On 2 June 2021, the Union Cabinet approved the Model Tenancy Act, 2021 (Act) for circulation to all States for adaptation of the Act by enacting a fresh legislation or to make appropriate amendments in existing rental legislations of States. The Act aims to promote rental housing and balance the
The Finance Minister of India presented the Union Budget for the financial year 2021-2022 on 1 February 2021 (Budget). The Budget is geared towards a hopeful reset of the Indian economy amidst the Covid-19 crisis and seeks to facilitate strategic disinvestment, and bolster several sectors such as infrastructure, roads and
First & foremost, we wish all our readers a very happy & healthy 2021! Below are certain key reforms & legal developments in India during 2020 which we thought would be of interest: On 22 January 2020, the Securities and Exchange Board of India (SEBI) issued a circular to streamline
The Department for Promotion of Industry and Internal Trade (DPIIT) has on 28 October 2020 released the “Consolidated Foreign Direct Investment Policy 2020” (FDI Policy 2020) that has come into effect from 15 October 2020. The FDI Policy 2020 subsumes and supersedes all previous Press Notes/ Press Releases/Clarifications issued prior
The Foreign Contribution (Regulation) Amendment Act, 2020 (FCRA Amendment Act) which has come into force on 29 September 2020 amends the Foreign Contribution (Regulation) Act, 2010 (FCRA) and in order to enhance transparency and accountability in the receipt and utilisation of foreign contribution and facilitate genuine non-governmental organisations or associations
The Indian Parliament has recently passed the Companies (Amendment) Act, 2020 (Amendment Act), which has also been notified, to further amend the Companies Act, 2013 (Act) in another attempt to further decriminalize and rationalize certain offences under the Act, in case of defaults which can be determined objectively and which
The foreign direct investment (FDI) policy earlier permitted investment in the defence sector through the automatic route up to 49% (forty nine percent) and FDI beyond 49% (forty nine percent) through the government (approval) route. However, the press note issued by the Department for Promotion of Industry and Internal Trade,
The 40 Under 40 is a National Award recognizing and celebrating the fortitude of the top legal minds and best talent under the age of 40 years in India, who have shown unprecedented legal acumen, grit, leadership, achievement and dedication in their young career spans, driving the Indian Legal Industry
On 23 July 2020, the Ministry of Consumer Affairs, Food and Public Distribution, Government of India notified the Consumer Protection (E-Commerce) Rules, 2020 (Rules). The objective of the Rules is to regulate the e-commerce goods and services sector and ensure transparency to enable consumers to make informed online purchases from
The Ministry of Corporate Affairs (MCA), Government of India (GoI) through its notification dated 01 June 2022 (Notification), notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 (Amendment Rules) to further amend the Companies (Appointment and Qualification of Directors) Rules, 2014 (Rules). Pursuant to the Rules, every person
The Finance Minister of India presented the Union Budget for the financial year 2022–23 on 1 February 2022 (Budget). The Budget lays the foundation and provides a blueprint to steer the economy over the Amrit Kaal (the best and the most auspicious time) – from India@75 years to India@100 years
The Securities and Exchange Board of India (SEBI), the Indian securities market regulator, notified through a press release (Press Release), amendments to the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 relating to related parties (RP) and related party transactions (RPT) (Amendments). The Amendments will come into effect
On 15 September 2021, through a press release, the Government of India announced the approval of a PLI Scheme for the automobile industry and drone industry with a budget of INR 260 Billion (Approx. USD 3.5 Billion). Following such approval, the Ministry of Heavy Industries (MHI) vide gazetted notification dated
With a view to protect and generate employment opportunities, promote healthy competition, protect interests of the consumers, infuse liquidity, encourage investment, boost the proliferation and penetration of broadband and telecom connectivity (including 4G and 5G networks), and reduce regulatory burden on the Telecom Service Providers (TSP), the Indian Union Cabinet
In a major development providing significant relief to the foreign investors, the Taxation Laws (Amendment) Act, 2021 (“Amendment Act”) was enacted on 13 August 2021, amending the contentious retrospective tax provisions under section 9 of the Income Tax Act, 1961 (“IT Act”) and section 119 of the Finance Act, 2012
On 6 August 2021, in Amazon.Com NV Investment Holdings LLC Versus Future Retail Limited & Ors. the Supreme Court of India decided two important questions of law: whether an emergency award under the Arbitration Rules of the Singapore International Arbitration Centre (“SIAC Rules”) can be said to be an order
The Indian securities market regulator, the Securities and Exchange Board of India (SEBI), in its Board Meeting held on 29 June 2021 took various significant decisions, including approving certain amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) pertaining to Independent Directors (IDs), based on which, on
The Department of Justice, Ministry of Law and Justice has on 28 June 2021 launched the ‘Enforcing Contracts Portal’ (“Portal”), which is a historic initiative towards the ease of doing business in India. The Portal is a comprehensive source of information pertaining to legislative and policy reforms relating to enforcing
The Ministry of Corporate Affairs, Government of India (MCA) through its notification dated 15 June 2021, notified the Companies (Meetings of Board and its Powers) Amendment Rules, 2021 (Amendment Rules) to further amend the Companies (Meetings of Board and its Powers) Rules, 2014 (Rules). In the wake of the Covid-19
The Indian Parliament on 8 August 2016, passed the much awaited and widely discussed legislation over the past several years, the Constitution (One Hundred and Twenty Second Amendment) Bill (commonly known as the “GST Bill”) to introduce Goods & Services Tax (GST) intending to subsume all indirect taxes under a single indirect taxation regime. The GST Bill is the biggest tax reform by India since its independence in 1947 which will certainly ease doing business in India once fully implemented. The GST Bill provides for levying GST on all transactions involving supply of goods and services, except those specifically excluded, by conferring concurrent taxing powers to both the Government of India (GoI) and the State Governments.
The Union Cabinet on 29 June 2016, approved the Model Shops & Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 (“Model Bill”), which was introduced by the Ministry of Labour and Employment in January this year. The Model Bill seeks to ensure uniformity of the legislative provisions in various states to facilitate the ease of doing business and generate employment opportunities. States can adopt or carry out necessary amendments in their respective laws in accordance with the Model Bill.
The Government of India (GOI) has, with the objective of providing major impetus to the growth of investment and employment creation in India, further liberalized the Foreign Direct Investment (FDI) regime on 20 June 2016 pursuant to a high-level meeting chaired by the Prime Minister.
The Ministry of Corporate Affairs (MCA) has, with effect from 1 June 2016, notified the constitution of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), pursuant to which 11 (eleven) NCLT benches have been constituted with each bench exercising different territorial jurisdiction i.e. 2 (two) at New Delhi and 1 (one) each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. The NCLAT will be situated in New Delhi.
The Reserve Bank of India has on 20 May, 2016, notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016 (Amendment Regulations) pursuant to which:
(i) a purchaser in a cross border share transfer is permitted to make payment of up to 25 per cent of the total consideration on a deferred basis within a period not exceeding 18 months from the date of the share transfer agreement;
In yet another step towards pushing growth in the IT and service sector, the Government of India through the Department of Industrial Policy and Promotion (“DIPP”) has issued the “Guidelines for Foreign Direct Investment on E-commerce” vide a press note (2016 Series) on 29 March 2016 (“Guidelines”) thereby liberalizing and providing clarity to Foreign Direct Investment (“FDI”) in e-commerce sector in India. Under the Guidelines, DIPP has reiterated that while FDI is permitted up to 100% under the automatic route in Business-to-Business (“B2B”) e-commerce, the same is prohibited in Business-to-Consumer (“B2C”) e-commerce. However, FDI in B2C e-commerce is permitted in the following circumstances:
With the view of liberalizing and providing clarity to Foreign Direct Investment (“FDI”) in e-commerce sector in India, the Department of Industrial Policy and Promotion (“DIPP”) has issued the “Guidelines for Foreign Direct Investment on E-commerce” vide a press note (2016 Series) on 29 March 2016 (“Guidelines”). Under the Guidelines, DIPP has reiterated that while FDI is permitted up to a 100% under the automatic route in Business to Business e-commerce (“B2B”), the same is prohibited in Business to Consumer (“B2C”) e-commerce.
In order to promote the ease of reporting of FDI transactions, the Reserve Bank of India (“RBI”) has issued a circular making it mandatory for online filing of the following forms on the e-Biz Portal :
(i) Advance Remittance Form (“ARF”) which is used by companies to report FDI inflows to the RBI;
The Payment of Bonus (Amendment) Act, 2015 (Act) received the assent of the President of India on 31 December 2015 and is deemed to have come into force on 01 April 2014. Some salient features of the Act are:
The definition of “employee” has been amended to mean any person (other than an apprentice) employed on a salary/ wage not exceeding INR 21,000 (Rupees twenty one thousand) per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.
The year of 2015 can be recognised as the year for commencement of legal reforms in India. Some of the key legal developments during the year 2015 are as follows:
As a measure to improve the ease of doing business in India, the Ministry of Corporate Affairs (“MCA”) issued:
The Companies (Amendment) Act, 2015 was enacted which removed the requirement of a minimum paid up share capital amount for private and public companies and requirement of special resolution for related party transaction and introduced provision stipulating punishment for contravention for acceptance of deposit from public.
