| Latest Updates From MCA |
| Guidelines for declaring a financial institution as Public Financial Institution under section 4A of the Companies Act,1956 |
| MCA vide General Circular No. 10/2012 dated May 21, 2012 has revisited the guidelines for declaring a Financial Institution as Public Financial Institution under Section 4A of the Companies Act,1956. The Ministry had already defined the criteria vide General Circular No. 34/2011 dated June 2, 2011 and in the said respect, the circular issued on May 21 , 2012 has inserted two more conditions which shall be satisfied by a Financial Institution while applying to be declared as Public Financial Institution to the Ministry. |
|
Therefore a Financial Institution to be declared as Public Financial Institution shall fulfill the following criteria:
|
| 1 |
A company or corporation should be established under a special Act or the Companies Act,1956 being a central act. |
| 2 |
Main business of the company should be industrial/infrastructural financing. |
| 3 |
The company must be in existence for at least 3 years and its financial statements should show that its income from industrial/infrastructural financing activities exceeds 50% of its total income. |
| 4 |
The net worth of the company should be minimum of Rs. 1000 crore. |
| 5 |
Company is registered as a Infrastructure Finance Company(IFC) with RBI or as a Housing Finance Company(HFC) with National Housing Bank. |
| 6 |
NOC from RBI/NHB, in the case of IFC/HFC, with regard to supervisory concerns, if any, must be obtained and enclosed with the application. |
| 7 |
Such IFCs/HFCs, after being declared as PFIs are required to disclose in their audited financial statements that they are complying with the direction and conditions laid down by the Ministry. |
| It is to be noted that conditions (6) and (7) are the two new conditions which have been inserted in the already defined criteria. Further in case of Central Public Sector Undertakings, no restriction shall apply with respect to condition prescribed in (3) and (4) mentioned above. |
| IEPF (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules,2012 and Filing of certain forms by defaulting companies
|
| MCA vide Notification G.S.R. 352(E) dated May 10, 2012 has notified Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules,2012 which have come into effect from May 20, 2012. |
| The Rules prescribes the following requirements: |
| 1. |
Every company(including Non-banking Financial Companies and residuary non banking companies) shall furnish information/statement on unpaid and unclaimed amounts of dividend on its own website and through e-Form 5 INV to MCA or such other website as may be specified by Government, comprising information on particulars as follows:
- The names and last known addresses of the persons entitled to receive the sum.
- The nature of amount.
- The amount to which each person is entitled.
- The due date for transfer into the IEPF and,
- Such other information as considered relevant for the purpose.
|
| 2. |
The company has to identify such unpaid and unclaimed dividend as per Section 205C of Companies Act,1956. |
| 3. |
Such a statement has to be filed/uploaded within 90 days from the holding of AGM or the date on which it should have been held according to Section 166 of Companies Act,1956. |
| 4. |
The statement shall be filed/uploaded every year till the completion of seven years. |
| 5. |
E-Form 5 INV shall be duly verified and certified by the statutory auditors of the company or a Chartered Accountant or a Company Secretary or a Cost Accountant practicing in India. |
| 6. |
In case companies fails to furnish and upload information or furnishes and uploads false information, then the company and every officer in default shall be liable and accordingly provisions of Section 629A of Companies Act, 1956 will be applicable. |
| 7 |
All the companies are required to comply with the above requirement for the Financial Year ended March 31, 2011 also and the due date of filing/uploading such information for the said financial year is July 31,2012. |
| This move is clearly a step towards keeping the stakeholders well informed with respect to the unclaimed dividend lying with the company. Moreover, it will also make the companies more accountable by ensuring such disclosure requirement upon the companies. |
| Filing of certain forms by defaulting companies |
| MCA vide General Circular No. 09/2012 dated May 15, 2012 has the interest of stakeholders and on requests received from various professionals, allowed defaulting companies, which have defaulted in filing of updated Balance Sheets, Profit & Loss Accounts and Annual Returns with Registrar of Companies and h were debarred from filing of any event based information, except a few eforms, until and unless they have filed the updated aforementioned documents with MCA., to file the following additional forms with it:. |
- Form 8 and 10– Particulars of modification of charge(s) under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 from stakeholders.
- Form 17– Particulars of satisfaction of charge(s) from defaulting companies also.
|
| The circular is effective from May 20,2012. |
