In continuation of my earlier article on the subject “A re-look on the section 93 of the Companies Act, 2013” dated 23rd July, 2014, I would like to share with you recent updates of MCA.
MCA has amended the Companies (Management and Administration) Rules, 2014 on 24th July, 2014. This rule shall come into force on the date of their publication in the Official Gazette.
In Rule 13 –
a. the words "either value or volume of the shares" shall be omitted;
b. the Explanation shall be omitted.
Section 93 of the Companies Act, 2013 provides that every listed company has to disclose to the ROC when there is any change in number of shares held by promoters or top ten shareholders.
Rule 13 provided that every listed company shall file with the Registrar with respect to changes relating to either increase or decrease of two percent, or more in the shareholding position of promoters and top ten shareholders of the company in each case, either value or volume of the shares, within fifteen days of such change (before the amendment).
Explanation: For the purpose of this sub-rule, the “change” means increase or decrease by two percent or more in the shareholding of each of the promoters and each of the top ten shareholders of the company (Omitted).
Ministry has amended the Rule 13 and omitted the word “either value or volume of the shares” and also omitted the definition of change provided by way of explanation to Rule 13.
Now Rule 13 may be read as under:
Every listed company shall file with the Registrar, a return in Form No.MGT.10 along with the fee with respect to changes relating to either increase or decrease of two percent, or more in the shareholding position of promoters and top ten shareholders of the company within fifteen days of such change.
Hence, filing requirement under section 93 of the Act and under Rule 13 shall be only in respect of change in number of shares by two percent or more within 15 days of such change.
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Tags Corporate Law