Visa norms for expats relaxed

As per a news item in Economic Times of 22nd December 2011, the visa norms of expats working in India Inc. has been relaxed by the Home Ministry. Expats working at senior positions need not go back to their home country and get a fresh visa in case they are migrating to a group company i.e between subsidiaries or associates, identified as such. In all other cases and in cases of expats working in junior positions, it means this relaxation will not apply and the expats will perforce have to travel back to his home country. Therefore expats jumping jobs while in India will have to go back to his home country and return with a fresh work visa. I am unable to find the copy of the new visa norms at the MHA website, cluttered as it is with too many things. However a copy of the TOI article is found here

Unlisted Public Companies (Preferential Allotment) Amendment rules 2011

The MCA has vide gazette notification dated 14th December 2011 amended the Unlisted Public Companies (Preferential Allotment) Rules 2003 vide the 2011 Amendment Rules. Salient features of the amendment are:

1) The definition of "preferential allotment" has been expanded to include instruments convertible into shares including hybrid instruments convertible into shares on a preferential basis but has excluded private placement made by a company under section 81(1A) and issue of shares to promoters and their relatives either in public issue or otherwise;
2) A proviso has been added in the above definition to state that the name, father's name, address & occupation needs to be mentioned in the resolution to be passed by the members u/s 81(1A) for the preferential issue;
3) Another proviso has been added that such preferential offer cannot be made to more than 49 persons;
4) A new rule 8 has been added which states that no fresh offer shall be made unless the earlier offer has been completed and the allotment in respect thereof. Any offer not in compliance with sec 81(1A) read with sec 67(3) shall be treated as a public offer and SEBI regulations on the subject shall apply. Monies shall be received under the offer only through cheque or demand draft or other banking channels (presumably NEFT, internet banking), not by cash. Allotment should be completed within 60 days of the date of receipt of application money and in case the company is not able to do that, then application monies have to be repaid within 15 days thereof with an interest of 12% p.a. Monies received on application have to be kept in a separate bank account and can be utilised only for adjustment against allotment of securities or repayment of moneys where allotment could not be done within the stipulated time. Companies are not allowed to release any advertisement or use any media, marketing or distribution channels or agents in such issue.

Copy of the MCA notification can be found here

Compounding for FEMA contraventions

RBI has vide its circular dated 13th December 2011 delegated the power of compounding for FEMA contraventions to the Regional Offices at Ahmedabad, Bangalore, Chennai, New Delhi, Mumbai, Hyderabad & Kolkata without any amount limits and to the Regional Offices at Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Jammu, Kochi, Patna & Panaji upto an amount of Rs.100,000/-. The contraventions involve delay in reporting inward remittance, delay in filing of form FC-GPR and delay in issue of shares upto 180 days from the receipt of remittance - all FDI concerned. Copy of the RBI circular can be found here

Deregulation of NRE & NRO interest rates

RBI has vide its circular dated 16th December 2011 deregulated the interest rates on NRE Deposits & NRO accounts. Savings a/cs and term deposits of one year and above maturity in case of NRE and savings deposits in case of NRO has been freed with the caveat that banks cannot offer higher rates to NRE deposits than that is offered to resident deposits. Revised deposit rates will apply only to fresh deposits and to renewal of matured deposits. Text of the RBI circular is available here

Companies Bill 2011

The salient features of the Companies Bill as introduced in the Parliament is available on this link

Some revolutionary features have been introduced like "One Person One Company", participation at board meetings through video-conferencing or other audio/ visual means, compulsory appointment of at least one resident director, relaxation in the provisions for managerial remuneration, voting by electronic means at general meetings, mandatory secretarial audit for listed companies, mandatory rotation of auditors/ audit firms, more disclosures in the annual returns and directors reports, mandatory appointment of women directors for certain specified class of companies and mandatory CSR for certain large companies, class action suits, time bound rehabilitation and restructuring process and registered valuers.

Inclusion of PAN in DIN

The Ministry of Corporate Affairs has vide its circular no. 70/2011 dated 15th December 2011 extended the last date for updating PAN details in the Directors' Identification Number by filing DIN-4 until 29th February 2012. Therefore those Directors who have not updated their PAN details in the DIN should do so by the revised extended date.

for text of the circular, click here

CLSS 2011

The Ministry of Corporate Affairs has vide its circular no. 71/2011 dated 15th December 2011 extended the last date of the Company Law Settlement Scheme until 15th January, 2012. This is the last extension.

Text of the circular

Ministry of Corporate Affairs


5th Floor, A Wing, Shastri Bhavan,

Dr. R.P. Road, New Delhi,

Dated the 15th Dec, 2011

To

All Regional Director,

All Registrars of Companies.

Subject: Company Law Settlement Scheme, 2011

Sir,

In continuation of the Ministry’s General Circulars No. 59/2011 dated

05.08.2011, No. 60/2011 dated 10.08.2011 and No. 65/2011 dated

04.10.2011 on the subject cited above, it is stated that the said scheme has

been extended upto 15th January, 2012. It is further stated that this Scheme

will not be extended beyond 15.01.2012.

2. All the terms and conditions of the General Circulars No. 59/2011

dated 05.08.2011 and No. 60/2011 dated 10.08.2011 will remain the same.

Yours faithfully,

Sd/-

(U.C. Nahata)

Director (Inspection & Investigation)