AUGUST 20249MTNL & BSNL FORMS SERVICE PARTNERSHIP WITH BSNLLLP ACT REVISIONS TO CREATE LARGE DOMESTIC AUDIT FIRMSDelhi and Mumbai service provider Mahanagar Telephone Nigam Limited (MTNL), in a press release, made several announcements after a board meeting was held on Wednesday. These announcements included agreements and approvals of proposed sales.MTNL entered a service agreement with BSNL for a 10-year period. The agreement can be revoked by mutual consent of the two parties by giving a six-month notice.MTNL also announced approval for the closure of Millennium Telecom Limited (MTL), a wholly-owned subsidiary of MTNL. The procedure will comply with applicable DIPAM guidelines and will follow the process as per SEBI/ Company laws.The company further approved the proposed sale of shares of MTNL in MTNL STPI IT Services Ltd (MSITS) under intimation to STPI. This will be done by complying with the provisions of the JV Agreement with STPI, complying with the applicable DIPAM Guidelines, and all other processes as per SEBI/Company laws. It will offer the same to any other PSU or State Government.Additionally, it approved the proposal to sell shares of MTNL in Mahanagar Telephone (Mauritius) Ltd (MTML), an overseas wholly owned subsidiary of MTNL, by complying with the applicable DIPAM Guidelines and all other processes as per SEBI/RBI/Company laws. It will also follow extant Mauritian laws. India's government is mulling changes in the LLP Act and related rules to strengthen home-grown accounting firms. The idea is to encourage mergers and growth that will allow the formation of large domestic audit companies that would be the competition to the Big Four international firms.The LLP Act was enacted in India in 2008 and is based on the UK's 2000 legislation and provides the operations flexibility of a partnership while having the protection of limited liability. It protects partners' individual assets from business risks while offering transparency through the filing of annual returns and compliance laws. Particularly popular among professionals like lawyers or accountants, LLPs allow members to run the business while not giving up on their protection wall.These proposed reforms are expected to be included as part of The Ministry of Corporate Affairs' 100-day action plan. Proposed changes in the LLP Act, together with the Companies Act, are likely to be tabled during the winter session of the Parliament in December this year. It is expected that these changes will develop a stronger domestic accounting sector in India to compete at the international level firms. TOP STORIESAUGUST 20249
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