The MCA vide its notification dated 19 September 2017 has notified the Companies (Acceptance of Deposits) Second Amendment Rules, 2017 further to amend the Rule 3(3) of Companies (Acceptance of Deposits) Rules, 2014 to relax terms and conditions of acceptance of deposits by certain companies mentioned hereunder by providing that
- A Specified IFSC Public company and a private company may accept from its member’s monies not exceeding one hundred percent of the 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.
- the maximum limit in respect of deposits to be accepted from members shall not apply to following classes of private companies, namely:
- a private company which is a start-up, for five years from the date of its incorporation;
- a private company which fulfils all of the following conditions, namely:
- which is not an associate or a subsidiary company of any other company;
- 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 fifty crore rupees, whichever is less; and
- such a company has not defaulted on the repayment of such borrowings subsisting at the time of accepting deposits under section 73.
This amendment is made pursuant to exemption notifications issued by Ministry of Corporate Affairs on 4 January 2017 exempting IFSC Public Companies and IFSC Private Companies and on 13 June 2017 exempting start-ups and other Private Companies from compliance of section 73(2) of the Companies Act 2013.