June 09, 2020
Summary of the notification issued by MCA dated 05/06/2020
MCA allows startups to issue sweat equity upto ten years from its incorporation date & takes liquidity improvement measures for listed entities making private placement of debentures.
Through this notification,
– A start-up company, as defined in notification number G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry’ Government of India, can now issue sweat equity shares not exceeding 50% of its paid up capital upto ten years(which was ‘Five years’ earlier) from the date of its incorporation or registration.
– Listed entities making private placement of debentures will no longer be required to invest or deposit, a sum which shall not be less than fifteen percent., of the amount of its debentures maturing during the year, ending on the 31st day of March of the next year.
Aforesaid Notification is integrated in our free to use website www.ca2013.com
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