CORPORATE UPDATE September 2021 Volume 1 - Acquisory
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CORPORATE UPDATE
September 2021 Volume 1
RBI SEBI TAX OTHER
RBI
1. RBI notifies the Foreign Exchange Management (Export of Goods and Services) (Amendment)
Regulations, 2021.
Regulation 15 which deals with advance payment against exports has been amended. Amended Regulation
15 pertains to Advance payment against exports which reads, where an exporter receives advance payment
(with or without interest), from a buyer / third party named in the export declaration made by the exporter,
outside India, the exporter shall be under an obligation to ensure that the rate of interest, if any, payable
on the advance payment shall not exceed 100 basis points above the London Inter-bank Offered Rate
(LIBOR) or other applicable benchmarks as may be directed by the Reserve Bank of India.
2. RBI to direct the NBFCs, payment system providers and payment system participants to submit
applications for obtaining Aadhaar e-KYC authentication license.
In terms of Section 11A of the Prevention of Money Laundering Act (PMLA), 2002, the government
through a notification may permit entities other than banking firms to authenticate client’s Aadhaar number
using the e-KYC facility provided by the UIDAI. However, the notification shall be issued only after
consulting with the UIDAI and the appropriate regulator. Further, a detailed procedure for processing of
applications under the aforementioned section for the use of Aadhaar authentication services by entities
other than banking companies have been provided by the Department of Revenue, Ministry of Finance in
its earlier notification dated 9th May, 2019. Accordingly, NBFCs, payment system providers, and payment
system participants desirous of obtaining Aadhaar Authentication License -KYC User Agency (KUA)
License or sub-KUA License (to perform authentication through a KUA), issued by the UIDAI, may
submit their application to this Department for onward submission to UIDAI
SEBI
1. NSE issues Circular to all listed Companies to make filings in respect of related party transaction
details in XBRL) mode to make accurate and efficient.
This has a reference with Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, wherein the listed entities are required to submit within 30 days from the date of
publication of its standalone and consolidated financial results for the half-year, disclosures of related party
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September 2021 Volume 1
transactions on a consolidated basis. It may be noted that, filings with respect of Related Party Transactions
(Regulation 23 (9)) should be filed by all listed companies, in XBRL mode only. The Excel Utility for
filing the Related Party Transactions Report in XBRL mode has also been provided by the NSE. The Steps
for submission of Related Party Transactions in XBRL mode on NSE’s Electronic Application Processing
System (NEAPS) Portal are also prescribed in the circular.
2. SEBI allows Stock Exchanges to offer T+1 rolling settlement on an optional basis effective from
January 01, 2022
A Stock Exchange may choose to offer a T+1 settlement cycle on any of the scrips subject to the conditions
that advance notice of at least one month, regarding the change in the settlement cycle to be given, to all
stakeholders, including the public at large, and disseminate the same on its website. After opting for a T+1
settlement cycle for a scrip, the Stock Exchange shall have to mandatorily continue with the same for a
minimum period of 6 months. Thereafter, in case, the Stock Exchange intends to switch back to T+2
settlement cycle, it shall do so by giving 1-month advance notice to the market. Any subsequent switch
(from T+1 to T+2 or vice versa) shall be subject to a minimum period and notice period. Further, there
shall be no netting between T+1 and T+2 settlements. The settlement option for security shall be applicable
to all types of transactions in the security on that Stock Exchange
3. SEBI issues the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment)
Regulations, 2021
The amendment provides that the listed entity shall give prior intimation to the stock exchange of at least
2 working days in advance, excluding the date of the intimation and the date of the meeting of the board
of directors, about the Board meeting in which the Board is going to consider any of the proposals relating
to an alteration in the form or nature of non-convertible securities that are listed on the stock exchange or
in the rights or privileges of the holders thereof; An alteration in the date of the interest/
dividend/redemption payment of non-convertible securities; Financial results viz. quarterly or annual, as
the case may be; Fundraising by way of issuance of non-convertible securities; or(e) any matter affecting
the rights or interests of holders of non-convertible securities. Further, the amendment also provides that
the annual audited standalone and consolidated financial results for the financial years shall be submitted
to the stock exchange(s) within 60 days from the end of the financial year along with the audit report.
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September 2021 Volume 1
TAX
1. CBDT extends due dates for filing of Income Tax Returns and various reports of Audit for the
Assessment Year 2021-22
Form/Application Timelines
Due date of furnishing of Return of Income for the To be filed on or before December 31, 2021
Assessment Year 2021-22
Due date of furnishing of Report of Audit under any To be filed on or before January 15, 2022
provision of the Act for the Previous Year 2020-21,
Due date of furnishing Report from an Accountant by To be filed on or before January 31, 2022
persons entering into international transaction or
specified domestic transaction under section 92E of the
Act for the Previous Year 2020-21
Due date of furnishing of Return of Income for the To be filed on or before February 15, 2022
Assessment Year 2021-22 under sub-section (1) of
section 139 of the Income Tax Act
Due date of furnishing of belated/revised Return of To be filed on or before March 31, 2022
Income for the Assessment Year 2021-22, under sub-
section (4)/sub-section (5) of section 139 of the Income
Tax Act,
2. CBDT issues clarification regarding carry forward of losses in case of change in shareholding due to
strategic disinvestment
The Finance Act, 2021 has amended section 72A of the Income-tax Act, 1961 (the Act) to inter alia provide
that in case of an amalgamation of a public sector company (PSU) which ceases to be a PSU (erstwhile
public sector company), as part of strategic disinvestment, with one or more Company or companies, then,
subject to the conditions laid therein, the accumulated loss and the unabsorbed depreciation of the
amalgamating company shall be deemed to be the loss, or as the case may be, allowance for unabsorbed
depreciation of the amalgamated company for the previous year in which the amalgamation was effected.
In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act,
1961, shall not apply to an erstwhile Public Sector Company which has become so as a result of strategic
disinvestment. Accordingly, the loss incurred in any previous year prior to, and including, the previous year
of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company. The
above relaxation shall cease to apply from the previous year in which the company, that was the ultimate
holding company of such erstwhile public sector company immediately after completion of the strategic
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September 2021 Volume 1
disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, fifty-one percent of the
voting power of the erstwhile public sector company. Further, necessary legislative amendments for the
above decision shall be proposed in due course of time.
3. CBDT notifies the Income Tax (26th Amendment) Rules, 2021 to further amend the Income Tax
Rules, 1962.
Through this amendment, provision on furnishing of declaration and evidence of claims by Senior Citizen
for exemption from Income Tax Return filing under section 194P of the Income Tax Act.
a. The declaration required to be furnished by the specified senior citizen to the specified bank under sub-
clause (iii) of clause (b) of Explanation to section 194P shall be in Form No. 12BBA to be furnished in
paper form duly verified.
b. On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the
deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total
income of such specified senior citizen for the relevant assessment year and deduct income tax on such
total income on the basis of the rates in force.
c. The effect of the deduction allowable under Chapter VI-A shall be given based on the evidence
furnished by the specified senior citizen during the previous year. The CBDT has also notified Form
no. 12BBA which pertains to a declaration to be furnished by Specified Senior Citizen under sub-clause
(iii) of clause (b) of Explanation to section 194P.
4. CBDT notifies the Income Tax (26th Amendment) Rules, 2021 to further amend the Income Tax
Rules, 1962
As per section 144B(7)(i)(b) the electronic record shall be authenticated by an Assessee or any other person
by affixing his digital signature if he is required to furnish his return of income under digital signature and
in any other case, by affixing his digital signature or under electronic verification code in the prescribed
manner. However, through this amendment, a new Rule 14C has been notified which prescribes the manner
of authentication of electronic records under electronic verification code. As per the new Rule 14C, an
Assessee or any other person submits an electronic record by logging into his registered account in the
designated portal of the Income-tax Department, it shall be deemed that the electronic record has been
authenticated under electronic verification code.
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September 2021 Volume 1
OTHER
1. Cabinet approves major Reforms in Telecom Sector
Nine Structural reforms and Five procedural reforms plus some relief measures for the Telecom Service
providers has been approved by the Cabinet.
Structural Reforms
1. 100% FDI allowed under automatic route in Telecom Sector.
2. Rationalization of Adjusted Gross Revenue – Non-Telecom revenue will be excluded on prospective
basis from the definition of AGR.
3. Bank Guarantee (BGs) rationalized: Huge reduction in BG requirements (80%) against License Fees
(LF) and other similar levies. No requirements for multiple BGs in different Licensed Service Areas
(LSAs) regions in the country. One BG will be enough.
4. Interest rates rationalized/ Penalties removed: From 1st October, 2021, Delayed payments of License
Fee (LF)/Spectrum Usage Charge (SUC) will attract interest rate of SBI’s MCLR plus 2% instead of
MCLR plus 4%; interest compounded annually instead of monthly; penalty and interest on penalty
removed.
5. For Auctions held henceforth, no BGs will be required to secure instalment payments. Industry has
matured and the past practice of BG is no longer required.
6. Spectrum Tenure: In future Auctions, tenure of spectrum increased from 20 to 30 years.
7. Surrender of spectrum will be permitted after 10 years for spectrum acquired in the future auctions.
8. No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
9. Spectrum sharing encouraged- additional SUC of 0.5% for spectrum sharing removed.
Procedural Reforms
1. Auction calendar fixed - Spectrum auctions to be normally held in the last quarter of every financial year.
2. Ease of doing business promoted - cumbersome requirement of licenses under 1953 Customs Notification for
wireless equipment removed. Replaced with self-declaration.
3. Know Your Customers (KYC) reforms: Self-KYC (App based) permitted. E-KYC rate revised to only One
Rupee. Shifting from Prepaid to Post-paid and vice-versa will not require fresh KYC.
4. Paper Customer Acquisition Forms (CAF) will be replaced by digital storage of data. Nearly 300-400 crore paper
CAFs lying in various warehouses of TSPs will not be required. Warehouse audit of CAF will not be required.
5. SACFA clearance for telecom towers eased. DOT will accept data on a portal based on self-declaration basis.
Portals of other Agencies (such as Civil Aviation) will be linked with DOT Portal.
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