The Ministry of Corporate Affairs (MCA), vide its Notification dated September 15, 2015, has amended the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as 'Rules'). By amendment, now the companies (as specified under Rule 3 of the Rules) accepting or renewing its deposits subject to the limits as provided under the Rules, shall include the amount representing 'securities premium account' apart from paid up share capital and free reserves.
Accordingly, following amendments in the sub-rules shall take place:
a. No company referred to in sub-section (2) of section 73 of the Companies Act, 2013 (hereinafter referred to as the 'Act') and no eligible company (as defined under the Rules) shall accept or renew any deposit, whether secured or unsecured, which is repayable on demand or upon receiving a notice within a period of less than six months or more than thirty-six months from the date of acceptance or renewal of such deposit:
Provided that a company may, for the purpose of meeting any of its short-term requirements of funds, accept or renew such deposits for repayment earlier than six months from the date of deposit or renewal, as the case may be, subject to the condition that
i. Such deposits shall not exceed 10% of the aggregate of the paid up share capital, free reserves and 'securities premium account' of the company, and
ii. Such deposits are repayable not earlier than three months from the date of such deposits or renewal thereof.
b. No company referred to in sub-section (2) of section 73 of the Act 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 25% of the aggregate of the paidup share capital, free reserves and 'securities premium account' of the company.
c. No eligible company shall accept or renew
i. Any deposit from its members, if the amount of such deposit together with the amount of deposits outstanding as on the date of acceptance or renewal of such deposits from members exceeds ten per cent. of the aggregate of the paid-up share capital free reserves and 'securities premium account' of the company;
ii. Any other deposit, if the amount of such deposit together with the amount of such other deposits, other than the deposit referred to in clause (a), outstanding on the date of acceptance or renewal exceeds twenty-five percent of aggregate of the paid-up share capital, free reserves and 'securities premium account' of the Prior to this amendment, amount of such deposits was subject to the specified limits of the aggregate of the paid up share capital and free reserves only. company.
d. No Government company eligible to accept deposits under section 76 shall accept or renew any deposit, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance or renewal exceeds thirty five percent of the aggregate of its paid up share capital, free reserves and 'securities premium account' of the company.
Prior to this amendment, amount of such deposits was subject to the specified limits of the aggregate of the paid up share capital and free reserves only. As of now, these limits will stand increased because of the inclusion of the amount representing 'Securities Premium Account'.
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