Western India Regional Council of
The Institute of Chartered Accountants Of India

Law Update Details

September 2017 CA. Rahul Joglekar
MCA (www.mca.gov.in)

MCA circular 08/2017 dated 25th July 2017 – Clarification regarding applicability of exemption given to certain private companies under section 143(3)(i) of the Companies Act 2013

MCA has clarified that the exemption as aforesaid shall be applicable for those audit reports in respect of financial statements pertaining to financial years commencing on or after 1st April, 2016, which are made on or after the date of the said notification. For complete text of the notification, please refer the link: http://www.mca.gov.in/Ministry/pdf/GeneralCircular825072017.pdf.

SEBI (www.sebi.gov.in)

SEBI Circular no. CIR/CFD/CMD/93/2017 dated 4th August 2017 – Disclosures by listed entities of defaults on payment of interest/ repayment of principal amount on loans from banks / financial institutions, debt securities, etc.

Specific disclosures are required under the SEBI LODR Regulations in certain matters such as delay / default in payment of interest / principal on debt securities, including listed Non-Convertible Debentures, listed Non-Convertible Redeemable Preference Shares, Foreign Currency Convertible Bonds (FCCBs) etc. Similar disclosures are presently not stipulated with respect to loans from banks and financial institutions. Henceforth, any listed entities which have listed any of the following: specified securities (equity and convertible securities), non-convertible debt securities and non-convertible and redeemable preference shares will be required to disclose when the entity has defaulted in payment of interest / instalment obligations on debt securities (including commercial paper), Medium Term Notes (MTNs), Foreign Currency Convertible Bonds (FCCBs), loans from banks and financial institutions, External Commercial Borrowings (ECBs) etc. This circular shall come into effect with effect from October 1, 2017. For complete text of the circular, please refer the link: http://www.sebi.gov.in/legal/circulars/aug-2017/disclosures-by-listed-entities-of-defaults-on-payment-of-interest-repayment-of-principal-amount-on-loans-from-banks-financial-institutions-debt-securities-etc_35538.html.

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