(A Complete procedure for issuance of securities under private placement -Cs Riya Khurana) PRIVATE PLACEMENT OF SECURITIES – A Complete procedure for issuance of securities under private placement  APPLICABILITY OF SECTION-Section 42 of the Companies Act, 2013. GENERAL MEANING: Private Placement refers to the process of raising of fund by issuing securities to the pre-determined investor instead in the open market. Explanation 1: The group of persons been identified by the Board of the Company and it shall not be more than 50 persons in each offer and; {Max 200 excluding QIB’s and em ..read more

Ministry of law and justice, legislative Department, which has introduced a system of Pre-Packed Insolvency Resolution Process through Insolvency and Bankruptcy code, (Amendment) Ordinance, 2021. Further, MCA Notification dated 9th April, 2021, mentioned sections, sub-sections and clauses under Chapter III-A of part II of the Code. Firstly, we need to know that, WHAT IS CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP)? Corporate Insolvency Resolution Process (CIRP) refers to a process, as laid down in the IBC, 2016 for reviewing the Company (corporate debtor) from its position of insolvency ..read more

The Central Government has made some amendments under Foreign Trade Policy, 2015-2020, under Chapter 1 and Chapter 2 of FTP, 2015-2020, through the Notification dated 12th February, 2021. Following are the amendment under FTP, 2015-2020:- FTP Para no.      Pre Amendment Post Amendment 1.11 Issue of e-IEC (Electronic –Importer Exporter Code) e-IEC (Electronic –Importer Exporter Code) 1. Importer Exporter code (IEC) is a mandatory for export/import from/to India as detailed in paragraph 2.05 of this Policy. DGFT issue Importer Exporter code in electronic form (e ..read more

As per section 2(8) of the Companies Act, 2013, the Authorised capital or nominal capital means such Capital as is authorised by the Memorandum of Association of a Company to be the maximum amount of share capital of the Company. Hence, a Company can issue shares up to the limit of the amount of Authorised capital of the Company, as shown on the MCA21- Company Master Data.  Therefore, in case, the Company wants to expand its business or wants to issue shares more than its Authorised Capital, the Company is required to increase the Authorised share Capital of the Company according to Secti ..read more

What is the Right issue of shares? As per section 62(1) (a) of the Companies Act, 2013, the Right issue of shares refers to the issuance of shares by the Company to its existing shareholders in proportionate to their existing shareholding. It is an easy and simple way to raise funds by Company, Under the Right issue of shares, the existing shareholders of the Company having Pre-Emptive Rights, according they have preference for subscribing the Right shares instead to an outsider. STEPWISE PROCEDURE FOR RIGHT ISSUE OF SHARES: Step: 1 Draft “Letter of Offer” for the Right Issue of shares along w ..read more

MSME Stands for Micro, Small and Medium Enterprises. It is regulated by the Ministry of Micro, Small and Medium Enterprises. The Government of India has enacted an Act for MSME i.e., Micro, Small and Medium Enterprises Development Act, 2006. ELIGIBLE ACTIVITY FOR MSME REGISTRATION: As per the MSME Act, 2006, Micro, Small and Medium Enterprises eligible for the following activities: Manufacturer: In Manufacturing or Production, Processing or preservation of goods. Service Provider: In providing or rendering of Services. CLASSIFICATION OF INVESTMENT IN ENTERPRISES: As per the notification da ..read more

APPLY FOR EXTENSION OF VISA IN INDIA: Any foreigner who is residing in India on a work basis or on a tourist visa basis and his Visa is about to expire, has to submit an application on https://indianfrro.gov.in/eservices/home.jsp for the extension of visa on or before 60 days before the expiry of the respective Visa. Valid Reason for Extension of Visa: However, the extension is not granted in normal circumstances, the foreigner has to give some a valid reason for his Visa Extension. Overstay cause Fine and Imprisonment: Under Foreigner Act, 1946 in the event of overstay by a foreigner, there s ..read more

Issuance of Physical Share Certificate (When the Shares are not in DEMAT Form) The Company shall issue any share certificate, after the surrender of the allotment letter to the Company, by the Allottees. (In case the allotment letter is lost or destroyed, then the board may impose such reasonable terms, in respect to the support of evidence and indemnity and payment out of pocket expenses, incurred by the Company in the search of evidence, as they deems fit. The share certificate shall be in the prescribed format i.e., FORM SH-1. The format of form SH-1 shall be available at the below-given li ..read more

An Importer-Exporter code (IEC) is a business Identification Number, issued by DGFT (Directorate General of Foreign Trade), required at the time of export to Outside India or Import in India. No person can do export or import without obtaining an IEC unless specifically exempted. Key Features: It is a Unique business Identification Number; Consequent upon the introduction of GST, IEC code number is allotted on individual PAN or Entity PAN for availing befits from export development council or DGFT and for importing/Exporting any goods/ services; IEC would be separately issued by DGFT. An Enti ..read more

The Union Budget for the Financial Year 2021-22, announced by Hon’ble Finance Minister “Nirmala Sitharaman” on 1st Day of February 2021 at 11:00 PM. She has used Made in India Tablet for the delivery of the digital Budget, 2021. It shall be effective from the 1st day of April 2021. “It is unlike anything so far”, as this is a first digital Budget in the history of India.  The union Budget 2021 comes in amid of the pandemic “COVID-19”, which is making it a significant budget for the Hon’ble Finance Minister. KEY FEATURE FOR THE “UNION BUDGET 2021” ARE AS FOLLOWS: GDP GROWTH:  The gove ..read more