MCA:
1. MCA has issued clarification on section 185 of the Companies Act 2013 to provide much needed relief to the corporate(s). It is clarified that in order to maintain harmony with regard to applicability of Section 372A of the Companies Act, 1956 till the same is repealed and Section 186 of the Companies Act, 2013 is notified, any guarantee given or security provided by a holding company in respect of loans made by a bank or financial institution to its wholly owned subsidiary company, exemption as provided in clause (d) of sub-section (8) of Section 372A of the Companies Act, 1956 shall be applicable. This clarification will, however, be applicable to cases where loans so obtained are exclusively utilized by the subsidiary for its principal business activities and the said relief is not given with respect to loan given by holding Company to its wholly owned subsidiaries. For detailed circular, please visit http://www.mca.gov.in/Ministry/pdf/General_Circular_3_2014.pdf
2. MCA has instructed all the ROC(s) to stringently enforced that no company should be allowed to be registered with the word ‘National’ as part of its title unless it is a Government Company and the Central / State Government(s) has a stake in it or the word ‘Bank’ or word “stock Exchange” or “Exchange” may only be allowed in the name of an entity, when such entity produces a No Objection Certificate’ from the RBI or SEBI in this regard while registering companies. For detailed circular, please visit http://www.mca.gov.in/Ministry/pdf/General_Circular_2_2014.pdf
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