FAQs on PAS-6

FAQs on PAS-6

FAQs on PAS-6, it refers to the submission of approval of the audit report on the share capital (half-yearly) of unlisted public companies. The purpose of this form is to recognize any difference between the issued capital and the capital held in the dematerialized form of the public company. Let us have a look at the FAQs on PAS-6.

FAQs on PAS-6

1. What is PAS 6?

Form PAS-6 is the “Reconciliation of Share Capital Audit Report” that an unlisted public company must submit semi-annually.

2. What is the purpose of the introduction of the PAS-6 form?

Reconciling the number of issued securities (share certificates/demat credit) with the issued/paid-up capital is the primary goal of the PAS-6 form. It attempts to guarantee that the demat procedure is completed on schedule and that there is no excess credit of securities relative to the quantity of securities issued.

3. What is PAS-6 applicability?

Form PAS-6 applies to all unlisted public companies issuing shares by Rule 9A of the Third Amendment Companies (Prospectus and Allotment of Securities) Rules, 2019. However, the following unlisted public companies are not required to file PAS-6:

• Nidhi Company
• Government company
• A wholly owned subsidiary

4. How to submit E-Form PAS-6?
5. The registrar whose jurisdiction the firm’s registered office is located must receive Form PAS-6 from an unlisted company.
6. Within 60 days of the end of each half-year and properly attested by a practicing CA or CS it needs to be submitted.

• The form has to be submitted with the prescribed fees.

1. The e-form must be digitally signed by an authorized accountant or company secretary in permanent practice. Practicing professional details and a digital signature should also be attached.
2. Which class of companies must file Form PAS-6?

All unlisted public companies and subsidiaries of public companies are required to file Form PAS-6. Government companies, wholly owned subsidiaries, and Nidhi companies, although unlisted public companies, are not required to file Form PAS-6.

6. If registered debt firms are required to submit Form PAS-6?

The companies on the list of debts are listed companies in which the procurement of companies is in progress in 2013, so it is not necessary.

7. Are the provisions relating to Form PAS-6 applicable to a 100% wholly owned subsidiary private company of an unlisted public company?

A subsidiary of a public company is a public company, but WOS is exempt from Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

8. Is it required to file Form PAS-6 if it owns a variety of securities?

Indeed, for every class of securities, Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014 has been applied, and Form PAS-6 can only contain one ISIN. As a result, various forms must be offered for various securities kinds and classes. The PAS-6 form is made to allow for the insertion of the ISIN. Therefore, for every ISIN given, the company is required to furnish a PAS-6 form.

9. Is there any intimation required to be given to any department regarding Demat?

Giving notification to demat shares is not required. The company needs to submit a half-yearly form PAS-6 for approval of share capital within 60 days of the close of each half-year duly certified by the company secretary in practice or the chartered accountant in practice.

10. Does Form PAS-6 require certification from a practicing professional?

Form PAS-6 must be certified by a practicing company secretary (PCS) or public-certified accountant (PCA).

11. What is the penalty for failing to submit the PAS-6 form?

A fine of up to Rs. 5,000 per day, till the form is filled up, may be imposed for failing to file Form PAS-6 within the allotted time frame.

12. Can an unlisted public company issue securities in physical form?

No, it cannot issue securities in physical form.

13. If the company has not yet obtained an ISIN, can it file Form PAS-6?

ISIN is a required field on the PAS-6 form. Therefore the ISIN must be obtained to complete Form PAS-6 and avoid non-compliance with Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

14. Is PCS subject to any restrictions on the quantity of certifications it can grant regarding Form PAS-6?

There is no limit on the number of certifications to be issued by PCS about Form PAS-6.

15. Is communication with the previous professional required by the new PCS before certification of the PAS-6 form?

There is no requirement to communicate with the previous professional through the new PCS when certifying the PAS-6 form.

16. What happens if a public firm that is not listed goes bankrupt, decides not to accept an ISIN, wishes to become a private company, and hasn’t submitted a PAS-6 form?

Section 450 of the Companies Act, 2013 imposes fines on a corporation that fails to assist with the dematerialization of its securities. According to these regulations, the defaulting company and officer shall pay a fine of Rs 10,000 plus an additional daily charge of Rs 1,000, with a maximum of Rs 2,00,000 per company and Rs 50,000 for each officer.

17. Is UDIN generation required for PAS-6 form certification?

No, not mandatory.

18. What is the PAS-6 due date?

Every unlisted public business is required to file Form PAS-6 with ROC within 60 days following the end of each half-year, which is on September 30 and March 31.

19. What is the penalty for late filing PAS-6 form?

Late filing of the PAS-6 form can result in a one-time penalty of Rs 10,000 and a daily penalty of Rs 1,000 for ongoing default. The maximum penalty under this section is Rs 2,00,000, and Rs 50,000 per defaulting officer.

20. Is Form PAS-6 Mandatory for Unlisted Demat Exempt Government Companies?

Under Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, a government company is exempt.

In case of any query regarding the PAS-6 form, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at [email protected].