Date January 9, 2017
Indian Government relaxes norms under the Companies Act for IFSC Companies

The Ministry of Corporate Affairs, Government of India has vide 2 (two) notifications, both dated 4 January 2017, exempted the following companies from complying with certain provisions of the Companies Act, 2013:

(a) Specified IFSC public companies: Unlisted public companies which are licensed to operate bythe    Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), or the Insurance Regulatory and Development Authority of India (IRDAI) from the International Financial Services Centre (IFSC) located in an approved multi services Special Economic Zone (SEZ) set-up under the Special Economic Zones Act, 2005 (SEZ Act); and

(b) Specified IFSC private companies: Private companies which are licensed to operate by RBI, SEBI, or IRDAI from IFSC located in an approved multi services SEZ set-up under the SEZ Act.

Per the aforesaid notifications, specified IFSC public and private companies have been exempted from compliance of overall 66 (sixty six) and 39 (thirty nine) provisions of the Companies Act, 2013, respectively, subject to certain exceptions, modifications and adaptations.

The said notifications may be accessed at:

(a) Exemptions to specified IFSC public companies:

http://www.mca.gov.in/Ministry/pdf/IFSC_Public_04012017.pdf

(b) Exemptions to specified IFSC private companies:

http://www.mca.gov.in/Ministry/pdf/IFSC_Private_04012017.pdf