HC asks ministry to allow it given portal issues
The Ministry of Corpo rate Affairs (MCA) is planning to ac cept submissions of some compa ny forms in physical format after reports of glitches with its MCA21 portal, people privy to the developments told ET
The portal is used by com panies to make regulatory filings, including form PAS-3, which they need to file before they can use funds raised from investors.
This follows an interim order by the Kerala High Court, which asked the ministry to accept physi cal forms since its online system had “crashed”. Both listed and unlisted
companies attempting to file regula tory documents had been facing is sues with the MCA21 portal’s ver sion 3 (V3) after the ministry trans itioned 46 new forms to V3 from V2 on January 23.
One of the significant glitches that companies faced pertained to form PAS-3, which must be filed when an entity makes a share allotment to an inves tor “If we do not file PAS-3, we cannot re ceive funds in our bank accounts even after raising money from our investors. This could pre vent some startups from carrying out daily expenses,” the founder of a startup said.