February 2014

By March 30, 2014 December 20th, 2019 No Comments
Notification/Circular no. Date Subject Amendment comment/effect
(DIR Series) Circular No.107
Feb 20, 2014 FDI in MSE and in Industrial
Undertaking manufacturing items reserved for SSI/MSE
a. Companies falling under the
definition of MSE as per MSMED Act, 2006 may accept FDI investment subject to
extant FDI Policy and Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) Regulations, 2000. Type of instruments
permitted is only equity shares and convertible debentures
Scope of FDI in MSE expanded in
light of provisions of MSMED Act, 2006
b. Companies which are not MSE
and hold industrial license under the provisions of the Industries
(Development & Regulation) Act, 1951 for manufacturing items reserved for
manufacture in the MSE sector may issue shares in excess of 24 per cent of
its paid up capital with prior approval of the FIPB.
A. P. (DIR Series) Circular
No. 105
February 17, 2014 ECB reporting Format of ECB-2 Return amended Amendments to capture details of
the financial hedges contracted by corporates, of their foreign currency
exposure relating to ECB and their foreign currency earnings and expenditure
A.P. (DIR Series) Circular
February 11, 2014 FDI Report Form FC-GPR revised Amendment brought in to capture
the granular details of FDI as regards Brownfield/Greenfield investments and
the date of incorporation of investee company

PN/Document no. Date Subject Amendment
PN 2 of
4.2.2014 FDI in Insurance Sector a. extended to include
investments by NRI’s as well as FII.
b. extented to apply to
insurance brokers, TPA’s, Surveyors and loss assessors
circular/notificationno. Date Subject Amendment
(1) An issuer making an initial
public offer may obtain grading for such offer from one or more credit rating
agencies registered with the Board.                         (2) The format of
Statement of Assets and Liabilities to be a part of disclosures in offer
document has been changed to include elaborate details
CIR/IMD/FIIC/4/2014  14-Feb-14 FII/QFI investments in
Commercial Papers
FII/QFI shall be permitted to
invest upto US$ 2 billion in Commercial
Papers and upto US$5 billion in Credit
Enhanced Bonds within the Corporate Debt limit of US$ 51 billion
Date Subject Amendment comment/effect
28.2.2014 Patent (Amendment) Rules, 2014 a. increase in filing fee of
patent applications
Increase of filing and other fee
and recognition of small entity as a separate class of applicant. 
b. new category of applicant
viz. ‘small entity’ added. Small entity means a medium enterprice as per
MSMED Act, 2006 viz. where, in case of manufacturing sector, investment in
plant and machinery is between Rs. 5-10 crores and in case of service sector,
the investment in equipments is between Rs. 2-5 crores. 
c. 10% additional fee for
physical filing. 
d. new form prescribed for small
entities to be filed with patent applications
e. New form for Representation
Opposing Grant Of
Notification/Circular  No. Date Particulars
1-15-35 27-Feb-14 Section 135 of the Companies
Act, 2013 along with Schedule VII thereof i.e. Provisions pertaining to
corporate social responsibility have been brought into effect. This section
requires that every company having a net worth exceeding INR 500 crores or turnover
exceeding INR 100 crores or net profit exceeding INR 5 crores shall
constitute a corporate social responsibility committtee and formulate a
corporate socila responsibility policy of the Company. The Board of every
such company is required to ensure that the compsny spends at least 2% of its
average profits in the last three years towards Corporate Social
Responsibility (CSR) activities
27-Feb-14 Companies (Corporate Social
Responsibility Policies) Rules, 2014 were brought into force. This reules
prescribes the activities for which the expenditures under Section 135 of the
Companies Act, 2013 can be made, the reporting requirements, the constitution
of the CSR committee, complainces regarding the same etc.
3 of 2013 14-Feb-14 Clarification regarding section
185 of the Companies Act 2013 is issued. It is clarified that in respect of
any guarantee given or security provided by a holding company in respect of
loans made by banks or financial institution to its
subsidiary company, exemption as provided in clause (d) of sub-section (8)
of section 372A of the Companies Act, 1956 shall be applicable till section
186 of ths Companies
Act, 2013 is notified. This clarification is however are applicable only
for those cases where loans are obtained exclusively for subsidiary company’s
principal business activity.
Commission of India 
Order No. Section Particulars
C-2013/12/144 5 CCI approved the proposed
acquisition of 50.1% stake by Etihad Airways PJSC in Jet Privilege Private
Limited (JPPL) prusuant to hiviing off of loyalty business of Jet Airways
into JPPL. Ipertinently, the CCI opined that since Jet’s loyalty business
would be transferred to JPPL as part of the transcation, even value of assets
and turnover of Jet were attributed to JPPL for the purposes of determining
the requirement of a merger control filing. However, as oppposed to the
majority order, a minority order is also issued by one of the CCI members
stating that the loyalty inducing programs are intended to keep passengers
closed within the relevant network and integration of frequent flyer programs
of different airlines is likely to create entry/expansion barriers.
Accordingly, there is a prima facie opinion that the proposed combination is
likely to raise appreciable adverse effect on competition in the
international air passenger transportation market, more particularly in those
routes between India and Abu Dhabi
96 of
3 & 4 Certain doctors working at Dr.
Batra’s Positive Health Clinic Pvt Ltd. (Company) filed a case against the
Company claiming that the Company had a dominant position in the homeopathy
services market and that consultancy agreement restricting the doctors working
with the Company from practicing in any city where a clinic of the Company is
situated even after termination were anti-cmpetitive. The CCI observed and
held that due to many other players existing in the relevant market like
Baksons, SBL, Ayush and Schwabe who have various clinics accross India, the
Company does not appear to be in a dominant position in relevant market of the provision of homeopathic
services in India. Further, since the Company is not a dominant player in
that market it cannot possibly be a dominant player in the market of hiring
of the doctors for the provision of homeopathy services in India. On the
basis of foregoing, the CCI took a view that the is prima facie not dominant
in the relevant market within the meaning of section 4 of the Act and
accordingly the question of abuse thereof does not arise. Further, a plain
read of the Consultancy Agreement clarifies that any doctor who chooses to
practice with the OP is restricted to practise elsewhere even after the termination
of the arrangement. Such restriction may fall foul of the provisions of the
Act under section 3(1) read with section 3(4) of the Act if they have an
appreciable adverse effect on competition in India. Considering that the
market for provision of homeopathy services and market of hiring of the
doctors for the provision of homeopathy services in India appears to be quite
competitive, the restrictive condition does 
not seem to have appreciable adverse effect on the competition in the
concerned markets in India. Further there is no dearth of doctors practising

homeopathy in India. Therefore, the CCI did not consider it
appropriate to proceed further with this matter.

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