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PGC Newsletter 15th, april 2014


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PGC Newsletter 15th, april 2014

  1. 1. PGC NEWSLETTER15th, April 2014 1 PGC NEWSLETTER 15th, April 2014 THOUGHT OF THE DAY “Watch your thoughts; they become words” ECONOMICS NEWS  India‘s free trade agreement (FTA) on services with the 10- member Association of Southeast Asian Nations (Asean) is still in limbo, as three members — Thailand, Indonesia and the Philippines —are yet to ratify the deal.  Mahindra ShubhLabh Services Ltd, as Subsidiary of automobile giant Mahindra & Mahindra and part of the $ 16.7 billion Mahindra Group, has signed a joint venture agreement with the $ 4 billion Belgium- based Univeg. CORPORATE LAW UPDATES  Companies tapping equity capital markets continue to get their issues graded by rating agencies, despite SEBI relaxation in this regard.  The Competition Commission of India recently imposed a penalty of Rs.1 Crore on Google, for non- cooperation with the CCI‘s ongoing investigation against the internet giant. The CCI in an order imposing the penalty noted that Google, without any reasonable cause, had failed on several occasions to comply with requests for information by the office of the director general (the CCI‘s investigative arm). RBI / TAX LAW UPDATE  RBI: The Reserve Bank of India (RBI) should not compromise on its ‗ fit and proper‘ criterion while offering new banking licences to promote financial inclusion, said former RBI governor Bimal Jalan. The RBI has, in principle, approved banking licences to two — Bandhan and IDFC — of the 25 applicants.  IT: No Penalty for non-furnishing of Docs under Sec-92D, unless Notice Specifies the info sought.(Income-tax Officer, 8(2)(3) V. Netsoft India Ltd.)  IT : Extraordinary events like merger and demerger have an effect on profitability of company in financial year in which such event takes place, and a company which is undergoing said events cannot be considered as comparable. MARKET UPDATES SENSEX 22,504.58 -124.38 CNX NIFTY 6,740.35 -35.95 DOLLAR/ RUPEE 60.28 0.1 MCX SILVER 42909.00 -0.74 MCX GOLD 28,777.0 -182.0 MCX CRUDE OIL 6241.00 -0.65 Dow Jones Industrial Average 16,173.24 146.49 Nasdaq Composite 4022.69 22.96
  2. 2. PGC NEWSLETTER15th, April 2014 2  COMPANIES ACT, 2013 Share certificates The provision regarding the time limit for issue of share certificates to members consequent to new/ fresh allotment of shares or transfer/ transmission of securities are to be found in section 56 of the Companies Act, 2013 which has got a heading ―Transfer & Transmission of Securities‖ instead of at section 46 which has the heading ―Certificate of Shares‖ According to Section 56(4) share certificates have to be issued to members within (a) 2 months from the date of incorporation, in case of subscribers to the memorandum; (previously there was no such time limit under Companies Act 1956); (b) 2 months from the date of allotment of shares in case of any other allotment (previously it was 3 months u/2 113 of Companies Act 1956); (c) 1 month from the date of receipt of transfer of securities or date of intimation of securities – (here the word used is securities rather than shares, so it includes both shares as well as debentures, previously it was 2 months time limit under Companies Act 1956); (d) 6 months from the date of allotment of debentures (previously the time limit was 3 months under Companies Act 1956) Under proviso to section 113(1) of the Companies Act, 1956 companies could apply for an extension of time limit for issue of certificates upon allotment/ transfer of debentures by a further period of 9 months. Now under the Companies Act, 2013, that proviso has been removed, so the above limits under section 56(4) (a) to (d) are absolute and if the company is unable to issue certificates within that period then penalty process is attracted under section 56(6) which is minimum Rs.25,000/- for the company but may extend to Rs.5.00 lakhs and minimum Rs.10,000/- for every officer which could extend upto Rs.1.00 lakh per officer.