Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019

Respected,

The Ministry of Corporate Affairs vide its notification dated 22nd January, 2019 added sub-rule (11) after sub-rule (10) Rule 9A namely:-

“(11) This rule shall not apply to an unlisted public company which is:—

 (a) a Nidhi;

 (b) a Government company or

 (c) a wholly owned subsidiary.”

Pursuant to notification dated 2nd day of October, 2018 MCA comes up with Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 which mandates all unlisted public company for issuing securities only in dematerialised form.

Conclusion:-

Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 shall not apply on Nidhi; Government & wholly owned subsidiary company.


Notification Link

1. Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectusAllotmentRule_23012019.pdf

2. Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectus3amdRule_10092018.pdf