Key Points
Draft amendments to all principal rules and regulations under the Companies Act and the competition and insolvency laws, among others, will now have to be accompanied by notes explaining reasons for the proposed changes and the manner and time frames of implementation...
The Ministry of Corporate Affairs (MCA) has firmed up a policy framework for pre-legislative consultation relating to the framing of rules and regulations under laws administered by it..
It suggests the explanatory note and the proposed changes will have to be placed for stakeholder comments for at least 30 days...
The explanatory note will state the issue/difficulty that the proposed amendment seeks to address; rule-making/regulatory practices on the subject matter, if any; manner of implementation of the proposed rule; and the manner, process and timelines for receiving comments from the public, according to the framework...
Similarly, several changes to rules and regulations followed the adoption of the LLP Act, 2008, which essentially focussed on bringing in more transparency in the way they operate and compounding of certain offences.. Finance and corporate affairs minister Nirmala Sitharaman had announced in her budget speech in February 2023 that financial sector regulators and relevant entities would be asked to undertake a comprehensive review of existing regulations to simplify, ease and reduce cost of compliances...
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