On 10th September, 2018 MINISTRY OF CORPORATE AFFAIRS
Come with Notification and inserted rule 9A
Expression of Same is :-
This is article of the series of editorials written by the ADV ACS Jeetam Kumar Saini on Corporate Laws(He also Written many articles Including Companies Act, 2013, SEBI, RBI Regulations, IBC)advocatejeetamsaini@gmail.com - 9785949998
In the Companies (Prospectus and Allotment of Securities) Rules, 2014, after rule 9, the following rule shall be inserted, namely:-
“9A. Issue of securities in dematerialised form by unlisted public companies.-
(1) Every unlisted public company shall –
(a) issue the securities only in dematerialised form; and
(b) facilitate dematerialisation of all its existing securities in accordance with provisions of the
Depositories Act, 1996 and regulations made there under.
After Notification it was impossible for Nidhi Company to comply. As Maximum Members of Nidhi Companies were from rural areas and Opening of demat account of every member is not easy task.
Many Stakeholders including CENTRE FOR SOCIAL WORK AND RESEARCH MANAGEMENT FOUNDATION Through its President JEETAM SAINI made representation to exempt Nidhi companies under the Preview of Rule 9A
AS a result :-
On 22nd January,2019 MINISTRY OF CORPORATE AFFAIRS
Come with Notification and Exempted Nidhi Company , Government Company and Wholly owned Subsidiary
Notification Express as :-
1. Short title and commencement.—
(1) These rules may be called the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019.
(2) They shall come into force on the date of their notification in the Official Gazette.
2. In the Companies (Prospectus and Allotment of Securities) Rules, 2014, in rule 9A, after sub-rule (10), the following shall be inserted, namely:—
“(11) This rule shall not apply to an unlisted public company which is:—
(a) a Nidhi;
(b) a Government company or
(c) a wholly owned subsidiary.”.
Link of Notification
NOTIFICATION DATED 22.01.2019
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