[vc_row][vc_column][vc_column_text]Section 186 of the Companies Act 2013 – Loan and Investment by Company Introduction: The Companies Act, 2013 (Act) has come up with a change in the concept of ‘Loan and Investment by Company. The new Act provides that inter-corporate investments not to be made through more than two layers of investment companies. There is …
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INTRODUCTION The Companies Act, 2013 (“Act”) has brought major changes not only towards the legal and secretarial welfare but also towards social welfare which could be widely justified by incorporating the provisions of Corporate Social Responsibility (“CSR”) in the new Act. CSR is basically a concept whereby Companies decide voluntarily to contribute to a better …
[vc_row][vc_column][vc_column_text]Introduction: The Companies Act, 2013 has brought about a remarkable development in the corporate arena by bringing in the concept of One Person Company (“OPC”). Under the ‘old’ Companies Act, 1956 minimum two members were required for formation of a Private Limited Company. This was a hindrance to the entrepreneurs who wanted to go ‘solo’. …
[vc_row][vc_column][vc_column_text]Meaning It is a process of verification of records and documents to check compliance with the provisions of various laws and rules/procedures, maintenance of books, records etc. by an independent professional to ensure that the company has complied with the legal and procedural requirements and also followed due processes. Initiatives by MCA/History The Ministry of …
Introduction Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way of Companies (Amendment) Act, 1999 for promotion of investors’ awareness and protection of the interests of investors. Various rules such as the Investor Education and Protection Fund (awareness and protection of investors) Rules, 2001 and …
Why Companies Opt for Voluntary Delisting? The Company may opt for Voluntary delisting for various reasons, which may include the following: Promoter wants complete control of the company, Strategic buyout and new investor would like to have control The market value does not reflect the true intrinsic value of the Company Corporate …
INTRODUCTION Emergence for the need of Code of Conduct for prevention of Insider Trading SEBI in the year 1992 has framed (Prohibition on Insider Trading) Regulations 1992. This regulation provides that, no insider shall deal in securities on his own behalf, or on behalf of someone else, while in possession of unpublished price sensitive information …
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[vc_row][vc_column][vc_column_text] The ordinary sources of finance are equity and preference shares, debentures and other debt securities. But companies, as they expand their activities, need more and more funds and this has led them to borrow from banks and financial institutions. But it puts the company under management & control of those financial institutions. This has …
Insight – Acceptance Of Deposits under Companies Act, 1956 Read More »
External Commercial Borrowings (ECB) is an instrument used in India to facilitate the access to foreign money by Indian Corporates. ECB refer to commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares) availed of …
[vc_row][vc_column][vc_column_text][Compounding of contraventions of FEMA involving (i) delay in reporting of inward remittance, (ii) delay in filing of form FC-GPR after allotment of shares and (iii) delay in issue of shares beyond 180 days (viz. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of the Schedule I to the Foreign Exchange Management (Transfer or Issue of Security …
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