Audit committee

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Aditi Gupta (Querist)
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05 June 2018 as per companies amendment act 2017 only listed public companies will be required to form audit committee ..but as per LOADR which is applicable to any listed alentity who have listed any of specified security ( say non convertable deb.) , every such entity is required to create audit committee .

query:- in case pvt. co. has listed its non convertible deb. on recognise stock exchange then will it be required to have audit committee.?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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06 June 2018 No. LODR -Chapter V is applicable to entity which has listed its NCD/NCP

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Aditi Gupta

Aditi Gupta (Querist)
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06 June 2018 If pvt. Com has listed its privately placed non convertible debentures then.?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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06 June 2018 not require to constitute audit committee.

Aditi Gupta

Aditi Gupta (Querist)
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07 June 2018 Can i know how.? Becz as per com act definition of listed company any co which has listed any security is a listed company ..so loadr regulation chapter -5 is applicable to a entity whi has listed its specified security , if pvt co has listed its equity shares offered through right/bonus issue then how it is still out of the purview of loadr and not required to have audit committee

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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07 June 2018 As per the Companies Amendment act,2017 only listed public company is require to constitute an audit commitee.
Chapter V of LODR contain the regulations/obligations of company which has listed its NCD. Though the definition of listed company means a company which has any of its securities listed on stock exchange. As per amendment act 2017 private company which has listed its NCD does not require to constitute audit committee

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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07 June 2018 if private company list its equity shares it become public company and will require to constitute audit committe and follow the regulations applicable to equity listed company.

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