Incorporation of company- new requirement

CS Ankur Srivastava (Company Secretary & Compliance Officer)   (17853 Points)

04 June 2013  
Recently the matters arises where the Companies had raised monies from the investors in a manner which was opaque / convoluted / non –accountable and which did not protect the interest of investor. Ministry has seriously noted the same.
 
Accordingly, with the view to protect the interest of investor inter-alia deposit holder, Ministry of Corporate Affairs has issued a Circular no. 11/2013 dated 29.05.2013 and clarified that the Registrar of Companies may obtain declaration / affidavit from subscribers / first directors first at the time of incorporation and subsequently from directors whenever company change its objects to the effect that the Company / directors shall not accept any deposit unless compliance of the applicable provisions of the Companies Act, 1956, RBI Act, 1934 and  SEBI Act, 1992 and rules / regulations/ directions made there under are duly complied and filed with the concerned authorities.