Amendment to Rule 3(3) Companies (Acceptance of Deposits) Rules, 2014

MCA has with its notification dated 19^th September, 2017 amended sub rule 3 of rule 3 of Companies (Acceptance of Deposits) Rules, 2014

RULE 3(3): The rule shall be read as follows –

Acceptance of deposits from members: No company referred to in sub-section (2) of section 73 shall accept or renew any deposit from its members, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance or renewal of such deposits exceeds 35% of the aggregate paid up share capital, free reserves and securities premium account of the company.

Provided that a private company may accept from its members monies not exceeding 100% of aggregate of the paid up share capital, free reserves and securities premium account and such company shall file the details of monies so accepted to the Registrar in such manner as may be prescribed.

"Provided that a Specified IFSC Public company and a private company may accept from its members monies not exceeding 100% of aggregate of the paid up share capital, free reserves and securities premium account and such company shall file the details of monies so accepted to the Registrar in Form DPT-3.

Explanation:- For the purpose of this rule, a Specified IFSC (International Financial Service Company) Public company means an unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi services Special Economic Zone set-up under the Special Economic Zones Act 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006:

Provided further that the maximum limit in respect of deposits to be accepted from members shall not apply to following classes of private companies, namely:-

(i) a private company which is a start-up, for five years from the date of its incorporation;

(ii) a private company which fulfils all of the following conditions, 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 50 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:

Provided that all the companies accepting deposits shall file the details of monies so accepted to the Registrar in Form DPT-3.

References:

MCA

Contact:

CS Divyanshu Bansal

Email ID: divyanshubansal401@gmail.com
Ph: 9958381905