RBI, Sebi, Irdai and PFRDA to work closely on new framework
In a fillip to startups, the government has relaxed norms for shares with differential voting rights that will help such companies to retain control while raising equity capital. With the amended rules, companies can now have up to 74 per cent Differential Voting Rights (DVR) shares of the total post issue paid up share capital. The limit has been revised from 26 per cent. The corporate affairs ministry has amended the Companies (Share Capital & Debentures) Rules under the Companies Act. "Another Key change brought about is the removal of the earlier requirement of distributable profits for 3 years for a company to be eligible to issue shares with DVRs," the ministry said in a release on Friday. According to the ministry, the initiatives have been taken in response to requests from innovative technology companies and startups. It would also "strengthen the hands of Indian companies and their promoters who have lately been identified by deep pocketed investors worldwide for ...
Promoters are assessing potential future areas of stress in their businesses and deciding to give up majority stakes rather THAN go to the IBC
Around 300 promoters serve their company boards for free