Article

Regulating the foreign contribution: Changing regime

By Sudish Sharma and Shikha Thakkar

The article in this issue of Corporate Amicus elaborately discusses the recent amendments in the Foreign Contribution (Regulation) Act, 2010 (‘FCRA’) by the Foreign Contribution (Regulation) Amendment Act, 2020 which has come into effect from 29-09-2020. Deliberating upon prohibitions, the authors discuss various amendments which have widened the list of persons prohibited to accept foreign contributions and have also introduced prohibition in transfer of foreign contributions. The article further discusses changes like capping of administrative expenditures, opening of FCRA account in a specified bank at New Delhi, submission of information while making application, surrender of certificate and consequences of any contravention of FCRA. According to the authors, the changes will curb malpractices and increase transparency and accountability in relation to foreign contributions, though will also enhance the compliance requirements of the organizations...

Notifications and Circulars

• Companies (Amendment) Act, 2020 – Salient features
• Start-ups – Companies (Acceptance of Deposit) Rules, 2014 amended
• Foreign Direct Investment Policy in Defence Sector – Press Note No. 4 of 2020
• Relaxation with respect to validity of SEBI Observations and revision in issue size
• Timeline for listing of securities issued on a private placement basis standardised
• Asset allocation of Multi-Cap Mutual Funds
• Product Labelling in Mutual Fund schemes – Risk-o-meter
• Labelling norms for dividend options of mutual funds introduced Operational framework for transactions in defaulted debt securities post maturity date/ redemption date introduced
• MSMEs – Classification criteria revised

Ratio decidendi

• Resolution Plan cannot be withdrawn once approved by Committee of Creditors – NCLAT
• Enforcement Court can only ‘refuse’ enforcement of Foreign Arbitral Awards and cannot set it aside – Supreme Court
• Limitation period for filing applications for enforcement under Section 47 of Arbitration and Conciliation Act, 1996 shall be governed by Article 137 of the Limitation Act – Supreme Court

News Nuggets

• Stamp duty on property lease – No difference between property owned by Government and private person
• Companies Fresh Start Scheme 2020 extended till 31-12-2020
• LLP Settlement Scheme, 2020 extended till 31-12-2020
• Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013, extended
• EGMs through VC or OAVM or transactions through postal ballot – Framework extended till 31-12-2020
• Registration of independent directors – Time limit extended
• Labour Codes on Industrial Relations, Occupational Safety and Social Security, enacted
• Bilateral Netting of Qualified Financial Contracts Act, 2020 receives Presidential assent
• Initiation of corporate insolvency process – Further extension of suspension
• Extension of limitation period for preferring appeal/application – Supreme Court clarifies its earlier Order
• Promoters-directors of a wilful defaulter-Corporate Debtor, who are also guarantors of company, are ‘connected persons’ under Section 29A(j) and not entitled to immunity under Section 14 of IBC
• Appellate Authority under IBC does not have powers to ‘review’ its own judgments