MCA issued a notification no. G.S.R. 583(E) on September 20, 2024, introducing amendments to the Companies (Prospectus and Allotment of Securities) Rules, 2014 vide Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024. The changes, made under the Companies Act, 2013, primarily affect sub-rule (2) of Rule 9B. The amendment adds a proviso stating that producer companies under this rule must comply with its provisions within five years of the closure of their financial year. These new rules, titled the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024, take effect from the date of publication in the Official Gazette. The principal rules were initially published on March 31, 2014, and were last amended in October 2023. This update impacts the timeline and compliance obligations for specific producer companies with respect to prospectus and securities allotment.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 20th September, 2024
G.S.R. 583(E).—In exercise of the powers conferred by section 26, sub-section (1) of section 27, section 28, section 29, sub-section (2) of section 31, sub-sections (3) and (4) of section 39, sub-section (6) of section 40 and section 42 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Prospectus and Allotment of Securities) Rules, 2014, namely:―
1. (1) These rules may be called the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Prospectus and Allotment of Securities) Rules, 2014, in sub-rule (2) of rule 9B, the following proviso shall be inserted, namely: ―
“Provided that a producer company covered under this sub-rule shall, within a period of five years of closure of such financial year, comply with the provision of this sub-rule.”.
[F. NO. 1/21/2013-CL-V]
MANOJ PANDEY, Addl. Secy.
Note:—The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 251(E), dated the 31st March, 2014 and last amended vide notification G.S.R. 802(E), dated the 27th October, 2023.
