Border sharing countries can’t invest in private securities without Govt.’s nod
- News|Blog|Company Law|
- < 1 minute
- By Taxmann
- |
- Last Updated on 7 May, 2022
Latest from Taxmann
NOTIFICATION No. G.S.R 338(E), Dated 05.05.2022
The MCA has notified the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022. As per the amended norms, a company shall not make any offer or invitation of securities to a body corporate incorporated in, or a national of, a country sharing a land border with India unless prior approval of Govt. has been taken by the body corporate under the FEM (Non-debt Instruments) Rules, 2019. The same is required to be attached with private placement offer cum application letter (PAS-4).
Subsequently, ‘Private Placement Offer Cum Application Letter’ i.e. Form PAS-4 has been revised to include a declaration from the applicant that:
a) No Govt. approval is required under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 prior to the subscription of shares or
b) Where the applicant is required to obtain the Govt. approval prior to the subscription of shares, the same has been obtained and enclosed herewith the form.”
Under the extant norms no such declaration was required.
Click Here To Read The Full Notification
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
