Ministry of Corporate Affairs vide notification dated 5th June, 2020 amend has amended Companies (Share Capital and Debentures) Rules, 2014 in the following manner:
In the provision of issue of sweat equity shares, the old definition of startup company which was issued by Department of Industrial Policy and Promotion vide notification GSR 180(E), dated 17th February, 2016 is substituted by Department for Promotion of Industry and Internal Trade vide notification G.S.R. 127(E), dated the 19th February, 2019.
Start can issue now sweat equity shares not exceeding fifty per cent of its paid up capital up to Ten years instead of Five years from the date of its incorporation or registration.
Now, a listed company which has privately placed its debentures will not be required to invest or deposit, as the case may be, a sum which shall not be less than 15% of the amount of its debentures maturing during the year, ending on the 31st day of March of the next year on or before the 30th day of April in each year.
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