The prospectus or letter of offer shall, inter alia, contain the following particulars, namely:-
In earlier post here, we discussed, eligibility and procedure related to issue of Indian Depository Receipt. In this post, we will discuss application for IDRs, its proceeds and Transfer of Indian Depository Receipts.
Application for IDRs
No application form for the securities of the issuing company shall be issued unless the form is accompanied by a memorandum containing the salient features of prospectus in the specified form.
We have discussed earlier here that according to Section 390 of the Companies Act 2013, the Central government make rules for –
- the offer of Indian Depository Receipt;
- the requirement of disclosures in prospectus or letter of offer issued in connection with Indian Depository Receipt;
- the manner in which Indian Depository Receipt shall be dealt with in a depository mode and by custodian and underwriters; and
- the manner of sale, transfer or transmission of Indian Depository Receipt,
by a foreign company.
These Rules are contained in Rule 13 of the Companies (Registration of foreign Companies) Rules, 2014.
In this blog we will discuss provisions relating to documents related to foreign company and their certification.
Office where documents to be delivered and fee for registration of documents
Any document which any foreign company is required to deliver to the Registrar shall be delivered to the Registrar having jurisdiction over New Delhi, and references to the Registrar in Chapter XXII of the Act i.e. Companies Incorporated Outside India and these rules shall be construed accordingly. [Rule 8(1) of the Companies (Registration of Foreign companies) Rules 2014]
According to Section 381 of the Companies Act 2013 discussed earlier here, every foreign company, unless exempted, shall in every calendar –
- make out a balance sheet and profit and loss account; and
- deliver a copy of those documents to the Registrar.
If any of these documents is not in English Language, there shall be annexed to it a certified translation thereof in English language.
Every foreign company shall send to the Registrar along with these documents, a copy of a list of all places of business established by the company in India as on date of the Balance Sheet made out.
Rule 4 of the Companies (Registration of foreign Companies) Rules 2014 prescribes in detail.
We have discussed General provisions related to foreign companies earlier here. Section 380 asks for delivery of certain documents to the Registrar of Companies within thirty days of establishment of its place of business. The Section requires following documents to be delivered:
- a certified copy of the charter, statute or memorandum and articles of the company or other instrument constituting or defining the constitution of the company and if the instrument is not in English language, a certified translation thereof in the English language;
- the full address of the registered or principal office of the company;
- a list of the directors and secretary of the company with particulars;
- the names and addresses of one or more persons resident in India authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company;
- the full address of the office of the company in India which is deemed to be its principal place of business in India;
- particulars of opening and closing of a place of business in Indian on earlier occasions;
- declaration that none of the directors of the company or authorised representative in India has ever been convicted or debarred from formation of companies and management in India or abroad; or
- other prescribed particulars.
Rule 3 of the Companies (Registration of foreign Companies) Rules 2014 prescribes in detail.