Sponsored
    Follow Us:
Sponsored

Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022

Effective Date: May 5, 2022

Applicability: Every Company

Summary of the amendment Rules:

1. Amendment in Private Placement Rules: The amendment has inserted new proviso in Rule 14, in sub-rule (1):

 A Company shall not make any offer or invitation of any securities under this rule to a body corporate incorporated in, or a national of, a country which shares a land border with India, unless such body corporate or the national, as the case may be, have obtained Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attached the same with Form PAS-4 (the private placement offer cum application letter).

From reading the above provisions, it is evident that for allotment of Shares or Securities under Private Placement Rules, to a body corporate incorporated in, or a national of a country which shares a land border with India (i.e. China, Bhutan, Nepal, Pakistan, Bangladesh and Myanmar), such body corporate or the national, as the case may be, must obtain prior Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attach the same with Form PAS-4 (the private placement offer cum application letter).

2. Amendment in format of Form PAS-4 (the private placement offer cum application letter) : The amendment has inserted below Checkbox(s) in Form PAS-4:

(a) The applicant is not required to obtain Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 prior to subscription of shares:-

(b) The applicant is required to obtain Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 prior to subscription of shares and the same has been obtained, and is enclosed herewith:-

Link of Notification:  Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022 

Link of revised format of Form PAS – 4 :  Form PAS – 4 – Private Placement Offer Cum Application Letter

Sponsored

Author Bio

CS Sanjay Maurya is Associate Member of The Institute of Companies Secretaries of India having good experience in secretarial matters. He is young and energetic Practicing Company Secretary. View Full Profile

My Published Posts

Analysis of Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2022 Analysis of Companies (Removal of Names of Companies from Register of Companies) Amendment Rules, 2022 MCA Notification/Circular update from May 30, 2022 to June 1, 2022  Companies (Incorporation) Second Amendment Rules, 2022 – Form No. INC-9 Listed Companies need not send hard copies of annual report till 31.12.2022 View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Sponsored
Search Post by Date
October 2024
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031