1. PGC NEWSLETTER15th, April 2014 1
PGC
NEWSLETTER
15th, April 2014
THOUGHT OF THE DAY
“Watch your thoughts; they become
words”
ECONOMICS NEWS
 India‘s free trade agreement (FTA) on services with the 10- member
Association of Southeast Asian Nations (Asean) is still in limbo, as three
members — Thailand, Indonesia and the Philippines —are yet to ratify the
deal.
 Mahindra ShubhLabh Services Ltd, as Subsidiary of automobile giant
Mahindra & Mahindra and part of the $ 16.7 billion Mahindra Group, has
signed a joint venture agreement with the $ 4 billion Belgium- based
Univeg.
CORPORATE LAW UPDATES
 Companies tapping equity capital markets continue to get their issues
graded by rating agencies, despite SEBI relaxation in this regard.
 The Competition Commission of India recently imposed a penalty of Rs.1
Crore on Google, for non- cooperation with the CCI‘s ongoing
investigation against the internet giant. The CCI in an order imposing the
penalty noted that Google, without any reasonable cause, had failed on
several occasions to comply with requests for information by the office of
the director general (the CCI‘s investigative arm).
RBI / TAX LAW UPDATE
 RBI: The Reserve Bank of India (RBI) should not compromise on its ‗ fit
and proper‘ criterion while offering new banking licences to promote
financial inclusion, said former RBI governor Bimal Jalan. The RBI has, in
principle, approved banking licences to two — Bandhan and IDFC — of
the 25 applicants.
 IT: No Penalty for non-furnishing of Docs under Sec-92D, unless Notice
Specifies the info sought.(Income-tax Officer, 8(2)(3) V. Netsoft India Ltd.)
 IT : Extraordinary events like merger and demerger have an effect on
profitability of company in financial year in which such event takes place,
and a company which is undergoing said events cannot be considered as
comparable.
MARKET UPDATES
SENSEX
22,504.58 -124.38
CNX NIFTY
6,740.35 -35.95
DOLLAR/ RUPEE
60.28 0.1
MCX SILVER
42909.00 -0.74
MCX GOLD
28,777.0 -182.0
MCX CRUDE OIL
6241.00 -0.65
Dow Jones Industrial
Average
16,173.24 146.49
Nasdaq Composite
4022.69 22.96

2. PGC NEWSLETTER15th, April 2014 2

COMPANIES ACT, 2013
Share certificates
The provision regarding the time limit for issue of share certificates to members consequent to new/ fresh
allotment of shares or transfer/ transmission of securities are to be found in section 56 of the Companies
Act, 2013 which has got a heading ―Transfer & Transmission of Securities‖ instead of at section 46 which
has the heading ―Certificate of Shares‖
According to Section 56(4) share certificates have to be issued to members within
(a) 2 months from the date of incorporation, in case of subscribers to the memorandum; (previously there
was no such time limit under Companies Act 1956);
(b) 2 months from the date of allotment of shares in case of any other allotment (previously it was 3
months u/2 113 of Companies Act 1956);
(c) 1 month from the date of receipt of transfer of securities or date of intimation of securities – (here the
word used is securities rather than shares, so it includes both shares as well as debentures, previously it
was 2 months time limit under Companies Act 1956);
(d) 6 months from the date of allotment of debentures (previously the time limit was 3 months under
Companies Act 1956)
Under proviso to section 113(1) of the Companies Act, 1956 companies could apply for an extension of
time limit for issue of certificates upon allotment/ transfer of debentures by a further period of 9 months.
Now under the Companies Act, 2013, that proviso has been removed, so the above limits under section
56(4) (a) to (d) are absolute and if the company is unable to issue certificates within that period then
penalty process is attracted under section 56(6) which is minimum Rs.25,000/- for the company but may
extend to Rs.5.00 lakhs and minimum Rs.10,000/- for every officer which could extend upto Rs.1.00 lakh
per officer.
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