close
Share with your friends

MCA revised the definition of listed companies

MCA revised the definition of listed companies

This issue of First Notes provides an overview of the recently amended rules.

1000

Also on home.kpmg

Certain amendments have been made to the Companies Act, 2013 (2013 Act) through the Companies (Amendment) Act, 2020 (2020 Amendment Act). The 2020 Amendment Act received the assent of the President of India on 28 September 2020. Many sections of the 2020 Amendment Act were notified on 21 December 2020, 22 January 2021 and 11 February 2021 by the Ministry of Corporate Affairs (MCA)

These amendments mainly relate to the decriminalisation of certain compoundable offences and rationalisation of penalties under the 2013 Act as well as those aimed at improving the ease of doing business by corporates in India.

Among those amendments that are aimed at improving the ease of doing business, is an amendment to the definition of a listed company under Section 2(52) of the 2013 Act. The amended definition empowers the Central Government (in consultation with the Securities and Exchange Board of India (SEBI)) to exclude, certain listed companies and private companies with the intention of getting listed certain class of its securities, from the category of ‘listed companies’.

New development

On 19 February 2021, MCA amended the Companies (Specification of definitions details) Rules, 2014 (Rules). The amendment inserts new Rule 2A with effect from 1 April 2021. This rule excludes specified class of companies from the definition of listed companies.
This issue of First Notes provides an overview of the recently amended rules.

To access the text of the MCA notification, please click here

You can reach us for feedback and questions at aaupdate@kpmg.com.

© 2021 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal