As investor, we invest in companies which are listed in stock exchanges. Listed companies are governed by Companies Act which is administered by Ministry of Corporate Affairs and have to abide by SEBI regulations.
I have a general feeling not supported by any data that we Indian investors lack knowledge about Companies Act and it’s provisions particularly provisions for protection of minority investor. We are also clueless about what can we do in case a promoter does fraud with the company latest being 8K Miles Software?
For reasons mentioned above I wish to open this thread where Investing community in Indian securities can discuss various aspects of Companies Act, MCA and SFIO.
To start with I wish to attract the attention of community towards below mentioned news item -
According to this news - MCA has relaxed regulation governing related party transaction. As far as my understanding goes RPT are extensively used by promoters to make personal money out of public listed companies. Why would MCA relax regulations governing RPT?