The Ministry of Corporate Affairs (MCA) excluded the electronic presence of a foreign company from the definition of a foreign company under section 2(42) of the Act by the means of electronic-based offering of securities, subscription thereof, or listing of securities in the IFSC.
The MCA notified the Companies (Specification of definitions details) Third Amendment Rules, 2021 which seeks to amend the Companies (Specification of definitions details) Rules, 2014.
In the Companies (Specification of definitions details) Rules, 2014, in clause (h) of sub-rule (1) of rule 2, the explanation shall be inserted, namely “Explanation.- For the purposes of this clause, electronic-based offering of securities, subscription thereof or listing of securities in the International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005) shall not be construed as ‘electronic mode’ for the purpose of clause (42) of section 2 of the Act.”
The notification shall come into force from 5th August 2021.
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