Introduction

Edition 03/21-22

Week – April 19th to April 23rd

Quote for the week:

“Always remember that you are absolutely unique. Just like everyone else.” 

  - Margaret Mead

We welcome you to our weekly newsletter!

The ‘Swift e-Bulletin’ - weekly newsletter, covers all regulatory updates and critical judgements passed during the week. We hope that you liked our previous editions and found it to be of great value in its content. We want this newsletter to be valuable for you so, please share your feedback and suggestions to help us improve.

Further, various regulatory authorities have been proactive in bringing significant regulatory changes in recent challenging times. This week’s newsletter covers various Circulars/notifications issued by certain regulatory authorities such as the Ministry of Corporate Affairs (“MCA”), the Securities and Exchange Board of India (“SEBI”), and the Reserve Bank of India (“RBI”) and critical judgements and orders passed by the National Company Law Tribunal (“NCLT”), SEBI, Supreme Court and High Court.

The Regulatory authorities provided various updates/relaxations such as :

• Spending of Corporate Social Responsibility (“CSR”) funds for 'setting up makeshift hospitals and temporary COVID Care facilities will be eligible CSR activity;
• Extension of validity of relaxation pertaining to procedural aspects of Rights issues opening to September 30, 2021 by SEBI;
• Constitution off Committee by Reserve Bank of India on function of Asset Reconstruction Companies (“ARCs”);

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of April 19, 2021 to April 23, 2021.

Thank you,

Swift team

Table of Contents               

REGULATORY UPDATES

MCA UPDATES

1. MCA issues clarification on spending of CSR funds for setting up makeshift hospitals and temporary COVID Care facilities vide General Circular No 05/2021 dated April 22, 2021.

SEBI UPDATES

1. SEBI extends relaxations with respect to procedural matters related to Issues and Listing pertaining to Rights Issue vide Circular dated April 22, 2021.

RBI UPDATES

1. RBI constitutes a Committee on functioning of ARCs and to review regulatory guidelines applicable to them vide Press Release dated April 19, 2021.

JUDGEMENTS/ ORDERS

NCLT

1. National Company Law Tribunal Initiates Corporate Insolvency Resolution Process (“CIRP”) against M/s. ANR International Private Limited.

SEBI

1. SEBI imposed penalty for not complying with the disclosure requirements under SEBI (Prohibition of Insider Trading) Regulations, 2015.
2. SEBI grant exemption to acquirers from complying with the requirement of regulations 3(1) and 4 the Takeover Regulations, 2011.

HIGH COURT

1. M/s. Ayush Services and Consultancy filed petition against Delhi Metro Rail Corporation Limited for tenure period of the license agreement not been extended further.
2. Issuance of fresh Certificates under Section 197 indicating the rate of withholding tax was ordered by the Delhi High Court.

SUPREME COURT

1. Interesting question before the Supreme Court to choose a forum for arbitration outside India, under Part II of the Arbitration and Conciliation Act, 1996, by two Indian companies under dispute.