28 Dec 2023: PIB Summary for UPSC

TABLE OF CONTENTS

1. Ministry of Corporate Affairs Year Ender 2023
2. Missile Cum Ammunition Barge, LSAM 10
3. Virtual Digital Assets Service Providers (VDA SPs)

1. Ministry of Corporate Affairs Year Ender 2023

Syllabus: GS-3, Economy

Prelims & Mains: Ministry of Corporate Affairs Initiatives

Context:

Ministry of Corporate Affairs Year End Review.

Details:

The Ministry of Corporate Affairs focused on ‘ease of compliance’ and ‘ease of doing business’ in 2023. Some of the major initiatives taken by the Ministry are listed below.

• The Central Processing for Accelerated Corporate Exit (C-PACE) was established. This is a measure to provide expeditious approval of applications filed by companies that want to close operations voluntarily.
• The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 were amended to empower Regional Directors (RDs) to expedite merger approvals.
• Key amendments were also made to the Companies (Indian Accounting Standards) Amendment Rules, 2023 that enhanced disclosure requirements.
• The removal of processing costs in shifting registered offices and enabling such shifts after resolution plan approval under the Insolvency and Bankruptcy Code highlights a pragmatic regulatory environment.
• The adoption of Straight Through Process (STP) for additional e-forms eliminates manual intervention, expediting electronic approvals and streamlining operations.
• The Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023, introduce mandatory dematerialisation of shares for larger private companies, aligning regulations with contemporary market trends.
• The Competition (Amendment) Bill, 2023 was enacted. Read more about the amendments in the link.

2. Missile Cum Ammunition Barge, LSAM 10

Syllabus: GS-3, Security & Defence

Prelims: Missile Cum Ammunition Barge, LSAM 10

Context:

Missile Cum Ammunition Barge, LSAM 10 was inducted into the Indian Navy.

Details:

• LSAM 10 is the fourth Barge of 08 x Missile Cum Ammunition Barge project.
• It was built by MSME Shipyard, M/s SECON Engineering Projects Pvt Ltd, Visakhapatnam for the Indian Navy.
• Induction of these Barges would provide impetus to the operational commitments of the Navy by facilitating transportation, embarkation and disembarkation of articles/ammunition to naval ships both alongside jetties and at outer harbours.
• These Barges are indigenously designed and built under relevant Naval Rules and Regulations of the Indian Register of Shipping (IRS).

3. Virtual Digital Assets Service Providers (VDA SPs)

Syllabus: GS-3, Economy

Prelims: Virtual Digital Assets Service Providers (VDA SPs), Financial Intelligence Unit India (FIU IND)

Context:

Financial Intelligence Unit India (FIU IND) issues compliance Show Cause Notices to nine offshore Virtual Digital Assets Service Providers (VDA SPs).

Details:

• Virtual Digital Asset Service Providers (VDA SPs) operating in India (both offshore and onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets, etc. are required to be registered with FIU IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act (PMLA) 2002. 
• The obligation is activity-based and is not contingent on physical presence in India. 
• The regulation casts reporting, record keeping, and other obligations on the VDA SPs under the PML Act which also includes registration with the FIU IND.

Financial Intelligence Unit India:

• Financial Intelligence Unit – India (FIU-IND) is the central, national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs.
• It functions under the Finance Ministry, GOI.
• Set up in 2004, it is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing global efforts against money laundering and financing of terrorism. 
• FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
• The personnel of the FIU are inducted from different organizations namely the Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs and Intelligence agencies. It is headed by a Director.

Read previous PIB articles here.