NCLT Bengaluru confirmed India1 Payments’ selective reduction of share capital under Section 66, permitting partial investor exit subject to regulatory compliance with ROC, RBI, and FEMA.
India1 Payments’ Selective Capital Reduction Approved
The NCLT, Bengaluru, has confirmed a scheme of selective reduction of share capital by India1 Payments Ltd under Section 66 of the Companies Act, 2013. The order permits certain shareholders to exit while maintaining the company’s capital structure for remaining investors.
The tribunal noted that the proposed reduction does not prejudice creditors and is supported by a solvency declaration from directors. It emphasized the necessity of compliance with post-approval requirements, including filings with the Registrar of Companies (ROC), Reserve Bank of India (RBI), and Foreign Exchange Management Act (FEMA) norms where applicable.
This ruling underscores judicial willingness to approve innovative capital structuring in fintech and payment firms. Practitioners must ensure strict adherence to solvency declarations and regulatory clearances, particularly in cases involving foreign shareholding and cross-border fund repatriation.
Citations
- Companies Act, 2013, Section 66
