MCA 2024 Review: Key Reforms and Achievements in Corporate Sector

India's stride towards becoming a $5 trillion economy and achieving Vikasit Bharat by 2047 involves many stakeholders, with the Ministry of Corporate Affairs (MCA) playing a key role. The MCA fosters a conducive environment for businesses through vision, innovative ideas, and policymaking. In 2024, the Ministry enhanced corporate governance, simplified compliance, and promoted ease of doing business in India. Major initiatives included the Prime Minister’s Internship Scheme, Jan Vishwas reforms, and updates to Indian Accounting Standards.

Prime Minister Internship Scheme - A Transformative Initiative

Introduced in Budget 2024: Aims to provide internship opportunities to one crore youth over five years in India's top 500 companies.

• Pilot Project Launched: Targeting 1.25 lakh internships for FY 2024-25, launched on October 3, 2024, via an online portal. Approximately 4.87 lakh youths have registered, and 1.27 lakh opportunities were posted by partner companies.
• Financial Assistance: Interns receive a stipend of ₹5,000 per month, with ₹4,500 funded by the government and ₹500 by the companies via CSR funds.
• Impact: Provides youth with real-world business exposure and professional opportunities across diverse industries.

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Migration of MCA21 from Version 2 to Version 3

The successful transition to MCA21 Version 3 has streamlined compliance processes:

• Reduced Compliance Burden: Number of forms reduced from five to three, with fully online fund transfer mechanisms.
• Straight Through Processing (STP): Enhanced automation for filing and verification, eliminating manual intervention.
• Dashboards for Nodal Officers: Simplified tracking and verification of claims, improving efficiency.

Jan Vishwas Initiatives

Key reforms under the Jan Vishwas framework have simplified corporate processes:

• Legal Heirship Recognition: Legal heirship certificates are now accepted for share transmission, reducing costs and time for beneficiaries.
• Lost Share Certificates: FIR requirement for securities valued up to ₹5 lakh removed, making the process user-friendly.
• Elimination of Sureties: No surety required for duplicate physical security certificates, enhancing ease of access.

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Enhanced Grievance Redressal by IEPFA

The Investor Education and Protection Fund Authority (IEPFA) has introduced new features to improve stakeholder engagement:

• Multilingual IVRS Facility: Call center solution with IVRS in six languages, accessible via the short code 14453.
• Niveshak Initiatives: Programs like Niveshak Sunwai and Niveshak Panchayat to enhance financial literacy and inclusiveness.

Integrated Technology Platform for Insolvency and Bankruptcy Code (IBC)

A proposed Integrated Technology Platform under IBC aims to:

• Automate and Integrate: Processes for filing applications, delivering notices, and managing case records.
• Improve Transparency: Enhance stakeholder participation and minimize delays in insolvency resolution.

IBC Achievements

The IBC continued its stellar performance in 2024:

• Pre-admission Resolutions: 28,818 cases involving defaults of ₹10.22 lakh crore resolved before admission.
• Record Realization Rates: Creditors realized ₹3.55 lakh crore, with resolution plans achieving 86.13% of the fair value on average.
• Cost Efficiency: Resolution expenses averaged only 1.37% of the liquidation value.

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Competition Commission of India (CCI) Performance

The CCI achieved notable milestones:

• 99% Case Disposal: Resolved 1179 of 1191 combination cases by September 2024.
• Antitrust Matters: Disposed 30 cases, including carryovers from the previous year, with a focus on key sectors like digital markets and healthcare.
• Renewable Energy Study: Initiated a study on competition issues across BRICS nations.

Central Processing Centre (CPC) and CPACE

The MCA launched the Central Processing Centre (CPC) for efficient e-form processing nationwide.

• Accelerated Corporate Exit (CPACE): Reduced voluntary closure time to 90 days, handling 4640 LLP closure applications within months of its establishment in August 2024.

Amendments to Indian Accounting Standards

Significant updates to Ind AS rules include:

• Ind AS 116: Addressing leaseback transactions.
• Ind AS 117: Introducing standards for insurance contracts.

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Faceless Adjudication Mechanism

Decriminalizing corporate defaults through faceless adjudication has reduced in-person interactions, ensuring transparency and efficiency.

The Ministry of Corporate Affairs has demonstrated a strong commitment to simplifying corporate compliance, empowering stakeholders, and fostering economic growth. Its 2024 initiatives underline a forward-looking vision that aligns with India’s aspirations for ease of doing business and digital transformation.