The Ministry of Corporate Affairs (MCA), through notification no. G.S.R. 61(E) on 24-01-2024 introduced the Companies (Listing of equity shares in permissible jurisdictions) Rules, 2024. These regulations apply to unlisted public companies and listed public companies issuing securities for listing on approved stock exchanges in permissible jurisdictions, including the IFSC (International Financial Services Centre), such as the India International Exchange and NSE International Exchange. Certain entities, like Nidhi Companies and companies limited by guarantee, are outlined as ineligible under these rules.

Ministry of Corporate Affairs – Uniform Norms for Pre-Legislative Consultations

Commencing January 1, the Ministry of Corporate Affairs, along with bodies like the Competition Commission of India, has adopted a new rule. Before enacting laws or rules, they will release a draft for public feedback for 30 days. This move aims to enhance transparency and public involvement in decision-making. Finance Minister Nirmala Sitharaman supports this initiative, believing it will simplify financial regulations and engage the public in the decision-making process, ultimately streamlining complex rules.

Byju’s Foreign Lenders File Insolvency Plea

Introduction: Two insolvency petitions, totaling $1.2 billion, have been filed against ed-tech start-up Byju’s at the National Company Law Tribunal (NCLT) in Bengaluru. The first, by international lenders, is under scrutiny, while the second, filed by Teleperformance Business Services India Limited, an operational creditor, is scheduled for a hearing on January 25, 2024. Byju’s faces additional NCLT proceedings initiated by the Board of Control for Cricket in India (BCCI) for an alleged default on a payment of Rs 158 crore related to a sponsorship contract for the Indian cricket team’s jerseys.

Reserve Bank of India (RBI) – Proposed Easing of Norms for Dividend Payout by Banks

The RBI is contemplating changes to dividend rules for Indian banks. The proposed guidelines may permit banks with a net non-performing assets (NPAs) ratio below 6% to declare dividends, down from the current 7%. These changes, effective from FY25, align with Basel III standards. The minimum total capital adequacy for eligibility varies for commercial banks, small finance and payment banks, and local area and regional rural banks. The upper limit for the dividend payout ratio may increase from 40% to 50% under certain conditions, fostering a more defined regulatory framework.