Companies (Acceptance of Deposits) Second Amendment Rules, 2015

Ministry of Corporate affairs vide its notification dated 15.09.2015 has provided that wef 15.09.2015 a private company can  accept unsecured loans apart from director also from a relative of Director  provided that relative of director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report.  The relative need not be a shareholder of the company.

Further Notification has also provided that balance securities premium account will also be included in calculation of eligible amount of deposit which a company can raise earlier Rule 3 has provided only paid up share capital and free reserves.

—————–

Government of India
Ministry of Corporate Affairs
Notification

New Delhi, Dated- 15th September, 2015

G.S.R.  695(E). – In exercise of the powers conferred by sections 73 and 76 read with sub‑section (1) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Acceptance of Deposits) Second Amendment Rules, 2015.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as said rules), in rule 2, in sub-rule (1), in clause (c), for sub-clause (viii), the following shall be substituted, namely:-

“(viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or a relative of the director of the private company:

Provided that the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report;”.

3. In the said rules, in rule 3, –

(a) for the words “paid-up share capital and free reserves”, wherever they occur, the words “paid-up share capital, free reserves and securities premium account” shall be substituted;

(b) in sub-rule (8), in the Table, for item (c) and entries relating thereto the following shall be substituted, namely:-

“(e) Brickwork Ratings India Pvt Ltd (Brickwork) BWR FBBB”.

[File No 1/8/2013-CL-V]

Amardeep Singh Bhatia,  Joint Secretary

Note. – The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) ride number G.S.R. 256(E), dated the 31st March, 2014 and were subsequently modified vide number G.S.R. 386(E), dated the 6th, June, 2014 and G.S.R. 241(E), dated the 31st March, 2015.

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19 Comments

  1. Arnab Mazumder says:

    Hello Sir,

    I am a service person but i draw my salary in cash voucher. I need 3lacs loan from any private companies or ngo’s. So what are the reliable procedure to get loan in my profile.

    I need a help sir.

    Thank you

    Arnab Mazumder

  2. sukumar says:

    hai sir

    we had started pvt ltd company on jan2017 , we are moving forward with projects but we required loan or any forgen invester how i want to send the invination for investers for all country ppl plz help us

  3. AMITA SHARMA says:

    I would like clarify that company taken loan from directors and now unable to pay to to the directors. If directors declared and waived the said loan.what will happens in the eye of income tax and roc?

  4. Jitin Garg says:

    Hi Avinash,

    A company can not accept Deposit from Director Friend’s. So i advise you please reject this offer. However you can buy the shares of the company.

    Regards
    CA Jitin Garg
    9650685245

  5. Bina Ipe says:

    What about loan given by relative of director of Pvt Ltd Company on 31/1/2015 and 16/6/2014? Will it attract the deposit provisions of companies act 2013

  6. Avinash says:

    Hi,
    3 of my friends have started a Pvt. Ltd. company 5 months ago and have bought shares at 10 Rs each(I’m not sure of the volume of shares) and they are doing good so far. I wanted to invest(10 Lakh ) in the company and they are providing me an option to invest where in I will be depositing the amount to their account through online transfer and they would in turn be investing it in the company. I’ll have a proof of amount transfer, and I’ll be given an agreement from them that I have given them 10 lakh for the purpose of investment in their company and he will give me a post dated cheque for the money that i have transferred to his account .

    My question is about the legality of such investment and wanted to know if any such agreement has any validity in the event of any legal issues that would come across between us.

    I would be taking a loan and investing it in his company through him, so will i be getting equal amount of appreciation for the money i have invested as the company grows?

    or Should i decline his offer and get shares for the amount that i’m investing in his company at the current valuation of the company( he says i’ll not the getting the shares at 10 rs per share as the company has grown in assets from the time of inception).

    Thanks in advance for all the replies

  7. raviraj purohit says:

    Why the disclosure is made compulsory ? whether a person has borrowed the money from other and invested in the company in which his relative is director then why it make compulsory to disclose such facts in the board report ?

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