Page 2 – Vaish Associates Advocates

SEBI Relaxes Timelines for Holding AIFs’ Investments in Dematerialised Form

Securities and Exchange Board of India (“SEBI”), vide its circular dated February 14, 2025, has relaxed the timelines for Alternative Investment Funds (“AIFs”) holding their investments in dematerialised form.

In terms of Regulation 15(1)(i) of the SEBI (AIF) Regulations, 2012, AIFs are mandated to hold their investments in dematerialised form, subject to such conditions as may be specified by SEBI from time to time.

In this regard, SEBI has provided that any investment made by an AIF on or after July 1, 2025 (erstwhile October 1, 2024) shall be held in dematerialised form only, irrespective of whether the investment is made directly in the investee company or is acquired from another entity.

The investments made by an AIF prior to July 1, 2025 are exempted from the requirement of being held in dematerialised form, except where: (a) investee company of the AIF has been mandated under applicable law to facilitate dematerialisation of its securities; or (b) the AIF, on its own, or along with other SEBI registered intermediaries/ entities which are mandated to hold their investments in dematerialised form, exercises control over the investee company. Such investments as mentioned in point (a) and (b) which are made prior to July 1, 2025 shall be held in dematerialised form by the AIF on or before October 31, 2025 (erstwhile January 31, 2025).

Further, the aforesaid requirement of holding investments in dematerialised form shall not be applicable to: (a) scheme of an AIF whose tenure (not including permissible extension of tenure) ends on or before October 31, 2025; and (b) scheme of an AIF which is in extended tenure as on February 14, 2025 (erstwhile January 12, 2024).

To read the circular click here

For any clarification, please write to:

Mr. Yatin Narang
Partner
[email protected]

Analysis of the Finance Bill 2025

We are pleased to share our analysis of the Finance Bill 2025, outlining key amendments introduced in the legislation. This analysis highlights key amendments and their potential impact on taxpayers and businesses.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

For any further information / clarification, please feel free to write to:

Mr. Neeraj K. Jain
Senior Partner
[email protected]

Mr. Rohit Jain
Senior Partner
[email protected]

Customs and GST Alert – February 2025

We are pleased to share with you the link to our newsletter on the latest GST and Customs Developments. The newsletter covers recent judgments and regulatory updates in the GST and Customs space in India.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

For any clarification, please write to:

Mr. Shammi Kapoor
Senior Partner
[email protected]

Mr. Arnab Roy
Associate Partner
[email protected]

Legalaxy – Monthly Newsletter Series – Vol XXI – February, 2025

In the February edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, banking and finance, labour, environment, insurance and aviation.

Below are the key highlights of the newsletter:

SEBI UPDATES

Standard setting forum for AIFs releases implementation standards for offering of differential rights to AIF investors
SEBI updates FAQs for grant of registration as AIF and taking on record PPM of the scheme
Extension of timeline for review of ESG rating

RBI & IFSC UPDATES

RBI allowed Indian exporters to maintain foreign currency account outside India
RBI allowed greater flexibility to foreign investors in terms of the types of bank accounts for remittances in India for foreign investments
RBI allowed person resident outside India having business interest in India to open SNRR account
RBI amends guidelines on settlement of dues of borrowers by ARCS
Framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007

LABOUR UPDATES

Government of Karnataka increases the contribution rates to Karnataka labour welfare fund
Meghalaya Government notifies conditions for exemption for employing women in the factory during night shift
Revision in validity of licenses granted/ renewed under the Meghalaya Factories Rules, 1980

ENVIRONMENTAL UPDATES

MOEFCC’S notifies the Environment Protection (End-of-Life Vehicles) Rules, 2025
Producers, importers and brand owners to disclose specific information regarding plastic packaging
MOEFCC’S new air and water pollution guidelines: simplifying the industrial consents

OTHER UPDATES

Regulated entities to maintain records of their business to ensure security and compliance with applicable laws; and to adopt an established data governance framework
The Bharatiya Vayuyan Adhiniyam, 2024 – Notified

We hope you like our publication. We look forward to your suggestions.

Please feel free to contact us at [email protected]

TaxBuzz | Interest paid on Capital Borrowed Outside India for Overseas Investment NOT exigible to tax in India – Assessee eligible for Refund of TDS: Delhi HC

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of the Delhi High Court in the case of Sun Pharmaceuticals Industries Limited 2025:DHC:564-DB, wherein, the Hon’ble High Court has held that interest paid by an Indian Company on capital borrowed outside India for the purpose of overseas investment(s) in its subsidiaries, is not exigible to tax as the same is covered under the exclusions enumerated under section 9(1)(v)(b), thereby, not attracting TDS liability under section 195 of the Income Tax Act, 1961.

We trust that you will find our TaxBuzz useful and look forward to receiving your valuable feedback.

For any further information/ clarification, please feel free to write to:

Mr. Rohit Jain
Senior Partner
[email protected]

Mr. Aniket D. Agrawal
Associate Partner
[email protected]

Mr. Abhisek Singhvi
Associate
[email protected]

TaxBuzz | Validity of Reassessment Initiated on Assumption of Facts

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”.

In this edition, we have analyzed the recent judgment rendered by the Delhi High Court in the case of Grid Solutions OY, wherein reassessment proceedings initiated on the basis of findings of survey conducted in a different assessment year and on the basis of assumption of facts have been held to be unsustainable.

We trust that you will find our TaxBuzz useful and look forward to receiving your valuable feedback.

For any further information / clarification, please feel free to write to:

Mr. Aditya Vohra
Associate Partner
[email protected]

Mr. Shashvat Dhamija
Junior Associate
[email protected]