The Tax Publishers

Companies Act, 2013--PAS-6

Understanding the Applicability of Form PAS-6 on Private Companies under Rule 9(B) of the Companies (Prospectus and Allotment of Securities) Rules, 2014

CS. Pragya Lalwani

The Indian corporate landscape has seen numerous regulatory updates aimed at enhancing transparency and governance. One such regulation is the introduction of Form PAS-6, which is a reckoning force in the realm of securities management and disclosure requirements. This editorial delves into the applicability of Form PAS-6 on private companies in the context of Rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014, and the implications that emerge from its enforcement.

1. Background

Form PAS-6, or the Reconciliation of Share Capital Audit Report, is a mandatory filing requirement for all companies with listed securities. The form serves as a half-yearly audit mechanism to reconcile the total issued and listed capital. It ensures that the listed capital of companies is in agreement with the aggregate of the total number of shares admitted in depositories and in physical form. Later on, with the amendment in Act and Rules, the submission of Form PAS-6 became mandatory for unlisted public companies and vide Notification for addition of Rule 9B in the Companies (Prospectus and Allotment of Securities) Rules, 2014, private companies also come under its ambit.