The Government plans to decriminalize cheque bounce offenses

Last year, The government intends to reclassify 39 economic offenses as civil offenses and decriminalize them under 19 acts. Lenders can suffer disappointment as a result of the transfer, which could lead to legal action. Bounced cheques and violations of a debt repayment law are included in economic offenses. There have been proposed reforms to the Insurance Act, the PFRDA Act, the RBI Act, the Payment and Settlement Systems Act, the NABARD Act, the Banning of Unregulated Deposit Schemes Act, and the Chit Funds Act, among others.

The Negotiable Instruments Act makes it illegal to return cheques due to insufficient funds in a bank account. The statute stipulates two-year imprisonment and a fine equal to twice the amount involved.

After receiving requests to keep the current system, the government may discard its attempt to decriminalize cheque bounce offenses. Before making a final decision, it will request guidance from a Supreme Court panel established to facilitate the processing of cheque bounce proceedings.

Review of the regulatory system of promoters, promoter groups, and group companies as per SEBI Regulation, 2018

SEBI has asked for public feedback on the proposals, which are available until June 10th. The minimum promoters’ investment of 20% should be locked in for one year from the date of allotment in the Initial Public Offer, according to SEBI, whether the issue’s objective is an offer for selling or funding other than for capital expenditure for a project. The lock-in period is currently three years. Instead of the current condition of one year from the date of allotment in the IPO, promoters’ holdings in excess of the minimum promoters’ contribution shall be locked, SEBI suggested a six-month trial period.

SEBI said there is a need to rethink the term “promoter” to a concept of “person in control,” citing the evolving investor environment. A three-year transition period has been suggested to ensure a smooth and gradual transition without causing uncertainty.

Persons other than promoters should have their pre-issue capital locked in for six months from the date of allotment in the IPO, rather than the existing one year. The regulator has proposed simplifying the concept of a “promoter group,” as the new definition focuses on holdings of a single group, which includes unrelated firms with common financial investors. 

TO READ THE OFFICIAL NOTIFICATION CLICK HERE.

For any query/registration/advisory related to GST, Company, Taxation laws, and Updates, Kindly visit www.onfiling.com

Contact: +91 8448440803

E-mail: info@onfiling.com