The Ministry of Corporate Affairs (MCA) has notified the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020 wherein rule 14 has amended.
The MCA has now said that companies need not pass special resolution with approval of shareholders every time it issues securities to qualified institutional buyers (QIBs). It shall be sufficient if the company passes a previous special resolution only once in a year for all the allotment to such buyers.
“Provided also that in case of offer or invitation of any securities to qualified institutional buyers, it shall be sufficient if the company passes a previous special resolution only once in a year for all the allotments to such buyers during the year.” the notification said.
Read Notification Here: