Exemption for tea companies from certain disclosures, subject to quantity, stock and purchase value reporting requirements.
The Central Government exempts companies engaged in cultivation or processing of tea from specified Schedule VI disclosures in the profit and loss account, subject to conditions: disclose quantity and other particulars (excluding value) of green leaf tea produced and processed with opening and closing stock; where green leaf tea is purchased, also disclose the value of purchases in addition to quantity, particulars and opening and closing stock. The exemption is effective for a limited statutory period from Gazette publication.

Nidhi membership requirement increased with transitional period for existing societies to meet the new threshold under amended notifications.
The Central Government amends prior notifications under its authority to set conditions and fees, increasing the minimum membership threshold for nidhi entities and granting existing Nidhis and Mutual Benefit Societies a one-year transitional period to meet the new membership requirement; additionally, a specified sub-item in GSR 773(E) is omitted from the date of publication.

Regulation of Nidhi and Mutual Benefit Societies: restrict pledge and lending, require minimum capital and RBI aligned interest controls.
Companies declared as Nidhi or Mutual Benefit Societies are prohibited from pledging member lodged securities and from giving loans or advances exceeding the lower of a fixed loan ceiling and a specified proportion of total deposits. They must ensure that the total of their net owned fund and preference share capital meets a prescribed minimum, subject to revision by the Central Government in consultation with the Reserve Bank of India, with transitional time allowed for existing societies; interest rates on deposits and loans must conform to Reserve Bank regulations.

Foreign company liaison office compliance: submit RBI approval, certified receipts/payments, assets/liabilities and inactivity certificate.
Foreign companies maintaining only liaison offices in India, with RBI approval valid for the accounting year and no commercial activity, may comply with clause (a) of sub section (1) of section 594 by submitting in triplicate to the Registrar: the RBI approval letter; a receipts and payments statement for Indian branches certified by the authorised agent for service of process in India and a practising Chartered Accountant; a similarly certified statement of assets and liabilities in India; and a jointly certified certificate that no trading, manufacturing, commercial activity or invoicing occurred in India.

Company definition expansion under Company Law Board Regulations broadens coverage to include non-banking financial and foreign companies.
Regulations amend the Company Law Board Regulations, 1991 by expanding the definition of company to include non banking financial companies and foreign companies, and by incorporating references to the Reserve Bank of India Act into definitional and procedural provisions. Procedural changes substitute and omit specified section references, replace a regulation governing deposit applications with a requirement to use a designated form in duplicate, omit another regulation, and update Annexures II and III to substitute statutory citations, modify form wording, and remove certain entries.

Segregation of issue proceeds requires separate account and balance-sheet disclosure of utilisation and investments of unutilised funds.
The amendment requires the board to state that all monies from public issues of shares or debentures be held in a separate bank account, that utilised proceeds be disclosed under a separate Balance Sheet head with their purposes, and that any unutilised proceeds be disclosed under a separate Balance Sheet head showing how those monies have been invested.

Ban on sole selling agents extended for bulk drugs, excluding Ayurvedic, Unani and Homeopathic preparations.
Ban on appointment of sole selling agents applies to all categories of "bulk drug", "drugs" and "formulations" as defined in the Drugs (Prices Control) Order, 1987 because demand substantially exceeds supply and sole selling agents are unnecessary; the prohibition, issued under the Companies Act power, is extended for a further period and excludes bona fide Ayurvedic, Unani and Homeopathic preparations.

Deposit acceptance restriction: companies must not accept or renew deposits if in default, and must certify non-default status.
The amendment inserts a provision prohibiting any company from accepting or renewing deposits if it is in default in repayment of any deposit or any interest thereon, and adds a requirement that companies certify they are not in default in repayment of deposits and interest in accordance with deposit terms.

Interlocutory application procedure requires triplicate filing, affidavit, indexing and notice to respondents before appellate authority for consideration.
Procedure under Section 13(1) requires interlocutory applications to be filed in triplicate, signed, supported by an affidavit, and accompanied by proof of advance notice to respondents; applications must be indexed, include documents relied upon, and include power of attorney/vakalatnama where necessary, and must state names and addresses of applicants and respondents.

Substitution of statutory application forms for inter-company loans and investments; amended forms mandate documentation and fee evidence.
The rules substitute Forms 34AA and 34B establishing standardized applications and filing procedures for Central Government approval of inter-company loans and investments. Each form requires fee payment evidence, corporate particulars (authorised capital, business, profit/loss history), management and shareholding details, proposed loan or investment specifics, security and valuation information where relevant, confirmation of required board and member resolutions, and a funds-availability schedule showing aggregate exposure and its percentage relation to reserves, together with a verification by an authorised signatory.

Default on deposits bars a company from making loans, guarantees or share investments until the default is cured.
Where a company has defaulted in repayment of any deposit or interest in accordance with the deposit's terms, it shall not make any loan or give any guarantee under section 370, nor shall it be entitled to invest in the shares of any other body corporate under section 372, until the default is made good.

Authorisation of SEBI officers to act under section 621(1) of Companies Act for specified company law offences.
Central Government authorises specified officers of the Securities and Exchange Board of India to exercise powers under section 621(1) of the Companies Act, 1956, for enforcement in respect of certain company law offences, superseding the earlier notification of 15 February 1995 insofar as applicable; fourteen SEBI officers are named and designated for those purposes.

Priority claim cap under section 530 limits per-claimant priority entitlement; notification prescribes statutory ceiling effective March.
Central Government, exercising the power under sub section (2) of section 530 of the Companies Act, notifies a per claimant ceiling on the sum to which priority shall be given under clause (b) of sub section (1) of section 530, thereby fixing the maximum priority amount recoverable by each claimant and limiting priority entitlement under that provision.

Commencement of Companies (Amendment) Act: Central Government appoints 1 March 1997 as its coming into force.
Notification GSR 78(E) dated 15-2-1997 exercises the Central Government's power under sub section (2) of section 1 of the Companies (Amendment) Act, 1996 to appoint the 1st day of March, 1997 as the date on which the Act shall come into force.

Salary parity ensures senior judicial appointees serving as Chairmen receive equivalent pay and benefits while retired judges' pensions cap salary.
New sub-rule (5) to rule 9 entitles a serving High Court Judge appointed as Chairman to salary, allowances and perquisites at the same rate as admissible to him as a High Court Judge. A retired High Court Judge appointed as Chairman shall be paid, during his service as Chairman, a salary which combined with his pension and other retirement benefits does not exceed his last pay drawn before retirement, and shall be entitled to allowances and perquisites equivalent to those of a serving High Court Judge.