Once established, all company-related matters pending with the CLB, BIFR and various high courts across the country will be transferred to the National Company Law Tribunal
Upholding the validity of amendments made to the Companies Act in 2002, the Supreme Court (SC) today paved the way for the establishment of the National Company Law Tribunal (NCLT) to deal with matters related to companies, reports PTI.
Once the tribunal is established, all company-related matters pending with the Company Law Board (CLB), Board for Industrial and Financial Reconstruction (BIFR) and various high courts across the country will be transferred to the NCLT.
Ruling on a petition filed by the government against an order of the Madras High Court (HC), a five-judge Constitution Bench headed by Chief Justice K G Balakrishnan today upheld the validity of the 2002 amendment with certain conditions.
The Bench, which included Justices R V Raveendran, D K Jain, P Sathasivam and J M Panchal, delivered the judgement on an appeal filed by the Centre against the Madras HC verdict.
Earlier, the amendment to the Companies Act, 1956 to set up the NCLT was rendered unconstitutional by the Madras HC on several counts.
The NCLT, which was to take over the functions hitherto performed by the BIFR, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) and the CLB, was proposed in the Companies (Second Amendment) Act, 2002.
As per the proposal, all company-related matters pending in different high courts were to be transferred to the NCLT.
The central government had moved the SC against the Madras HC ruling six years ago. The apex court had completed hearings in the case more than a year ago.
Equity funds record redemption of Rs1,133 crore in April compared to Rs196 crore in the corresponding period last year, while debt funds witnessed inflows of Rs1,77,773 crore
Equity MFs have been bleeding over the last six months and they could not buck the trend in April. Equity schemes saw redemptions of Rs1,133 crore in April 2010 compared to Rs196 crore for the corresponding period last year, while assets under management (AUM) of equity schemes are up 63% at Rs1,76,830 crore in April compared to Rs1,08,507 crore in the corresponding period last year.
Investors have preferred to put their money in debt funds during the start of the year and have steered cleared of equity schemes. During April 2010, debt funds or fixed income schemes have recorded inflows to the tune of Rs1,77,773 crore. In March 2010, debt funds saw Rs1,64,487 crore in redemptions.
Equity-linked savings schemes (ELSS) recorded net outflows to the tune of Rs106 crore in April 2010. In March, ELSS schemes witnessed net inflows of Rs641 crore while the BSE Sensex was down 1% between 1st April-30th April.
Net inflows of all schemes stood at Rs1,85,956 crore in April 2010 compared to net outflows of Rs1,62,165 crore in March 2010. The total AUM of all schemes stood at Rs8,08,541 crore in April compared to Rs5,93,516 crore in the corresponding period last year.
According to the monthly data released by the Association of Mutual Funds in India (AMFI), the average AUM in the month of April 2010 grew by 40% at Rs7,69,165 crore compared to Rs5,51,300 crore in the corresponding period last year.
Equity funds have witnessed continuous redemptions since August 2009 to the tune of Rs7,970 crore except in January and February 2010 which recorded inflows of Rs1,514 crore and Rs980 crore respectively.
Industry experts cite market uncertainty as the main reason for investors shifting to debt funds. Institutional investors have also parked their money in fixed-income funds in April.