The Companies (Amendment) Bill, 2016 -- introduced by Corporate Affairs Minister Arun Jaitley in the Lok Sabha on March 16 -- has been referred to the Parliamentary Standing Committee on Finance.
Sources said the proposal for "ex post facto" approval for the bill is on the agenda of the Cabinet meeting scheduled for tomorrow.
The inter-ministerial consultations on the bill were completed only on March 12 and the Cabinet could not meet before closing of the first half of the Budget session on March 16. Hence, the bill was introduced in the Lower House after getting approval from Prime Minister Narendra Modi under a provision of Government of India (Transaction of Business) Rules, 1961, they added.
Proposing a host of changes to the Companies Act, 2013, the bill seeks to simplify private placement process, remove restrictions on layers of subsidiaries and investment companies, amend CSR (Corporate Social Responsibility) provisions to bring greater clarity and exempt certain class of foreign entities from the compliance regime under this law.
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The bill has been referred to the Parliamentary Standing Committee, which is expected to prepare its report within three months.
Most provisions of the Act came into force from April 1, 2014. Out of 470 sections of the Companies Act, 284 have come into effect.