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Understanding Form PAS-6

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Understanding Form PAS-6 : A Comprehensive Guide

 

Filing Process of Form PAS-6

The process of filing Form PAS-6 involves several steps, which are outlined below:

  1. Preparation of Data: The company needs to gather and prepare detailed information about its share capital. This includes details of the physical and dematerialized shares, changes in share capital during the half-year, and any discrepancies identified during reconciliation.
  2. Verification by Auditor: The data prepared by the company must be verified by a qualified Chartered Accountant (CA) or a Company Secretary (CS). This verification is crucial as it ensures the accuracy and authenticity of the information provided in the form.
  3. Filling the Form: Once the data is verified, the company can proceed to fill Form PAS-6 on the MCA portal. The form requires the following information:
    • Corporate Identification Number (CIN) of the company
    • ISIN (International Securities Identification Number) of each security
    • Details of the total issued capital and total capital held in dematerialized form
    • Details of changes in share capital during the half-year
    • Reasons for discrepancies, if any, between the issued capital and the capital held in dematerialized form
  4. Digital Signature: The form must be digitally signed by the Director of the company and certified by a practicing CA or CS. This digital signature ensures the authenticity of the form and the information provided therein.
  5. Submission on MCA Portal: After filling and signing the form, it is submitted online on the MCA portal. Upon successful submission, an acknowledgment receipt is generated for the company’s records.

Implications of Non-Compliance

Non-compliance with the filing of Form PAS-6 can have several implications for the company, including:

  1. Penalties: The MCA imposes penalties for delayed or non-filing of Form PAS-6. The amount of penalty varies depending on the duration of non-compliance and can be substantial:

Normal fees:

In case of company having share capital

Sr No.

Nominal Share Capital (INR)

Normal Fee applicable (INR)

1

Less than 1,00,000

200

2

1,00,000 to 4,99,999

300

3

5,00,000 to 24,99,999

400

4

25,00,000 to 99,99,999

500

5

100,00,000 or more

600

 

Additional fees

Sr No.

Period of Delay

Additional fee payable (in INR)

1

Up to 30 days

2 times of normal fees

2

More than 30 days and up to 60 days

4 times of normal fees

3

More than 60 days and up to 90 days

6 times of normal fees

4

More than 90 days and up to 180 days

10 times of normal fees

5

More than 180 days

12 times of normal fees

1. Legal Consequences: Continued non-compliance can lead to legal action against the company and its officers. This legal action can include prosecution under the relevant provisions of the Companies Act, 2013.

2. Reputational Damage: Non-compliance with statutory requirements can tarnish the company’s reputation in the eyes of investors, regulators, and other stakeholders. This reputational damage can impact the company’s business operations and its ability to raise capital in the future.

3. Operational Challenges: Inaccurate or outdated records of share capital can lead to operational challenges, especially during audits, corporate actions, and compliance audits by regulatory authorities.

Useful Links  

1. Link to access Form No. PAS-6:
https://www.mca.gov.in/MinistryV2/companyformsdownload.html

2.  FAQs related to e-filing:

https://www.mca.gov.in/MinistryV2/efiling.html

3. Payment and Fee related Services:   
https://www.mca.gov.in/MinistryV2/paymentservices.html 

Conclusion

Form PAS-6 is a critical compliance requirement for unlisted public companies in India. It plays a vital role in ensuring transparency, preventing fraud, and maintaining accurate records of share capital. Companies must understand the significance of this form, adhere to the filing process, and ensure timely compliance to avoid penalties and legal consequences. By doing so, they can enhance investor confidence, streamline operations, and foster regulatory goodwill, ultimately contributing to their long-term success and sustainability in the competitive corporate landscape.

 

Filing Process of Form PAS-6

The process of filing Form PAS-6 involves several steps, which are outlined below:

  1. Preparation of Data: The company needs to gather and prepare detailed information about its share capital. This includes details of the physical and dematerialized shares, changes in share capital during the half-year, and any discrepancies identified during reconciliation.
  2. Verification by Auditor: The data prepared by the company must be verified by a qualified Chartered Accountant (CA) or a Company Secretary (CS). This verification is crucial as it ensures the accuracy and authenticity of the information provided in the form.
  3. Filling the Form: Once the data is verified, the company can proceed to fill Form PAS-6 on the MCA portal. The form requires the following information:
    • Corporate Identification Number (CIN) of the company
    • ISIN (International Securities Identification Number) of each security
    • Details of the total issued capital and total capital held in dematerialized form
    • Details of changes in share capital during the half-year
    • Reasons for discrepancies, if any, between the issued capital and the capital held in dematerialized form
  4. Digital Signature: The form must be digitally signed by the Director of the company and certified by a practicing CA or CS. This digital signature ensures the authenticity of the form and the information provided therein.
  5. Submission on MCA Portal: After filling and signing the form, it is submitted online on the MCA portal. Upon successful submission, an acknowledgment receipt is generated for the company’s records.

Implications of Non-Compliance

Non-compliance with the filing of Form PAS-6 can have several implications for the company, including:

  1. Penalties: The MCA imposes penalties for delayed or non-filing of Form PAS-6. The amount of penalty varies depending on the duration of non-compliance and can be substantial:

Normal fees:

In case of company having share capital

Sr No.

Nominal Share Capital (INR)

Normal Fee applicable (INR)

1

Less than 1,00,000

200

2

1,00,000 to 4,99,999

300

3

5,00,000 to 24,99,999

400

4

25,00,000 to 99,99,999

500

5

100,00,000 or more

600

 

Additional fees

Sr No.

Period of Delay

Additional fee payable (in INR)

1

Up to 30 days

2 times of normal fees

2

More than 30 days and up to 60 days

4 times of normal fees

3

More than 60 days and up to 90 days

6 times of normal fees

4

More than 90 days and up to 180 days

10 times of normal fees

5

More than 180 days

12 times of normal fees

1. Legal Consequences: Continued non-compliance can lead to legal action against the company and its officers. This legal action can include prosecution under the relevant provisions of the Companies Act, 2013.

2. Reputational Damage: Non-compliance with statutory requirements can tarnish the company’s reputation in the eyes of investors, regulators, and other stakeholders. This reputational damage can impact the company’s business operations and its ability to raise capital in the future.

3. Operational Challenges: Inaccurate or outdated records of share capital can lead to operational challenges, especially during audits, corporate actions, and compliance audits by regulatory authorities.

Useful Links  

1. Link to access Form No. PAS-6:
https://www.mca.gov.in/MinistryV2/companyformsdownload.html

2.  FAQs related to e-filing:

https://www.mca.gov.in/MinistryV2/efiling.html

3. Payment and Fee related Services:   
https://www.mca.gov.in/MinistryV2/paymentservices.html 

Conclusion

Form PAS-6 is a critical compliance requirement for unlisted public companies in India. It plays a vital role in ensuring transparency, preventing fraud, and maintaining accurate records of share capital. Companies must understand the significance of this form, adhere to the filing process, and ensure timely compliance to avoid penalties and legal consequences. By doing so, they can enhance investor confidence, streamline operations, and foster regulatory goodwill, ultimately contributing to their long-term success and sustainability in the competitive corporate landscape.

In the dynamic world of corporate governance and regulatory compliance, staying updated with the latest requirements is paramount for companies. One such critical compliance form introduced by the Ministry of Corporate Affairs (MCA) in India is Form PAS-6. This form is essential for companies issuing securities in dematerialized form and aims to ensure transparency and accountability in securities transactions. This article delves into the intricacies of Form PAS-6, its significance, the filing process, and its implications for companies and stakeholders.

What is Form PAS-6?

Form PAS-6, also known as the “Reconciliation of Share Capital Audit Report (Half-yearly),” is a form mandated by the MCA for all unlisted public companies. The primary purpose of this form is to reconcile the share capital held in the physical form with the shares held in dematerialized form. This reconciliation helps in identifying any discrepancies and ensures that the share capital structure of the company is accurate and up-to-date.

Legal Framework

The introduction of Form PAS-6 is rooted in the provisions of the Companies Act, 2013, and the Depositories Act, 1996. Section 29 of the Companies Act, 2013 mandates the issue and transfer of securities in dematerialized form for certain classes of companies. Furthermore, sub rule 8 of Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014, which was amended vide Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2019 which specifically lays down the requirement for unlisted public companies to file Form PAS-6 within sixty days from the conclusion of each half-year i.e., March and September of each Financial Year.

Applicability of Form PAS-6

Unlisted Public Companies

The primary applicability of Form PAS-6 is to unlisted public companies. These are companies that have issued securities but are not listed on any recognized stock exchange. The MCA mandates that all unlisted public companies must reconcile their share capital held in dematerialized form with their physical shareholding by filing Form PAS-6.

Significance of Form PAS-6

1.  Enhanced Transparency:

2.  Prevention of Fraud:

3.  Regulatory Compliance:

4.  Operational Efficiency:

5.  Corporate Governance:

6.  Market Perception:

7.  Legal Safeguards:

Documentation: The form serves as a formal record that can be used as evidence in legal matters, ensuring that the company’s share capital records are well-documented and verifiable.

 

Filing Process of Form PAS-6

The process of filing Form PAS-6 involves several steps, which are outlined below:

  1. Preparation of Data: The company needs to gather and prepare detailed information about its share capital. This includes details of the physical and dematerialized shares, changes in share capital during the half-year, and any discrepancies identified during reconciliation.
  2. Verification by Auditor: The data prepared by the company must be verified by a qualified Chartered Accountant (CA) or a Company Secretary (CS). This verification is crucial as it ensures the accuracy and authenticity of the information provided in the form.
  3. Filling the Form: Once the data is verified, the company can proceed to fill Form PAS-6 on the MCA portal. The form requires the following information:
    • Corporate Identification Number (CIN) of the company
    • ISIN (International Securities Identification Number) of each security
    • Details of the total issued capital and total capital held in dematerialized form
    • Details of changes in share capital during the half-year
    • Reasons for discrepancies, if any, between the issued capital and the capital held in dematerialized form
  4. Digital Signature: The form must be digitally signed by the Director of the company and certified by a practicing CA or CS. This digital signature ensures the authenticity of the form and the information provided therein.
  5. Submission on MCA Portal: After filling and signing the form, it is submitted online on the MCA portal. Upon successful submission, an acknowledgment receipt is generated for the company’s records.

Implications of Non-Compliance

Non-compliance with the filing of Form PAS-6 can have several implications for the company, including:

  1. Penalties: The MCA imposes penalties for delayed or non-filing of Form PAS-6. The amount of penalty varies depending on the duration of non-compliance and can be substantial:

Normal fees:

In case of company having share capital

Sr No.

Nominal Share Capital (INR)

Normal Fee applicable (INR)

1

Less than 1,00,000

200

2

1,00,000 to 4,99,999

300

3

5,00,000 to 24,99,999

400

4

25,00,000 to 99,99,999

500

5

100,00,000 or more

600

 

Additional fees

Sr No.

Period of Delay

Additional fee payable (in INR)

1

Up to 30 days

2 times of normal fees

2

More than 30 days and up to 60 days

4 times of normal fees

3

More than 60 days and up to 90 days

6 times of normal fees

4

More than 90 days and up to 180 days

10 times of normal fees

5

More than 180 days

12 times of normal fees

1. Legal Consequences: Continued non-compliance can lead to legal action against the company and its officers. This legal action can include prosecution under the relevant provisions of the Companies Act, 2013.

2. Reputational Damage: Non-compliance with statutory requirements can tarnish the company’s reputation in the eyes of investors, regulators, and other stakeholders. This reputational damage can impact the company’s business operations and its ability to raise capital in the future.

3. Operational Challenges: Inaccurate or outdated records of share capital can lead to operational challenges, especially during audits, corporate actions, and compliance audits by regulatory authorities.

Useful Links  

1. Link to access Form No. PAS-6:
https://www.mca.gov.in/MinistryV2/companyformsdownload.html

2.  FAQs related to e-filing:

https://www.mca.gov.in/MinistryV2/efiling.html

3. Payment and Fee related Services:   
https://www.mca.gov.in/MinistryV2/paymentservices.html 

Conclusion

Form PAS-6 is a critical compliance requirement for unlisted public companies in India. It plays a vital role in ensuring transparency, preventing fraud, and maintaining accurate records of share capital. Companies must understand the significance of this form, adhere to the filing process, and ensure timely compliance to avoid penalties and legal consequences. By doing so, they can enhance investor confidence, streamline operations, and foster regulatory goodwill, ultimately contributing to their long-term success and sustainability in the competitive corporate landscape.

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