The Ministry of Corporate Affairs has introduced additional disclosures and regulatory actions
The Ministry of Corporate Affairs has introduced additional disclosure requirements and regulatory actions related to companies through an amendment in Schedule III of the Companies Act, 2013. While some of these regulations already applied to certain companies via SEBI regulations, this amendment extends the regulations to almost all companies, private firms included. The corporate affairs ministry has announced that companies will have to disclose any holdings or dealings they have in cryptocurrencies or virtual currencies in their financial statements filed with the Registrar of Companies.
As part of this requirement, companies will now have to disclose in their statutory financial filings, the amount of cryptocurrency held on the date of reporting, any profits or losses on transactions that involve cryptocurrency, and any deposits or advances received from anyone for the purpose of investment in cryptocurrencies or virtual currencies. Additional disclosure requirements have also been introduced involving corporate responsibility, Benami transactions, and promoter shareholding, among other financial performance ratios. The amendment is yet to come into effect, as it awaits approval from the parliament.