- Indian company permitted to issue partly paid shares and warrants to the FDI Investors under Automatic Route.
- In case of unlisted companies, pricing methodology to determine fair value of shares in case of issue and transfers has been revised.
- Fair value should be determined as per internationally accepted pricing methodology (instead of DCF method prescribed earlier).
- Indian company permitted to issue equity shares, CCPS and CCDs with optionality clause to FDI Investors.
- Subject to lock-in of 1 year or period as applicable to respective sector, whichever is higher; lock-in applicable from date of allotment.
CBDT clarification on Taxation of AIF
- In case Trust Deed either does not name the investors or does not specify their beneficial interest, entire income of the Trust liable to be taxed at MMR-practical difficulties for AIFs set up as Trust.
- In such cases, investors need to be taxed as the corresponding income has already been taxed at MMR at the Trust Level.
- Dividend Distribution Tax increased from 16.995% to 19.994% due to grossing up.
3) Company Law
Companies (Amendment) Bill, 2014-Passed by Lok Sabha
- The requirement of having minimum paid up share capital is omitted, for ease of doing business.
- Having a common seal of the company for authorisation and execution of documents is now optional.
- Ordinary resolution in place of special resolution for approval of related party transactions.
- Board resolution filed with the registrar would not be available for public inspection.
Draft Notification for exemption to Private Company
- Provisions related to equity shares with differential voting rights and related party transactions
- Reduced time limit for making Rights Offer
- Certain relaxations on Loan to Directors or persons in whom director is interested
- Issue of shares under ESOPs to require ordinary resolution instead of special resolution