MCA notifies the commencement of the National Financial Reporting Authority
The Ministry of Corporate Affairs (“MCA”), issued a notification, commencing the operation of the National Financial Reporting Authority (“NFRA”). The NFRA shall make recommendations on the formulation and laying down of accounting and auditing policies. The NFRA shall also oversee the quality of service of professionals providing accounting standards.
GameChanger Views:
- The NFRA will now have the authority and power to set the accounting standards to be followed across the country. Further, The NFRA will also have the power to investigate, either suo-motu or on a report, any case of misconduct.
- An umbrella organization like NFRA will ensure uniformity of accounting standards and regulatory oversight on the profession and professionals.
NPCI restricts the number of peer to peer transactions to 10 for every 24 hours
The National Payments Corporation of India (NPCI), issued a circular to restrict the number of Person to Person (P2P) transactions that an individual can do to 10 transactions for every 24 hours through United Payments Interface (“UPI”). Earlier, individuals were able do up to 20 transactions for every 24 hours. There is, however, no limit on the number of Person to Merchant (P2M) transactions.
GameChanger Views:
- Due to the reduction in the number of transactions permitted, there will be a reduction in the amount of money that is transferred digitally between individuals.
- Due to the increase in regulations on e-wallets (eg. PayTM, PhonePe etc.) in recent times, there was an increase in P2P transactions via UPI. However, due to the reduction in the permitted number of transactions, we foresee that number of P2P transactions via e-wallets will increase in the short to medium term time period.
- The reduction in the number of P2P transactions, will reduce the number of miscellaneous and small transactions via UPI. We will see more genuine and large amount transactions being carried out via UPI.
Drug Controller sends notice to major e-commerce websites for selling spurious cosmetics
Following a series of raids across India, the Drug Controller General of India (DCGI), has issued notices to major e-commerce website like Amazon and Flipkart for selling cosmetic items that have not received approval from the DCGI as is required by the Drugs and Cosmetics Act, 1940.
GameChanger Views:
- As a result of this, the compliance requirement on e-commerce platforms will increase, as they will now be responsible for the quality and authenticity of products that they do not manufacture.
“Right to Sit”: Kerala Government brings Ordinance to amend Kerala Shops and Commercial Act, 1960 to give employees ‘Right to Sit’ in Shops and Commercial Establishments
The Kerala Government has promulgated an ordinance to amend the Kerala Shops and Commercial Act, 1960 (“Act”) to include Section 21B in the Act. The Section provides for mandatory provisioning of suitable sitting arrangements by the Employer to avoid “on the toes” situation throughout duty time. Further, the violation of the Act will also attract penalty and fine.
GameChanger Views:
- A move to give such rights to employees will be seen as an increased recognition of employee rights and may work as a catalyst for other states to provide similar rights.
- National Human Rights Commission (“NHRC”) had taken note of the protest by saleswomen in textile retail shops in Kerala demanding a ‘right to sit’. Involvement of NHRC in employer-employee issues may be seen as recognition of certain basic employee rights as human rights in the future.
Is royalties “copyright” within the meaning of the Copyright Act, 1957? Calcutta High Court order in Vodafone-IPRS case raises this question.
The Indian Performing Rights Society (“IPRS”) has brought a copyright infringement suit against Vodafone for using the musical works and/or associated literary works for its Value Added Services without obtaining license from IPRS. IPRS contends that usage of musical, literary works for any purpose requires payments of royalty to the authors and owners of the said works.
Vodafone, on the other hand claims that it has under an existing agreement with Sony and Tips pays the license fee to exploit the musical recording in question. It has a non-exclusive and non-transferable license from Sony and Tips for providing the services under its Value Added Services platform.
Consequently, the Calcutta High Court in an interlocutory order passed on October 12, 2018 in the case of The Indian Performing Right Society Ltd. v. Vodafone Idea Ltd., has asked Vodafone to deposit INR 2.5 Crores with the Registrar of the Original Side of the Calcutta High Court till the matter is finally disposed off. This order was passed on a copyright infringement suit brought by Indian Performing Rights Society against Vodafone for using the songs and sound recordings as part of its Value Added Services.
GameChanger Views:
- The question to be determined in this suit is the question of ownership of the musical and other artistic works which Vodafone is providing as Value Added Services. While Vodafone claims to have obtained a non-exclusive and non-transferable license from Sony and Tips, IPRS claims to own the license to the musical and artistic works which Vodafone provides as part of its Value Added Services.
- IPRS has claimed that pursuant to the 2012 amendment to the Copyright Act, 1957 the utilization of musical, literary works for any purpose requires payments of royalty to the authors of the work.
- While the matter is still sub judice, it brings to the fore the question of royalties being part of ‘copyright’ as understood within the meaning of Section 14 of the Copyright Act, 1957 or an independent contractual right flowing from a contract between the assignor and the assignee.
- The manner in which how the Calcutta High Court adjudicates the nature of the ‘right to receive royalties’ will also determine how and against whom will it be enforced.
Department of Telecom asks telecom operators to stop Aadhaar-based re-verification
The Department of Telecom (“DoT”) issued a circular asking telecom operators stop using Aadhaar based e-KYC for re-verification of existing customers. This has been done in order to comply with the Supreme Court ruling. Telecom operators have been advised by the DoT to use alternate digital methods to re-verify existing customers. The DoT has asked telecom operators to comply with this circular by November 05, 2018.
GameChanger Views
- Telecom operators may have to invest a large sum of money for the implementation of an alternate method for verification in the short to medium term time period. Earlier, telecom operators were not required to maintain a repository of customer information. Telecom operators merely had to collect the bio-metric details (via Aadhaar) of the customer which was automatically verified by the Government. Telecom operators will now need to collect each customers information and verify the information on the basis of the identity card the customer provides (eg: Telecom operators will need to contact the election commission to verify customer’s data if the customer provides his/her voter ID card as proof. Similarly, the telecom operator will need to verify the customer’s information with the motor vehicle department if he/she provides his/her drivers license as proof).
Diclaimer: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.