18 五月 2024

Corporate Amicus: March 2024


MEITY Advisory: Dawn of AI Regulation in India or a false start
By Paritosh Chauhan, Sameer Avasarala and Abhishek Singh

The Ministry of Electronics and Information Technology has on 15 March 2024 issued an advisory on use and deployment of artificial intelligence tools. The advisory subsumes a previous advisory dated 1 March 2024 on this subject. As part of the now expanded diligence requirements as per new advisory, the article in this 150th issue of LKS Corporate Amicus elaborately discusses what the new advisory now requires the intermediaries to ensure. The article also lists the key differences between the two advisories and notes that it is important for intermediaries and developers of Artificial Intelligence systems to keep pace with such advisories. According to the authors, only time may reveal if the Information Technology Act (or the Digital India Act, in the future) is better suited to regulate AI or a separate dedicated legislation may better allay concerns emerging from AI.

Notifications and Circulars

  • Companies (Registration Offices and Fees) Amendment Rules, 2024 notified
  • SEBI repeals circulars outlining procedure to deal with cases where securities are issued prior to 1 April 2014, involving offer/allotment of securities to more than 49 but up to 200 investors in a financial year
  • Master Direction on Credit Card and Debit Card - Issuance and Conduct Directions, 2022 amended
  • Credit card issuers to provide cardholders the option to choose card network
  • Reserve Bank of India (Bharat Bill Payment System) Directions, 2024 notified
  • Interest Equalization Scheme on Pre- and Post-Shipment Rupee Export Credit extended
  • Transparency in circulation of Progress Reports and preparation of Preliminary Reports by liquidators under the IBBI (Liquidation Process) Regulations, 2016

Ratio decidendi

  • Appeal to NCLAT under IBC – Limitation to be calculated from date of order, irrespective of whether the order was ex-parte – NCLAT
  • Insolvency proceedings do not prevent Corporate Debtor from seeking an appointment of Arbitrator – Delhi High Court
  • Adjudicating Authority under IBC is not the Appropriate Forum to decide on revocation of attachment made by Enforcement Directorate during CIRP – NCLT, Chennai
  • Arbitral Tribunal is bound by agreement where parties agree that no interest shall be payable – Delhi High Court
  • Arbitration by MSMED Facilitation Council cannot confer jurisdiction to particular Court in derogation of venue/seat chosen by parties – Calcutta High Court

News Nuggets

  • Draft Digital Competition Bill released for public consultation
  • Leniency plus regime under Competition Act, 2023 notified
  • 100% FDI allowed in space sector by India
  • MSME Act may be amended in order to ensure timely payments to small businesses
  • Rule of timely payments to MSMEs enforceable from 1 April 2024
  • MCA planning next round of clean-up of shell companies

March  2024/Issue-150 March 2024/Issue-150

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