CA World: Week 4, September 2017

The difference in winning and losing is most often…not quitting.  Don’t quit now and stay happy in your journey to become an excellent CA. Because, we do not generally quit something when we are happy

Here come the updates from CA world for the week 3 of September. Happy Learning!

CA Related Updates

(18th– 24th September 2017)

1. Restriction on number of layers of subsidiaries

Ministry of Corporate Affairs vide notification dated 20 September 2017 appoints 20 September 2017 as the effective date of implementation of Section 2(87) of the Companies Act, 2013.

The notification issued Companies (Restriction on Number of Layers) Rules, 2017 which prescribed that no Company other than the following class of companies can have more than two layers of subsidiaries:

a) Banking Company (Section 5(c) of Banking Regulation Act, 1949)
b) Non-Banking Financial Company (Section 45-I (f) of the Reserve Bank of India Act, 1934)
c) Insurance Company (Insurance Act, 1938 and Insurance Regulatory Development Authority Act, 1999)
d) Government Company (Section 2(45) of Companies Act, 2013)

You can find the link for the notification here  and for the rules here 

2. Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Ministry of Corporate Affairs (MCA) had earlier vide notification dated 13 June 2017 provided exemption from the maximum limit of deposits to be accepted from members by private companies.

MCA, vide notification dated 19 September 2017, has amended Companies (Acceptance of Deposits) Rules, 2014 to incorporate the above exemption as part of the Rules.

You can find the link here

3. ICAI Publications

Institute of Chartered Accountants of India (ICAI) has released the following two publications:

a. Ind AS: An Overview (Revised 2017) :  This is a revised edition of overview of the Indian Accounting Standards

You can find the link here

b. Educational Material on Indian Accounting Standard (Ind AS) 18, Revenue (Revised 2017): This educational material prescribes the measurement and recognition principles for revenue as per Ind AS 18

You can find the link here

4. Amendments to relaxation under Rule 19(7) of Securities Contracts (Regulations) Rules, 1957

A listed company may submit the draft Scheme of Arrangement under Rule 19(7) of the Securities Contracts (Regulation) Rules, 1957, (‘SCRR’) thereby seeking relaxation from the strict enforcement of Rule 19(2)(b) thereof, for listing of its equity shares on recognised stock exchange without making an initial public offer. As per one of the conditions at least 25% of the post scheme paid up share capital of the transferee entity should comprise shares allotted to the public shareholders in the transferor entity.

The SCRR has been amended to prescribe an alternative criteria for exemption for an entity which does not comply with the above referred conditions.

You can find the link here

We hope you had a happy learning. See you again next Monday.

Keep Rising and Keep Shining.

Project Veda

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