WEEKLY CORPORATE NEWS ROUND UP FOR FIRST WEEK OF DECEMBER 2024

1. e-Box portal recently launched by Ministry of Women and Child Development

Safety and security of women in the country is of utmost priority for the Government. Keeping this in view, the Government has enacted "the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013". As per the provisions of the Act, the appropriate government has been mandated to maintain the data of number of complaints received and disposed of. Till recently, there was no central database for maintaining the data on number of ICs and LCs as well as number of complaints filed and disposed of.

2. India Shines in Network Readiness Index 2024

India has made significant strides in the global digital landscape, evidenced by its improved ranking in the Network Readiness Index (NRI) 2024, where the country now stands at 49th position, up from 60th in the 2023 report. This remarkable leap of eleven positions reflects India’s growing role as a leader in digital transformation, driven largely by robust government initiatives.

3. Income Tax Rules Amendment: Safe Harbour for Diamond Sector

Section 295, 92B

Form 3CEF

w.e.f  1-4-2024

Safe harbour for foreign compnaies engaged in diamond mining  and selling raw diamonds in designated special zones.A minimum profit margin of 4% on gross receipts is required to qualify for sale harbour, eliminating the need for complex transfer pricing assessments.  Additional provisions restricts deductions, loss set offs, and depreciation claims to simplify compliances.

This option is not available if the option is invalidated due to incorrect or concealed facts.

4. Govt seeks comments on raising FDI limit to 100% in insurance

5. Ministry of Finance

UPI: Revolutionizing Digital Payments in India

In October 2024, Unified Payments Interface (UPI) achieved a historic milestone by processing 16.58 billion financial transactions in a single month, underscoring its pivotal role in India’s digital transformation. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized the nation’s payment ecosystem by integrating multiple bank accounts into a single mobile application. This system enables seamless fund transfers, merchant payments, and peer-to-peer transactions, offering users flexibility through scheduled payment requests.

6. International Financial Services Centre Authority (Informal Guidance) Scheme, 2024

Eligible entities who can seek guidance include persons who are licensed, registered, recognized or authorised by IFSCA, persons intending to undertake a business transaction(s) in relation to financial product(s) or financial service(s) and persons desirous of setting up a Unit in IFSC. The informal guidance can be sought under two forms, namely: No-Action letter and Interpretative letter. The Scheme also provides confidential treatment of 90 days considering the sensitivities of certain transactions, based on the requests made. The Department(s) will provide the guidance within a period of 30 days and the fees charged for the same is USD 1000. The guidance provided under the scheme is not binding on the IFSCA and not amenable for appeal.

7. Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC

One of the objectives of the proposed framework is to align the norms and procedures for complaint handling across the financial services in the IFSC to the extent possible. This will also promote ease of doing business, particularly for regulated entities having multiple registrations with IFSCA for undertaking various financial services in the IFSC. The framework provides detailed norms and requirements inter alia relating to having a policy for complaint handling and grievance redressal, procedure for

complaint handling along with timelines, appeal mechanism, complaint before IFSCA, maintenance of records, disclosures on website and annual report, reporting and maintenance of online system for complaint handling.

8. Prime minister’s internship programme startedAs an initiation to this Scheme, a Pilot Project of the Scheme targeted at providing 1.25 lakh internship opportunities has been launched on 03.10.2024 for the Financial Year 2024-25. The top 500 companies have been identified by the Ministry on the basis of their average CSR expenditure of the last three years.

The list of the partner companies is available on https://pminternship.mca.gov.in. The Scheme is implemented through an online portal accessible at https://pminternship.mca.gov.in.

9. CCI approves the acquisition of certain shareholding of Shiprocket Private Limited by MUFG Bank, Ltd.

Competition Commission of India (CCI) has approved the acquisition of certain shareholding of Shiprocket Private Limited by MUFG Bank, Ltd. The Proposed Combination envisages acquisition of certain shareholding of Shiprocket Private Limited (Target) by MUFG Bank, Ltd. (Acquirer). The Acquirer is incorporated in Japan and is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), being the ultimate parent company. It is engaged in banking services in India. The Target operates a logistics platform whereby it provides logistics services to other businesses, domestically and internationally, through logistics service providers listed on its platform.

10. CCI approves subscription to optionally convertible debentures of GMR Infra Enterprises Private Limited by Platinum Stone A 2014 Trust (acting through its trustee Platinum Rock B 2014 RSC Limited).

The Competition Commission of India has approved subscription to optionally convertible debentures of  GMR Infra Enterprises Private Limited by Platinum Stone A 2014 Trust (acting through its trustee Platinum Rock B 2014 RSC Limited). The proposed combination involves proposed subscription to unlisted and unrated optionally convertible debentures (OCDs) of GMR Infra Enterprises Private Limited (Target SPV) by Platinum Stone A 2014 Trust (acting through its trustee Platinum Rock B 2014 RSC Limited) (Acquirer). Prior to the issuance of OCDs as well as post the Acquirer’s subscription to the OCDs, the Target SPV will acquire a cumulative of approximately 9% of the shareholding (on a fully diluted basis) of GMR Airports

Limited (GAL) from its promoter, i.e., GMR Enterprises Private Limited (GEPL). Such shareholding of GAL held by the Target SPV will be pledged in favour of the Acquirer with a view to secure the OCD subscription amount (Proposed Combination).

11. Appointment of ex officio member in Insolvency and Bankruptcy Board of India (IBBI)

In accordance with the provisions of clause (c) of sub-section (1) of section 189 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby appoints Shri Vaibhav Chaturvedi, Chief General Manager, Reserve Bank of India as the ex-officio member in the Insolvency and Bankruptcy Board of India to represent the Reserve Bank of India in said Board.

12. India, Kuwait sign MoU to establish Joint Commission for Cooperation

13. Monetary Policy Statement, 2024-25 Resolution of the Monetary Policy Committee (MPC) December 4 to 6, 2024

After assessing the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting on December 6, 2024 decided to: Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

The MPC also decided to continue with the neutral monetary policy stance and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. These decisions are in consonance with the objective of achieving the medium-term target for Consumer Price Index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth

Case decision

Reliance securities ltd - decided by SEBI

SEBI, NSE and BSE conducted onsite inquiry at broker office and given the findings to the company and after considering the replies -Ordered

Alleged Violations (Summarized)

1. Non-maintenance of adequate systems for recording of order placement by clients.

2. Discrepancy w.r.t existence of terminal at inspection location Vis a Vis information reported to exchange by the Noticee.

3. No proper segregation and demarcation maintained at the AP office.

4. Failure of the Noticee in ensuring that its Authorized Persons are engaged only in permitted activities.

5.Failure of the Noticee to inspect the books of active registered Authorised Person

as per the applicable guidelines.

6.Non-reporting of details of active clients mapped to Authorized Persons.

7.Entrusting the CTCL/dealer terminals to its clients other than Approved Persons.

8.Inadequate supervision of AP's by the Noticee.

Order

Precedent - SEBI Vs Bhavesh Pabari - 2019 - SC

Violated section 15HB, 15A

Penalty imposed is 9,00,000