Business under Atmanirbhar Bharat Abhiyan

Related to IBC

  • Minimum threshold to initiate insolvency proceedings has been raised to Rs.1 crore (from Rs.1 lakh, which largely insulates Micro, Small and Medium Enterprises-MSMEs).
  • Special insolvency resolution framework for MSMEs under Section 240A of the Insolvency and Bankruptcy Code (IBC) will be notified.
  • Suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic.
  • Empowering the Central Government to exclude Covid-19 related debt from the definition of “default” under the IBC for the purpose of triggering insolvency proceedings.

Related to the Companies Act

  • Decriminalization of Companies Act, 2013 violations involving minor technical and procedural defaults (shortcomings in Corporate Social Responsibility (CSR) reporting, inadequacies in Board report, filing defaults, etc).
  • Majority of the compoundable offences sections to be shifted to Internal Adjudication Mechanism (IAM).
  • The amendments will de-clog the criminal courts and National Company Law Tribunal (NCLT).

Ease of Doing Business for Corporates

  • Direct listing of securities by Indian public companies in permissible foreign jurisdictions.
  • Private companies which list Non-Convertible Debentures (NCDs) on stock exchanges not to be regarded as listed companies.
  • Power to create additional/specialized benches for National Company Law Appellate Tribunal (NCLAT).
  • Lower penalties for all defaults for Small Companies, One-person Companies, Producer Companies and StartUps.

Public Sector Enterprise Policy for a New, Self-reliant India

  • List of strategic sectors requiring the presence of Public Sector Enterprises (PSEs) in public interest will be notified.
  • In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed.
  • In other sectors, PSEs will be privatized (timing to be based on feasibility etc.).

Leave a Reply