Compliance Chambers

The Reserve Bank of India today released the Financial Stability Report (FSR), 17th in the series. The FSR reflects the overall assessment of the stability of India’s financial system and its resilience to risks emanating from global and domestic factors. The Report also discusses issues relating to developments in and regulation of the financial sector. Global and domestic macro-financial risks ·         Global growth outlook for 2018 remains positive despite some recent softness. ·         Spillover risk from advanced financial markets to emerging markets, however, has increased. ·     Tightening of liquidity conditions in the developed markets alongside expansionary US fiscal policy and a strong US dollar have started to adversely impact emerging market currencies, bonds and capital flows. Firming commodity prices, evolving geopolitical developments and rising protectionist sentiments pose added risks. ·         On the domestic front, economic growth is firming u

This article will be followed by series of articles  which will give you a complete perspective  of the concept of right issue of shares from the companies view point and from the stakeholders as well. Also, in future articles there will be overview of the SEBI regulations and compliance's. MEANING OF RIGHT ISSUE  When a company having share capital wants to increase their subscribed capital by issue of further shares then it can do so by offering shares to the existing shareholders in proportion to the paid up capital. DEFINITION AS PER COMPANIES ACT, 2013 As per Section 62(1)(a), where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer subject to the c

A s per Section 469 of the Companies Act, 2013 (‘Act’) Central Government has the power to make rules for carrying out the provisions of this act. With the power of Section 469 of the Act, the CG has made Companies (Significant Beneficial Owners) Rules, 2018 for carrying out the provisions of Section 90 of the Companies Act, 2013 which is amended in Companies (Amendment) Act, 2017 under section 22. A s per section 90 , of the Act, every individual , who acting alone or together, or through one or more persons or trust, including a trust and persons resident outside India, holds beneficial interests, of not less than twenty-five per cent. or such other percentage as may be prescribed, in shares ( shares includes GDR, compulsory convertible preference shares or compulsory convertible debentures) of a company or the right to exercise, or the actual exercising of significant influence or control as defined in clause (27) of section 2 of the Act. Also as per section 2(6) ,