Commencement of provisions related to Investor Education and Protection Fund

MCA vide notification dated 13th January, 2016 has notified the followings sub-sections of section 125 of the Companies Act 2013

(5) The Central Government shall constitute, by notification, an authority for administration of the Fund consisting of a chairperson and such other members, not exceeding seven and a chief executive officer, as the Central Government may appoint.

(6) The manner of administration of the Fund, appointment of chairperson, members and chief executive officer, holding of meetings of the authority shall be in accordance with such rules as may be prescribed. [provisions related to the manner of administration of the Investor Education and Protection Fund is not notified]

(7) The Central Government may provide to the authority such offices, officers, employees and other resources in accordance with such rules as may be prescribed.

Further in exercise of the powers conferred by sub-sections (5), (6) and (7) of section 125 of the Companies Act, 2013 (18 of 2013), MCA has also issued Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016.

The notification of aforesaid section will pave the way for the constitution of Investor Education and Protection Fund and notification of remaining provisions of section 125.

FAQ on Corporate Social Responsibility

MCA vide general circular no. 01/2016 dated 12th January 2016 has issued FAQ on the provisions related to Corporate Social Responsibility based on queries and references seeking further clarifications on various issues relating to CSR provision of the Act, received from general public.