The Ministry of Corporate Affairs (MCA) has moved a Cabinet note on the Companies Bill for making some key changes. According to the sources these changes have been made to take on board the objections raised by the Standing Committee on Finance, reports, Ronojoy Banerjee of CNBC-TV18.

The Ministry of Corporate Affairs is keen that they do not want to face anymore stumbling blocks to the passage of the Companies Bill. Sources say that they have tried to address some of the contentious issues that were raised by the House Panel in the draft cabinet note that was sent on Friday.

Sources indicate that with respect to CSR, the ministry has now proposed that up to 20% of the total CSR that a company spends needs to be invested in the area where a project is coming up but at the same time refraining from making it absolutely mandatory as the House Panel earlier wanted.

With respect to private placements, sources say that the ministry has removed the alignment it had proposed in the Companies Bill. In the existing Companies Act private placement can be issued to only up to 49 people at one time. But this has been removed in the new bill. In fact, they say that the maximum limit should be aligned with SEBI's listing rules, which states that a company can go in for an IPO, with the issue size of 1,000 people, which is the present rule of SEBI.

It's clear that the ministry wants this Bill to be passed and sources indicate that by the end of the week all the ministries like Law Ministry, Finance Ministry, and the Planning Commission will get back with their responses. (CNBC)