Introduction

Edition 1/20-21

Week – July 20th to 25th

We welcome you to our weekly newsletter!

As part of our knowledge sharing and growth, we’re excited to launch our inaugural edition of ‘Swift e-Bulletin’ - weekly newsletter, which is specifically designed to cover all regulatory updates and critical judgement passed during the week. We hope that you will find great value in its content and that it will assist you in keeping updated with latest development in the corporate world. We want this newsletter to be valuable for you so, please share your feedback and suggestions to help us improve.

In the wake of COVID-19, we all are witnessing many relaxations, exemptions and amendments to the various legislations by regulatory authorities to ease out the operations during this time of crisis.

Further, the Reserve Bank of India (“RBI”), the Ministry of Corporate Affairs (“MCA”) and the Securities and Exchange Board of India (“SEBI”) have been at the front foot in bringing significant regulatory changes in recent times. With a constant endeavour to cover all regulatory updates at one place, we have prepared a comprehensive summary for quick reference of such updates issued during the week of July 20, 2020 to July 25, 2020.

Thank you,

Swift Team

Table of Contents

REGULATORY UPDATES

MCA UPDATES

1. MCA introduces the Companies (Indian Accounting Standards) Amendment Rules 2020 via Notification Dated July 24, 2020:

The Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amendment Rules, 2020. The said notification amend the Companies (Indian Accounting Standards) Rules, 2015. Amendments have been made to IndAS 1 related to Presentation of Financial Statements, IndAS 8 related to Accounting Policies, Changes in Accounting Estimates and Errors, IndAS 10 related to Events after Reporting Period, IndAS 34 related to Interim Financial Reporting and IndAS 37 related to Provisions  Contingent Liabilities and Contingent Assets, IndAS 103 related to Business Combinations, IndAS 107 related to Financial Instruments: Disclosures, IndAS 109 related to Financial Instruments, IndAS 116 related to Leases. To read more in detail click on the link below:

Link: http://www.mca.gov.in/Ministry/pdf/Rule_24072020.pdf (Yet to be published in the official gazette)

SEBI UPDATES

1. SEBI introduces framework to enable verification of upfront collection of margins from clients in cash and derivatives segments vide circular dated July 20, 2020:

In order to align and streamline the risk management framework of both cash and derivatives segments, with respect to collection of margins from the client and reporting of short-collection/non -collection of margins in Cash and Derivatives segments, SEBI has directed Stock Exchanges/ Clearing Corporations to adopt the framework to enable verification of upfront collection of margins from clients in cash and derivatives segments. SEBI has prescribed this framework with an objective to enable uniform verification of upfront collection of margins from clients by Trading Members / Clearing Members and levy of penalty across segments with effect from December 01, 2020. To read in detail, click on the Link below:

Link:https://www.sebi.gov.in/legal/circulars/jul-2020/framework-to-enable-verification-of-upfront-collection-of-margins-from-clients-in-cash-and-derivatives-segments_47101.html

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