The Ministry of Corporate Affair (MCA) has excluded the electronic presence of a foreign company from the definition of a foreign company under section 2(42) of the Act.
It has notified amendment in the existing Companies (Registration of Foreign Companies) Rules, 2014. However, they shall come into force on the date of their publication in the Official Gazette.
According to the new rule electronic-based offering of securities, subscription thereof or listing of securities in the International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005) shall not be construed as ‘electronic mode’ for the purpose of definition of foreign company.
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