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New Delhi, The corporate affairs ministry is probing various Chinese companies, especially those with links to loan apps, for alleged violations and some of the investigations are at an advanced stage, according to a senior official. In recent times, Indian authorities have been cracking down on entities that are operating loan apps illegally and the ministry has also been acting against companies and related individuals for hiding beneficial ownership. The senior official told PTI that enquiries by the ministry are going on against various Chinese companies, especially those linked to loan apps, and some of the enquiries are at an advanced stage. The ministry, which is implementing the companies law, is mainly looking at whether frauds have been committed at these companies and some of the cases are being probed by the <keyword id="20001098" type="General" weightage="20" keywordseo="serious-fraud-investigation-office" source="keywords">Serious Fraud Investigation Office</keyword> (SFIO), the official said. Further, the official said that the ministry receives complaints from the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) and the Ministry of Electronics and Information Technology (MeitY), among other entities, following which enquiries are initiated against the companies concerned. While it is difficult sometimes to track the funding sources for some companies, the official said efforts are made to ascertain the beneficial ownership. In January, the Registrar of Companies (RoC), <keyword id="20064135" type="General" weightage="20" keywordseo="nct" source="keywords">NCT</keyword> (National Capital Territory) of Delhi, and Haryana slapped penalties totalling more than Rs 21 lakh on an Indian company and its related individuals as well as entities. The move was part of cracking the whip for hiding the beneficial ownership links to a Chinese group. On February 6, the finance ministry informed <keyword id="19895397" type="General" weightage="20" keywordseo="parliament" source="keywords">Parliament</keyword> that Google has suspended or removed more than 2,200 fraudulent loan apps from its Play Store between September 2022 and August 2023. The government is constantly engaged with the RBI and other regulators and stakeholders concerned to control fraudulent loan apps. RBI has issued regulatory guidelines on digital lending, which aim at firming up the regulatory framework for digital lending while enhancing customer protection and making the digital lending ecosystem safe and sound.

Corp affairs ministry probing Chinese cos linked to loan apps; investigations at advanced stages

<ul><li>In some cases, companies are unable to send dividends due to incorrect mailing addresses, lost cheques, or failure on the part of shareholders to encash the dividend cheques. </li><li>Shareholders may not get the credit of dividends to their bank accounts due to change in their bank account details or accounts becoming dormant. </li><li>Unclaimed shares can occur if a shareholder forgets about investments, passes away without leaving instructions to heirs, or fails to update their contact information. </li><li>Read more to find out how you can recover your investments from the IEPF. </li></ul> Investing money in various financial instruments such as stocks, bonds, mutual funds, and other securities can help generate substantial returns over time, along with the potential to receive passive income through dividends. Investors get much calculative while investing because at a point of time they will be expecting a handsome return from their investments. However, in some cases, the dividends accruing on these investments remain unpaid because of various reasons, such as when a company declares a dividend but is unable to send it to the shareholders due to incorrect mailing addresses, lost cheques, or failure on the part of shareholders to encash the dividend cheques. In some cases, shareholders may not get the credit of dividends to their bank accounts in the first place because of change in their bank account details or the accounts becoming dormant. Unclaimed shares can occur if a shareholder forgets about their investments, passes away without leaving clear instructions for their heirs, or fails to update their contact information with the company because of which they don’t get the dividends. In some cases, the shareholder may not even be aware that they own shares in a particular company due to various corporate actions. In both cases, the company is required to hold the unclaimed dividends and shares in trust for the shareholder. These unclaimed dividends are then transferred to the <keyword id="161459" type="General" weightage="50" keywordseo="investor-education-and-protection-fund" source="Orion">Investor Education and Protection Fund</keyword> (IEPF) account, which is managed by the <keyword id="6376435" type="General" weightage="50" keywordseo="ministry-of-corporate-affairs" source="Orion">Ministry of Corporate Affairs</keyword>. The <keyword id="2980446" type="General" weightage="50" keywordseo="iepf-authority" source="Orion">IEPF Authority</keyword> was established by the government under the Companies Act 2013 with the aim of promoting investor education and awareness, as well as protecting the interests of investors. Its significance can be highlighted by the fact that by the end of the Financial Year 2022, it is safeguarding unclaimed dividends of listed companies to the tune of a staggering ₹5,685 crore and a staggering 117 crore of unclaimed shares have been transferred to the IEPF Authority. As per Section 125 (2) (c) and Rule 7 (1) of the Investor Education and <keyword id="17056549" type="General" weightage="50" keywordseo="protection-fund-authority" source="Orion">Protection Fund Authority</keyword> of the Companies Act 2013, companies should transfer the amount of the unpaid dividends to the IEPF Authority’s account. According to the IEPF rules, shareholders can claim amounts by submitting the IEPF-5 Form for unclaimed dividends, matured debentures, matured deposits, and shares, refundable application fees, interest on fractional share sale proceeds, preference share redemption proceeds, etc., that are unclaimed for a minimum time period of seven years. Also, the IEPF maintains a database of unclaimed dividends and shares, and investors can claim their such dividends and shares by following the prescribed process. The objective of the IEPF is to ensure that the unclaimed dividend amount is returned to the rightful owners and that their interests are protected. During the recent Union Budget 2023 announcement, the Finance Minister emphasized the need for an efficient and streamlined process for investors to reclaim their unclaimed shares and unpaid dividends. As a result, an integrated IT portal will be established to make this process much easier and more convenient. This portal will enable shareholders to claim their unpaid or unclaimed shares/dividend amount through a simple and user-friendly procedure. Process of getting money back from IEPF If you have invested in a company’s shares and are facing difficulties in getting your investments back, you can follow the process below to recover your investments from the IEPF: Step 1: Check the IEPF website The first step is to go to the IEPF website, which is iepf.gov.in. On the homepage, click on the 'Claim Refund' tab to proceed. Then click on the “Upload eForms” link on the left side of the page which will take you to the MCA login page. Step 2: Login on the MCA Portal If you have a login ID, login using the same on the MCA Portal and click on “MCA Services” and then click on “IEPF-5”. Step 3: Fill out the online form Next, you need to fill out the refund claim form online on the website. Provide all the required details, such as your name, address, PAN number, and bank details. Also, provide details of your investment, such as the company's name and the dividends unclaimed. Step 4: Attach Documents Attach all the necessary documents, such as your PAN card, cancelled cheque, <keyword id="105386" type="General" weightage="50" keywordseo="demat-account" source="Orion">demat account</keyword> client master list and any other documents that prove your entitlement to the investment in the company. Step 5: Submit the Form After filling out the form and attaching the documents, submit it to the IEPF Authority. Once the form is submitted online, a SRN acknowledgement will be created, which can be used to track the status of your claim. Step 6: Send physical documents to Nodal Officer After submission, print the form and send the physical copy duly signed with all supporting documents to the Nodal Officer of the Company. Step 7: Company will file Verification Report On receipt of physical documents, the Nodal Officer of the company will verify the documents and send an online E-Verification Report with Approval to the IEPF Authority. Step 8: IEPF Authority will approve The IEPF authorities will verify your claim and may ask for additional documents or information if required. The verification process may take some time, and you may need to follow up with the authority for updates. After verification, the IEPF Authority will send an Approval email to the registered email id of the claimant. Step 9: Receive the Refund If your claim is verified and approved, the IEPF Authority will initiate the refund process, and then your amount will be credited to your bank account and the shares to the Demat Account. However, recovering unclaimed shares and unpaid dividends from the IEPF can be a challenging task for some shareholders, especially senior citizens, NRIs, legal heirs of deceased shareholders for which shareholders might need the assistance of a professional who has the requisite domain knowledge. Moreover, shareholders can avail various recovery advisors who offer services including issue of duplicate shares, issue of succession certificates, undertaking name deletion, and claim from IEPF. By providing such services, companies aim to simplify the process for shareholders and ensure that they can reclaim their rightful share of unclaimed dividends and shares without any hassle. (The writer is the co-founder &amp; CEO of GLC Wealth Advisor LLP)

Getting back unpaid dividends, unclaimed shares: Insights into the process to claim from IEPF Authority

<ul><li>India's edtech major <keyword id="2900267" type="General" weightage="80" keywordseo="byju" source="Orion">BYJU</keyword>'s to release financial report after 18 months of delay. </li><li>Last valued at $22 billion, the edtech company faced larger scrutiny from the government over its audit reports. </li><li>BYJU's made 10 acquisitions last year for a cumulative transaction value of about $2.5 billion. </li><li>The company is likely to raise over $500 million</li></ul>After nearly 18 months delay of "ironing out the complexities", edtech major BYJU's is all set to reveal its financial report for FY21 on Wednesday, according to reliable sources. Facing intense scrutiny from the government over the long delay, the company had received an 'unqualified' report from auditor <keyword id="6358918" type="General" weightage="50" keywordseo="deloitte" source="Orion">Deloitte</keyword> late last month. According to sources, there is going to be a substantial difference between the projected sales and the audited revenue in BYJU's FY21 financial results. Last valued at $22 billion, the edtech company faced larger scrutiny from the government as it failed to submit its audited financial report. According to its FY20 financial report, the company registered revenue of ₹2,434 crore and a net profit of ₹ 51 crore. However, this time will be different as BYJU's made 10 acquisitions last year for a cumulative transaction value of about $2.5 billion, and some of those are not performing up to the mark in the hybrid world. According to people close to the matter, an 'unqualified' report from Deloitte came as a major sigh of relief for the company that has been under pressure to file its FY21 audited report amid delay and scrutiny. The last few months of delay were "unfortunate" and a clean Deloitte audit report instilled "a lot of confidence in the board members of BYJU's". The long delay alarmed the <keyword id="6376435" type="General" weightage="50" keywordseo="ministry-of-corporate-affairs" source="Orion">Ministry of Corporate Affairs</keyword> (MCA) which sent a letter to BYJU's last month, asking the edtech giant to explain the delay in filing its audit report for FY21. So far, BYJU's has raised over $6 billion in funding, and aims to file an IPO in the US through the Special Purpose Acquisition Company (<keyword id="1817616" type="General" weightage="50" keywordseo="spac" source="Orion">SPAC</keyword>) route. The company is likely to raise over $500 million (nearly Rs 3,900 crore) at a valuation of around $23 billion soon. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/apple-makes-iphone-14-series-more-climate-friendly-with-recycled-elements/articleshow/94173470.cms">Apple makes iPhone 14 series more climate-friendly with recycled elements</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/spurt-in-social-gatherings-post-covid-is-boosting-alcohol-sales-in-india/articleshow/94172508.cms">Spurt in social gatherings post-Covid is boosting alcohol sales in India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/a-fire-at-an-ev-showroom-has-killed-8-several-injured-while-trying-to-escape/articleshow/94167880.cms">A fire at an EV showroom has killed 8, several injured while trying to escape</a>

BYJU's set to release FY21 financial report, sales may see significant drop

India's most-valuable startup <keyword id="2900267" type="General" weightage="100" keywordseo="byju" source="Orion">BYJU</keyword>'s is facing larger scrutiny from the government as it has failed to submit its audited financial report from Deloitte for the financial year 2021 even after more than 17 months. Insider company sources told IANS that the report is expected anytime soon, may be next week, but the long delay has now alarmed the <keyword id="6376435" type="General" weightage="50" keywordseo="ministry-of-corporate-affairs" source="Orion">Ministry of Corporate Affairs</keyword> (MCA). According to sources, the ministry sent a letter to BYJU's earlier this month, asking the $22 billion edtech startup to explain the delay in filing its audit report for FY21. The IPO-bound BYJU's, according to sources privy to the development, has completed the consolidation of businesses after "ironing out the complexities" as the edtech unicorn made at least 10 acquisitions for a cumulative transaction value of about $2.5 billion last year. According to them, there are "no compliance issues" as the company has filed its FY21 tax returns in the "due diligent manner". BYJU's did not comment on the latest development. In July, <keyword id="1575" type="General" weightage="50" keywordseo="congress" source="Orion">Congress</keyword> MP Karti P. Chidambaram shot off a letter to the <keyword id="107956" type="General" weightage="50" keywordseo="serious-fraud-investigation-office" source="Orion">Serious Fraud Investigation Office</keyword> (SFIO) to investigate the finances of edtech major BYJU's. Chidambaram called for a probe into BYJU's for not filing its 2020-21 (FY21) financial results, which the company had earlier stated to file by July 15, saying that it has yet to secure $250 million (around Rs 2,500 crore) capital from its most recent funding round in March. The company, which faced intense scrutiny in the past couple of months over several issues ranging from delayed audit and layoffs, made multiple acquisitions in FY21 and each of these acquisitions had a different accounting style and year. So far, BYJU's has raised over $6 billion in funding, and aims to file an IPO in the US through the <keyword id="6767232" type="General" weightage="50" keywordseo="special-purpose-acquisition-company" source="Orion">Special Purpose Acquisition Company</keyword> (SPAC) route. The company is also reportedly in talks to raise another $1 billion as it expands globally. According to reports, BYJU's is eyeing Nasdaq-listed American edtech company, 2U, for nearly $1 billion at $15 a share. The company has already "closed" payments related to its $1 billion acquisition of offline test preparatory services provider Aakash Educational Services. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/within-2-years-india-will-have-the-largest-pool-of-web3-developers-in-the-world/articleshow/93796613.cms">‘Within 2 years, India will have the largest pool of web3 developers in the world’</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/hp-launches-new-pcs-displays-and-webcams-for-a-hybrid-work-environment/articleshow/93796932.cms">HP launches new PCs, displays and webcams for a hybrid work environment</a>

BYJU’s comes under govt scrutiny for not filing financial data for FY21

New Delhi, The government might look at enhancing the scrutiny of certain class of corporates, including in terms of <keyword id="19910870" type="General" weightage="20" keywordseo="kyc" source="keywords">KYC</keyword> requirements, as efforts continue to weed out unscrupulous elements and curb possible misdoings, according to a senior official. The matters related to KYC (Know Your Customer), including a simplified and uniform system, are still under discussion, and a committee headed by the finance secretary is looking into various aspects. The senior official on Monday said that various aspects related to having a uniform KYC are being discussed and in the case of the corporate affairs ministry, Permanent Account Number (<keyword id="19939397" type="General" weightage="20" keywordseo="pan" source="keywords">PAN</keyword>) is being used for KYC requirements. The ministry is implementing the companies law and <keyword id="20735098" type="General" weightage="20" keywordseo="limited-liability-partnership" source="keywords">Limited Liability Partnership</keyword> (LLP) Act, among other legislations. Further, the official said enhanced KYC requirements might be explored for certain class of corporates. As many as 26,28,865 companies were registered in the country as on January 31, 2024, and out of the total, 16,65,438 companies, or 63 per cent were active, as per the latest official data. According to the data, a total number of 3,16,402 LLPs were active at the end of January this year. Meanwhile, the ministry-appointed panel is discussing possibilities of having a stricter regulatory regime for startups against the backdrop of instances of corporate governance concerns at some of the entities. The Company Law Committee (CLC), which was set up by the ministry in September 2019, is yet to firm its views and a final decision will be taken after receiving the panel's recommendations, the official said. Over a period of time, the ministry has been clamping down on entities, suspected of carrying out illegal activities. Last week, the <keyword id="20584362" type="General" weightage="20" keywordseo="financial-stability-and-development-council" source="keywords">Financial Stability and Development Council</keyword> (FSDC), chaired by Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword>, discussed strengthening inter-regulatory coordination in the financial sector to support inclusive economic growth. The council also deliberated on prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification and digitalisation of the KYC process, among others.

Govt may look at enhanced KYC requirements for certain class of corporates

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>'s external debt of $620.7 billion, as at end of March 2022, is sustainable and is being managed in a prudent manner, the <keyword id="144110" type="General" weightage="80" keywordseo="department-of-economic-affairs" source="Orion">Department of Economic Affairs</keyword>, under the Union Finance Ministry, said. In a recent report, the Department of Economic Affairs said the country's external debt continues to be sustainable and prudently managed. "As at end-March 2022, it stood at $620.7 billion, growing by 8.2 per cent over the level a year ago. External debt as a ratio to GDP (gross domestic product) was 19.9 per cent, while reserves to external debt ratio was 97.8 per cent," the report said. The sovereign debt at $130.7 billion rose higher by 17.1 per cent over its level a year ago, mainly because of additional allocation of special drawing rights (SDR) by the IMF during 2021-22. The non-sovereign debt, on the other hand, grew 6.1 per cent to $490 billion over the level as at end-March 2021. Experts had said that the external debt of $620.7 billion need not be a concern as $490 billion is non-government and the share of government is only $130.8 billion. Of the non-government debt, the share of non-financial corporations was about $250.2 billion. Further, the total debt of $620.7 billion as a percentage of gross domestic product (GDP) was 19.9 per cent and the debt service ratio was 5.2 per cent. Experts also said India cannot be compared with Sri Lanka that is in a severe economic crisis. The share of the central government in short term debt - maturing in a year's time- is only $7.7 billion out of the total $267 billion, experts had said. Commercial borrowings, <keyword id="11904949" type="General" weightage="80" keywordseo="nri" source="Orion">NRI</keyword> deposits, and short-term trade credit are the three biggest constituents of the non-sovereign debt, accounting for as much as 95.2 per cent. While NRI deposits declined by two per cent to $139 billion, commercial borrowings at $209.71 billion and short-term trade credit at $117.4 billion rose by 5.7 per cent and 20.5 per cent, respectively. According to the report, the debt vulnerability indicators continued to be benign. The debt service ratio fell significantly to 5.2 per cent during 2021-22 from 8.2 per cent during the previous year, reflecting buoyant current receipts and moderating external debt service payments. The debt service payment obligations arising out of the stock of external debt as at end of March 2022 are projected to trend downwards over the coming years. From a cross-country perspective, India's external debt is modest. In terms of various debt vulnerability indicators, India's sustainability was better than the Low-and Middle-Income Countries (LMICs) as a group and vis-a-vis many of them individually. According to the report, the US dollar continues to be the leading currency of denomination accounting for 53.2 per cent of the total as at end March 2022. Deposits in Non Resident (External) <keyword id="8182719" type="General" weightage="80" keywordseo="rupee-accounts" source="Orion">Rupee Accounts</keyword> (NR(E)RA), NRO accounts and <keyword id="725142" type="General" weightage="80" keywordseo="fpi" source="Orion">FPI</keyword> investments in Gsec and corporate bonds are among the components of India's external debt, denominated in Indian rupees. Indian rupee is the second leading currency of denomination with a lower share of 31.2 per cent of the total as at end-March 2022 than 33.3 per cent a year ago, reflecting erosion of outstanding FPI investments in G-Sec and corporate bonds ($50.1 billion from $51.4 billion as at end-March 2021) and balances under NRE accounts ($100.8 billion from $ 102.6 billion). Following the US dollar and the Indian rupee are the SDRs (6.6 per cent), the Japanese <keyword id="76265" type="General" weightage="80" keywordseo="yen" source="Orion">Yen</keyword> (5.4 per cent) and Euro (2.9 per cent). SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/delhi-liquor-shops-open-at-metro-station-premises/articleshow/93994229.cms">Delhi: Liquor shops open at Metro station premises</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/mistrys-body-to-undergo-autopsy-in-mumbai-pundoles-critical-but-stable/articleshow/93994156.cms">Mistry's body to undergo autopsy in Mumbai, Pundoles critical but stable</a>

India's external debt of $620bn is sustainable: Finance Ministry report

<ul><li>About 18,968 companies were incorporated in India between April to June last year.</li><li>There are a total of 21,87,026 registered companies in India till June 30, 2021.</li><li>21,349 companies spent ₹21,231 crore on <keyword id="6354502" type="ORGANIZATION" weightage="20" keywordseo="CSR">CSR</keyword> in FY20 for the welfare of workers and local people.</li></ul> India has added 36,191 new companies between April to June this year. This represents an increase of 17,223 new companies, compared to 18,968 companies that were incorporated between April to June last year. It should be noted that in the months of April and May last year, India was going through a nation wide lockdown due to the COVID-19 pandemic. The data was shared by the Minister of State for the <keyword id="6376435" type="UNKNOWN" weightage="20" keywordseo="ministry-of-corporate-affairs">Ministry of Corporate Affairs</keyword>, Rao Inderjit <keyword id="6361419" type="PERSON" weightage="20" keywordseo="singh">Singh</keyword>, in a written reply to a question in Lok Sabha. The minister’s reply was to a query on whether the second wave of the coronavirus pandemic has adversely impacted the economic conditions of the companies in the country. As per the data shared with the ministry, there are a total of 21,87,026 registered companies in India till June 30, 2021. Of these, 13,76,366 companies were active and remaining 8,10,660 were not active due to several reasons like liquidations, mergers, conversion to limited liability partnership (<keyword id="56681" type="ORGANIZATION" weightage="20" keywordseo="LLP">LLP</keyword>) or were striked off. As many as 14,674 companies were closed down in the financial year 2021, between April 2020 to March 2021. Close to 70,972 companies were shuttered in FY20, while 1,43,223 companies were closed in FY19. "There is no verifiable information which says that the closure of the company is due to lack of business acumen," the minister said in another written reply. He was responding to a query on whether want of business acumen is also a reason for closure of companies. Singh, in another response, noted that 80,270 independent directors were appointed by companies in the last three financial years between FY19 to FY21. He also highlighted that the 21,349 companies spent ₹21,231 crore on corporate social responsibility (CSR) in FY20 for the welfare of workers and local people in the country. The Section 135 of the Companies Act of 2013 mandates every company having net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more have to undertake CSR activities. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/adani-group-companies-in-regulators-radar-for-non-compliance-of-rules/articleshow/84553128.cms">Adani Group companies in regulator’s radar for non-compliance of rules</a> <a href="https://www.businessinsider.in/business/news/lenskart-raises-220-million-to-launch-in-middle-east-southeast-asia/articleshow/84552711.cms">Lenskart raises $220 million to launch in Middle East, Southeast Asia</a> <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-prime-day-2021-big-discounts-on-kindle-echo-fire-tv-and-more/articleshow/84561783.cms">Amazon Prime Day 2021: Discounts on Kindle, Echo, Fire TV and more</a>

India added almost double the number of new businesses in the last three months compared to same time last year, while India was mostly under lockdown

<ul><li>According to a notification issued by the <keyword id="6376435" type="UNKNOWN" weightage="20" keywordseo="ministry-of-corporate-affairs">Ministry of Corporate Affairs</keyword>, companies will have to disclose <keyword id="6357017" type="DEFINITION" weightage="20" keywordseo="cryptocurrency">cryptocurrency</keyword> related matters in their financial statements.</li><li>The cryptocurrency disclosure requirements come into effect from April 1, 2021.</li><li>Industry insiders have welcomed the decision, saying that this allows companies to treat <keyword id="6994688" type="UNKNOWN" weightage="20" keywordseo="cryptocurrency-transactions">cryptocurrency transactions</keyword> in a legitimate manner.</li></ul>The Indian government has mandated companies to disclose their cryptocurrency holdings. The disclosure will be a part of the financial statements of the company, aimed at giving a better picture of the company’s finances to the stakeholders. According to a notification released by the Ministry of Corporate Affairs (MCA), every company which has indulged in cryptocurrency transactions will have to disclose the following facts: <ol><li>Its cryptocurrency holdings as on the date of the financial statements.</li><li>The total profit or loss on transactions involving these crypto or virtual currencies.</li><li>Deposits or advances received from any person for the purpose of trading or investing in these currencies.</li></ol>These disclosures will be required starting on April 1, 2021, which is when India’s financial year 2021-22 begins. The timing of the MCA notification is important, since it comes at a juncture when there is ambiguity in terms of legality of cryptocurrencies in India. For what it’s worth, the government has proposed a bill to regulate and even ban cryptocurrencies. However, the official word on this is still not available. <div type="Article" hostid="261" msid="80782941" title="“Should I sell my cryptocurrencies?” and other questions answered on India’s proposed Crypto Ban bill" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Industry insiders welcome the decision" comment="subhead" text="Industry insiders welcome the decision">Industry insiders welcome the decision</cmsannotation> The addition to cryptocurrency-related disclosures in the financial statements of companies is a significant decision. For one, it gives an air of legitimacy to these transactions. And secondly, it shows the government’s intent to regulate cryptocurrency investments and trading. “It is a welcome move as the amendment is a great stride towards a regulated environment which is what the industry has been eagerly anticipating. Besides ushering in transparency for the system it will enhance the confidence of investors both retail and institutional especially in the wake of ongoing speculations around the cryptocurrency bill,” said Sumit Gupta, co-founder and chief executive of CoinDCX, a Mumbai-based cryptocurrency exchange. Gupta also stressed on the need for regulation and taxation, suggesting this should be the way forward instead of banning cryptocurrencies. “In light of the recent speculation around banning, allowing cryptocurrencies to be a part of accounting practices will definitely put investors at ease as they no longer have to be worried regarding taxation,” said Monark Modi, founder and chief executive of Bitex. Modi further added that this is a ‘definite endorsement’ and that regulation is the ‘right step ahead. Kumar Gaurav, founder and chief executive of Cashaa, said that this allows cryptocurrency transactions to be treated in a legitimate manner. Overall, with the industry receiving this notification in a positive manner, the retail investors can heave a sigh of relief. Even though the notification does not impact them directly, it is a step in the right direction as far as legitimising and regulating cryptocurrencies in India is concerned. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/what-happens-if-the-government-bans-cryptocurrencies-should-i-sell-bitcoin-checkout-experts-views/articleshow/80782941.cms">“Should I sell my cryptocurrencies?” and other questions answered on India’s proposed Crypto Ban bill</a> <a href="https://www.businessinsider.in/stock-market/news/crypto-firm-kraken-seeks-to-double-its-valuation-to-10-billion-as-trading-in-digital-assets-skyrockets/articleshow/81222984.cms">Crypto firm Kraken seeks to double its valuation to $10 billion as trading in digital assets skyrockets</a>

Indian companies will have to disclose cryptocurrency holdings from April 1 – industry insiders welcome decision

New Delhi, <keyword id="4742614" type="COMPANY" weightage="20" keywordseo="ministry-of-housing-and-urban-affairs">Ministry of Housing and Urban Affairs</keyword> (MoHUA) has joined hands with <keyword id="830092" type="LOCATION" weightage="20" keywordseo="Zomato">Zomato</keyword> for home delivery of <keyword id="6361952" type="UNKNOWN" weightage="20" keywordseo="Street-Food">street food</keyword> in six cities. As a part of Prime Minister <keyword id="456744" type="PERSON" weightage="20" keywordseo="street-vendor">Street Vendor</keyword>'s AtmaNibhar Nidhi (PM SVANidhi) Scheme, the MoHUA entered into MoU with Zomato, to bring <keyword id="6770639" type="COMPANY" weightage="20" keywordseo="street-food-vendors">street food vendors</keyword> on its food-tech platform. In a statement MoHUA said that initially MoHUA and Zomato will run a pilot program by on-boarding 300 vendors across six cities namely - Bhopal, Ludhiana, Nagpur, Patna, Raipur, Vadodara. "The street vendors will be helped with PAN and fssai registration, training on technology/ partner app usage, menu digitization and pricing, hygiene and packaging best practices. Upon the successful completion of the pilot, MoHUA and Zomato plan to expand this initiative across the country in phases," it said. As per the MoHUA, this will give street food vendors online access to thousands of consumers and help these vendors grow their businesses. The MoHUA also launched the Mobile Application for PMSVANidhi se Samriddhi- Socio-economic profiling of PM SVANidhi beneficiaries and their families to link them to various Central government Schemes. "Covid-19 pandemic has restricted consumers from stepping out and forced them to follow physical distancing norms. In the given scenario it is important to connect Street Food Vendors with technology-enabled platforms to help them grow their business, thus helping them gain financially," said the ministry. In a first of its kind initiative, MoHUA entered into an MoU with Swiggy on October 5 last year and it is now joining hands with Zomato to empower street food vendors with digital technology. The MoHUA has coordinated with the key stakeholders including <keyword id="6414396" type="COMPANY" weightage="20" keywordseo="municipal-corporations">Municipal Corporations</keyword>, fssai, Zomato and GST officials to ensure that street food vendors are facilitated in completing the necessary prerequisites for this initiative. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/how-big-is-indias-debt-and-should-it-be-a-worry/articleshow/80688623.cms">How big is India's debt and should it be a worry?</a> <a href="https://www.businessinsider.in/stock-market/news/heres-why-you-arent-being-able-to-apply-for-brookfield-reit-ipo-through-zerodha-groww-angel-broking-and-other-stockbroking-apps/articleshow/80686457.cms">Here's why you aren't being able to apply for Brookfield REIT IPO through Zerodha, Groww and other stockbroking apps</a>

Zomato joins hands with the Indian government to deliver street food in Bhopal, Ludhiana, Nagpur, Patna, Raipur, and Vadodara

The Department <keyword id="6310265" type="COMPANY" weightage="20" keywordseo="of-economic-affairs">of Economic Affairs</keyword> had earlier raised red signals over the likely collapse of IL&amp;FS in a confidential note on September 30, 2018 and expressed concerns over its impact on the Indian economy, according to a latest affidavit filed by the <keyword id="153101" type="COMPANY" weightage="20" keywordseo="Corporate-Affairs">corporate affairs</keyword> <keyword id="8787526" type="COMPANY" weightage="20" keywordseo="ministry-the-ministry">ministry.The Ministry</keyword> of Corporate Affairs (MCA) in the affidavit said the DEA had opined that if IL&amp;FS group collapses, the Indian economy may have to face repercussions as redemption pressure would continue, debt market sell-off expected, may create liquidity crunch and NBFC licenses could be cancelled. "DEA had raised red signals of the likely collapse of IL&amp;FS and had expressed its deep concern of such a collapse on the Indian economy," said MCA in the affidavit filed before the National Company Law Appellate Tribunal (NCLAT). Immediately after that, the MCA had moved the National Company Law Tribunal to take over the management of IL&amp;FS, which had a debt exposure of over Rs 91,000 crore. According to DEA, "AMCs having exposure of Rs 2,800 crores to IL&amp;FS bonds would get redemption pressure from Corporate Clients". It further added that it was impossible for such mutual fund schemes to get the redemption amounts in a short period of time. "Further, illiquid Corporate Debt Market and DHFL saga may force AMCs to sell government securities. Hence, the government securities would face a huge selling pressure so either Bond Yield will shoot up to 8.30-8.50 per cent levels or the RBI has to do OMO (open market operations). "If RBI opts for OMO, then the government's spending capacity will reduce by an equal amount," it had said. DEA said that NBFC licenses could be cancelled also. "In the wake of the IL&amp;FS crisis, as many as 1,500 smaller NBFCs may have their license cancelled because they do not have adequate capital," it had said. Moreover, there also could be liquidity crunch and recent events hitting market sentiments will lead to cost of fund for NBFCs increasing, impacting profitability. The RBI's liquidity inducing measures and announcements have helped government bond yields to drop to 8.05-8.08 levels, but corporate bond yields have risen further by about 40-50 bps post IL&amp;FS crisis. "Primary market in Corporate bonds has completely dried up as no one is willing to bar currently in expectation of further redemption from MF's," it added. Though IL&amp;FS group is not inconsequential, but exposure of the banks to the NBFC sector is about 16 per cent. "Therefore, there is a substantial public interest in ensuring financial solvency and good governance and management of this group," it added. According to the affidavit, IL&amp;FS has an aggregate debt of Rs 94,215 crore as of January 2020, in which Rs 10,173 crore (around 10.79 per cent) is collectively from public fund creditors as pension funds, provident funds, employee welfare funds, gratuity funds and army group insurance funds etc. Rs 44,075 crore debt, which is 47 per cent, is collectively from the commercial banks, the affidavit said. Moreover, the aggregate debt of its four key holding companies -- Infrastructure Leasing &amp; Financial Services (IL&amp;FS), IL&amp;FS Financial Services, IL&amp;FS <keyword id="5054155" type="DOMAIN" weightage="20" keywordseo="Transportation-Networks-Ltd">Transportation Networks Ltd</keyword> (ITNL) and IL&amp;FS <keyword id="719770" type="DOMAIN" weightage="20" keywordseo="Energy-Development-Company-Ltd">Energy Development Company Ltd</keyword> (IEDCL) - is almost 51 per cent, which is Rs 48,000 crore. IL&amp;FS group comprised of 302 entities, of which 169 entities are incorporated in India and 133 entities abroad. The new board has classified the 169 companies into different categories and has asked to release 55 companies from its protection shield of order dated October 15, 2018. In the affidavit, it has also asked the NCLAT to release nine other companies from the scope and operation of the October 2018 order so that they can discharge their debt obligations. While for rest 105 IL&amp;FS group companies, it has sought additional 270 days to complete their resolution process. Passing an interim order on October 15, 2018, the NCLAT had stayed all proceedings against IL&amp;FS group companies, whose total debt is Rs 94,215 crore. The government is conducting resolution process of IL&amp;FS based on the principles enunciated in the Insolvency and Bankruptcy Code. It has appointed retired Supreme Court judge Justice D K Jain to supervise the entire process.

IL&FS crisis was red-flagged in 2018 'confidential' note by the DEA

The <keyword id="6396355" type="ORGANIZATION" weightage="20" keywordseo="nclat">NCLAT</keyword> on Wednesday dismissed the pleas of auditors of debt-ridden IL&amp;FS -- <keyword id="115294" type="COMPANY" weightage="20" keywordseo="Deloitte-Haskins">Deloitte Haskins</keyword> &amp; Sells and <keyword id="50041" type="COMPANY" weightage="20" keywordseo="KPMG">KPMG</keyword> arm BSR &amp; Associates -- along with independent directors challenging their impleadment in the case of alleged fraud at a group firm IFIN. A two-member bench of the NCLAT upheld the directions of the Mumbai bench of the <keyword id="3778499" type="COMPANY" weightage="20" keywordseo="NATIONAL-COMPANY">National Company</keyword> Law Tribunal, saying it can not be termed as "illegal". The NCLT had directed them to implead the auditors and independent directors as party. The NCLT is empowered to pass order to implead them under Section 242 of the Companies Act, 2013 in a petition under Section 241(2) if "it forms opinion that the affairs of the company have been conducted in a manner prejudicial to the public interest", the appellate tribunal further said. "Once such opinion is formed by the Tribunal, it may pass any order as it deem fit and proper,"said the National Company Law Appellate Tribunal (NCLAT) bench headed by Chairperson Justice S J Mukhopadhaya. The case relates to IFIN, a subsidiary of IL&amp;FS. Rejecting the contention of the auditors and others that they cannot be treated as part of the management, which is responsible for managing the affairs of the company and therefore should not be charged as per the said section, the NCLAT said that rules of natural justice are to be followed. "As rules of natural justice are to be followed, if any order is passed against one or other, including investigation, it is always open to the Tribunal to ask such party to be impleaded," the NCLAT said. The MCA had asked the NCLT to freeze the assets of the former auditors in the case, involving alleged fraud in IFIN. The appellate tribunal, however, granted relief to both the auditors and other independent directors by allowing the operation of its earlier interim order passed on July 29, 2019 for two weeks. After the judgment was pronounced by the NCLAT in the open court, a request was made by counsels, representing accounting firms and other independent directors, to allow the interim order passed by it on July 29, 2019 for two weeks, which was accepted by the appellate tribunal. "We allow the prayer and continue the interim order passed on 29th July, 2019 for another two weeks," the bench said. On July 29, the NCLAT stayed the order of the Mumbai bench of the National Company Law Tribunal (NCLT) to implead the auditors and independent directors of IL&amp;FS. Earlier on July 23, the NCLT had allowed the plea of the <keyword id="6376435" type="COMPANY" weightage="20" keywordseo="ministry-of-corporate-affairs">Ministry of Corporate Affairs</keyword> (MCA) to implead the auditors and independent directors of IFIN. Moreover, visualsing the possible impact of IL&amp;FS crisis on the Indian economy, the NCLAT in its 72-page-long order said that various acts "prejudicial to public interest" have been highlighted, which has cascading impact on various sectors of economy and even the <keyword id="144110" type="COMPANY" weightage="20" keywordseo="Department-of-Economic-Affairs">Department of Economic Affairs</keyword> -- which is responsible for the financial stability of the country -- too has raised "Red Signals" of the likely collapse of 'IL&amp;FS' in its confidential note dated September 30, 2018. "In the circumstances, before passing any appropriate order in public interest and to save the economy of the Country from collapse, if the Tribunal is of the opinion that it requires to give appropriate hearing to the concerned parties, including those who audited 'IL&amp;FS' and/ or those who have managed or were concerned with 'IL&amp;FS' or its Group Companies, it cannot be held to be illegal. "We find no merit in these appeals. They are accordingly, dismissed," the NCLAT said. The central government had submitted that the act of fraud perpetuated is on account of "mis-representation and falsehoods about the financial state of affairs" of the concerned company, which has jeopardized the financial health apart from causing serious damage and financial loss to various stakeholders. However, the tribuanl said that as the matter is still pending before the NCLT, it is "not inclined to express any opinion whether the allegations made against one or other require further investigation and the order what is required to be passed in public interest". While commenting on the development, Deloite India spokesperson said: "We will review the written order before determining our further course of action, which may include an appeal". Auditors cannot be treated as part of the management which is responsible for managing the affairs of the company and therefore should not be charged, the spokesperson said. "We will continue to present and protect its position, supported by the facts, to the relevant authorities. The firm remains committed to high standards of audit quality and ethical conduct in its professional practice," he added. There was no immediate comment from KPMG.

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