Contents
In a pursuit to make additional improvements to the existing Companies Act, 2013, The Ministry of Corporate Affairs released a notification on 31 March 2014 declaring the Companies (Acceptance of Deposits) Rules, 2014. The rules basically stipulate the provisions for companies to accept deposits from the public.
As per Section 2(31), “Deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India; You can gain detailed knowledge of what constitutes as a deposit by following MCA e-book Acceptance of Deposit rules.
The acceptance of deposits rule is applicable for “eligible” companies. Eligible companies are companies(Public Companies Only):
The eligible companies also have to fulfill three conditions to be eligible for a loan.
In a notification released on the 5th of July, 2018 the Ministry made sweeping amendments to the rules for acceptance of deposits. The amendments will be in effect from the 15th of August,2018.
Salient Amendments to the rules:
For a detailed overview of the amendments and particulars of the form, See the Amendment Notification by the MCA.
Finding ROC Compliances and rule changes tough to keep up with? Follow our blog to stay up to date with the latest. Here, at LegalRaasta our aim is simple, we wish to simplify legal compliances. The blog aims at educating about issues related to GST registration, company registration and trademark registration among others.
You can talk to us at contact@legalraasta.com or at +91-