Summary of notifications in the Companies Act, 2013 and SEBI (LODR), 2015 issued on 01/07/2019 and on 27/06/2019 respectively are listed below:
- The Nidhi (Amendment) Rules, 2019 w.e.f., 15/08/2019
Following are the key amendments made to the existing Nidhi Rules, 2014
- Every company that is declared as Nidhi or Mutual Benefit Society u/s 406(1) has now been brought under the purview of the Rules.
- Definition of “Nidhi” has been introduced, which refers to companies incorporated with the object of cultivating the habit of thrift and saving, lending and receiving deposits for the mutual benefits of their members only;
- Rule 3A has been inserted that mandates incorporated Nidhi companies to file e-Form NDH-4 within the stipulated amount of time failing which it would not be allowed to file e-Form SH-7 and PAS-3;
- Rule 5(1) and proviso to 5(3) are amended and inserted respectively, as per which Nidhi Companies has to comply with the stipulate requirements contained therein within a period of one year from the date of its incorporation; Regional Director can, however, grant extension for a period of one year from the date of application in Form NDH-2.
- Prohibition from accepting deposits under Rule 5(4) due to non-compliance has been made stringent for it shall also be enforced on failure of Nidhi Companies in getting itself declared u/s 406(1) of the Act.
- Rule 7(1) has been amended, stipulating explicitly that Nidhi Companies shall issue only ‘Full Paid Up’ equity shares to raise share capital.
- The power to enforce compliance on Nidhi Companies under Rule 23 will vest with Central Government and not with RD.
- Rules 23A and 23B are inserted, mandating every Nidhi Companies registered prior to commencement of these rules and under the erstwhile Companies Act to file declaration in Form NDH- 4 within the timeframe mentioned therein , failing which it will not be allowed to file e-Form SH-7 and PAS-3. Read more…
- The Companies (Amendment) Act, 2017
The Ministry notifies that the provisions of Section 81 pertaining to Nidhis and its application shall come into force w.e.f. 15th August 2019. Read more…
- The Companies (Significant Beneficial Owners) second Amendment Rules, 2019
Through this notification, the Ministry has substituted the existing BEN-2 form with revised e-Form- BEN 2. Read more…
- SEBI (LODR) (Third Amendment) Regulations, 2019
Through this notification SEBI has amended the provisions of Related Party Transactions by increasing the limit of the transactions to be considered as material for brand usage or royalty from 2 percent to 5 percent of the annual consolidated turnover of a listed entity. Read more…