New Mechanisms for Monitoring Foreign Direct Investment in India

June 1, 2022

The Ministry of Corporate Affairs (MCA) has recently made amendments to various provisions of the Companies Act, 2013 (Act) and the rules made under the provisions. 

The amendments are made with an intent to implement a mechanism for monitoring foreign direct investment (FDI) from countries, or entities in the countries sharing a land border with India.

The amendments are summarized below: 

  • Amendment to the Companies (Share Capital and Debentures) Amendment Rules, 2022.
    • Date of notification and effective date: May 4, 2022
  • Amendment to the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022.
    • Date of notification and effective date: May 5, 2022
  • Amendment to the Companies (Incorporation) Second Amendment Rules, 2022.
    • Date of notification: May 20, 2022
    • Effective date of notification: June 1, 2022
  • Amendment to the Companies (Compromises, Arrangements and Amalgamation) Amendment Rules, 2022.
    • Date of notification and effective date: May 30, 2022

Download our latest Regulatory Alert to learn more about the amendments and our commentary on their implications below. For more information, please contact Vinay Sancheti, Head of India & UAE Sales of Tricor India at vinay.sancheti@nexdigm.com or ThinkNext@nexdigm.com.

Topics: Regulatory Updates & News, India

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