Regulatory framework for large unlisted firms by MCA in the works

The Companies (Amendment) Act, 2020, provided for the preparation of financial results of prescribed classes of unlisted companies periodically, but the same was not notified by the MCA

The Ministry of Corporate Affairs (MCA) is considering a regulatory framework for large unlisted companies that may have systemic implications, a top government official said. The ministry is of the opinion that there is a need for a rigorous regime for large unlisted companies, in contrast with the current “light-touch” regulation.

“There is a defined regime for listed companies, by the Securities and Exchange Board of India (Sebi). There is a view in the ministry that it needs to look at a framework for large unlisted companies,” the senior official said.

These regulations are expected to be part of deliberations of the