Some key amendments to the e-commerce policy, Companies Act 2013 and the Insolvency and Bankruptcy Code were introduced in 2018. This update summarises some of the key developments in the past year and gives a brief overview of what can be expected in 2019.
THE YEAR THAT WAS
The year 2018 witnessed changes in key legislations including the Insolvency and Bankruptcy Code, 2016 (IBC) and Companies Act, 2013, aimed at streamlining processes and liberalizing restrictions which were viewed as bottlenecks. Towards the end of the year, tweaks to the e-commerce policy became a major talking point because of their potentially widespread ramifications on major e-commerce players and investments in the sector in general.
MAJOR DEVELOPMENTS IN 2018
1. Revisions to the Companies Act, 2013
(a) Significant Beneficial Ownership Rules
On 14 June 2018, the Ministry of Corporate Affairs (MCA) introduced rules placing disclosure obligations on the ultimate owners of beneficial interest in Indian companies. Given the ambiguity as to the scope and impact of these rules - specifically on disclosure requirements in case of structures involving multiple levels of intermediate corporate shareholding, compliance requirements under these rules were kept in abeyance pending further clarifications/amendments from the MCA.
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