The MCA vide Notification No. 4744(E) dated October 30, 2023, appoints this date i.e. October 30, 2023, as the effective date for the provisions of section 5 of the Companies (Amendment) Act, 2020.
This amendment is aimed at providing public companies with the flexibility to list their securities on foreign stock exchanges and includes provisions for exemptions by the Central Government.
Section 5 amends section 23 of the Companies Act, 2013:
5. In section 23 of the principal Act, after sub-section (2) and before the Explanation, the following sub-sections shall be inserted, namely:—
“(3) Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed.
(4) The Central Government may, by notification, exempt any class or classes of public companies referred to in sub-section (3) from any of the provisions of this Chapter, Chapter IV, section 89, section 90 or section 127 and a copy of every such notification shall, as soon as may be after it is issued, be laid before both Houses of Parliament.”.
The Notification can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/MCA-Notification-30.10.2023.pdf