: MCA gives 7 month relaxation for filings relating to creation or modification of charges #FinanceIndia #StockMarketNEWS MCA gives 7 month relaxation for filings relating to creation or modification

@StockMarketNEWS Tue 23 Jun, 2020

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MCA gives 7 month relaxation for filings relating to creation or modification of charges #FinanceIndia #StockMarketNEWS
MCA gives 7 month relaxation for filings relating to creation or modification of charges New Delhi, June 19 (KNN) The Ministry of Corporate Affairs (MCA) has notified a seven month relaxation for filings relating to creation or modification of charges on funds raised via debt route as per the Companies Act, according to a circular on Wednesday.

For regulatory filings of charges on property or assets or any undertakings, created on March 1, 2020, the MCA introduced the ‘Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013’, considering for delays in such filings, applicable till September 30.

The ministry had received representations regarding relaxing the timeline to provide a window for compliance with the filing of charges on account of the pandemic and as the benefit of waiver of the additional fees was not extended to charge related filings under the Companies Fresh Start Scheme.

Companies that have raised funds from banks through loans or from investors through debentures have to create a charge on their assets such as property or any undertakings within or outside India to secure these instruments.

As per section 77 of the Companies Act, the charge must be registered with the RoC within 30 days from its creation or modification. This period can be extended up to 120 days, which would attract late fees.

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