Notifications (August 2021)

MANUAL DISCLOSURE FILING UNDER SEBI PIT REGULATIONS IS NO LONGER REQUIRED

Companies, promoter group members, directors, and authorized persons will no longer be required to file manual disclosures if they comply with the system-driven disclosure framework. Relevant disclosures are disseminated by stock exchanges based on an aggregation of data from depositories without human intervention under the SDD (System Driven Disclosures) methodology. The SDD has been implemented by exchanges and depositories, according to the Sebi’s circular from September 2020. The regulator’s rules refer to the requirement that promoters, designated persons, and directors of a publicly-traded firm report the number of securities they have acquired or sold within two trading days following a transaction.

This was contingent on the value of the securities being traded comprising more than Rs 10 lakh. This was true whether the transaction was one or a series of transactions over the course of a calendar quarter.

TO READ THE OFFICIAL NOTIFICATION CLICK HERE

THE COMPANIES ACT’S SCHEDULE III, WHICH GOVERNS FINANCIAL DISCLOSURE AND CSR, HAS BEEN AMENDED BY THE MCA

The Ministry of Corporate Affairs (MCA) has revised Schedule III of the Companies Act, 2013, beginning April 1, 2021, to compel specific disclosures by companies in their financial statements in order to increase accountability in financial statement reporting. The additional disclosures relating to virtual currency/cryptocurrency transactions and CSR spending undertaken by firms throughout a financial year, which are as follows:

The following information must be given if the Company has traded or invested in Cryptocurrency or Virtual Currency during the financial year:

  1. Profit or loss on Cryptocurrency or Virtual Currency transactions
  2. amount of cash on hand at the time of reporting,
  3. Any deposit or advance for trading or investing in CryptoCurrency or virtual currency from any person.

When a company is covered by section 135 of the Companies Act, the following information about CSR must be reported. 

  1. the amount that the corporation must spend during the year
  2. the total amount of money spent,
  3. the year’s end-of-year shortfall,
  4. The overall shortfall from prior years,
  5. the cause of the shortage,
  6. the nature of CSR initiatives,
  7. information of related party transactions, such as a payment to a trust maintained by the firm for CSR expenditure in accordance with the applicable Accounting Standard
  8. When a provision is made for a liability incurred as a result of entering into a contractual obligation, the changes in the provision should be indicated individually throughout the year.

TO READ THE OFFICIAL NOTIFICATION CLICK HERE

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