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​​​​published on 30 October 2024 I reading time approx. 4 minutes 

Company/LLP Related Laws: MCA Updates

The current global environment has led to the call for digital compliance enhancements. Effective 15 July 2024, the Ministry of Corporate Affairs (“MCA”), enhanced corporate clarity through the automation of 9 (nine) major company forms including MSME registration form and BEN 2 through MCA 21 version 3.0. The period for holding and filing AGMs through video links was also extended till 30 September 2024.


​Fema Updates

1. RBI Foreign Exchange Compounding Proceedings

On 1 October 2024, RBI has introduced the Foreign Exchange (Compounding Proceedings) Rules, 2024 which lays down procedures for compounding of contraventions of the forex laws. The new changes involve identification of compounding authorities depending on the amount involved in matters relating to financial contraventions. A common application is to be made with a fee of INR 10,000/- plus GST and the application shall be resolved within 180 (one hundred and eighty) days. Aggravated offences related to money laundering are prohibited for compounding. All these changes are part of RBI’s move to simplify regulations and improve compliance in fast growing digital economy of India.

Labour Law Updates​​

1.  Amendments to the Tamil Nadu Shops and Establishments Act, 1947​

The Government of Tamil Nadu vide its notification dated 2 July 2024 has amended and brought in force the Tamil Nadu Shops and Establishments (Amendment) Act, 2018 (“2018 TN S&E Amendment Act”) as well as the Tamil Nadu Shops and Establishments (Amendment) Act, 2023 (“2023 TN S&E Amendment Act”). With these amendments, registration has become mandatory for all establishments employing 10 (ten) or more workers, with an obligation to notify authorities within 6 (six) months of the 2018 TN S&E Amendment Act or the commencement of their business. The daily and weekly working hours have been increased to 10.5 (ten and half) hours and 57 (fifty-seven) hours, respectively, up from the previous limits of 10 (ten) and 54 (fifty-four) hours. Employers are now required to submit an annual return in a prescribed format to the relevant authority. Additionally, a new provision, Section 50-A, has been introduced to ensure that no woman employee faces discrimination regarding recruitment, training, transfers, promotions, or wages. Further, the 2023 TN S&E Amendment Act has inserted 4 (four) new sections in the Tamil Nadu Shops and Establishments Act, 1947 which provide for facilities like drinking water, latrine and urinals, rest room and lunchroom, and first aid.


2. Amendment to the Karnataka Shops and Establishments Act, 1961

The Government of Karnataka has issued a notification dated 27 September 2024 amending the Karnataka Shops and Establishment Act, 1961 (“Karnataka S&E Act”) mandating employers to comply with specific conditions to ensure employee welfare. Employers shall appoint additional staff to guarantee that each employee receives 1 (one) day off per week, with employee details displayed at a conspicuous place. 
Wage payments, including overtime, are required to be credited to employees’ savings bank account, and work hours are restricted to a maximum of 8 (eight) hours daily and 48 (forty-eight) hours weekly. Employers face penalties for allowing employees to work on holidays or beyond normal hours without appropriate authorization. Additionally, the regulations emphasize the protection of women employees, prohibiting work beyond 8:00 PM unless written consent is provided, along with necessary safety measures. 
Employers shall arrange transport for women working in shifts between 8:00 PM and 6:00 AM ensuring basic amenities like restrooms and safety lockers. An internal committee against sexual harassment shall be established in workplaces employing women. Violations of these terms can result in penal actions as stipulated by the Karnataka S&E Act and rules made thereunder.​

3. Mandatory Insurance Certificate for establishments in Maharashtra​

On 22 July 2024, the Maharashtra Government issued a notification amending the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (“Maharashtra S&E Act”). This amendment requires all establishments in Maharashtra to include their insurance policy details in compliance forms. Consequently, it is now mandatory for these establishments to obtain an insurance policy, enhancing protection for both workers and businesses under the Maharashtra S&E Act. The notification states that the establishments employing 10 (ten) or more workers are required to submit the insurance certificate at the time of registration and renewal of such registration. The Annual Return filings shall include the details of the insurance policy and its validity. 

Regulatory Updates​

BIS Compulsory Registration for Aluminium Cans​

Effective 1 September 2024, notified by the Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade) dated 14 March 2024 called the Cookware, Utensils and Cans for Food for Beverages (Quality Control) Order, 2024, Aluminium Cans for Beverages are now covered under the BIS Compulsory Registration Scheme (“CRS”). The products falling under these standards which include the aluminium cans cannot be imported, exported, or sold in the Indian market without obtaining a compulsory BIS license. 


Insolvency and Bankruptcy Code Updates​

Amendments to Insolvency and Bankruptcy Code (“IBC”)​

Effective 24 September 2024, the Insolvency and Bankruptcy Board of India (“IBBI”) has introduced significant amendments to the insolvency resolution process for corporate persons. The key change is the appointment of an interim representative for specific classes of creditors while the application for a permanent authorized representative is pending approval from the adjudicating authority. 


This interim representative shall hold the same rights and responsibilities as a fully authorized representative during committee meetings, enhancing the representation of large creditor groups, such as homebuyers, in the corporate insolvency resolution process. These amendments aim to streamline creditor representation and address delays faced by numerous creditors during insolvency proceedings. 
By facilitating effective communication and representation, the IBBI seeks to improve the overall efficiency and fairness of the insolvency framework in India. This proactive measure underscores the importance of ensuring that all creditor voices are heard and considered during the resolution process, thereby promoting a more equitable approach to corporate insolvency. 


Environmental Law Updates​

The Ecomark Rules, 2024​

The Ministry of Environment, Forest and Climate Change has notified the Ecomark Rules 2024 which shall come in force effective 1 October 2024. The ecomark system sets up e-criteria to certify 17 (seventeen) categories of personal consumables and durable products, for example cosmetics, batteries, textiles, etc., for ensuring environmentally sustainable production. Products seeking the ecomark certification shall ensure that their products reduce pollution and are produced by using recycled materials. The ecomark shall be granted by CPCB for which application shall be made by the manufacturer of the goods. Further it should be ensured that the annual returns are systematically filed. A government based online portal shall manage applications for compliance, as well as monitor violations, if any.

Statutory Compliance Calendar for the month of September 2024

Here's a structured table of the compliance calendar based on your provided data:​

Compliance Calendar

S. NoCompliance CalendarForms/Returns/RulesDue Date
​​​Labour Compliance​​  
1
Payment and filing of ESIC ReturnESI Challan15th of each month
2
Payment and filing of PF ReturnECR
15th of each month
​​F​​​​EMA Compliance​​​​   ​
1
Reporting actual ECB transactionsForm ECB 29 September 2024
2
Filing pf revised Annual Return on Foreign Liabilities and Assets (FLA)  Return (if applicable)FLA Return30 September 2024
​​​Company Sec​​retarial Compliance​
1
Filing Annual Accounts (One Person Company)FORM AOC-427 September 2024
2
KYC for DirectorsDIR-3 KYC/WEB30 September 2024
3
Appointment of Cost AuditorFORM CRA-227 September 2024
4
Annual Accounts of Foreign CompaniesFC-3
30 September 2024
5
Convening Annual General Meeting (AGM)Section 9630 September 2024
6
Mandatory DEMAT of sharesRule 9B30 September 2024

From The Newsletter

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