India Corporate Laws – Nirmal Ghorawat's Blog

Government Approval Route for Investment in India from Countries sharing land border with India

The Government of India vide Press Note 3 of 2020 issued by Department for Promotion of Industry and Internal Trade has amended para 3.1.1 of the Consolidated FDI policy, 2017. 3.1.1(a) A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a…More

Prohibition of Acceptance of Deposits for the purpose of Lending by Unincorporated Business under the RBI Act, 1934

Section 45S of the RBI Act, 1984 prohibits any person being an individual, a partnership firm or an unincorporated association of individuals from accepting deposits if (a) his or its business, wholly or partly includes – the financing, whether by way of making loans or advances or otherwise, of any activity other than its own;…More

Moneylending related offence included under PASA in Gujarat

The Governor of Gujarat has promulgated ‘The Gujarat Prevention of Anti Social Activities (Amendment) Ordinance, 2020’ with effect from 07 September 2020. Clause (ga) inserted in Section 2 defines a “money lending offender” to mean a person, who commits or attempts to commit or abets the commission of offences under Chapter IX of the Gujarat…More

Banning of Unregulated Deposit Schemes

1. The Government of India has promulgated ‘The Banning of Unregulated Deposit Schemes Act, 2019’ (21 of 2019) and it has commenced from 21 February 2019. Further, the Department of Financial Services, Ministry of Finance, Government of India, has notified ‘The Banning of Unregulated Deposits Schemes Rules, 2020’ with effect from 12 February, 2020. 2.1…More

Cryptocurrencies : Who will regulate RBI or SEBI?

The Finance Minister Shri Arun Jaitley stated in his India Union Budget Speech on 1 February 2018 that, “The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. “. Any attempt to regulate…More