As companies Act 2013, “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 under Rule 2(1)(c) of the Companies (Acceptance of Deposit) Rules, 2014.
List of Exempted deposits [Rule 2(1)(C)] :-
1. Any amount received from the Central Govt. , State Govt. , Local Authority and Statutory Authority.
2. Loan from Foreign Corporate Body or Bank including External Commercial Borrowing.
3. Any amount received as a loan from Bank/NBFC/any Public Financial Institutions.
4. Any amount received as a loan from Public Financial Institutions, Regional Financial Institutions, Insurance Companies or Scheduled Banks.
5. Any amount received by a company from any other company (Inter Company Deposit/Loan).
6. Amount received from its director out of his own funds.
7. Amount received from its relatives of director out of his own funds by a private company.
8. Any amount raised by issue of Listed, unsecured, Non-Convertible Debentures.
9. Any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit.
10. Any amount brought by the Promoter as a condition of Bank Loan.
11. Share Application money pending for allotment
Exception: If the securities not allotted within 60 days from the date of receipt of the application money or advance and such amount is not refunded to the subscribers within 15 days from the date of completion of 60 days, such amount shall be treated as a deposit.
12. Any amount brought by the Promoter as a condition of Bank Loan.
13. Any Business Advance received by the Company outstanding for less than 365 days.
14. Amount received as Security Deposit towards supply of goods/Services.
15. Any advance received for an immovable property under an agreement which is adjusted against such property.
16. Non-interest bearing amount received and held in Trust.
17. Amount received by Nidhi companies.
Provisions under section 73 to 76 of the Companies Act 2013 and the companies acceptance of Deposits Rules, 2014 shall apply to all companies Except:-
Company can accept the deposits from members as well as from public in accordance to section 73 to 76 of companies Act, 2013.
1. Private Company-
2. Public Company
*Conditions for private company for accepting deposits from members without any Limit, namely:-
(a) which is not an associate or a subsidiary company of any other company;
(b) the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is less ; and
(c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73:
Note:- Start-up company means a private company incorporated under the Companies Act 2013 or Companies Act 1956 and recognized as a start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion.
**Specified IFSC Public company
An unlisted public company which is licensed to operate by RBI or SEBI or IRDA from the International Financial Services Centre located in an approved multi services SEZ set up under the Special economic Zones Act, 2005.
ROC Forms need to be filed for Acceptance of Deposit-
DPT-1- Circular in the form of advertisement inviting deposits
DPT-2- Deposit Trust Deed
DPT-3- Return of Deposits
DPT-4- Statement regarding deposits existing on the Commencement of the Act.
Section 76A: Punishment of Contravention of Section 73 and 76-
one crore rupees or twice the amount of deposit accepted by the company, whichever is lower rupees but which may extend to ten crore rupees; and
Every officer of the company who is in default-
Imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees.
Disclaimer: Though full efforts have been made to state the interpretations correctly, yet the author is not responsible / liable for any loss or damage caused to anyone due to any mistake / error / omissions.
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