The Ministry of Corporate Affairs (MCA) notified the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020 which eased the placement norms for qualified institutional buyers.
The notification seeks to amend the Companies (Prospectus and Allotment of Securities) Rules, 2014.
In the Companies (Prospectus and Allotment of Securities) Rules, 2014, in rule 14, in sub-rule (1), after the third proviso, the, “Provided also that in case of offer or invitation of any securities to qualified institutional buyers, it shall be sufficient if the company passes a previous special resolution only once in a year for all the allotments to such buyers during the year,” shall be inserted.
In other words, companies need not to pass again and again Special resolution in case of offer or invitation of any securities to qualified institutional buyers, it shall be sufficient if the company passes a previous special resolution only once in a year for all the allotment to such buyers.
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