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03 Feb 2023

Key-highlight-of-the-Budget-relating-to-Corporate-Laws

Key highlight of the Budget relating to Corporate Laws:

Proposals relating to MSMEs

1. Revamped credit guarantee for MSMEs

Finance Minister Nirmala Sitharaman announced settlement schemes and credit guarantee schemes for MSMEs. Through Vivad se Vishwas I scheme the Govt. will return 95 % of the forfeited amount relating to bid or performance security in cases of failure by MSMEs to execute contracts during the Covid period, said FM.

1. Proposal to introduce Government's Graded Settlement Scheme

It was proposed that, under Vivad se Vishwas II scheme, a voluntary settlement scheme with standardized terms would be introduced to settle contractual disputes of government and government undertakings, wherein arbitral award is under challenge in a court.

1. Revamping of MSMEs Credit Guarantee Scheme and cost reduction

Last year, Hon'ble Finance Minister proposed revamping of the credit guarantee scheme for MSMEs. Now, FM has announced that the revamped scheme will take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus.

This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about 1 %.

Proposal to introduce E-courts

The finance minister proposed that for efficient administration of justice, Phase-3 of the E- Courts project will be launched. An outlay of Rs. 7,000 crore is proposed for the said project.

Introduction of the Entity- Digilocker

An Entity Digi Locker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities.

Setting up of National Financial Information Registry

Hon'ble FM in her budget speech has mentioned that a national financial information registry will be set up to serve as the central repository of financial and ancillary information. This will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability. A new legislative framework will govern this credit public infrastructure, and it will be designed in consultation with the RBI.

Powers under SEZ Act to be delegated to IFSC Authority

It was announced that in order to avoid double regulations, it has been decided to delegate powers under the SEZ Act to IFSCA. Further, it has also been finalized to set up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.

Also, the IFSCA Act to be amended for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act. Further, acquisition financing by IFSC Banking Units of foreign banks to be permitted.

Annual Budget 2023 enhances SEBI's power relating to improve investors' education

To build capacity of functionaries and professionals in the securities market, the SEBI would be empowered to develop, regulate, maintain and enforce norms and standards for education in the National Institute of Securities Markets and to recognize award of degrees, diplomas and certificates.

Central Data Processing Centre to be introduced for Companies Act fillings

A Central Processing Centre would be setup for faster response to companies through centralized handling of various forms filed with field offices under the Companies Act.

Establishment of an IT integrated IEPFA portal

For investors to reclaim unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority with ease, an integrated IT portal will be established.

Enjoy twin benefits on PMJJBY- Safeguard your future & Enjoy Stamp Duty Exemption!

Hey, are you planning of enrolling under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), here is one more reason to get enrolled apart from the cheaper premium rates, the finance bill, 2023 exempts the payment of stamp duty on Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

The Finance Bill, 2023 proposes to exempt the 'Life Insurance Policies' issued under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) from the payment of the stamp duty.

Regards

CA Samit Jena