Notification under section 393A of the Companies Act, 2013

Last updated: 06 August 2021

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The Ministry of Corporate Affairs has issued a notification under Section 393A of the Companies Act, 2013. This notification exempts foreign companies and companies incorporated outside India from certain provisions related to prospectuses when offering securities within International Financial Services Centres (IFSCs). This exemption applies to requirements from sections 387 to 392 of the Act.

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

S.O. 3156(E).—In exercise of the powers conferred by section 393A of the Companies Act, 2013 (18 of 2013), the Central Government hereby exempts, from the provisions of sections 387 to 392 (both inclusive), the following:-

(a) foreign companies;

(b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India,

insofar as they relate to the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).

[F. No. 3/4/2021-CL.-I]
K.V.R. MURTY, Jt. Secy.

FAQ :

The notification exempts certain foreign and overseas companies from specific provisions of the Companies Act, 2013, concerning prospectuses when they offer securities in International Financial Services Centres (IFSCs).

The exemption applies to sections 387 to 392, inclusive, of the Companies Act, 2013.

The exemption is for foreign companies and companies incorporated outside India, regardless of whether they have or will establish a place of business in India.

This exemption is specifically for offerings made within International Financial Services Centres (IFSCs) set up under section 18 of the Special Economic Zones Act, 2005.

The exemption covers requirements related to the prospectus for offering securities for subscription and all incidental matters thereto.

Notification No : S.O. 3156(E)
Source : https://www.mca.gov.in/bin/dms/getdocument?mds=o23jWYkDh8z2%252FHp9wmxBtQ%253D%253D&type=open

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