Daily Current Affairs

Prelims Prominence - May 15, 2018

Department of Food & Public Distribution

Enlighten about the developments round the year National Food Security Act, 2013 (NFSA)

  • Universal implementation of the NFSA, 2013 in all 36 States & UTs, benefiting 80.72 crore persons in the country by providing them access to highly subsidized foodgrains at Rs.1/2/3 per kg. for coarse grains/wheat/rice respectively.
  • The prices of foodgrains specified under NFSA – Rs.3 per kg for rice, Rs.2 per kg for wheat and Re.1 per kg for coarse grains – which were valid upto July, 2016, have been continued upto June, 2018.

Launch of hybrid model of DBT

  • A pilot scheme on DBT (In-cash & In-kind) on the pattern of “PAHAL” has been launched in Nagri Block of Ranchi District, Jharkhand
  • Under this scheme, the subsidy amount (economic cost, less the central issue price) is directly transferred into the bank account of the eligible NFSA beneficiaries in advance in the beginning of the month.

Launch of ePoS transactions portal

  • Annavitran Portal (www.annavitran.nic.in) has been implemented to display electronic transactions made through ePoS devices for distribution of subsidized foodgrains to beneficiaries.
  • This portal also shows all India picture of Aadhaar authentication of beneficiaries besides allocated and distributed quantity of foodgrains up to district level.

Warehousing Development and Regulatory Authority (WDRA)

  • The process of registration of warehouses with WDRA has been simplified.
  • The new rules will promote increase in the number of warehouses registered with WDRA.
  • Electronic Negotiable Warehousing Receipt (eNWR) System and WDRA Portal has been launched to transform the process of registration of warehouses online and to issue e-NWR instead of paper-NWR which will be a more credible financing tool.

Ministry of Corporate Affairs

Developments Round the year (reforms)

Shell companies

  • Major thrust on checking the menace of black money by striking-off more than 2 lakh shell companies from the Register of Companies;

Insolvency and Bankruptcy Board of India

  • To speed-up resolution of companies that are in trouble, IBBI amended its Corporate Insolvency Resolution Process Regulations to ensure that as part of due diligence, prior to approval of a Resolution Plan, the antecedents, credit worthiness and credibility of a Resolution Applicant, including promoters, are taken into account by the Committee of Creditors.

MoU between Corporate affairs and CBDT

  • Taking forward the initiative launched by the Government of India to curb the menace of shell companies, money laundering and black money in the country and prevent misuse of corporate structure by shell companies for various illegal purposes, the Ministry of Corporate Affairs and Central Board of Direct Taxes (CBDT) have now concluded a formal Memorandum of Understanding (MoU) for data exchange
  • The MoU will facilitate the sharing of data and information between CBDT and MCA on an automatic and regular basis.
  • It will enable sharing of specific information such as Permanent Account Number (PAN) data in respect of corporates, Income Tax returns (ITRs) of corporates, financial statements filed with the Registrar by corporates, returns of allotment of shares, audit reports and statements of financial transactions (SFT) received from banks relating to corporates.

Corporate Social Responsibility (CSR)

  • The Ministry sought participation of the companies in ‘Swachhta Hi Seva’ campaign and contribute 7 % of their Corporate Social Responsibility (CSR) spending to Swachh Bharat Kosh (SBK) during ‘Swachhta Hi Seva’ campaign.
  • This campaign was held from 15thSeptember 2017 to 2nd October 2017.

IBBI (Information Utilities) Regulations, 2017

  • These Regulations provided that ordinarily a person should not hold more than 10% of paid-up equity share capital or voting power of an information utility, while allowing certain specified persons to hold up to 25%.
  • These further provided that a person may hold up to 51% of paid-up equity share capital or total voting power of an information utility till the expiry of three years from its registration.
  • IBBI has amended the IBBI (Information Utilities) Regulations,

The IBBI notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2016

  • The Regulations provide the process from initiation of voluntary liquidation of a corporate person - companies, limited liability partnerships and any other persons incorporated with limited liability - till its dissolution.

The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017.

  • These regulations provide the process from initiation of insolvency resolution of eligible corporate debtors till its conclusion with approval of the resolution plan by the Adjudicating Authority.
  • The process in these cases shall be completed within a period of 90 days, as against 180 days in other cases.
  • However, the Adjudicating Authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for completion of the process.

MCA 21

  • It is an end-to-end holistic e-Governance project for compliance related services carried-out in the offices of Registrar of Companies (RoCs), Regional Directorate and the Ministry of Corporate Affairs office in New Delhi.
  • The Project has brought a service centric approach in the delivery of public services and administration of Companies Act, specifically focusing on (i) starting a business, (ii) doing a business.
  • The Project has been running successfully for 9 years and the Ministry has been taking continuous steps for improving the Government to Business (G2B) and Government to Citizen (G2C) services.
  • The successful operations of the ‘MCA 21’ e-Governance Project has resulted in increase in statutory compliances and surge of revenue receipts.
  • The Ministry has also launched the next higher level of enhancement (version 2) for deriving maximum value from this activity.
  • MCA delivers 16 resources through Government of India’s open data platform data.gov.in and VPD (View Public Document) service.

Government Process Re-engineering (GPR)

  • The Ministry of Corporate Affairs has also taken initiative in Government Process Re-engineering (GPR) and has set-up the Central Registration Centre (CRC) for processing of “Name Availability” (INC-01) and “Incorporation” (INC-02/07/29) e-Forms.
  • The GPR Exercise is in pursuance of the Ministry’s objective of providing greater “Ease of Doing Business” to corporate

AIPG (Active in Progress)

  • A dormant company is allowed 21 days window period by the Ministry to complete its pending annual filings.
  • During this period the status of company remains Active in Progress.
  • Under Section 248 of the Companies Act, 2013 Registrar of Companies is empowered to strike off the names of defunct companies.
  • This is different from liquidation of Companies (either by Tribunal or Voluntary).

Competition Commission of India (CCI)

  • Ensuring a level-playing field in the developing and market-driven economy in India.
  • It takes suo-moto cognizance besides taking action against unfair practices on complaints and appeals received from various entities.
  • To educate the Indian Corporate Sector, many Workshops were organized by the various branches of the Ministry of Corporate Affairs.
  • The Second National Conference on “Economics of Competition Law” was organized by the Competition Commission of India.

Investors Awareness Programmes (IAPs)

  • The Ministry of Corporate Affairs (MCA) organised Investors Awareness Programmes (IAPs)

Associate partners

  • Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI), and Institute of Cost Accountants of India (ICoAI)

Objectives

  • Creating awareness amongst the investors about fraudulent schemes and facilitating informed investment decisions.

Indian Institute of Corporate Affairs (IICA)

  • an autonomous body under the Ministry of Corporate Affairs, organised a two-day colloquium on insolvency and bankruptcy laws and procedure focusing upon the ways to effective enforcement of Insolvency & Bankruptcy Code 2016.

Initiative by MCA to promote CSR

  • To promote conscience in Corporate Governance, Ministry of Corporate Affairs has instituted National CSR Awards to re-cognise and promote corporate initiatives in the area of Corporate Social Responsibility (CSR) to achieve inclusive growth along with inclusive and sustainable development.
  • Indian Institute of Corporate Affairs (IICA) is rendering technical and logistics support to the Ministry in conduct of the Awards.

Active role of Tribunals

  • National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), with its one Principal Bench in New Delhi and 10 Regional has been actively involved in arbitration and settlement related issues of corporate governance.

Sources – PIB, Ministry of corporate affairs and Ministry of Consumer affairs, My Gov