Companies (Registration of Foreign Companies) Amendment Rules, 2021

Last updated: 06 August 2021

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The Ministry of Corporate Affairs has introduced the Companies (Registration of Foreign Companies) Amendment Rules, 2021. These new rules, effective from their publication date, amend the existing 2014 regulations. A key change clarifies that electronic offerings, subscriptions, or listings of securities in International Financial Services Centres are not considered 'electronic mode' under Section 2(42) of the Companies Act.

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 5th August, 2021

G.S.R. 538(E). - In exercise of the powers conferred by clause (c) and clause (h) of sub-section (1) and sub-section (3) of section 380, clause (a) of sub-section (1) and sub-section (3) of section 381, section 385, clause (a) of section 386, section 389 and section 390, read with section 469 of the Companies Act, 2013 (18 of 2013), Central Government hereby makes the following rules to amend the Companies (Registration of Foreign Companies) Rules, 2014 namely :-

1. Short title and commencement- (1) These rules may be called the Companies (Registration of Foreign Companies) Amendment Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Registration of Foreign Companies) Rules, 2014, in clause (c) of sub-rule (1) of rule 2, the following explanation shall be inserted, namely:-

“Explanation.- For the purposes of this clause, electronic based offering of securities, subscription thereof or listing of securities in the International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005) shall not be construed as ‘electronic mode’ for the purpose of clause (42) of section 2 of the Act.”.

[F. No. 1/23/2013-CL-V]
K. V. R. MURTY, Jt. Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 266(E), dated the 31st March, 2014.

FAQ :

These are amendments made by the Central Government to the Companies (Registration of Foreign Companies) Rules, 2014, which came into effect upon their publication in the Official Gazette.

The Companies (Registration of Foreign Companies) Amendment Rules, 2021, came into force on the date of their publication in the Official Gazette.

The amendment clarifies that electronic offerings, subscriptions, or listings of securities in International Financial Services Centres are not to be considered 'electronic mode' for the purposes of clause (42) of section 2 of the Companies Act.

The amendment relates to Section 2(42) of the Companies Act, 2013, concerning the definition of 'electronic mode'.

An IFSC is a financial centre set up under section 18 of the Special Economic Zones Act, 2005.

Notification No : G.S.R. 538(E)
Source : https://www.mca.gov.in/bin/dms/getdocument?mds=ZYCEKajcqyG6nnlL9Hb0jA%253D%253D&type=open

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