Non-applicability of Rule 9A of Companies (Prospectus and Allotment of Securities) Rules, 2014 to Certain Companies

In September 2018, Rule 9A was introduced into the Companies (Prospectus and Allotment of Securities) Rules, 2014 (‘Allotment Rules’), whereby all issuances of securities by public unlisted companies were required to be made in dematerialized form. By way of a notification dated (and effective from) January 22, 2019, the MCA has, amended Rule 9A by introducing a new sub-rule (11) thereunder, pursuant to which: (i) a Nidhi company; (ii) a Government company; and (iii) a wholly owned subsidiary, are exempted from the scope of Rule 9A.

Published In:Inter Alia - Quarterly Edition - March 2019 [ English Chinese japanese ]
Date: March 31, 2019