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Mar 31, 2019

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.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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