We are happy to present the seventh issue of our e-magazine – Trilegal Quarterly Roundup.
If you would like to navigate to the magazine directly, click here. If you would like to read a brief summary of what this issue features, please continue reading below and use the hyperlinks provided to access individual features.
INSIGHTS
- FAQS – Resolution Plans DemystifiedThese FAQs delve into some key aspects that prospective resolution applicants must consider while devising a robust resolution plan for a corporate debtor.
- Regulatory Regime on Waste Disposal in IndiaWhile the current regime discussed in this article places an onus for resource circularity on producers for the most part, it is an important step in the transition to a circular economy.
- A Case for Cost-Effective Utilisation of Power Plants without Power Purchase AgreementsOver the past decade, more than 20,000 MW of India’s operationalised thermal generating capacity has been left without a power purchase agreement. Without the fixed revenue element that such agreements offer, the financial situation continues to be dire for these thermal power plants. With a strong regulatory focus on renewable energy and uncertainty around coal acquisition and pricing, a quagmire of challenges and risks plague these thermal power assets. Yet, there is still a critical role that these power plants can play in the medium term, especially in the summers when energy demand peaks. In that light, perhaps there is a way forward for the cost-effective utilisation of these thermal power assets.
TUNE IN
Our Partner, Veena Gopalakrishnan, and Madhu Damodaran, Group Head – Legal and Compliance, Quess Corp Limited, discuss the emergence of gig economy and recommend the way ahead for organisations to better engage with gig workers.
To watch this video, click here.
QUARTERLY MILESTONES
- Corporate
- Rules on Offer-for-Sale modified to allow non-promoter shareholders to sell a significant stake on-market
- Changes to the regulatory framework for Infrastructure Investment Trusts and Real Estate Investment Trusts
- Changes to the insurance regulatory landscape
- Scope of ‘angel tax’ extended to premium received in investments from non-residents
- Proposed enhancement of corporate governance standards and ESG disclosures for listed companies
- Dispute Resolution
- Delhi High Court pierces the corporate veil to make non-parties to an arbitration liable for the arbitral award
- Delhi High Court relies on assurances in letters of comfort to compel non-parties to join arbitration proceedings
- National Company Law Appellate Tribunal clarifies that financial creditors need to actively participate in the insolvency process to be able to raise a challenge against it
- Labour and Employment
- Employees’ Provident Fund Organisation extends the deadline to apply for higher pension
- Delhi High Court observes that sexual harassment complaints and proceedings cannot be quashed only due to the internal committee’s failure to complete inquiry within 90 days
- Haryana government revises conditions for employing women in night shifts
- Karnataka government increases the salary limit for exemption from professional tax
- Technology, Telecommunication and Data Protection
- SEBI-regulated entities availing cloud services are now subject to a new principle-based regulatory framework
- Supreme Court potentially opens the scope for implementing the right to privacy against private persons, and separately observes that children have the right to privacy in paternity suits
- Consumer machine-to-machine/internet of things devices must now be updateable and not have universal default passwords
- Media and Gaming
- Over-the-top platforms merely hosting the digital feed of a TV news channel are no longer subject to the 26% foreign direct investment cap
- Intermediary Rules amended to regulate online real money games and clamp down on fake news
- Bombay High Court finds online gaming platform to be compliant with foreign direct investment norms as its games did not involve a reward
- Payments
- Crypto and virtual asset service providers formally brought within the prevention of money laundering framework and must follow anti-money laundering compliances
- RBI further restricts fintech companies’ involvement in digital lending payment flows and provides clarification on the use of payment aggregators
- Unified Payments Interface facility allowed for certain non-resident account holders
- Foreign nationals/non-resident Indians from G20 countries can now use Unified Payments Interface/Unified Payments Interface-linked prepaid payment instruments on their India visits for merchant payments
- Financial Regulatory Regime
- Reporting entities are required to conduct increased due diligence of prospective clients due to the revised beneficial ownership threshold of 10% for companies and trusts
- Foreign portfolio investors are mandated to report material changes in already furnished information in seven days instead of six months
- Stockbroker and clearing member funds to be upstreamed on end-of-day basis
- SEBI-regulated entities to follow new cybersecurity practices
- Foreign nationals and non-resident Indians from G20 countries can now use Unified Payments Interface/Unified Payments Interface-linked prepaid payment instruments on their India visits for merchant payments
- Banking and Finance
- SEBI prescribes new disclosure requirements and dos and don’ts for the issue of green debt securities
- Process of onboarding and granting registration to foreign portfolio investors streamlined
- Alternative investment funds can now participate in credit default swaps
- National Company Law Tribunal, Kolkata Bench, rules that a shortfall undertaking is classified as financial debt under the Insolvency and Bankruptcy Code, 2016
- Capital Markets
- Concept of ‘Senior Management’ introduced in offer documents
- Submission of issue summary document by companies to stock exchanges and dissemination of issue-related advertisements by lead managers
- Listed companies provided with two additional methods to facilitate compliance with minimum public shareholding requirement
- Framework for Offer for Sale through the stock exchange mechanism modified to remove the minimum shareholding requirement for non-promoter shareholders
- Separate corporate governance norms notified for Infrastructure Investment Trusts and Real Estate Investment Trusts
- Direct Tax
- Finance Act, 2023 enacted – over 60 amendments made to original draft
- Increased tax rate for royalty and fees for technical services income earned by non-residents likely to result in significant compliance burden
- Debt mutual funds to be taxed as short-term capital gains irrespective of holding period
- Indirect Tax
- Finance Act, 2023 enacted – over 60 amendments made to original draft
- Finance Act, 2023 amendments to the Central Goods and Services Act, 2017 clear the way for the constitution of the Goods and Services Tax Appellate Tribunal
- New Foreign Trade Policy notified with emphasis on tax remissions and greater facilitation of trade through technology and automation
- Supreme Court holds that the burden to prove the admissibility of the input tax credit availed is on the taxpayer and suitable documentary evidence is required to satisfy this burden
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