Friday, 23 August 2019

Debenture Redemption Reserve

The Ministry of Corporate Affairs has amended the Companies (Share Capital & Debentures) Rules by removing Debenture Redemption Reserve requirement for Listed Companies, NCFCs and HFCs.
The decision has been taken in pursuance of the Budget announcements for 2019-20 by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman and the Government’s objectives of providing greater ‘Ease of Doing Business’ to companies in the country, as part of its 100 Days Action Plan.
Through these amendments, the provisions relating to creation of Debenture Redemption Reserve (DRR) have been revised with the objective of;
  1. removing the requirement for creation of a DRR of 25% of the value of outstanding debentures in respect of listed companies, NBFCs registered with RBI and for Housing Finance Companies registered with National Housing Bank (NHB) both for public issue as well as private placements;
  2. Reduction in DRR for unlisted companies from the present level of 25% to 10% of the outstanding debentures.
Hitherto, Listed Companies had to create a DRR for both Public Issue as well as Private Placement of Debentures, while NBFCs & HFCs had to create DRR only when they opted for Public Issue of Debentures.  It is aimed at creating a level-playing field between NBFCs, HFCs and listed companies’ on the one hand and also between them and Banking Companies & All India Financial Institutions on the other, which are already exempted from DRR.
The measure has been taken by the Government with a view to reducing the cost of the capital raised by companies through issue of debentures and is expected to significantly deepen the Bond Market.
The rules, while retaining DRR requirement for Unlisted Companies, provide for reduction from a DRR of 25% to a DRR of 10% for such companies, so as to safeguard interests of investors.

Friday, 16 August 2019

differential voting rights

PIB press release dated 16th August, 2019

The Ministry of Corporate Affairs has amended the provisions relating to issue of shares with Differential Voting Rights (DVRs) provisions under the Companies Act with the objective of enabling promoters of Indian companies to retain control of their companies in their pursuit for growth and creation of long-term value for shareholders, even as they raise equity capital from global investors.
            The key change brought about through the amendments to the Companies (Share Capital & Debentures) Rules brings in an enhancement in the previously existing cap of 26% of the total post issue paid up equity share capital to a revised cap of 74% of total voting power in respect of shares with Differential Voting Rights of a company.
Another key change brought about is the removal of the earlier requirement of distributable profits for 3 years for a company to be eligible to issue shares with Differential Voting Rights.
            The above two initiatives have been taken by the Government in response to requests from innovative tech companies & startups and to strengthen the hands of Indian companies and their promoters who have lately been identified by deep pocketed investors worldwide for acquisition of controlling stake in them to gain access to the cutting edge innovation and technology development being undertaken by them.
The Government had noted that such Indian promoters have had to cede control of companies which have prospects of becoming Unicorns, due to the requirements of raising capital through issue of equity to foreign investors.
Alongside the above two changes, another major step taken is that the time period within which Employee Stock Options (ESOPs) can be issued by Startups recognized by the Department for Promotion of Industry & Internal Trade (DPIIT) to promoters or Directors holding more than 10% of equity shares, has been enhanced from 5 years to 10 years from the date of their incorporation.

GI tag for 4 new products

PIB press release dated 16th August, 2019

The Geographical Indication (GI) under the Department for Promotion of Industry and Internal Trade hasrecenly registered 4 new GIs. PalaniPanchamirtham from Palani Town in Dindigul District of Tamil Nadu State, Tawlhlohpuan and Mizo Puancheifrom the state of Mizoram and Tirur Betel leaf from Kerala are the latest additions to the list of registered GIs.
GI is an indication used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
PalaniPanchamirtham, an abishegaPrasadam, from Palani Town is one of the main offerings in the Abisegam of Lord Dhandayuthapani Swamy, the presiding deity of ArulmiguDhandayuthapaniswamy Temple, situated in palani Hills, Palani Town in Dindigul District of Tamil Nadu. It is a combination of five natural substances, namely, banana, jaggery sugar, cow ghee, honey and cardamom in a definite proportion. It is prepared in a natural method without addition of any preservatives or artificial ingredients and is well known for its religious fervour and gaiety. This is the first time a temple ‘prasadam’ from Tamil Nadu has been bestowed with the GI tag.
Tawlhlohpuan, a medium to heavy, compactly woven, good quality fabric from Mizoram is known for warp yarns, warping, weaving & intricate designs that are made by hand. Tawlhloh, in Mizo language, means 'to stand firm or not to move backward’. Tawlhlohpuan, which holds high significance in the Mizo society, is produced throughout the state of Mizoram, Aizawl and Thenzawl town being the main centre of production.
Mizo Puanchei, a colourful Mizo shawl/textile, from Mizoram, is considered as the most colourful among the Mizo textiles. It is an essential possession for every Mizo lady and an important marriage outfit in the state. It is also the most commonly used costume in Mizo festive dances and official ceremonies. The weavers insert the designs and motifs by using supplementary yarns while weaving to create this beautiful and alluring textile.
Tirur betel vine from Kerala, which is mainly cultivated in Tirur, Tanur, Tirurangadi, Kuttippuram, Malappuram and Vengara block panchayaths of Malappuram District, is valued both for its mild stimulant action and medicinal properties. Even though it is commonly used for making pan masala for chewing, it has many medicinal, industrial and cultural usagesand is considered as a remedy for bad breath and digestive disorders.
GI products can benefit the rural economy in remote areas, by supplementing the incomes of artisans, farmers, weavers and craftsmen. India’s rural artisans possess unique skills and knowledge of traditional practices and methods, passed down from generation to generation, which need to be protected and promoted.The Department for Promotion of Industry and Internal Trade has taken several initiatives in this regard and is actively involved in promotion and marketing of GIs.

transparency in tax administration

PIB press release dated 14th August, 2019

With a view to bringing greater transparency in the functioning of the tax-administration and improvement in service delivery, almost all notices and orders of Income Tax Department are being generated electronically on the Income Tax Business Application (ITBA) platform. However, it has been brought to the notice of the Central Board of Direct Taxes (CBDT) that there have been some instances in which the notice, order, summons, letter and any correspondence (hereinafter referred to as “communication”) were found to have been issued manually, without maintaining a proper audit trail of such communication.
In order to prevent such instances and to maintain proper audit trail of all communication, the CBDT has, vide Circular No.19/2019 dated 14.08.2019 laid down parameters specifying the manner in which any communication issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person will be dealt with. All such communication issued on or after the 1st of October, 2019 shall carry a computer-generated Document Identification Number (DIN) duly quoted in the body of such communication.
CBDT has also specified exceptional circumstances where the communication may be issued manually but only after recording reasons in writing and with the prior written approval of the Chief Commissioner / Director General of Income-Tax concerned. In cases where manual communication is required to be issued, the reason for issue of manual communication without DIN has to be specified alongwith the date of obtaining written approval of the Chief Commissioner / Director General of Income-Tax in a particular format. Any communication which is not in conformity with the prescribed guidelines shall be treated as invalid and shall be deemed to have never been issued. Further, CBDT has also laid down the timelines and procedure by which such communication issued manually will have to be regularised and intimated to the Principal Director General of Income-tax (Systems).
            In addition to the above, in all pending assessment proceedings, where notices were issued manually, prior to issuance of the above referred Circular, all such cases would be identified and the notices so sent would be uploaded on ITBA by 31st October, 2019.
This is another step taken by CBDT towards better delivery of taxpayer services while ensuring accountability in official dealings.

free ATM transactions

RBI circular dated 14th August, 2019

Usage of ATMs – Free ATM transactions – Clarifications
2. It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc., are also included in the number of free ATM transactions.
3. It is hereby clarified that transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly / wholly to the bank / service provider; invalid PIN / validations; etc., shall not be counted as valid ATM transactions for the customer. Consequently, no charges therefor shall be levied.
4. Non-cash withdrawal transactions (such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc.), which constitute ‘on-us’ transactions (i.e., when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions.
5. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Saturday, 3 August 2019

The Last Cop Out

The Last Cop Out by Mickey Spillane, my first encounter with the author, presents itself as a pulsating, edge-of-the-seat thriller—one that begins in the familiar terrain of gangster rivalries but soon descends into a far more labyrinthine and disquieting narrative of violence, intrigue, and moral ambiguity. What initially appears to be a routine turf war among mobsters acquires a sinister dimension as figures within the underworld are eliminated one by one, with an almost clinical precision that bespeaks not chaos, but a chilling, deliberate design. The identity of this unseen executioner remains shrouded in mystery, imbuing the narrative with a sustained atmosphere of dread and speculation.

At the heart of this maelstrom stands Gillian Burke, a knocked-off ex-cop whose return to the force is as much an act of necessity as it is of unresolved personal reckoning. Burke is no conventional hero; he is a man tempered by experience, burdened by memory, and propelled by a simmering grudge against the very underworld he is now tasked with navigating once more. His reinstatement is less a gesture of institutional faith and more an acknowledgment that he possesses an intimate, almost instinctive understanding of the criminal psyche—a familiarity that renders him uniquely suited to decipher the unfolding carnage.

The underworld that Spillane conjures is populated by a striking gallery of characters, each etched with distinctive strokes. Frank Verdun, the enigmatic Frenchman, emerges as a figure of cold, almost surgical brutality—his penchant for killing marked by an unnerving detachment that elevates him from mere thug to something far more ominous. Mark Shelby, by contrast, embodies ambition in its most unvarnished form: watchful, opportunistic, and ever poised to seize the mantle of power as the hierarchy above him collapses. Presiding over this volatile milieu is Papa Menes, an ageing yet astute veteran of the criminal enterprise, whose seasoned perspective and quiet authority suggest that survival in this unforgiving world is as much a function of patience as it is of ruthlessness.

Interwoven into this tapestry of violence are the female characters, who function not merely as adjuncts to the male narrative but as vital emotional counterpoints. They inhabit the dual roles of love and lust interests, yet their presence transcends the purely ornamental; they introduce moments of vulnerability, tenderness, and complexity into an otherwise brutal landscape, reminding us that even within the most hardened spheres of human activity, desire and emotional entanglement remain inescapably potent forces.

Adding further texture to the narrative are a host of eccentric and seemingly peripheral figures—oddball characters who, though occupying the margins, contribute significantly to the story’s unpredictability. Their idiosyncrasies lend the novel a certain vibrancy, ensuring that the world Spillane depicts feels not merely dangerous, but also richly inhabited.

What ultimately sustains the novel’s relentless momentum is its pervasive sense of uncertainty. The central question—who is orchestrating this systematic annihilation of mobsters—hovers over the narrative like an unspoken threat, intensifying as alliances fracture and the body count mounts. The reader is drawn ever deeper into a web of suspicion, where every character appears both a potential victim and a plausible perpetrator.

In the final analysis, The Last Cop Out thrives on its seamless amalgamation of gangster fiction and mystery, marrying the visceral immediacy of violent confrontation with the cerebral allure of a whodunit. It is a novel that keeps the reader in a state of perpetual anticipation—uncertain whether the next turn will yield a brutal reckoning, a calculated betrayal, or a revelatory unmasking. As an initiation into Spillane’s oeuvre, it proves to be both engrossing and evocative, offering a compelling glimpse into a world where violence is swift, motives are inscrutable, and survival itself is the most precarious of achievements. Goodreads 5/5

Friday, 2 August 2019

Amazfit Bip watch review

Purchased a Xiaomi Amazfit Bip A-1708 watch online through Amazon. Was using the TomTom watch earlier whose dial face got scrambled and so could not continue using it. Sad because it served me well for so many years. Could integrate TomTom with Strava so all the data was available to view on Strava as well as on Tom Tom web page. The statistics were all there - kms run, pace, cadence, elevation etc.

So got this watch, the cost was only Rs.5490 on Amazon and checked all the features online as well as confabulated with a couple of friends. It supposedly had basic features of a GPS tracker such as distance, time and pace. Struggled with the strava integration until a friend told me to do via Amazfit app. So that was also done and all ready for a run today morning. 

The first time I used Amazfit today morning, it was pouring continuously for hours together with no relent. So okay I decided to go out anyways for a run. The GPS started quickly but the dial face got off to the normal watch face so could not see anything on the watch - the distance, time, pace etc. Plus it was also raining heavily so the visibility was also poor. So no complaints on that count at least on the first day. I finished the run, switched it off, showed me a distance of 10.08 kms and also the running map. I was happy that the watch is working fine. But when I tried to log into Strava, there was no data. I tried Amazfit app to check whether today's data is logged in - nothing. Checked in MI Fit App - again zilch. So not at all happy. Checked my mobile whether the blue tooth is on or off. It was on but the integration has not happened. That is first day report. Hopefully will manage to navigate the features better as days go along and able to master the integration as well. Otherwise I am not happy with the watch on the first day. First day review 1/5 

Picture above is taken from internet and used for representational purposes only.  


Ease of regulatory compliances for FPIs investing only in Government Securities

  SEBI Circular dated 7 September 2026 titled “Ease of regulatory compliances for FPIs investing only in Government Securities.” 1. Backgr...