Introduction

Edition 07/21-22

Week – May 17th to May 21st

Quote for the week:

“Any fool can criticize, complain, and condemn—and most fools do. But it takes character and self-control to be understanding and forgiving.” 

  -Dale Carnegie

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”), Securities and Exchange Bboard of India (“SEBI”) and the International Financial Services Centres Authority (“IFSCA”), and critical judgements and orders passed by the National Company Law Tribunal (“NCLT”), SEBI and High Court.

The Regulatory authorities provided various updates/relaxations, some of which being:

1. Clarification on offsetting the excess Corporate Social Responsibility (“CSR”) amount spent for FY 2019-20 by MCA
2. Enhancements in the overall limit for overseas investment by Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs)
3. Banking Units (“BU”) to become Trading/Clearing members of IFSCA recognized Stock Exchanges, clarification by IFSCA

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of May 17, 2021 to May 21, 2021.

Thank you,

Swift team

Table of Contents

REGULATORY UPDATES

MCA UPDATES

1. MCA provides clarification on offsetting the excess Corporate Social Responsibility (“CSR”) amount spent for FY 2019-20 vide Circular dated May 20, 2021

SEBI UPDATES

1. SEBI enhances the overall limit for overseas investment by Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs) vide Circular dated May 21, 2021

IFSCA UPDATES

1. IFSCA issues clarification on the criteria for Banking Units (“BUs”) to become Trading/Clearing members of IFSCA recognized Stock Exchanges vide Circular dated May 17, 2021

JUDGEMENTS/ ORDERS

NCLT

1. National Company Law Tribunal allows the Restoration of M/s Terawise Consultants Private Limited

SEBI

1. SEBI imposed penalty on Company and Senior Vice President for trading in company’s securities during the trading period closed and for making delayed disclosures to the Stock Exchange
2. SEBI imposed penalty on Gromo Trade & Consultancy Limited for not utilizing the preferential issue proceeds as stated special resolutions passed at the EGMs
3. SEBI imposed a penalty for failure to make the requisite disclosures to the Company and to the Stock Exchange and failed to comply the provisions of model code of conduct

HIGH COURT

1. Delhi High Court dismisses the appeals by excluding certain evidences, subject to limited caveat
2. Kuber Enterprises filed a petition under Section 9(1) of the Arbitration and Conciliation Act, 1996 stands rejected on no valid grounds for interdicting the invocation of the Bank Guarantee
3. Qualcomm India Private Limited files petition under Article 226 of the Constitution of India, seeking sanction of interest on refund amount under Section 11BB of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994