09 Oct 2018

The Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 (hereinafter “Rule(s)”) was published in the official gazette on 10th September, 2018 which is effective from 02nd October 2018. According to the Rules, the Ministry of Corporate Affairs, Govt. of India (hereinafter “MCA”) has mandated that every unlisted public company shall issue its securities only in dematerialised form and shall dematerialise all its existing securities as well.>>

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03 Oct 2018

Issuance of non-convertible debentures (NCDs) is one of most widely used methods through which companies have been raising money in the form of secured debt under private placement route. The issuance of NCDs are governed primarily through Sections 42 and 71 of the Companies Act, 2013 (‘Act’) read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 (“Securities Rules”) and the Companies (Share Capital and Debentures) Rules, 2014 (“Debenture Rules”). The Ministry of Corporate Affairs recently issued the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2018 (“Amendment Rule”) on 7th August, 2018, which brought out various changes to the rules in relation to issuance of securities under private placement method.>>

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