Legal & Industry Updates - June 2019
SPECIAL EVENTS
Workshop on “Employment Laws for Women Employees” at Power Finance Corporation Limited (“PFC”), New Delhi, June 03, 2019
The team at Ivy Law conducted a full day workshop at PFC on ‘Employment Laws for Women Employees’ specifically focusing on the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act/Rules 2013 (“Act”).
Kaveri Kumar, Founder and Head of Corporate Practice was the key note speaker at the workshop. The workshop focused on:
the applicability of the Act to different stakeholders such as companies/employers
the compliance requirements for companies/employers
the rights of a complainant
the statutory penalties for non-compliance etc.
Intense interaction was conducted during the workshop with the participants, encouraging them to share their views in order to gain the most out of the workshop.
Seminar on Statutory Compliance Requirements for Startups at International Centre for Entrepreneurship and Technology (“iCreate”), Ahmedabad, June 24, 2019
Ivy Law conducted a seminar at iCreate for startups, informing start-ups regarding the importance of statutory compliance and the impact of non-compliance on business operations.
Kaveri Kumar, Founder and Head of Corporate Practice interacted with start-ups, to apprise on the applicable statutory compliance framework. The seminar was a constructive platform for start-ups to put forth their doubts and be guided towards cohesive legal solutions for operating their business entities and implementing its objectives.
LEGAL & INDUSTRY UPDATES
Ministry of Corporate Affairs ("MCA") & Securities and Exchange Board of India ("SEBI") Sign a Memorandum of Understanding ("MoU") to Tighten Regulatory Oversight
A formal MoU was signed between MCA and SEBI on 7th June, 2019 to exchange the data and specific information between the two regulatory organizations. The MoU will aid the sharing of data relating to the details of a suspended companies, delisted companies, audit reports and other important information on an automatic and regular basis. This cooperation comes in the wake of increasing need for surveillance in the context of corporate frauds and will help in carrying out scrutiny, investigation, inspection and prosecution. A data exchange steering group also has been constituted which will meet periodically to review the data exchange status and take steps to further improve the efficiency of the data sharing mechanism.
Union Cabinet Approves Introduction of Special Economic Zone (Amendment) Bill, 2019
The Union Cabinet, approved the introduction, of the Special Economic Zones (Amendment) Bill, 2019, to replace the Special Economic Zones (Amendment) Ordinance, 2019. Post the amendment of sub-section (v) of section 2 of the Special Economic Zones Act, 2005, a trust or any entity notified by the Central Government will be eligible to be considered for grant of permission to set up a unit in Special Economic Zones.
Draft of the National E-commerce Policy
A draft national E-commerce policy (“Policy”) has been prepared and placed in public domain. The draft Policy addresses broad areas of the e-commerce ecosystem viz. data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy and export promotion through e-commerce. The Policy takes into account interests of all stakeholders, like investors, manufacturers, MSMEs, traders, retailers, start-ups and consumers. In response to the Policy comments of various foreign governments have been received. (source)
Competition Commission of India ("CCI") Imposes ₹74 Crore Penalty on Two Pharmaceutical Firms & Two Drug Associations for Anti-Competitive Trade Practices
CCI, through an order dated 3rd June, 2019, found Madhya Pradesh Chemists and Druggist Association (‘MPCDA’), Indore Chemists Association (‘ICA’), Himalaya Drug Company (‘HDC’) and Intas Pharmaceuticals Limited (‘IPL’) along with some of their office bearers/officials to be in contravention of the provisions of the Competition Act, 2002 (‘CA 2002’).
The allegations were that the abovenamed associations, through their practices of mandating ‘No Objection Certificate’ (‘NOC’)/ Letter of Consent (LOC’) prior to appointment of stockists were stifling competition in the market by limiting access of consumers to various pharmaceutical products and controlling supply of drugs in the market. An investigation carried out by the Director General (DG) established contravention on the part of said associations and pharmaceutical companies, who were found to be facilitating such anti-competitive practices. DG also identified certain individuals’/ officer bearers/ officials of the associations and pharmaceutical companies to be liable under Section 48 (Contraventions by Companies) of CA 2002.
CCI imposed monetary penalties on the associations and pharmaceutical companies respectively, in addition to cease and desist directions, issued under Section 27 (Orders by Commission) of CA 2002.
MCA Notifies Companies (Incorporation) of Sixth Amendment Rules, 2019
MCA through Companies (Incorporation) Sixth amendment Rules, 2019 notified on 7th June, 2019 has amended the Rule 19 (License under section 8 for new companies with charitable objects etc.) of Companies (Incorporation) Rules, 2014. Pursuant to the new rule, an application of incorporation along with application of license under section 8(1) (Formulation of Companies with charitable object, etc) of Companies Act, 2013 will now be submitted in simplified proforma for incorporating company electronically ("SPICe") form INC-32 instead of form no. INC-12. Earlier, such applications under Rule 19 were to be accompanied with a draft memorandum of association which is now substituted with memorandum of association.
These rules will come into force with effect from 15th August, 2019.
Disclaimer: The updates provided in this document is not a legal opinion and does not claim to capture all legal developments related to the subject matter stated herein. It is advisable to seek legal advice for accurate applicability, prior to relying on the updates for any legal matter.