Rule 331 sets how the Board approves a public company under paragraph 1(z)(i) or a Mutual Fund under paragraph 1(z)(ii) of Schedule XV — Form No. 189 and 190 for a company or the registration certificate and accounts for a Mutual Fund, filed three months before the issue — the investment of at least 25% of the capital within one year and the rest within three, an accountant's certificate, and withdrawal of approval on default.
331
Rules 2026 · Rule 331
Procedure for approval under paragraph (1)(z)(i) and (ii) of Schedule XV to the Act
Rules 311-333
Applications (sub-rule 1). The Board satisfies itself that the application is in the right form with the documents attached and filed in time. A public company applies in Form No. 189 with a copy of its certificate of incorporation under the Companies Act, 2013, and in Form No. 190 with audited balance sheets and profit and loss accounts for the three tax years before the year of application (or for the period of its existence, if shorter), three months before the "eligible issue of capital" in paragraph 6(i) of Schedule XV. A Mutual Fund applies with a copy of its SEBI certificate of registration and audited balance sheets and profit and loss accounts for the same period, three months before the public issue.
Decision (sub-rule 2). The Board passes an order approving or denying the application; a denial is not made without giving the applicant a reasonable opportunity of being heard.
Investment (sub-rule 3). Every applicant invests all its total paid-up capital raised through equity issue or debentures: at least 25% of the capital raised in the infrastructure facility (for a public company) or in the eligible issue of capital of a company under paragraph 6(i) of Schedule XV (for a Mutual Fund), before the end of one year from the date of the Board's approval, and the rest in like manner within three years from the date of approval.
Certificate and withdrawal (sub-rules 4 and 5). Every applicant submits an accountant's certificate (accountant under section 515(3)(b)) giving the amount invested in each tax year from the date of approval. The Board may withdraw its approval if the applicant fails to invest as sub-rule (3) requires or fails to file the certificate.