: MHA issues fresh guidelines for arms manufacturers to enhance production #FinanceIndia #StockMarketNEWS MHA issues fresh guidelines for arms manufacturers to enhance production New Delhi, Jan 22 (KNN)

@StockMarketNEWS Tue 25 Jan, 2022

Posted in: #FinanceIndia #StockMarketNEWS

MHA issues fresh guidelines for arms manufacturers to enhance production #FinanceIndia #StockMarketNEWS
MHA issues fresh guidelines for arms manufacturers to enhance production New Delhi, Jan 22 (KNN) Arms manufacturers will be allowed to enhance the annual production of firearms and ammunition, which will mostly cater to the 35 lakh private gun license holders.

According to the latest Arms (Amendment) Rules, 2022, the arms manufacturers, however, will have to submit online every month details of the firearms manufactured, sold, transferred, or consumed for the month.

The home ministry issued the new rules through a gazette notification on Thursday.

"The manufacturer who has been issued a license in Form VII under these rules shall be permitted to have enhanced annual production of firearms or ammunition or caliber wise revision of his licensed capacity by giving intimation to the licensing authority and also to the state government concerned within ninety days from the end of the financial year and for which no further endorsement on the license as to capacity shall be required," the notification said.

While applying, the manufacturer has to submit a detailed proposal for enhancement of manufacturing capacity or caliber-wise revision of licensed capacity, project outlays, means of finance, and justification for economic viability and market demand projections, duly certified by the authorized signatory of the company.

Monthly online returns, detailing the production, sold, transfer, and consumed shall be submitted by the manufacturer by close of business hours of the last day of the month, the notification said.

Prior approval of the licensing authority will be mandatory for any change in control, either directly or indirectly, of the company or in case of any change in shareholding or beneficial interest in the shareholding, resulting in dilution of promoters shareholding below 10 percent.

However, prior approval will not be required if there is an increase in shareholding of a shareholder, who held less than 10 percent in the share capital of the company, to 10 percent or more provided that for transfer of shareholding between the two promoters which is already approved by the licensing authority.

If any circumstances occur that prevent a licensee to submit online returns, the local licensing authority shall be informed immediately in order to establish alternative means to submit the monthly returns, it said.