Corporate News
The National Company Law Tribunal (NCLT) has approved a significant reduction in the share capital of a company, as detailed in an order signed October 1, 2026. The company, seeking to address accumulated losses and restructure its equity, initially had an equity share capital of INR 14,14,14,530, which will now be reduced to INR 8,28,200, effectively canceling 99.42% of its shares. The reduction was approved by shareholders via a special resolution on September 20, 2024, and follows a review by the Regional Director of the Ministry of Corporate Affairs. The company must now obtain a certificate of registration from the Registrar of Companies within 30 days and publish a notice in both the 'Financial Express' and 'Aajkal' newspapers. The NCLT’s approval does not preclude scrutiny from Income Tax Authorities regarding potential tax implications and does not grant any exemptions from stamp duty or other charges.