The Ministry of Corporate Affairs vide its notification dated June 29, 2016 has issued the Companies (Acceptance of Deposits) Amendment Rules, 2016. These rules shall come into force on the date of their publication in the Official Gazette. These rules have made certain pertinent changes to the provisions applicable to the acceptance of deposits. Exclusions from the definition of 'Deposits' now include - compulsory convertible bonds or debentures convertible within a period of ten years, any amount raised by issue of non-convertible debenture, non-interest bearing amount held in trust, amount received in the course of business as an advance for providing future services in the form of a warranty or maintenance contract, amount received by the company under any collective investment scheme in compliance with regulations framed by the Securities and Exchange Board of India, amount equal to or exceeding twenty five lakh rupees received by a start-up company by way of a convertible note, amount received by a company from Alternate Investment Funds, Domestic Venture Capital Funds and Mutual Funds etc.

Limits for accepting deposit from members of a public company has been increased from '25%' to '35%'. Private companies may accept deposits from members up to 100% of paid up share capital, free reserves and securities premium account. Additionally, requirements have also been imposed for disclosure of deposits in notes to accounts of private companies and disclaimer to be given in advertisement for inviting deposits.

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