Sunday 24 July 2016

Daily Updates and News

MCA

MCA has notified National Company Law Tribunal Rules, 2016 (NCLT Rules) and National Company Law Appellate Tribunal Rules, 2016 (NCLAT Rules). These rules shall come into force on the date of their publication in the Official Gazette. The NCLT Rules have been divided into 16 parts which includes procedure for proceedings, forms to be filed, appearances of authorized representatives among other things whereas NCLAT Rules has been divided into 20 parts which include powers and functions of President, Registrar and Secretary, general procedure, procedure for institution of proceedings, petition, appeals, among other things. 

SEBI

SEBI has released FAQs on Electronic Book Mechanism (EBM) for issuance of debt securities on private placement basis for which a Circular has been issued earlier. The said electronic book mechanism is active since July 01, 2016. Further, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have also been granted approval to act as Electronic Book Provider (EBP). It clarified that for all the private placements of debt securities in primary market whose issue size is Rs. 500 crore and above, inclusive of green shoe option, if any, electronic book mechanism would be mandatory and voluntary for issue size being below Rs.500 crore, inclusive of green shoe option, if any. There is also the requirement of EBM, if the issue size is less than Rs. 500 Crore but is a part of a shelf offer which is more than Rs 500 crore in a financial year and also if the aggregate issue size in the same year crosses Rs.500 crore.


Thanks & Regards,
Meetesh Shiroya

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