Companies will have to put it on record whether indirect investments are held in a third party's name for a temporary period or not as per the rules notified by MCA
The Indian government has asked companies to maintain an official register having details about indirect investments along with reasons for not holding them in their own names. This would prevent routing of money by companies through shell entities, the government says.
Ushering in a stringent regulatory framework for corporates, the government has said that entities would also have to put it on record whether indirect investments are held in a third party's name for a temporary period or not.
Every company shall maintain a register with particulars of investments in shares or other securities beneficially held by it but which are not held in its own name, according to the rules under the Companies Act, 2013.
Besides, the company is required to record in the register "the reasons for not holding the investments in its own name and the relationship or contract under which the investment is held in the name of any other person."
Further, the register should carry the investment details in a chronological order.
The requirement is part of the Companies Act rules notified by the Ministry of Corporate Affairs (MCA) on Thursday.
"The register shall be preserved permanently and shall be kept in the custody of the company secretary of the company or if there is no company secretary, any director or any other officer authorised by the board for the purpose," the notification said.
To ensure that the register are maintained in a proper manner, the entries in the register shall be authenticated by the company secretary of the company or by any other person authorised by the board for the purpose.
The government's move on this front comes at a time when there have been instances of entities routing their money within and outside the country by floating shell companies.
ED seized two office buildings, five flats, one plot and two luxury cars of Raipur based Alankar Alloys Pvt Ltd and Pankaj Ispat Ltd for 'illegally manufacturing' SAIL brand TMT bars in their factories
In the first case of money laundering charges being slapped for violation of the Trade Marks Act in India, the Enforcement Directorate (ED) has seized assets worth Rs7 crore of two Chhattisgarh based companies for allegedly fake branding of Steel Authority of India (SAIL).
The agency has seized two office buildings, five flats, one plot and two luxury cars, an Audi and a BMW, of two Raipur based companies-- Alankar Alloys Pvt Ltd and Pankaj Ispat Ltd-- for 'illegally manufacturing' SAIL brand TMT bars in their factories.
The case dates back to April 2013 when SAIL lodged a formal complaint with the Chhattisgarh police stating that these companies were allegedly indulging in fake branding of its name which has not only caused damage to the reputation of one of the largest iron and steel makers of the country but was also making it loose money.
The ED's zonal office in the Chhattisgarh capital registered a case under the Prevention of Money Laundering Act (PMLA) after taking cognisance of the police FIR and its probe till now has found that both the accused firms have allegedly laundered huge sums of money in violation of the Trade Marks Act, 1999.
This is the first time that the central probe agency has taken cognisance of a money laundering instance in a crime which is not registered under the usual criminal or anti-corruption laws but under the Trade Marks protection laws.
The ED found the 'SAIL brand TMT rods' were being made clandestinely and were being sold at "inflated costs" outside the state through a company registered in the name of Baid Steel Pvt Ltd at Raipur.
Gavaskar will have to get out of the contract with BCCI for commentary in order to discharge the duty assigned by the Supreme Court
The Supreme Court on Friday handed over the reins of Board of Control for Cricket in India (BCCI) to former player Sunil Gavaskar during the seventh edition of Indian Premier League (IPL) T20 tournament slated to begin on 16th April.
The apex court did not bar N Srinivasan-promoted Chennai Super Kings (CSK) and Rajasthan Royals (RR) from participating in the tournament.
Taking the cricket board out of incumbent Srinivasan’s hands, the Supreme Court directed that former cricketer Shivlal Yadav, who is also the senior most vice-president of BCCI will be looking after the affairs of the cricket board.
A bench of justices AK Patnaik and FM Ibrahim Kalifulla, which on Thursday had proposed barring CSK and RR in the tournament, however, refused to pass order in this regard allowing them to play the matches along with six other teams in the tournament beginning at Dubai.
The bench also said that Gavaskar will have to get out of the contract with BCCI for commentary in order to discharge the duty assigned by the court. It also directed BCCI to adequately compensate the veteran cricketer.
The order was given during hearing on the Mudgal Committee report that went into betting and spot-fixing allegations against those involved in CSK and RR during IPL6.
In a packed-courtroom, the bench made it clear that no employee of India Cements, except players and commentators, will be allowed to get involved in any duties or activities of BCCI.
It also said that it is for Gavaskar to decide whether Sundar Raman, the present chief executive of IPL to continue on his post or to be replaced after allegations were levelled against him in the court of protecting Srinivasan.
In the meantime, BCCI pleaded with the court to allow Srinivasan to hold the post of International Cricket Council (ICC) chairman from July. But the bench refused to pass any order regarding this.
The BCCI also vehemently rejected the allegations levelled against Indian cricket team captain MS Dhoni by Counsel Harish Salve, who accused him of “covering up” Gurunath Meiyappan.
“He has been wrongly vilified by media after false allegations were levelled against him in the court yesterday. He never made a statement that Meiyappan was just a cricket enthusiast as submitted by senior counsel Harish Salve,” senior advocate CA Sundaram, appearing for BCCI, told the bench.
“The Statement made yesterday was false,” he further said.