Amended and updated notes on section 390 of Companies Act 2013. Detail discussion on provisions and rules related to offer of Indian Depository Receipts.
Chapter XXII (Section 379–393) of the Companies Act, 2013 (CA 2013) deals with the provisions related to companies incorporated outside India. Section 390 of CA 2013 provides for offer of Indian Depository Receipts.
Recently, we have discussed in detail section 389 (Registration of prospectus) of CA 2013. Today, we learn the provisions of section 390 of the Companies Act 2013.
The provisions of section 390 are effective from 1st April, 2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 390 the Companies Act 2013 read with the Companies (Registration of Foreign Companies) Rules, 2014.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXII |
| Chapter Name | Accounts of Companies |
| Section No. | 390 |
| Section Name | Offer of Indian Depository Receipts |
| Monthly Updated Edition | Company Law PDF |
Offer of Indian Depository Receipts
Section 390 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
Notwithstanding anything contained in any other law for the time being in force, the Central Government may make rules applicable for—
(a) the offer of Indian Depository Receipts;
(b) the requirement of disclosures in prospectus or letter of offer issued in connection with Indian Depository Receipts;
(c) the manner in which the Indian Depository Receipts shall be dealt with in a depository mode and by custodian and underwriters; and
(d) the manner of sale, transfer or transmission of Indian Depository Receipts, by a company incorporated or to be incorporated outside India, whether the company has or has not established, or will or will not establish, any place of business in India.
Did you know? The foreign companies and companies incorporated or to be incorporated outside India has been exempted from the provisions of section 390 in respect of the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the International Financial Services Centres (IFSC) set up under section 18 of the Special Economic Zones (SEZ) Act, 2005. – MCA Notification S.O. 3156(E) dated 5th August, 2021.