Ministry of Commerce and Industry reviews FDI policy to curb takeovers/acquisitions of Indian companies due to COVID-19
All FDI proposals from countries sharing border with India under the government approval route. Companies whose beneficial ownership is vested in such countries will also have to undergo government scrutiny for any change in foreign holding.
RBI Extends Resolution timelines on stressed assets under the prudential framework
Lenders are required to implement a resolution plan in respect of entities in default within 180 days from the end of Review Period of 30 days. However RBI has decided that in respect of accounts which were within the Review Period as on March 1, 2020, the period from March 1, 2020 to May 31, 2020 shall be excluded from the calculation of the 30-day timeline.
Banks not to pay further dividends from FY 2019-20
The Reserve Bank of India vide its notification dated 17th March 2020 has decided that scheduled commercial banks and cooperative banks shall not make any further dividend pay-outs from profits pertaining to FY 2019-20.
RBI lowers Liquidity Coverage Ratio requirement for commercial banks
Reserve Bank of India in its notification dated 17th March 2020 has reduced the liquidity coverage ratio (LCR) requirement for scheduled commercial banks to 80 percent from 100 percent with immediate effect which shall continue till 30th September 2020.
RBI exempts accounts with moratorium benefits from asset recognition norms for 90 days
RBI has decided that the payment moratorium period of 3 months, which lending institutions have been permitted to grant as per RBI’s announcement on March 27, 2020, will not be considered while classifying assets as NPAs.
The Government of Gujarat provides certain relaxation for industrial and commercial activities from 20th April
The factories in Gujarat registered under the Factories Act, 1948 shall be exempted from various provisions relating to weekly hours, daily hours, intervals for rest etc. of adult workers from 20th April till 9th July 2020.
Karnataka Government gives relaxations for monthly turnover/ value tax statements
Returns under Karnataka Sales Tax Act, 1957, for March-April 2020 can be submitted within 20 days from the end of tax period. The submission shall be made online to the e-mail id cto.karbng@nic.in. However, submission of physical copy within 60 days is compulsory after online submission.
IBBI excludes the period of lockdown from computation of timelines under IBC
The period of lockdown would not be counted for the purposes of computation of the time-line for any task, in relation to any liquidation process.
Ministry of Health and Family Welfare issues advisory against illegal trade and hoarding of medicines
Advisory directs everyone to neither buy nor sell HCQ without prescription. Those found indulging in such activity will be liable for action under Drugs and Cosmetics Act, 1940.
AYUSH expedites process for licensing manufacture of immunity boosting products and sanitizers.
All state licensing authorities will hereby complete licensing process within a week provided the prescribed standards and relevant provisions of the Drugs & Cosmetics Rules, 1945, in terms of use of ingredients and permitted excitements in accordance with the authoritative books including Pharmacopoeias and Formularies, are fulfilled.
