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Wednesday, July 7, 2010
Download FEMA Master Circulars on FDI/ODI, etc...issued by RBI & updated on 1st July of every year 2010 with foreign exchange law of India up to date
Wednesday, June 30, 2010
Life insurance benefits to Provident Fund employees increased to Rs.1lakh under Deposit linked Insurance scheme (EDLI)
EDLI Scheme amended: In effect, on death during employment, Family member/nominee will get the following:
- if Average balance is more than Rs.50,000/-
- then Insurance Amount = Rs. 50,000/- + 40% (Excess), subject to a maximum of Rs. 1,00,000/-
Paragraph 22 of Employees Deposit Linked Insurance Scheme, 1974
22. Scales of assurance benefit and the minimum average balance to be maintained by an employee. – (1) On the death of an employee, who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to the average balance in the account of the deceased in the Fund or of a Provident Fund exempted under Section 17 of the Act, as the case may be, during preceding twelve months or during the period of his membership, whichever is less, except where the average balance exceeds Rs.50,000 (erstwhile limit was Rs.25,000/-), the amount payable shall be Rs.50,000 (erstwhile Rs.25,000/-)plus 40% (earlier limit was 25%) of the amount in excess of Rs.50,000 (erstwhile Rs.25,000/-) subject to a ceiling of Rs. 1 lakh (earlier Rs. 35,000).
Saturday, June 26, 2010
Revised monthly wage ceiling limit of 50% of Rs.4000 increased to Rs.8000-Employees Compensation Act for maximum compensation calculation
As you are aware, Workmen's Compensation Act, 1923 becomes Employees with enhanced compensation limits, full medical expenses reimbursement, case disposal within 3 months, etc..& also applicable to casual & clericals, the said amendment which has removed the ceiling of monthly wage limit of Rs.4,000 for the purpose of calculation of Maximum Compensation under the Act is now amended again.
Now, a new monthly wage ceiling limit of Rs. 8000 is introduced for the purpose of calculation of 50% of it during computation of Maximum compensation under the Act. Hence, the maximum compensation can go UPTO 50% of 8000 which comes to Rs. 4000/- that shall be multiplied by Age factor. Thus, effectively it was erstwhile 50% of Rs.4000 and now it is 50% of Rs.8000/-. This amendment is notified vide Central Government Notification No. S.O. 1258(E) vide Ministry of Labour & Employment dated 31st May 2010.
Thursday, June 17, 2010
New Scheme to close down Company & comply for non-compliances done under Companies Act, 1956 like non-filing of annual returns, accounts, compliance certificate,etc...Lawlabz Website link
Closure of defunct companies by ROC
COMPANY LAW SETTLEMENT/EASY EXIT SCHEME under The Companies Act, 1956:
The Ministry of Corporate Affairs, has announced an EASY EXIT SCHEME to facilitate the defunct company to get rid of it. The scheme has made very simple for the exit of the defunct company without much effort.
In the normal circumstances closing of a company may take several years and may need to spent lakhs of rupees.
Please contact us immediately for filing the application, for closure of your defunct company, if any at the earliest and avail this golden opportunity.
The opportunity may come once in blue moon. So do ACT IMMEDIATELY and get rid of your defunct company once for all without any future litigation for non compliances.
After the closure of the scheme, it is expected that ROC may take actions on those companies who continue to default the compliances.
Take the opportunity immediately …
OR call us now @ 044-24340416
Reach us @ 7/13, South Boag Road, T.Nagar, Chennai, 600017
Mail us: solutions@lawlabz.com
Keep closing & enjoy complying!!!
Thank You,
LawLabz
360o
Personalised Corporate SolutionsMonday, June 14, 2010
Preserve/Lost your Mark sheets as NO more CS Pass Certificates for Foundation & Executive will be issued by ICSI on passing Company Secretary Exams but for Professional Program
Don’t panic after your CS Results this 25th August 2010 onwards! when you don’t receive your Company Secretary Exam pass certificates, ICSI has resolved not to send the same (may be a cost cutting measure or an environment friendly measure) as it serves no purpose.
I have passed CS Executive Program but I have not received my Certificate, where can I approach? Now, you can feel relaxed!!!, ICSI says.
The mark statement (mark sheet) hereon will serve as the proof that you have cleared CS. The first of its kind PASS certificates, you can receive after finishing your CS Final exams.
Have you lost your CS Marksheet???
Again, not to panic. You have to shell out Rs.50/- + Rs.25/- to ICSI and apply in Application for issue of Duplicate Result-cum-Mark sheet to get a duplicate copy for further reference & usage.
ATTENTION STUDENTS !!
DISCONTINUATION OF ISSUE OF PASS CERTIFICATES TO FOUNDATION/ EXECUTIVE/INTER PROGRAMME PASS STUDENTS
In accordance with the decision taken by the Council of the Institute recently, it is brought to the notice of the student community that henceforth (i.e. from June, 2010 Examination Session onwards), Pass Certificates will be issued only to such students who pass Final Course/ Professional Programme. However, Mark Sheets will continue to be issued to students of all stages viz. Foundation, Executive/Intermediate and Professional/Final Programmes as per existing practice.
Sunday, June 6, 2010
New Rule 19(2)(b) & 19A for initial & continuous listing requirement of 25% of capital with public as per SCRR amendment 2010 [for all companies]: 10% for 4000 crores to be increased@5% every year
The Securities Contracts (Regulation) Rules 1957 provide for the requirements which have to be satisfied by companies for the purpose of getting their securities listed on any stock exchange in India. A dispersed shareholding structure is essential for the sustenance of a continuous market for listed securities to provide liquidity to the investors and to discover fair prices. Further, the larger the number of shareholders, the less is the scope for price manipulation. Accordingly, the Finance Minister in his Budget speech for 2009-10, inter- alia, proposed to raise the threshold for non- promoter, public shareholding for all listed companies. To implement the Budget announcement the Securities Contracts(Regulation) (Amendment) Rules, 2010 has been notified vide Press Release F.No.5/35/2006-CM dated 4th June 2010 through
this Notification. [download now]
a) The minimum threshold level of public holding will be 25% for all listed companies.
b) Existing listed companies having less than 25% public holding have to reach the minimum 25% level by an annual addition of not less than 5% to public holding.
c) For new listing, if the post issue capital of the company calculated at offer price is more than Rs. 4000 crore, the company may be allowed to go public with 10% public shareholding and comply with the 25% public shareholding requirement by increasing its public shareholding by at least 5% per annum.
d) For companies whose draft offer document is pending with Securities and Exchange Board of India on or before these amendments are required to comply with 25% public shareholding requirement by increasing its public shareholding by at least 5% per annum, irrespective of the amount of post issue capital of the company calculated at offer price.
e) A company may increase its public shareholding by less than 5% in a year if such increase brings its public shareholding to the level of 25% in that year.
f) The requirement for continuous listing will be the same as the conditions for initial listing.
g) Every listed company shall maintain public shareholding of at least 25%. If the public shareholding in a listed company falls below 25% at any time, such company shall bring the public shareholding to 25% within a maximum period of 12 months from the date of such fall.
New definitions in Rule 2 of SCRR:
(d) “public” means persons other than – (i) the promoter and promoter group; (ii) subsidiaries and associates of the company. Explanation: For the purpose of this clause the words “promoter‟ and “promoter group‟ shall have the same meaning as assigned to them under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements-ICDR) Regulations, 2009.
(e) “public shareholding” means equity shares of the company held by public and shall exclude shares which are held by custodian against depository receipts issued overseas”.
New Rule 19(2)(b) of SCRR:
(i) At least 25% of each class or kind of equity shares or debentures convertible into equity shares issued by the company was offered and allotted to public in terms of an offer document; or
(ii) At least 10% of each class or kind of equity shares or debentures convertible into equity shares issued by the company was offered and allotted to public in terms of an offer document if the post issue capital of the company calculated at offer price is more than Rs. 4000 crores;
Provided that the requirement of post issue capital being more than Rs. 4000 crores shall not apply to a company whose draft offer document is pending with SEBI on or before the commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2010, if it satisfies the conditions prescribed in clause (b) of sub-rule 2 of rule 19 of the Securities Contracts (Regulation) Rules, 1956 as existed prior to the date of such commencement (which is: offering atleast 10% if there are 20 lakh in number of securities, Rs.100 crores of offer size is given to public and follows bookbuilding by offering 60% to QIB)
Provided further that the company, referred in sub-clause (ii), shall bring the public shareholding to the level of at least 25% by increasing its public shareholding to the extent of at least 5% per annum beginning from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India .
Provided further that the company may increase its public shareholding by less than 5% in a year if such increase brings its public shareholding to the level of 25% in that year.
New Rule 19(4) of SCRR – fresh application in all cases now!!!
An application for listing shall be necessary in respect of the following: (a) all new issues of any class or kind of securities of a company to be offered to the public; (b) all further issues of any class or kind of securities of a company if such class or kind of securities of the company are already listed on a recognised stock exchange.
New Rule 19(6A) – taking away the power from Clause 40A of Listing Agreement of stock exchanges as there is no more Provisio!!!
All the requirements with respect to listing or continuous listing requirement prescribed by these rules, shall, so far as they may be, also apply to a body corporate constituted by an Act of Parliament or any State Legislature. [Old Provisio deleted]
Note: SEBI’s power to relax listing requirements under SCRR is withdrawn. Also note, there is no more Clause 40A continuous listing requirement of 10% if the company has 2 crores of listed shares with a market capitalisation of Rs.1000 crore or more.
Clause 40A is now Rule 19A mandating 25% as CONTINUOUS LISTING REQUIREMENT for all Companies:
Every listed company shall maintain public shareholding of at least 25%
Provided that any listed company which has public shareholding below 25% on the commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2010, shall bring the public shareholding to the level of at least 25% by increasing its public shareholding to the extent of at least 5% per annum beginning from the date of such commencement, in the manner specified by SEBI.
Provided further that the company may increase its public sharholding by less than 5% in a year if such increase brings its public shareholding to the level of 25% in that year.
(2) Where the public shareholding in a listed company falls below 25% at any time, such company shall bring the public shareholding to 25%within a maximum period of 12 months from the date of such fall in the manner specified by the Securities and Exchange Board of India.”
Wednesday, June 2, 2010
Learnlabz Activity outside Company Secretary exam centres @ Chennai, Free DVDs for CS students on classes & books
Catching up the heat outside Company Secretary Exam centres at Chennai. Learnlabz stall was crowded with CS students availing their free DVD’s with lots of excitement & sincerity. Many were out of the exam halls too early winning their first law exam and found it interesting!!!
You can also enjoy our Youtube releases from http://www.youtube.com/watch?v=OO-tKh9Ptrw&feature=player_embedded
Learnlabz wishes All the Best for every exam giving you a fresh 3 hours!!! – its Only This Much.
We make learning an interesting experience!!!
Saturday, May 29, 2010
Effective Date for Revision of Gratuity Amendment Act to Rs. 10 lakhs: Notification in Official Gazette as on 24th May 2010
As you are aware Gratuity Amendment Act 2010 is notified in Official Gazette with Rs.10 lakhs as limit replacing Rs.3,50,000
The Payment of Gratuity (Amendment) Act, 2010 is notified in Official Gazette on 18th May 2010, amending the Payment of Gratuity Act, 1972 with revision in maximum ceiling from Rs. 3.5 lac to Rs. 10 lakhs.
The said Act shall come into force with effect from 24th May 2010 as per the Notification S.O. 1217(E) published in the Official Gazette.
Tuesday, May 25, 2010
Money laundering transaction records & definition of beneficial owner in Amendment Rules 2010 - RBI
Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2010 - Obligation of banks/All India Financial institutions
Government of India vide its Notification No. 7/2010-E.S.F.No.6/8/2009-E.S dated February 12, 2010 has amended the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. A copy of the Notification is enclosed for ready reference in DBOD. AML.BC. No. 95 /14.01.001/2009-10 dated 23rd April 2010.
The salient features of the amendment inter alia require banks and All India
Financial Institutions:
• to maintain the records of all transactions including the records of transactions detailed in rule 3 sub-rule (1).
• the records referred to in rule 3 should contain all necessary information specified by the Regulator to permit reconstruction of individual transactions including the information detailed in rule 4.
Further, in rule 9 in sub-rule (1A) an explanation of 'beneficial owner' has been inserted in terms of which " ' Beneficial Owner' shall mean the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person".
Monday, May 24, 2010
NBFC investment in Joint Venture or subsidiary abroad shall 'No Objection' (NoC) of the Department of Non-Banking Supervision of RBI
Overseas Investment by NBFCs- No Objection (NoC) from DNBS, RBI
Please refer to Regulation No. 7 of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2004, dated July 07, 2004, in terms of which an Indian party requires prior approval of the concerned regulatory authorities both in India and abroad, to make an investment in an entity outside India engaged in financial services activities. Further in terms of para B.5.3 of the Master Circular on Direct Investment in Joint Venture (JV) / Wholly owned subsidiary (WOS) abroad dated July 01, 2009 issued by Foreign Exchange Department, RBI, regulated entities in the financial sector making investments in any activity overseas are required to comply with the above regulation.
2. Instances have been observed where NBFCs have made overseas investments without regulatory clearance of the Department of Non-Banking Supervision, Reserve Bank of India. Any investments made by NBFCs without regulatory clearance is a violation of FEMA 2004 and attracts penal provisions.
3. In this regard, it is emphasised that all Non Banking Finance Companies desirous of making any overseas investment must obtain 'No Objection' (NoC) of the Department of Non-Banking Supervision of RBI before making such investment, from the Regional Office in whose jurisdiction the head office of the company is registered.
4. Applications in this regard shall clearly state the activities intended to be undertaken by the overseas entity. NBFCs may also note that in terms of the Regulations ibid, they are not permitted to make direct investment in a foreign entity engaged in activities not approved under FEMA.
Source: DNBS (PD).CC. No.173/03.10.01 /2009-10 dated 3rd May 2010
ECB by IFC now under Automatic route UPTO 50% of owned funds, RBI
As a measure of liberalisation of the existing procedures, it has been decided to permit the IFCs to avail of ECBs, including the outstanding ECBs,
- up to 50% of owned funds under the automatic route, subject to their compliance with the prudential guidelines already in places.
- above 50% of their owned funds would require the approval of the Reserve Bank and will, therefore, be considered under the approval route.
Source: A. P. (DIR Series) Circular No. 51 dated 11th May 2010
Gratuity Amendment Act 2010 is notified in Official Gazette with Rs.10 lakhs as limit replacing Rs.3,50,000
The Payment of Gratuity (Amendment) Act, 2010 is notified in Official Gazette on 18th May 2010, amending the Payment of Gratuity Act, 1972 with revision in maximum ceiling from Rs. 3.5 lac to Rs. 10 lakhs. Whereas the date of effect of the revised ceiling may be decided by the Central Government through Official Gazette as per THE PAYMENT OF GRATUITY (AMENDMENT) ACT 2010
Notification in Effective Date for Revision of Gratuity Amendment Act to Rs. 10 lakhs: Notification in Official Gazette as on 24th May 2010
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