Companies Act

Companies (Share Capital and Debentures) Amendment Rules, 2020

Companies (Share Capital and Debentures) Amendment Rules, 2020. Amendment to issue of sweat equity shares, debenture redemption reserve
 
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)l
 
MINISTRY OF CORPORATE AFFAIRS
 
NOTIFICATION
 
New Delhi, 5th June, 2020.
 
G.S.R._(E)– In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Share Capital and Debentures) Rules, 2014, namely: –
 
1. Short title and commencement.- (1) These rules may be called the Companies (Share Capital and Debentures) Amendment Rules, 2020.
 
(2) They shall come into force on the date of their publication in the official Gazette.
 
2. In the Companies (Share Capital and Debentures) Rules, 2014 (herein after referred to as the said rules), in rule 8, in sub-rule (4), in the second proviso,-
 
(i) for the letters, figures, brackets and words “GSR 180(E), dated 17th February, 2016 issued by the Department of Industrial Policy and Promotion” , the letters, figures, brackets, and words “G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade” shall be substituted;(ii) for the words “five years” the words, “ten years” shall be substituted.
 
3. In the said rules, in rule 18, in sub-rule (7), in clause (b), for sub-clause (v),following sub-clause shall be substituted, namely: –
 
“(v) In case a company is covered in item (A) of sub-clause (iii) of clause (b) or item (B) of sub-clause (iv) of clause (b), it shall on or before the 30th day of April in each year, in respect of debentures issued by such a company, investor deposit, as the case may be, a sum which shall not be less than fifteen percent., of the amount of its debentures maturing during the year, ending on the 31st day of March of the next year in any one or more methods of investments or deposits as provided in sub-clause (vi):
 
Provided that the amount remaining invested or deposited, as the case maybe, shall not any time fall below fifteen percent. of the amount of the debentures maturing during the year ending on 31st day of March of that year”.”
 
[F. No. 01/04/2013-CL-V-Part-IV]
 
K. V. R. Murty Joint Secretary
 
Note:- The principal rules were published in the Gazette of India, Extraordinary,Part II, Section 3, Sub-section (i) vide notification number G.S.R. 265(E), dated the 31st March, 2014 and was last amended vide notification number GSR 574(E) dated the 16th August,2019.
 

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