SECTIONS 387 TO 392 OF THE MCA DO NOT APPLY TO FOREIGN COMPANIES OR COMPANIES INCORPORATED OUTSIDE OF INDIA
The provisions of sections 387 to 392 (both inclusive) of the Companies Act, 2013 are hereby exempted from (a) foreign companies; (b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India. The Central Government has exempted the following from the terms of sections 387 to 392 (both inclusive) of the Companies Act, 2013, by exercising its powers under section 393A of the Companies Act, 2013.
- Companies from other countries i.e. Foreign Company
- Companies formed or will be formed outside of India, whether they have or have not established, or may or may not establish, a place of business in India.
Sections 387 to 392 of the Companies Act 2013 deal with the delivery of prospectuses, as well as provisions for expert consent and allotment, prospectus registration, and the offer of India depository receipts, and the penalties for violating them.
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THE RBI HAS INCREASED THE AMOUNT OF COLLATERAL-FREE LOANS AVAILABLE TO SHGS UNDER THE DAY-NRLM PROGRAM TO RS 20 LAKH
Under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, the Reserve Bank of India has increased the amount of collateral-free loans available to self-help groups (SHGs) from Rs 10 lakh to Rs 20 lakh (DAY-NRLM). DAY-NRLM is the Government of India’s flagship program for reducing poverty by strengthening poor people’s institutions, particularly women’s, and enabling them to access a variety of financial services and livelihood opportunities. The DAY-NRLM takes a demand-driven strategy, allowing governments to develop their own poverty reduction action programs.
No collateral or margin would be imposed for loans to SHGs up to Rs 10 lakh; additionally, no lien should be placed on SHGs’ savings bank accounts, and no deposits should be demanded when loans are sanctioned. For loans to SHGs of more than Rs 10 lakh but less than Rs 20 lakh, no collateral should be required, and no lien should be placed on the SHGs’ savings bank account. However, the full loan (regardless of the amount owed, even if it is later reduced to less than Rs 10 lakh) would be covered by the Credit Guarantee Fund for Micro Units (CGFMU).
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