{"id":474,"date":"2021-04-05T11:06:05","date_gmt":"2021-04-05T11:06:05","guid":{"rendered":"http:\/\/www.rnm.in\/blog\/?p=474"},"modified":"2025-01-30T10:55:44","modified_gmt":"2025-01-30T10:55:44","slug":"recent-amendments-by-mca-and-sebi","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/recent-amendments-by-mca-and-sebi\/","title":{"rendered":"Recent Amendments by MCA and SEBI"},"content":{"rendered":"\n

In this edition we have tried to bring to your notice the latest amendments that followed in the month of March 2021 issued by MCA, SEBI and others.<\/p>\n\n\n\n

Amendments\nissued by MCA<\/strong><\/p>\n\n\n\n

Companies  (Management and Administration) Amendment Rules, 2021. <\/strong>
In exercise of the powers conferred by 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 (Management and Administration) Rules, 2014 & These rules may be called the Companies (Management and Administration) Amendment Rules, 2021.
To read more:  http:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesMgmtAdminAmndtRules_11032021.pdf<\/a> <\/p>\n\n\n\n

Companies  (Incorporation) Third Amendment Rules, 2021.<\/strong>
In exercise of the powers conferred by 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 (Incorporation) Rules, 2014, namely & These rules may be called the Companies (Incorporation) Third Amendment Rules, 2021.
To read more:  http:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesIncorporation3rdAmndtRules_11032021.pdf\ufeff<\/a> <\/p>\n\n\n\n

Amendment to Schedule V of the Companies Act , 2013<\/strong>
In exercise of the powers conferred by sub-sections (1) and (2) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following amendments to Schedule V of the said Act, namely under the heading \u2015REMUNERATION & in Section I.
To read more :  http:\/\/www.mca.gov.in\/Ministry\/pdf\/AmendmentNotification_19032021.pdf<\/a> <\/p>\n\n\n\n

Companies  (Accounts) Amendment Rules, 2021.<\/strong>
In exercise of the powers conferred by Section 134 read with Section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules ,2014 & these rules may be called the Companies (Accounts) Amendment Rules, 2021. These shall come into force with effect from the 1st day of April, 2021. Every company which uses accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
To read more: http:\/\/www.mca.gov.in\/Ministry\/pdf\/AccountsAmendmentRules_24032021.pdf<\/a> <\/p>\n\n\n\n

Companies (Audit and Auditors) Amendment Rules, 2021<\/strong>
In exercise of the powers conferred by Section 139,143,147 & 148 read with sub-section (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 ( Audit and Auditors ) Rules , 2014 & these rules may be called as Companies (Audit and Auditors) Amendment Rules, 2021. <\/p>\n\n\n\n

It has inserted the clause relating to the funds advanced\/received or loaned or invested by the company to or in any other person(s) or entity(ies), including foreign entities with the understanding that the Intermediary shall lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company.   The Auditors is also required to comment on the status of the dividend declared or paid during the year by the company & also required to comment on accounting software used by the company for maintaining its books of account which has a feature of recording audit trail (edit log) facility.
To read more: http:\/\/www.mca.gov.in\/Ministry\/pdf\/AuditAuditorsAmendmentRules_24032021.pdf<\/a> <\/p>\n\n\n\n

Amendments in Schedule III of companies act, 2013<\/strong>
In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule III to the said Act. The changes have been made to align the Schedule III with recent changes and to make it more meaningful and speaking. Companies have to round off the figures appearing in the financial statements & the criteria for rounding off shall be based on \u201ctotal income\u201d in place of \u201cturnover\u201d. All Companies now have to disclose Shareholding of Promoters, Current maturities of long term borrowings, Trade Payables & Trade Receivables ageing schedule to be given, Details of Benami Property held, Relationship with Struck off Companies, Utilisation of Borrowed funds and share premium.
To read more: http:\/\/www.mca.gov.in\/Ministry\/pdf\/ScheduleIIIAmendmentNotification_24032021.pdf <\/a><\/p>\n\n\n\n

Establishment of  Central Scrutiny Centre (CSC)<\/strong>
In exercise of the powers conferred by sub-sections (1) and (2) of section 396 of the Companies Act, 2013 (18 of 2013) (hereinafter referred to as the Act), the Central Government hereby establishes a Central Scrutiny Centre (CSC) for carrying out scrutiny of Straight Through Processes (STP) e-forms filed by the companies under the Act and the rules made thereunder. <\/p>\n\n\n\n

Commencement Notification for Section 32 and 40 of companies act , 2013<\/strong>
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 18th March, 2021 as the date on which the provisions of section 32 and section 40 of the said Act shall come into force.
To read more: http:\/\/www.mca.gov.in\/Ministry\/pdf\/CommencementNotification_19032021.pdf<\/a> <\/p>\n\n\n\n

Amendments\nissued by DIPP<\/strong><\/p>\n\n\n\n

Review of FDI policy on downstream investments made by Non- Residents Indians<\/strong>
The Government of India has reviewed the extant  FDI policy in relation to the investment made by the Indian Companies owned & controlled by the Non \u2013 Resident Indians (NRI) on a non-repatriation basis and in order to provide clarity on the downstream investment made addition in to the consolidated FDI Policy.
To read more : https:\/\/dipp.gov.in\/sites\/default\/files\/pn1-2021.PDF <\/p>\n\n\n\n

Amendments\nissued by SEBI<\/strong><\/p>\n\n\n\n

Prior Approval for Change in control<\/strong>
SEBI has issued a circular on Prior Approval for Change in control w.r.t Transfer of shareholdings among immediate relatives and transmission of shareholdings and their effect on change in control. SEBI has provided clarity on change in control criteria for market intermediaries and requirements for seeking its prior approval.
To read more: https:\/\/www.sebi.gov.in\/legal\/circulars\/mar-2021\/prior-approval-for-change-in-control-transfer-of-shareholdings-among-immediate-relatives-and-transmission-of-shareholdings-and-their-effect-on-change-in-control_49663.html<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

In this edition we have tried to bring to your notice the latest amendments that followed in the month of March 2021 issued by MCA, SEBI and others. Amendments issued by MCA Companies  (Management and Administration) Amendment Rules, 2021. In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of […]<\/p>\n","protected":false},"author":3,"featured_media":476,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[26,14],"tags":[126,27,70],"class_list":["post-474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-legal","category-general","tag-dipp","tag-ministry-of-corporate-affairs","tag-sebi"],"yoast_head":"\nCompanies (Management and Administration) Amendment Rules<\/title>\n<meta name=\"description\" content=\"he Central Government has notified the Companies (Management and Administration) Amendment Rules, 2021, which further amend the Companies (Management and Administration) Rules, 2014.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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