Year-End Review 2024: Ministry of Corporate Affairs Achievements
2024 has been a transformative year for the Ministry of Corporate Affairs (MCA), with groundbreaking initiatives and reforms that promise to redefine corporate governance and compliance in India. Here’s a detailed look at the major achievements:
Prime Minister Internship Scheme Launched
The Prime Minister Internship Scheme, launched in the 2024 Budget, aims to provide one crore internships in the top 500 companies over five years. This initiative is designed to expose youth to real-world business environments across various professions.
The key details include:
- Financial assistance of ₹5,000 per month, with ₹4,500 from the Union Government and ₹500 from companies via CSR funds.
- A one-time grant of ₹6,000 for incidentals, disbursed by MCA upon joining.
- A 12-month internship duration.
- The pilot phase began on October 3, 2024, offering 1.25 lakh internship opportunities in FY 2024-25. Over 1.27 lakh internships are already listed on the portal (www.pminternship.mca.gov.in), with nearly 6.21 lakh applications received.
Migration to MCA21 Version 3
The successful migration from MCA21 Version 2 to Version 3 has revolutionized compliance processes:
- Reduced compliance forms from five to three.
- Fully online fund transfers via a Straight Through Process (STP).
- Introduction of a dedicated dashboard for Nodal Officers to track and verify claims.
Jan Vishwas Initiatives
The Jan Vishwas initiatives have simplified critical processes for stakeholders:
- Share Transmission: Legal heirship certificates are now valid for share transmission, eliminating the need for costly and time-consuming succession certificates or probate.
- Lost Share Certificates: FIR requirements for securities valued up to ₹5 lakhs have been removed, streamlining processes for claimants.
- Duplicate Certificates: Surety requirements for duplicate physical security certificates have been abolished for all values.
Enhanced Grievance Redressal Mechanism
IEPFA has introduced a multilingual Interactive Voice Response System (IVRS) in six languages to enhance grievance redressal.
Key features:
- A five-digit short code (14453) for easy access.
- Initiatives like Niveshak Sunwai, Niveshak Panchayat, and Niveshak Didi to bridge gaps and promote financial literacy.
Integrated Technology Platform under IBC
A proposed Integrated Technology Platform under the Insolvency and Bankruptcy Code (IBC) aims to:
- Enable seamless case management and automated processes.
- Improve stakeholder interactions and transparency.
IBC Achievements
The IBC has resolved ₹10.22 lakh crore in default cases before admission, achieving record efficiency:
- 1,068 Corporate Insolvency Resolution Processes (CIRPs) concluded with 86.13% of fair value realized.
- Resolution plans have yielded ₹3.55 lakh crore for creditors.
- A realization rate of over 161% against liquidation value with minimal resolution expenses.
Competition Commission of India (CCI) Milestones
The CCI achieved notable success in 2024:
- Disposed of 99% of combination cases.
- Initiated a study on competition issues in renewable energy across BRICS nations.
Central Processing Centre (CPC) and CPACE
The CPC, launched in 2024, processes nationwide e-forms efficiently. Meanwhile, CPACE has reduced corporate exit processing time to just 90 days.
Amendments in Indian Accounting Standards
- Ind AS 116: New provisions for leaseback transactions.
- Ind AS 117: Introduced for insurance contracts.
Faceless Adjudication Mechanism
The introduction of a faceless adjudication mechanism has eliminated in-person hearings, ensuring streamlined and transparent corporate default resolutions.
Proactive Compliance and Advisory Initiatives
- 35% increase in CRA-2 filings and 36% rise in CRA-4 filings since FY 2021-22.
- 14% improvement in timely Cost Audit Report submissions.
Empowering Regional Directors
Amendments in September 2024 empower Regional Directors to approve cross-border mergers and allow Indian companies to list shares on international exchanges in permissible jurisdictions.
2024 marks a year of unprecedented reforms, reflecting MCA’s commitment to simplifying processes, improving compliance, and fostering corporate growth. These initiatives ensure a robust framework for businesses and stakeholders alike
Stay tuned to InstaFinancials for the latest regulatory updates and insights.
