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    April 29, 2016
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    Schedule VII CSR activities may be interpreted broadly, but Saansad Aadarsh Gram Yojana is not proposed for inclusion.
    Schedule VII of the Companies Act lists allowable CSR activities and the Ministry has endorsed a liberal interpretation to include broad inclusive development initiatives; however, there is currently no proposal to amend Schedule VII to include the Saansad Aadarsh Gram Yojana.
    April 29, 2016
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    Name availability processing requires professional certification and director declaration; false statements are punishable under section 448.
    A Central Registration Centre processes name availability applications and, if compliant with the Companies Act and Rules, completes processing by the next working day; authentication requires a practising professional's declaration and a declaration from any person named as director/manager/secretary confirming fulfilment of registration requirements, and false statements in such declarations attract penal consequences under the Companies Act.
    April 29, 2016
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    Director identification requirement and mandatory audit/reporting strengthen traceability and fraud reporting in corporate financial transactions.
    Director Identification Number must be obtained after verification of identity and address before serving as a company director; practicing professionals must physically verify registered office addresses and companies must intimate the Registrar of Companies upon establishment or change of registered office. Company accounts must comply with Accounting Standards and be audited by external auditors who must report frauds above a prescribed threshold to the Central Government, and the statutory framework includes stringent penal provisions for fraud.
    April 29, 2016
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    Women director mandate: compliance, prosecutions, and compounding applications reported under corporate law enforcement in parliamentary reply
    The statutory mandate of law on nominating women to boards is being enforced: a stated number of companies have complied, others face prosecution for non-nomination of women directors, and a subset has filed compounding applications to resolve those prosecutions, as disclosed by the Minister of Corporate Affairs in a written parliamentary reply.
    April 28, 2016
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    Insolvency reform accelerates resolution by consolidating existing recovery laws into a comprehensive framework for MSME relief.
    The document identifies that multiple, overlapping insolvency and recovery laws create time consuming processes for distressed enterprises and states that the Insolvency and Bankruptcy Bill, 2015 has been introduced to consolidate and expedite insolvency resolution; it also notes that credit support measures-Credit Linked Capital Subsidy and margin money subsidies under employment generation programmes-reduce borrowing costs and improve MSME viability.
    April 27, 2016
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    Investor Awareness Programmes expand rural outreach; funding and utilization reported under Investor Education and Protection Fund.
    The Ministry of Corporate Affairs conducts Investor Awareness Programmes with three professional institutes and Common Service Centres to educate investors, emphasize fraudulent scheme prevention, and target rural outreach via CSCs; program funding and annual allocations/utilizations are disclosed from the Investor Education and Protection Fund.
    April 27, 2016
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    Corporate incorporation reforms streamline formation, easing capital and seal requirements and centralising e form registration for speedier processing.
    Corporate incorporation reforms simplify company formation by introducing an integrated INC-29 form, removing the minimum paid up capital requirement, making the common seal optional, and eliminating the separate filing for commencement of business. A Central Registration Centre has been established to centralise and accelerate name availability approvals and incorporation e form processing nationwide, using phased deployment and information technology to speed and standardise registration.
    April 27, 2016
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    Nominee director appointment: administrative ministries nominate directors while corporate committee requirements may not apply to government companies.
    Board composition of central public sector enterprises includes government nominees chosen by the administrative Ministry. While company law contemplates appointments at general meetings and the Nomination and Remuneration Committee's role in selecting and setting criteria for directors, those committee provisions are not applicable to government companies by administrative exemption. A non executive, including a nominee director, is liable only for omissions or commissions occurring with the director's knowledge attributable through Board processes, with consent or connivance, or for failure to act diligently.
    April 27, 2016
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    Vacancy management in corporate institutions relies on recruitment rules, relaxations, consultants and loaned officers to fill posts.
    Vacancies in Ministry of Corporate Affairs institutions for 2013 14 to 2015 16 are set out in annexures; recruitment follows each institution's Recruitment Rules with no plan for a National Level Online Examination, and additional measures include relaxation of RRs, appointment of consultants/outsourced staff, and deployment of officers on loan.
    April 13, 2016
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    Contra-trade exemption extended to exit offers; ESOP exercise not treated as trading; pledge and disclosure rules clarified.
    Guidance clarifies that ESOP exercises are not treated as "trading" for Chapter III though subsequent sales of ESOP acquired shares remain regulated; cash settled derivatives on expiry are contra trades; index derivative exposures need not be reported. Buybacks, open offers, rights issues, FPOs, bonus issues and exit offers are available to designated persons and exempt from the contra trade restriction. Pledge creation or invocation while in possession of UPSI is prohibited unless bona fide intent is demonstrable; pledge disclosures use market value on the transaction date. Boards must approve trades by compliance officers and CIRO and CO may share joint responsibilities.
    April 6, 2016
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    Conversion of debt into equity strengthens company balance sheet under SEBI pricing, reducing debt servicing and enhancing net worth.
    Approval was given to convert a Working Capital Term Loan into equity by issuing preferential shares of Andrew Yule & Co. Ltd. to Bank of Baroda as a Qualified Institutional Buyer, with the issue price fixed under SEBI guidelines on the date of acquisition and face value of Rs. 2 per share. The conversion is intended to lower debt servicing, improve profitability, liquidity and the debt equity ratio, increase net worth through paid up capital and securities premium, and strengthen the balance sheet prior to further disinvestment.

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