Foreword
We are pleased to present the latest edition of our quarterly newsletter, where we have covered significant amendments which are aimed at improving ease of doing business in India for stakeholders. On the foreign exchange front, there has been a major overhaul of the legal framework for overseas investment by resident Indians which is expected to usher in a liberalised regime by dispensing with the requirement of obtaining RBI approvals and thereby reducing compliance burden on Indian investors. It be noted that rules governing round tripping, deferred payments and investments made in financial services sector by Indian companies have been relaxed as the requirement of obtaining prior RBI approval with respect to the said actions has been done away with. The revised framework has redefined certain concepts such as ODI besides defining concepts such as foreign entity, step-down subsidiary, overseas portfolio investment, control and subsidiary.
SALIENT FEATURES
- Limit for raising external commercial borrowings (“ECB”) under the automatic route increased
- RBI introduces revised framework for overseas investment
Key amendments in Companies Act, 2013
- Introduction of 9 Company forms on MCA21 V3 portal
- Companies (Accounts) Fourth Amendment Rules, 2022
- The Companies (Incorporation) Third Amendment Rules, 2022
- Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022
- Companies (Specification of Definition Details) Amendment Rules, 2022
Key amendments in Securities Law
- Securities and Exchange Board of India ("SEBI") releases framework for social stock exchange
- Zero coupon zero principal instruments declared as securities
- Advisory under Regulation 46 and 62 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”)
- Digital signature certificates to be used for announcements submitted by listed entities
LKS Corporate Practice: Quarterly Update 2022 (July - September)