1.

“Deposit”
[R. 2(1)(c)]

includes any receipt of money by way of a deposit or loan in any other form, by a company but excludes

(i) any amount received:

• From CG/SG, or from any other source whose repayment is guaranteed by CG/SG;
• From Foreign Governments, foreign or international banks, multilateral FIs subject to the provisions of FEMA 1999;
• as a loan or facility from any banking Co or from SBI or any of its subsidiary banks;
• as a loan or financial assistance from PFIs notified by CG, or Insurance Cos or Scheduled Banks;
• against issue of commercial paper or any other instruments issued in accordance with the RBI guidelines;
• by a Co from any other Co;
• against an offer made towards subscription to any securities, including share application money or advance towards allotment;
  • However Amount so received shall be considered as deposit if,
    • a Co fails to allot such securities within 60 days, and
    • Money so received is not refunded within 15 days from the end of such 60 days;
• From a director of the Co or relative of a director of a Pvt Co with declaration that it is not given out of borrowings or accepting loans from others;
• (raised) by the issue of bonds or debentures -
  • secured by a first charge or a charge ranking pari passu on any assets referred in Sch III excluding intangible assets; or
  • compulsorily convertible into shares of the Co within 10 years;
• (raised) by the issue of NCD not constituting a charge on the assets of the Co and listed on a recognised SE as per applicable SEBI regulations
• from an employee of the Co not exceeding his annual salary in the nature of non-interest bearing security deposit;
• (Any non-interest bearing amount received) and held in trust;
• in the course of, or for the purpose of, business of the Co:
  • as an advance
    • for the supply of goods or provision of services provided such advance is appropriated against supply of goods or provision of services within 365 days from date of acceptance of advance;
    • in connection with consideration for an immovable property under an agreement or arrangement;
  • under long-term projects for supply of capital goods;
  • towards consideration for providing future services in the form of a warranty or maintenance contract as per written agreement/arrangement;
  • and as allowed by any sectoral regulator or in accordance with directions of CG/SG;
  • for subscription towards publication;
  • as security deposit for the performance of the contract for supply of goods or provision of services;

(ii) Any amount brought in by the promoters of the Co by way of unsecured loan in pursuance of the stipulation of any lending FI or a bank

(iii) Any amount accepted by a Nidhi Co in accordance with the rules made u/s 406 of the Co Act 2013

(iv) Any amount received by way of subscription in respect of a chit under Chit Fund Act 1882

(v) An amount up to ₹ 25 lakhs received by a ⁷start-up Co by way of a convertible note (convertible into equity or repayable within 5 years)

(vi) Any amount received from AIF, Domestic Venture Capital Funds, Infrastructure Investment Funds, MF registered with SEBI

2.

“Depositor”
[R. 2(1)(d)]

means –

• any member of the Co who has made a deposit with the Co u/s 73(2); or
• any person who has made a deposit with an eligible Co u/s 76

3.

Who can accept deposit

subject to compliance with the relevant provisions

4.

Quantum and Term of Deposits which can be accepted by Co other than Eligible Co from MEMBERS
[R. 3(1), (3)]

5.

Quantum of Deposits which can be accepted by Eligible Co
[R. 3(1), (4)]

6.

Quantum of Deposits by Govt. Co [R. 3(5)]

7.

⁹Conditions in brief [S. 73(2)]

{Please also refer Special measures incl. Key CoVID 19 effects}

• Pass a resolution in GM [S. 73(2)]
• Issue a Circular (in case of acceptance of deposit from members) [S. 73(2)(a), R. 4(1)]/Circular in the form of an advertisement (in case of acceptance of deposit by an Eligible Co) [R. 4(2)] and file it with the RoC not < 30 days before the issue of circular [S. 73(2)(b) R. 4(5)]
• Rate of interest and brokerage on acceptance/renewal of deposits shall not exceed the maximum rate of interest or brokerage provided by RBI for acceptance of deposits by NBFCs. [R. 3(6)]
• A Co inviting secured deposit shall provide security for the due repayment of deposit and interest thereon by way of charge on its assets excluding intangible assets. The security (not being in the nature of a pledge) shall be created in favour of a trustee for the depositors [S. 73(2)(d) R. 6(1)]
• If deposits are unsecured or partly secured ⟶state that such deposits are ‘unsecured deposits’ in circular, form, advertisements, invitation etc. [S. 73(2)(f) proviso]
• Maintain liquid assets and create a separate bank a/c called Deposit Repayment Reserve a/c and deposit therein on or before 30^th April each year NOT < 20% of the amount of its deposits maturing during the following FY, which shall not be utilised for any purpose other than for the repayment of deposits [S. 73(2)(c)]
  • amount remaining deposited in such bank a/c shall not at any time fall below 20% of the amount of deposits maturing during the FY [R. 13]

8.

Return in Form DPT-3
[R. 16 & 16A]