Various provisions of the Companies Act, 2013 notified and enforced
In addition to the 98 sections (or part thereof) of the Companies Act, 2013 (the Act) notified and enforced on September 12, 2013 by the Ministry of Corporate Affairs (MCA) as well as the provisions and rules relating to Corporate Social Responsibility notified on February 27, 2014 and effective from April 1, 2014; the MCA has recently further notified the following provisions of the Act:
- 183 sections of the Act
- sub-sections of 13 sections out of the 98 sections already notified
- remaining schedules i.e. Schedule I-VI of the Act
- rules pertaining to several chapters of the Act
In addition, the MCA has also changed the nomenclature of certain existing e-forms that were prescribed under the provisions of the Companies Act, 1956 and has further introduced certain new e-forms under the Act. The aforementioned recently notified provisions of the Act and rules are effective from April 1, 2014 (Effective Date) and consequently, the corresponding provisions of the Companies Act, 1956 shall stand repealed from the Effective Date.
The recently notified provisions of the Act relate to, inter alia, incorporation of companies in India, further issue of share capital, acceptance of deposits by the companies, general and board meetings, audit and auditors, appointment, duties and remuneration of directors and key managerial personnel.
The provisions of the Act that are yet to be notified relate to compromise, arrangement and amalgamation, prevention of oppression and mismanagement, registered valuers, removal of names of companies from register of companies, revival and rehabilitation of sick companies, winding up, national company law tribunal and appellate tribunal, National Financial Reporting Authority, Investor and Education Protection Fund and special courts.
Foreign Portfolio Investment Scheme
By way of an amendment to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, the Reserve Bank of India (RBI) has put in place a ‘Foreign Portfolio Investment’ scheme for Foreign Institutional Investor and Qualified Foreign Investor. Henceforth, all portfolio investors registered in accordance with the relevant SEBI guidelines shall be called ‘Registered Foreign Portfolio Investors’ (RFPI). The said scheme stipulates the conditions for the sale/ purchase of shares or convertible debentures by RFPIs as well as the individual and aggregate investment limits for RFPIs. The investment by RFPI would also need to comply with the applicable SEBI (Foreign Portfolio Investment) Regulations, 2014 and the foreign direct investment policy.