money flow, KYC and reporting requirements.

Read the full article here.

Notifications and Circulars

• Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 notified
• Hybrid work – Special Economic Zones (Fourth Amendment) Rules, 2023 notified
• Simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and nomination
• ‘Fully Accessible Route’ for investment by non-residents in government securities – Inclusion of Sovereign Green Bonds
• International Trade Settlement in Indian Rupees (INR) – Opening of additional current account for export proceeds

Ratio decidendi

• Writ petition is not maintainable against an arbitral award passed under Section 18 of MSME Development Act – Supreme Court
• Doctrine of promissory estoppel cannot be pressed with respect to a Resolution Plan approved by the CoC in its commercial wisdom – NCLAT
• Arbitration – No requirement for filing a separate formal application under Section 8 when an objection has been duly raised in the written submissions – Delhi High Court

News Nuggets

• Arbitration – Denial of an arbitration clause in reply to an arbitration notice will not disentitle a party from involving Section 8, in a suit
• Arbitration – Court not to insist for bank guarantee in cases where enforcement of an arbitral award is not frustrated, in a petition under Section 9?
• Arbitration – Court can extend the mandate of an arbitral tribunal even if the application for extension is made after expiry of time limit provided
• Arbitration clause in original contract is also applicable to additional work carried out in absence of a formal agreement
• Insolvency – 10-day demand notice period cannot be excluded while calculating limitation period for filing a petition under Section 9 of IBC
• Insolvency – Time spent in obtaining a legal opinion and engaging a legal counsel is not ‘sufficient cause’ for condonation of delay in filing appeal
• Insolvency – Claims cannot be entertained once the resolution plan has been approved by CoC, even if the same is pending before NCLT

Read the full newsletter here - LKS Corporate Amicus, November 2023 (Complete)

Subscribe to our newsletters now and be the first to know about the latest news and developments: Join here

?