- India's Companies Act is being implemented in
phases, with 98 sections notified and implemented on
- The law is intended to separate ownership from
management, and encourage companies to regulate themselves.
However penalties for non-compliance are quite
- Some market participants are concerned that the
immediate implementation of the Companies Act doesn't give
them enough time to adjust current practices, especially as
the new law requires significant changes across many areas of
- It places further restrictions on independent
directors and their relationships with companies, and
requires that related party transactions become subject to a
On September 12, India's Ministry of Corporate Affairs (MCA)
issued a notification bringing into force 98 sections of 470
sections of the country's Companies Act 2013. The...