The Ministry of Corporate Affairs (MCA) issued a notification G.S.R. 131(E) on 13th February 2025 where it amended the Companies (Prospectus and Allotment of Securities) Rules, 2014, providing private companies time till the extended compliance deadline to comply with some provisions of certain regulatory requirements. The amended Rule 9B (2) conveyed that private companies (other than Producers Companies) not classified as small companies as of March 31, 2023, now have time until June 30, 2025, to comply with their duties. This extension of time is for the entities concerned, whereby they may now carry on their operations without undue pressure from a regulatory viewpoint.
The amendment will take effect immediately, and it will not allow any entity that has been affected by it to suffer adverse consequences because it is retrospective in effect. Companies should use this time to ensure full compliance with the provisions so they do not have to face penalties now. This further demonstrates the government’s commitment to easing business operations under a structured regulatory regime.