Introduction

Edition 11/21-22

Week – June 14th to June 18th

Quote for the week:

“Be yourself; everyone else is already taken.” 

  -Oscar Wilde

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 Department for Promotion of Industry and Internal Trade (“DPIIT”) 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. MCA amends Companies (Meetings of Board and its powers) Rules, 2014 to allow companies to transact agenda items mentioned in Rule 4 via Video Conferencing meetings.
2. SEBI provides relaxation from requirement of minimum vesting period under SEBI (Share Based Employee Benefit) Regulations, 2014
3. Government of India increases Foreign Direct Investment (“FDI”) limit in Insurance Companies from 49% to 74%

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of June 14, 2021 to June 18, 2021.

Thank you,

Swift team

Table of Contents

REGULATORY UPDATES

MCA UPDATES

1. MCA amends Companies (Meetings of Board and its powers) Rules, 2014 vide Gazette Notification dated June 15, 2021
2. MCA amends Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 vide Gazette Notification dated June 18, 2021
3. MCA amends Companies (Indian Accounting Standards) Rules, 2015 vide Gazette Notification dated June 18, 2021

SEBI UPDATES

1. SEBI revises the framework for Regulatory Sandbox vide Circular dated June 14, 2021
2. SEBI provides relaxation from requirement of minimum vesting period under SEBI (Share Based Employee Benefit) Regulations, 2014 vide Circular dated June 15, 2021
3. SEBI includes listed debt securities within system driven disclosure under Insider Trading Regulations vide Circular dated June 16, 2021
4. SEBI modifies guidelines on Settlement of Running Account of Client’s Funds lying with Trading Member (“TM”) vide Circular dated June 16, 2021
5. SEBI modifies norms for investment and disclosure by Mutual Funds in Derivatives vide Circular dated June 15, 2021
6. SEBI issues Framework for administration and supervision of Investment Advisers under the SEBI (Investment Advisers) Regulations, 2013 vide Circular dated June 15, 2021

DPIIT UPDATES

1. Government of India increases Foreign Direct Investment (“FDI”) limit in Insurance Companies from 49% to 74%  vide Press Note dated June 14, 2021

JUDGEMENTS/ ORDERS

NCLT

1. National Company Law Tribunal rejects the application for dispensation of shareholders meeting under section 230 of the Companies Act, 2013 in the matter of M/s Quickcalls Private Limited and Others

SEBI

1. SEBI imposed monetary penalty for fraudulently diversion of IPO proceeds

HIGH COURT

1. Delhi High Court sets aside the challenged order and bail granted to the Promoter by trial court to unearth the conspiracy behind siphoning and diversion of funds