Summary of the notifications issued by MCA and SEBI on 05/08/2021
Government relaxes fund raising norms under Companies Act, 2013 for foreign companies in International Financial Services Centres(IFSCs) located in a SEZ.
Government exempts applicability of sections 387 to 392 (both inclusive) of the Companies Act to the following:-
(a) foreign companies;
(b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India,
in connection with the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the IFSC set up in a SEZ.
Government amends definition of electronic records under Companies (Registration of Foreign Companies) Rules, 2014 and Companies (Specification of definitions details) Rules, 2014
Government has notified that any electronic based offering of securities, subscription thereof or listing of securities by a foreign company in the IFSC set up in a SEZ shall not be construed as ‘electronic mode’ for the purposes of definition of ‘Foreign Company’ under the Companies Act, 2013
SEBI amends provisions with respect to Informant Reward under Insider Trading regulations
SEBI has increased the threshold limit of Informant Reward to Ten Crores rupees from One Crore rupees. And, where the total reward payable is less than or equal to One Crore rupees, it may be granted upon the issuance of the final order. Where the reward is more than One Crore rupees, an interim reward may be granted not exceeding One Crore rupees upon the issuance of the final order by the Board and the remaining reward amount shall be paid only upon collection or recovery of the monetary sanctions amounting to at least twice the balance reward amount payable.