Transfer of Shares: The price as applicable to transfer of shares from resident to non-resident as per the pricing guidelines laid down by the Reserve Bank from time to time, where the issue of shares is on preferential allotment Retention of Amount in Foreign Currency Account : Indian companies which are eligible to issue shares […]
The capital instruments should be issued within 180 days from the date of receipt of the inward remittance received through normal banking channels including escrow account opened and maintained for the purpose or by debit to the NRE/FCNR (B) account of the non-resident investor.
BACKGROUND: If Promoters are starting a business (Company) or trying to grow an existing business (Company), all certainly will need money. This money can come from various sources. Source of Funding: Roughly speaking, Investments break down into two different forms: Debt and Equity. Debt Funding: Debt means money borrowed from lenders by the company and it pay the interest on that investment. Companies are required to repay the money with interest over time.
Articles discusses instruments by which Indian Companies can raise Foreign Direct Investment in India. Details of such Instruments are as follows :- Equity Shares: The Indian Company can issue equity shares in accordance with the provisions of the Companies Act, as applicable, shall include equity shares that have been partly paid, subject to pricing guidelines/valuation norms prescribed under FEMA Regulations
It is not mandatory to reappoint the retiring auditor even if 3 things stipulated in sub-section (9) are not attracted. The board of director may recommend any person other than retiring auditor for appointment as statutory auditor of the Company at the time of completion of term of existing auditor of the Company.
Definition: As stated in section 2(16) “charge” means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage
Section 4(1)(a): The name of the company with the last word “Limited” in the case of a public limited company, or the last words “Private Limited” in the case of a private limited company. Name should not be undesirable. Guidelines in relation to approval of name discussed separately in earlier article.
Even those different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.
Insolvency & Bankruptcy code, 2016 (IBC) received the assent of president on 28/05/2016. The code has become an Act and provisions will be effective from a date to be notified. As stated in Section 255 read with schedule XI of ‘THE INSOLVENCY AND BANKRUPTCY CODE, 2016’. The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule.
In India, out of the over 5000 listed companies, promoters of 4274 companies had pledged all or some of their shares, according to an analysis by Securities and Exchange Board of India as quoted in the RBI Financial Stability Report. Pledge of shares has increasingly become a common practice resorted to by the corporate world to raise finances.
