CS Knowledge Platform-Ravi Garg: MCA LATEST UPDATES-29.06.2016-Companies (Acceptance of Deposits) Amendment Rules, 2016

Thursday, 30 June 2016

MCA LATEST UPDATES-29.06.2016-Companies (Acceptance of Deposits) Amendment Rules, 2016

MCA LATEST UPDATES-29.06.2016

MCA vide notification dated 29.06.2016 has made following amendments in Companies (Acceptance of Deposits) Amendment Rules, 2016.

In the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as the principal rules), in rule 2 in sub_rule (1), in clause (c)-

(i) in sub-clause (ix), for the words "five years" the words "ten years" shall be substituted;

(ii) after sub-clause (ix), the following sub-clause shall be inserted, namely,-

"(ixa) any amount raised by issue of non-convertible debenture not constituting a charge on the assets of the company and listed on a recognised stock exchange as per applicable regulations made by Securities and Exchange Board of India"

(iii) for sub-clause (xi), the following sub.clause shall be substituted, namely:-

"(xi) any non-interest bearing amount received and held in trust;";

In Rule 3 of the Principal rules,-

(i) in sub-rule (3),-

(a) for the words "twenty five per cent", the words "thirty five per cent",

shall be substituted;

(b) the following proviso shall be inserted namely:

"Provided that a private company may accept from its members monies
not exceeding one hundred per cent 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 specified.".

In rule 5 of the principal rules, in sub-rule (1), for the proviso, the following proviso shall be substituted, namely:-

"Provided that the companies may accept deposit without deposit insurance contract till the 31st March, 2017 or till the availability of a deposit insurance product, whichever is earlier.".

In the principal rules, in the Annexure, in Form DPT-1, the following para shall be inserted, namely:-

"6. DISCLAIMER.- It is to be distinctly understood that filing of circular or circular in the Form of advertisement with the Registrar should not in any way be deemed or construed that the same has been cleared or approved by the Registrar or Central Government. The Registrar or Central Government does not take any responsibility either for the financial soundness of any deposit scheme for which the deposit is being accepted or invited or for the correctness of the statements made or opinions expressed in the circular or circular in the Form of advertisement. The depositors should exercise due diligence before investing in the deposits schemes.".