Consolidated corporate law legal updates from March to June, 2013

1. Important Legal Updates – March to June, 2013
I. COMPANY LAW
Date Details Summary of contents
March 15,
2013
Companies Directors
Identification Number
(Amendment) Rules, 2013
The Ministry of Corporate Affairs (MCA) vide its notification
G.S.R.173 (E) dated March 15, 2013, amended the
Companies (Directors Identification Number) Rules,
2006.These Rules may be called as Companies Directors
Identification Number (Amendment) Rules, 2013. Through
this amendment the MCA seeks to incorporate an additional
rule, i.e. Rule 8 which provides for Cancellation or
Deactivation of DIN, in continuation to the seven rules which
currently form the part of the DIN Rules, 2006.
The Central Government or Regional Director (Northern
Region), NOIDA or any officer authorized by the Regional
Director, upon being satisfied on verification of particulars of
proof attached with the application received from any person
seeking cancellation or deactivation of DIN, shall, cancel or
deactivate such DIN in case -
• the DIN is found to be duplicate;
• the DIN was obtained by wrongful manner or fraudulent
means
• of the death of the concerned individual
• the concerned individual has been declared as lunatic by the
competent Court
• If the concerned individual has been adjudicated an
insolvent.
March 21,
2013
Companies (Acceptance of
Deposits Amendment)
Rules, 2013.
Rule 2 (b) (x) -
Any amount raised by the issue of bonds or debentures
secured by the mortgage of any fixed assets referred to in
Schedule VI of the Act excluding intangible assets of the
company or with an option to convert them into shares in the
company.
Provided that in the case of such bonds or debentures
secured by the mortgage of any fixed assets referred to in
Schedule VI of the Act excluding intangible assets the amount
of such bonds or debentures shall not exceed the market

2. value of such fixed assets.
Rule 11A
The Regional Director or Registrar of Companies or any other
officer of the Central Government shall be authorized to make
complaints under sub-section (2) of the section 58AAA of the
Act.
March
14,2013
Clarification u/s 372A (3) of
the Companies Act, 1956
The Ministry of Corporate Affairs vide its General Circular No.
06/2013 dated 14.03.2013, has issued a clarification with
respect to Section 372A (3) of the Companies Act, 1956 that
prohibits lending of money to Bodies Corporate at a rate
lower than the prevailing bank rate. The Union Budget 2013-
14 allows the Central Government to raise Rs. 50,000 Crores
in the form of Tax Free Bonds which carry a lower rate of
interest (presently 6.75% to 7.5%) which is tax free under
Sections 10(15) (iv)(h) of the Income Tax, 1961. Such a
provision was also made in Budget 2012-13 but it received
poor acceptance owing to restrictions posed by Section 372A
(3) of the Companies Act, 1956. The Ministry of Finance
therefore drew the attention of MCA to the said section in
order to remove obstacle in effective implementation of this
provision.
As such, MCA has clarified that the said Section will not be
considered contravened if the effective yield or rate of return
on tax free bonds is greater than the yield on prevailing bank
rate.
II. INTELLECTUAL PROPERTY LAW
Date Details Summary of contents
14.03.2013 Copyright Rules, 2013 New Copyright Rules have been adopted. Fee revised.
Gazette notification dated 14.03.2013 of the Copyright Rules,
2013
6.05.2013 Draft Patent Rules, 2013 Draft Patent Rules notified for comments. For text, please
see this link.

3. III. FOREIGN EXCHANGE LAWS
Date Details Summary of contents
June 12,
2013
- Foreign Direct Investment
– Reporting of issue /
transfer of Shares to/by a
FVCI
RBI/2012-2013/529
A.P. (DIR Series) Circular No.110
June 12,
2013
Foreign investment in India
by SEBI registered Long
term investors in
Government dated
Securities
RBI/2012-2013/530
A.P. (DIR Series)Circular No.111
April 26,
2013
Foreign Exchange
Management (Manner of
Receipt and Payment)
(Second Amendment)
Regulations, 2013
Foreign Exchange Management (Manner of Receipt and
Payment) (Second Amendment) Regulations, 2013
April 25,
2013
Foreign Exchange
Management (Export of
Goods & Services)
(Amendment) Regulations,
2013
Foreign Exchange Management (Export of Goods & Services)
(Amendment) Regulations, 2013
Mar 26,
2013
Foreign Exchange
Management (Transfer or
Issue of Security by a
Person resident outside
India) (Eighth Amendment)
Regulations, 2013
Foreign Exchange Management (Transfer or Issue of Security
by a Person Resident outside India) (Eighth Amendment)
Regulations, 2013
Mar 5,
2013
Foreign Exchange
Management (Transfer or
Issue of Security by a
Person Resident outside
India) (Sixth Amendment)
Regulations, 2013
Foreign Exchange Management (Transfer or Issue of Security
by a Person Resident outside India) (Sixth Amendment)
Regulations, 2013

4. IV. FDI POLICY
Date Details Summary of contents
June
3,
2013
Press Note No. 2 (2013) Definition of Group companies
June
3,
2013
Press Note No. 1 (2013) List of states which have conveyed their consent for the policy of
Multi Brand Retail trading released.
April 5,
2013
FDI Policy (circular 1 of
2013)
Consolidated FDI Circular, 2013.
This regulatory update provides general information existing at the time of preparation. The update is intended as a
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