MCA Sets to Solicit Ideas from Public for Rules Update

The Ministry of Corporate Affairs (MCA) is all set to invite ideas from the public to amend a wide spectrum of rules under the Companies Act 2013. The MCA will soon release a framework seeking public consultations, according to a senior official. The move is expected to help unburden India Inc’s compliance issues and make running businesses easier.

Finance Minister Nirmala Sitharaman had included the move in her 2023-24 budget speech. The framework will be ready before physical consultations are conducted with stakeholders and regional directors. MCA has planned a “comprehensive review” of the gamut of rules so far incorporated with the stakeholders.

Stakeholders can submit their feedback through online mode. According to experts, public comments are usually invited when rules and regulations are created under a law for the first time, not during subsequent changes.

The MCA executes the Companies Act, 2013, which was enacted in place of the Companies Act, 1956. It took decades to enact the Companies Act 1956, which brought a spectrum of changes such as corporate social responsibility, female directors, key managerial personnel, and class action suits.