Draft Framework for Self-Regulatory Organisations

This article discusses the Reserve Bank of India's (RBI) draft framework for self-regulatory organizations (SROs) in the fintech sector. The framework sets out criteria for SRO recognition, including governance, technology infrastructure, and membership requirements, as well as ongoing obligations towards the RBI. Authors briefly examine in the article the potential impact of SROs on regulatory compliance, innovation, and market stability, and provide certain inputs that may be considered in the final framework.

Brief on the notification of Section 4A of the payment of Gratuity Act

In this update authors delve into the key compliances and take-aways, arising from the notification of Section 4A of the Payment of Gratuity Act, 1972, by the Government of Karnataka. The notification makes it compulsory for all establishments that follow the state-specific rules of Karnataka to acquire gratuity insurance from a licensed insurance provider. The note also examines the relevance of the “appropriate government” under the legislation and the penalties for non-compliance.

Budget Highlights: 2024-2025

Through today’s interim budget, the Finance Minister parks important issues of Taxation for a later stage; however, she proposes reforms and introduces development initiatives that will be tested in the times to come. At SAMVAD Partners we have mapped out the initiatives of the Government through this budget and highlighted the important amendments that have been proposed in the realm of Direct and Indirect Taxes.

GST on Online Gaming - Analysis of the Legislative Framework    

Since the pandemic, the online gaming industry has witnessed exponential growth. As the revenue of the industry grew, it came under intense scrutiny by the Tax department. Before 01.10.2023, the online gaming industry was paying 18% Goods and Services Tax (‘GST’) on the Platform fee charged by them and not on the winning money or deposit amount. W.e.f. 01.10.2023, the GST rate has been increased to 28% and on the full value of consideration for online gaming irrespective of whether the gaming activity is a game of skill or a game of chance.

Searching for answers in new FDI proposal

On 28 August 2019 the government announced its new proposal on Foreign Direct Investment (FDI). While the announcement has been made, the fine print of the proposed changes to the existing FDI policy has still to be revealed and the government will need to make certain policy and regulatory changes to support the ease of doing business in sectors affected by the changes. The following are the key points in the proposal.

Clarifications awaited on changes to SBO regime

On 13 June 2018, the Ministry of Corporate Affairs (MCA), released the Companies (Significant Beneficial Ownership) Rules, 2018. The rules, along with amendments to sections 89 and 90 of the Companies Act, 2013, marks an effort to make Indian laws consistent with global anti-money laundering standards. While 11 September 2018 was indicated as the last date for compliance with reporting requirements under the rules, the MCA issued a circular on 10 September 2018 clarifying that Form BEN-1 under the rules was being revised and advised stakeholders to wait for the revision.

Liberalisation of Oveeseas Investment Regulations - Opening of new opportunities.

The Foreign Exchange Management Act, 1999 (“FEMA”) was, pursuant to the Finance Act, 2015, amended on October 15, 2019, to grant powers to the Reserve Bank of India (“RBI”) to prescribe permissible class(es) of capital account transactions related to debt instruments (in the form of regulations); while the Central Government were given powers to deal with permissible capital account transactions not involving debt instruments (in the form ofrules). 

SEBI rationalises overseas investment guidelines for AIFs and VCFs.

SEBI, by way of a circular on August 17, 2022 (“Circular”), issued new guidelines for investments by Alternative Investment Funds (“AIFs”) and Venture Capital Funds (“VCFs”) in securities of companies set up overseas.