Corporate Updates – 18-09-2014


MCA has issued clarification with regard to the provision of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013. In continuation of the General Circular No. 21 of 2014 dated 18-06-2014, Rule 4(6) of the relevant rules as notified on 27-02-2014 has been amended on 12-09-2014 and consequently, clarification (iv) regarding salaries paid to the regular CSR staff as prescribed in Circular 21 stands omitted.


RBI has now allowed an Indian company under the automatic route to issue equity shares against any other funds payable by the investee company, remittance of which does not require prior permission of the Government of India or Reserve Bank of India under FEMA, 1999 or any rules/ regulations framed or directions issued thereunder, provided that the equity shares shall be issued in accordance with the extant FDI guidelines on sectoral caps, pricing guidelines.

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