Article

Strike one on social media platforms – The new guidelines and what they mean

By Dinesh Babu Eedi and Manasa Tantravahi

While social media has been playing a vital role in connecting people and building relations without any boundaries, its misuse by miscreants to spread fake news and for other illegal means, has also increased. The article in this issue of Corporate Amicus hence discusses the recently issued Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 by the Ministry of Electronics and Information Technology. Elaborately analysing the salient features of the Rules, including definitions, due diligence mechanism, grievance redressal by intermediaries, significant social media/ messaging intermediaries, code of ethics in relation to digital media, grievance redressal mechanism by publishers, etc., the article also points out certain shortcomings of the Rules. According to the authors, the compliance requirements are overloaded for intermediaries and publishers and there is scope for abuse of the Rules by the statutory authorities. Further, there are privacy concerns arising from the provisions of the Rules. The authors point out that it is desirable that necessary precautions are taken while implementing these Rules...

Notifications and Circulars

• Asset management companies – SEBI (Mutual Funds) Regulations 1996 amended
• Small companies – Companies (Specification of Definitions Details) Rules, 2014 amended
• Companies which are not to be considered as listed companies – Companies (Specification of Definitions Details) Rules, 2014 amended
• One-person company and small company – Separate abridged annual return notified
• Producer Companies Rules 2021 notified
• Code on Wages (Central Advisory Board) Rules, 2021 notified
• RBI issues master direction on digital payment security controls

Ratio decidendi

• Debenture Trustee cannot deal in securities except in accordance with SEBI (Debenture Trustees) Regulations, 1993 and SEBI has jurisdiction over securities transactions of NBFC, including the Debenture Trustees – Kerala High Court
• Insolvency – Petition under IBC Section 7 or 9 is an independent proceeding unaffected by winding up proceedings filed qua same company – Supreme Court
• Insolvency – Exclusion of Financial Creditor from CoC if ‘related party’ label circumvented – Supreme Court
• Mutual funds – ‘Consent of unitholders’ is consent by majority of unitholders who participated in poll and not of majority of all unitholders of the scheme – Supreme Court

News Nuggets

• Insolvency – Proceedings under Section 138/141 of the Negotiable Instruments Act cannot continue or be initiated against corporate debtor during period of moratorium
• Arbitration – Appeal maintainable against order refusing to condone delay in filing application to set aside award
• Arbitration – Supreme Court suggests changes in Sections 11(6) and 37 to bring the provisions in par with Section 8
• Interlocutory application filed before the admission of appeal is maintainable
• PLI Schemes for 3 new sectors: IT hardware, telecom and pharmaceutical
• Influencer advertising on digital media platforms – Advertising Standards Council of India releases draft guidelines
• J&K – Incentive-based new Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir launched
• RBI permits resident individuals to make remittances under LRS to IFSCs set up in India under the Special Economic Zone Act, 2005