While the legal status of cryptocurrencies remains undecided in India, companies in the country involved in virtual assets must now report their activities as part of their financial statements.
The new rule follows amendments made by the country’s Ministry of Corporate Affairs to Schedule III of the 2013 Companies Act.
According to the document published on Wednesday, Indian firms both public and private that have invested or traded in crypto during the financial year must disclose their profits or losses.
Other crypto-related disclosures include the amount of cryptocurrency held by the company as of the reporting date as well as additional advance deposits made by customers for the purpose of cryptocurrency investment or trading.
The amendments to the Companies Act of 2013 will come into effect at the start of April.
Companies having to disclose their crypto holdings come on the heels of reports that India’s securities regulators were keen on preventing promoters of initial public offerings from investing in the cryptocurrency market.
Indeed, some IPO promoters are already reportedly issuing affidavits stating that they will liquidate all their Title: India’s government orders companies to disclose crypto holdings
Sourced From: cointelegraph.com/news/india-s-government-orders-companies-to-disclose-crypto-holdings
Published Date: Thu, 25 Mar 2021 12:59:28 +0000