Companies (Specification of definitions details) Third Amendment Rules, 2021

Last updated: 06 August 2021

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The Ministry of Corporate Affairs has issued the Companies (Specification of definitions details) Third Amendment Rules, 2021. These rules clarify that electronic-based offering, subscription, or listing of securities within International Financial Services Centres (IFSCs) will not be considered an 'electronic mode' under Section 2(42) of the Companies Act. This amendment aims to provide specific definitions for certain aspects of the Companies Act, 2013.

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

G.S.R. 539(E). - In exercise of the powers conferred by sub-clause (ix) of clause (76), sub-clause (iii) of clause (77) of section 2, read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Specification of definitions details) Rules, 2014 namely :-

1. Short title and commencement- (1) These rules may be called the Companies (Specification of definitions details) Third Amendment Rules, 2021.

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

2. In the Companies (Specification of definitions details) Rules, 2014, in clause (h) 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. 238(E), dated the 31st March, 2014 and were last amended vide number G.S.R. 123(E), dated the 19th February, 2021.

FAQ :

These rules further amend the Companies (Specification of definitions details) Rules, 2014, to provide specific definitions and clarifications for certain provisions of the Companies Act, 2013.

The Companies (Specification of definitions details) Third Amendment Rules, 2021, came into force on the date of their publication in the Official Gazette.

The rules clarify that electronic-based offering, subscription, or listing of securities in International Financial Services Centres (IFSCs) shall not be construed as 'electronic mode' for the purpose of clause (42) of section 2 of the Companies Act.

No, according to these amendment rules, electronic-based offering, subscription, or listing of securities in IFSCs are specifically excluded from being considered 'electronic mode' under Section 2(42) of the Companies Act.

This amendment clarifies aspects related to clause (42) of section 2 of the Companies Act, 2013, concerning the definition of 'electronic mode'.

Notification No : G.S.R. 539(E)
Source : https://www.mca.gov.in/bin/dms/getdocument?mds=BW%252BhMYuS7OEaivjpQALEqw%253D%253D&type=open

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