The Ministry of Corporate Affairs (MCA), vide a notification dated 11th February 2021 has made amendment to The Companies (Share Capital and Debentures) Rules, 2014, whereby it has amended the time limit for shareholders to accept an offer for further issue of shares.
These new rules shall be called The Companies (Share Capital and Debentures) Rules, 2021. As per notification, after rule 12, rule 12A shall be inserted, which states that for the purpose of Section 62(1)(a)(i), 7 Days shall be the minimum time limit, which the companies can provide to shareholder to accept the offer for rights shares, beyond which the offer shall be deemed to have been declined, instead of previous time limit of 15 Days.
The above amendment shall come into force w.e.f. 1st April 2021.
Source: MCA Notification
Audit Associate, ShineWing India