Corporate Affairs Ministry, Sebi officials to discuss Companies Act on October 24

Officials of the Ministry of Corporate Affairs (MCA) and market watchdog Securities and Exchange Board of India (Sebi) will hold discussions this week on bringing regulations for listed firms in line with provisions of the new Companies Act.

A government official said the ministry is scheduled to hold a meeting with Sebi officials on October 24 to discuss the required changes.

According to the official, the deliberations would mainly focus on Chapter 3 and 4 of the legislation.

While Chapter 3 is on prospectus and allotment of securities, Chapter 4 pertains to share capital and debentures. The draft rules for these chapters have been already published by the ministry and it has also received public comments on the same.

Without providing specific details, the official said the ministry has been in touch with Sebi in deciding on various aspects of rules related to these topics.

In the draft rules for Chapter 3, which is related to prospectus and allotment of securities, the ministry had said that details of various provisions would be decided by getting comments from Sebi.

With regard to Chapter 4, the ministry had said provisions shall apply to all unlisted and listed companies so far as they do not contradict or conflict with any other provision framed in this regard by Sebi.

In August, Parliament had approved the new Companies Bill that replaces the nearly six-decade old legislation governing corporates in the country. (PTI)