Research & Development for COVID-19 vaccine, drugs & medical devices included in CSR: MCA [Read Notification]

COVID-19 vaccine - medical devices - Taxscan

The Ministry of Corporate Affairs (MCA) on Monday notified Research & Development for the COVID-19 vaccine, drugs, and medical devices included in Corporate Social Responsibility (CSR).

The notification seeks to amend the Companies (Corporate Social Responsibility Policy) Rules, 2014.

In the Companies (Corporate Social Responsibility Policy) Rules, 2014, in rule 2, in sub-rule (1), in clause (e), a proviso shall be inserted which says, provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22 and 2022-23 subject to the conditions”.

Firstly, such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act.

Secondly, details of such activity shall be disclosed separately in the Annual Report on CSR included in the Board’s Report”.

In the rules, in rule 4, in sub-rule 1, the words “excluding activities undertaken in pursuance of its normal course of business” shall be omitted.

In the rules, in rule 6, in sub-rule (1), the first proviso shall be omitted. In the second proviso, the word “further” shall be omitted.

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