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1. Moratorium
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| No additional fees shall be charged for late filing during a moratorium period from April 01, 2020 to September 30, 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry. |
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2. Relaxation
with regard to Board meetings
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| Relaxation has been given in respect of holding boarding meetings till 60 days till the next 2 Quarters. The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 day still next two quarters i.e., till 30th September |
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3. Independent
director
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| As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one meeting, the same shall not be viewed as a violation of provisions of Companies Act, 2013 |
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4.
Applicability of CARO-20
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| Applicability of CARO-20 which was supposed to be effective from 2019-20 has been shifted to Year 2020-21. This will significantly ease the burden on companies & their auditors for the year 2019-20. |
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| 5. Commencement of business |
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| Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. Additional time of 6 more months given to newly incorporated companies for declaration of commencement of business in e-form 20A. Now, it can be filed up to 1 year from the date of incorporation of company. |
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| 6. Relaxation for residency requirement for Indian Directors |
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| A Company director who doesn’t comply with minimum residency requirement of 182 days or more in India u/s 149 of Companies Act, 2013 shall not be considered as violation. |
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| 7. Relaxation on Deposits Reserve |
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| Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year2020-21 before April 30, 2020 shall be allowed to be complied with till 30th June 2020 Requirement to invest 15% of debentures maturing during a particular year in specified instruments before April 30, 2020, may be done so before June 30, 2020. |
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Relaxation
related to Insolvency & Bankruptcy Code, 2016
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| 1. Raising of threshold for default value from Rs .1 lakh to Rs .1 cr. |
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| Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19,the threshold for default has been raised from Rs. 1 lakh to Rs. 1 cr to prevent triggering of insolvency proceeding against MSMEs. This would be implemented straight away. |
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2. Govt. may
consider Suspension of Section 7, 9 & 10 for 6 months
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| The Govt. may consider whole suspension of Section 7, 9, & 10 of the Insolvency and Bankruptcy Code, 2016 for 6 months if situation continues till Apr, 2020so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default. |
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Relaxation
related to Banking
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1. No fee on
withdrawal from debit cards
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| Debit card holders can now withdraw cash for free without any additional charges from any bank for next 3 months. |
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2. Waiver of
minimum balance charges
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| There will be a complete waiver of minimum balance requirement fee by banks. |
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3. Reduction of
bank charges for digital trade transactions:
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| There will be reduction of bank charges for digital trade transactions for all trade finance consumers. |