These rules may be called the Companies (Share Capital and Debentures Amendment Rules, 2020.
| Rule No | Companies (Share Capital and Debentures Rules, 2014. | Companies (Share Capital and Debentures Amendment Rules, 2020. | Comment |
| Issue of Sweat Equity Share Rule 8, in sub-rule (4), second proviso | Provided further that a start-up company, as defined in notification number [G.S.R. 180(E), dated the 17th February, 2016 issued by the Department of Industrial Policy and Promotion] Ministry of Commerce and Industry, Government of lndia, may issue sweat equity shares not exceeding fifty percent of its paid up capital upto [five years] from the date of its incorporation or registration | Provided further that a start-up company, as defined in notification number [G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade]. Ministry of Commerce and Industry, Government of lndia, may issue sweat equity shares not exceeding fifty percent of its paidup capital upto [ten years] from the date of its incorporation or registration | A start-up company as per the norms of Government of India or start-up company registered as such can issue sweat equity shares not exceeding fifty percent of its paid up capital up to ten years from the date of its incorporation or registration. |
| Debentures Rule 18, in sub-rule (7), in clause (b), for sub-clause (v) | In case a company is covered in item (A) or item (B) of sub-clause (iii) of clause (b) or item (B) of sub-clause (iv) of clause (b), it shall on or before the 30th day of April in each year, in respect of debentures issued by a company covered in item (A) or item (B) of sub-clause (iii) of clause (b) or item (B) of sub-clause (iv) of clause (b), invest or deposit, as the case may be, a sum which shall not be less than fifteen per cent., of the amount of its debentures maturing during the year, ending on the 31st day of March of the next year in any one or more methods of investments or deposits as provided in sub-clause (vi):Provided that the amount remaining invested or deposited, as the case may be, shall not at any time fall below fifteen percent. of the amount of the debentures maturing during the year ending on 31st day of March of that year. | In case a company is covered in item (A) of sub-clause (iii) of clause (b) or item (B) of sub-clause (iv) of clause (b), it shall on or before the 30th day of April in each year, in respect of debentures issued by such a company, invest or deposit, as the case may be, a sum which shall not be less than fifteen percent., of the amount of its debentures maturing during the year, ending on the 31st day of March of the next year in any one or more methods of investments or deposits as provided in sub-clause (vi):Provided that the amount remaining invested or deposited, as the case may be, shall not any time fall below fifteen percent. of the amount of the debentures maturing during the year ending on 31st day of March of that year. | The company covered in item (A) item (A) of sub-clause (iii) of clause (b) or item (B) of sub-clause (iv) of clause (b) in respect of debentures issued by such company on or before 30th day of April in each year should invest or deposit a sum which shall not be less than 15% of its amount of debentures maturing during every year, ending on the 31st March of next year in any one or more method of investment or deposit. |
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