Introduction

Edition 12/21-22

Week – June 21st to June 25th

Quote for the week:

“Someone's sitting in the shade today because someone planted a tree a long time ago.” 

  -Warren Buffett

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 International Financial Services Centres Authority (“IFSCA”) and the Reserve Bank of India (“RBI”) and critical judgements and orders passed by the National Company Law Tribunal (“NCLT”), National Company Law Appellate Tribunal (“NCLAT”) SEBI, Securities Appellate Tribunal (“SAT”) High Court and Supreme Court.

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

• MCA extends timelines to allow companies to conduct their Extraordinary General Meetings (“EGMs”) through Video Conference (“VC”) or Other Audio Visual Means (“OAVM”) till December 31, 2021.
• IFSCA issues guidelines on liquidity risk management for a Finance Company (“FC”) / Finance Unit (“FU”)
• RBI prescribes guidelines on distribution of dividend by Non-Banking Financial Companies (“NBFCs”)

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of June 21, 2021 to June 25, 2021.

Thank you,

Swift team

Table of Contents

REGULATORY UPDATES

MCA UPDATES

1. MCA extends timelines to allow companies to conduct their Extraordinary General Meetings (“EGMs”) through Video Conference (“VC”) or Other Audio Visual Means (“OAVM”) or transact items through postal ballot vide General Circular No. 10/2021 dated June 23, 2021
2. MCA amends the Companies (Accounting Standards) Rules, 2006 vide Notification dated June 23, 2021

IFSCA UPDATES

1.  IFSCA issues clarification on status of transactions executed at Disaster Recovery (“DR”) sites vide Circular June 22, 2021
2. IFSCA introduces Negotiated Large Trade (“NLT”) facility on Stock Exchanges located in GIFT CITY vide Circular dated June 22, 2021
3. IFSCA issues guidelines on liquidity risk management for a Finance Company (“FC”) / Finance Unit (“FU”) vide Circular dated June 24, 2021

RBI UPDATES

1. RBI prescribes guidelines on distribution of dividend by NBFCs vide Notification Dated June 24, 2021

JUDGEMENTS/ ORDERS

NCLT

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

NCLAT

1. NCLAT, New Delhi set aside the order passed by the NCLT Ahmedabad and allowed restoration of name of the Company on the Register of Companies

SEBI

1. SEBI grant exemption to the acquirer from open offer obligation

SAT

1. SAT allows EGM of PNB Housing Finance Limited; however, the results would not be declared and would be kept in a sealed cover

HIGH COURT

1. Petition filed by eight persons against Tribal Cooperative Marketing Development Federation on India Limited was dismissed by the Delhi High Court
2. Delhi High Court dismisses the petition filed by Pragya Electronics for want of merit

SUPREME COURT

1. Union of India appeals to the Supreme Court aggrieved by the directions issued by the High Court for release of the goods imported by the private respondents which were liable to absolute confiscation