1. The Reserve Bank of India (“RBI”) through its Sixth Bi-monthly Policy Statement 2014-2015 dated 3 February 2015 has revised the limits on the Liberalized Remittance Scheme (LRS). Where the limit earlier was USD 125,000 as of June 2014, the new enhanced limit is now set at USD 250,000. The LRS does not carry end use restrictions, except for prohibited foreign exchange transactions such as margin trading, lotteries and the like. The revised limits are yet to be notified by the Reserve Bank.

Source: http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=33144

  1. The Ministry of Corporate Affairs in consultation with RBI has clarified that amounts received by private companies from their members, directors or their relatives, prior to 16th April, 2Ol4 shall not be treated as 'deposits' under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after 1stApril, 2014, the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement. Any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 2013and rules made thereunder.

Source: http://www.mca.gov.in/Ministry/pdf/General_Circular_5-2015.pdf

  1. The Ministry of Corporate Affairs through an amendment dated 18thMarch 2015 has amended provisions of Companies (Meeting of Board and its Powers) Rules, 2014. The salient amendment is that the restriction on following powers exercisable by the Board (only by means of resolutions passed at meetings of the Board) has been removed. The powers are:
  • Appointment and removal of one level below the key management personnel
  • Taking note of the disclosure of director's interest and shareholding
  • To buy and sell investment held by the company constituting five percent or more of the paid up share capital and free reserves of the investee company
  • To invite or accept or renew public deposits and related matters
  • To review or change the terms and conditions of public deposit
  • To approve quarterly, half-yearly and annual financial statement of financial results

Source: http://www.mca.gov.in/Ministry/pdf/Chapter12_Rules_19032015.pdf

  1. Preferential Issue of Shares

Rule 13(1) of Companies (Share Capital & Debentures) Rules, 2014 relates to issue of shares on preferential basis. A company going for preferential issue of shares is also required to comply with provisions of section 42 namely, Private Placement. A relaxation has been provided in the amendment in case preferential issue is made to one or more existing members only. In such a case the company shall be exempt from issuing of Private Placement Offer Letter in PAS-4 and also filing of PAS 4 and PAS 5.

Source: http://mca.gov.in/Ministry/pdf/Chapter4_Rules_19032015.pdf