Section 458A — Measures for greater ease of doing business

Notwithstanding anything contained in this Act or in any other law for the time
being in force, the Commission may implement measures for providing greater ease
of doing business, improving regulatory quality and efficiency and facilitating
innovation and the use of technology in conducting business by the corporate
sector, including but not limited to-

59 Inserted vide the Companies (Amendment) Act, 2021 dated 1st December, 2021.

(a) formalizing existing practice through regulations and implementing
other measures for attaining international standards of regulatory
quality and efficiency for greater ease of doing business;

(b) specifying modes and procedures for enabling greater ease of entry
into and exit from the market to startup companies;

(c) constituting special task groups from the corporate sector for
encouraging the use of financial technology in the conduct of
business;

(d) creating environments for testing and examining the impact of
innovation, new processes or technologies outside the existing
regulatory framework including but not limited to crowdfunding,
digital assets, open application programming interface (APIs), smart
contracts, cloud based solutions and allowing the establishment and
use of regulatory sandboxes;

(e) encouraging the use of technology for providing and meeting
regulatory reporting requirements, risk assessment, customer due
diligence, the issuance of suspicious transaction reports, keeping
records and such other requirements as may be specified to meet
anti-money laundering and counter-terrorism financing standards;

(f) improving regulatory compliance and specifying proportionate
data-driven standards for the corporate sector to take measures for
cyber-security, data sovereignty and algorithm supervision;

(g) specifying exemptions and incentives under the prevailing laws with
the object of fostering innovation, promoting startups and
entrepreneurship ecosystem in line with international best practices;

(h) improving regulatory monitoring, reporting and compliance
requirements; and

(i) prescribing such other frameworks as may be notified by the
Commission for stimulating innovation and financial inclusion in
the conduct of business by the corporate sector through the use of
financial technology, regulatory technology and supervisory
technology:

Provided that the Commission may take such other measures prior to the
issuance of regulations as it may deem fit through guidelines, policy papers,
frameworks or any other modes or mechanisms.