Companies Act

Issuance of rupee bonds to overseas investors by Indian Companies. Companies Share Capital and Debenture Rules not to apply MCA Circular No. 09/2016

General Circular No: 09/2016

No 12/2013-CL-V
Governmenl of India
Ministry of Corporate Affairs

5th Floor “A” Wing, Shastri Bhavan,
Dr R. P Road, New Delhi

To
All Regional Dlrcctors,
All Registrar ol Companies

Subject Issuance of rupee bonds to overseas investors by Indian Companies-Clarification regarding applicability of Companies Act, 2013.

Sir,

The Ministry has received references from stakeholders seeking clarity on applicability of provisions of Chapter-III of the Companies Act, 2013 (Act) and rule 18 of Companies (Share Capital and Debenture) Rules, 2014 to the issues of rupee bonds by Indian Companies exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions.

2. The matter has been examined in the Ministry in consultation with Reserve Bank of India. The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by RBI as part of ECB Policy framework. lt is accordingly clarified that unless otherwise provided in the circular/directions/regulations issued by Reserve Bank of India, provisions of Chapter III of the Act and to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions as stated above. Necessary changes in Companies (Share Capital and Debenture) Rules, 2014 in this, regard are being made

3. This issues with the approval of the competent authority.

Yours faithfully

(K. M. S. Narayanan)
Assistant Director (Policy)

Copy to:

  1. e-Governance  Section and Web Contents Manager to place this circular on the Ministry’s website.
  2. Guard File
----------- Similar Posts: -----------
Share

Recent Posts

  • Income Tax

In absence of mala fide intention bank should not be treated as assessee in default

In absence of mala fide intention bank should not be treated as assessee in default for late deduction and deposit…

2 days ago
  • Income Tax

Whether bank account was fraudulently open in the name of assessee is question of fact

Whether bank account was fraudulently open in the name of assessee is question of fact. High Court declined to entertain…

2 days ago
  • Concurrent Audit

SBI Concurrent Auditor Empanelment of Chartered Accountant Firms 2024-25. Last date 18.05.2024

SBI Concurrent Auditor Empanelment of Chartered Accountant Firms for FY 2024-25 SBI Concurrent Auditor Empanelment of CA Firms for FY…

2 days ago
  • Companies Act

Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants

Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants In 2015, the Ministry of Corporate Affairs…

2 days ago
  • VAT

Trade Tax refund withheld beyond stipulated period & adjusted from demand unjustified – SC

Trade Tax Department was unjustified in retaining refund beyond stipulated period and adjusting it against default notices issued subsequently. In…

2 days ago
  • Income Tax

Notice issued u/s 143(2) prior to filing of return of income assessee is invalid

Notice issued u/s 143(2) prior to filing of return of income by the assessee was invalid. Before filing ITR provisions…

3 days ago