24 February 2021

Corporate Amicus: December 2020


Issuance and transfer of securities – Stamping requirements
By Sudish Sharma and Sonali Srivastava

Finance Act, 2019 has introduced various amendments to the Indian Stamp Act, 1899. Further, with an intent to bring uniformity in rates of stamp duty on both issuance and transfer of securities, whether in physical or dematerialized mode, the Central Government also introduced the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019. The article in this issue of Corporate Amicus analyses these developments, in relation to stamp duty on issuance/transfer of shares. According to the authors, it needs to be seen as to how the rate of stamp duty, as prescribed by the Finance Act, will be applicable on issuance of shares considering that the same is specifically not a subject matter of Union List. Further, noting that no stamp duty will be charged on off-market transfer of securities without consideration such as on gift, the authors conclude that the possibility of availing this benefit can be explored in transactions involving gift of shares which may be pursuant to family arrangement or part of larger re-structuring exercise inter-se the promoters...

Notifications and Circulars

  • Filling of list of creditors under Regulation 13(2)(ca) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations – IBBI makes available electronic platform
  • Assignment or transfer of debt or not readily realisable asset – IBBI (Liquidation Process) Regulations, 2016 amended
  • Furnishing of record/evidence of default and intimation of formulae for debt payment – IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 amended
  • Payments for public issue of debt securities by UPI
  • Schemes of arrangement by listed entities – SEBI revises earlier circular to streamline processing of draft schemes
  • Co-lending by banks and NBFCs to priority sector – RBI introduces new regulatory framework
  • FEMA – Discontinuation of returns/ reports under Foreign Exchange Management Act, 1999

Ratio decidendi

  • Complaint filed before Consumer Fora against builder is not barred by RERA – Supreme Court
  • Time limit under Section 14 of SARFAESI Act is directory in nature – Supreme Court
  • Insolvency – No locus standi of unsuccessful resolution applicant – NCLAT

News Nuggets

  • Arbitration – Two Indian parties can choose a foreign law as the law governing arbitration
  • Application for initiation of CIRP for default committed before 25 March 2020 but filed before 5 June 2020, maintainable
  • Transfer of winding up proceedings from High Court to NCLT on application of financial creditor not party to proceedings before Court, permissible
  • Arbitration – Order under Arbitration Section 9 appealable under 13(1) of Commercial Courts Act
  • Personal hearing not mandatory while considering exemption from SEBI (Share Based Employee Benefits) Regulations
  • Online gaming involving betting banned in Tamil Nadu
  • WhatsApp given approval to go live on UPI
  • Foreign law firms cannot open liaison offices in India
  • Inclusion of lottery under GST is legally valid: Supreme Court
  • Supreme Court upholds validity of Tribunal Rules 2020 with modifications
  • Online news services and OTT platforms to be regulated

December, 2020/Issue-111 December, 2020/Issue-111

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