Private Companies gets more exemptions from compliance of Deposit Rules

The Companies (Acceptance of Deposits) Rules, 2014 is amended vide notification dated September 19, 2017.

Highlights of the amended rule is as under:

(1) Specified IFSC pubic company (in line with exemption notification) can accept upto 100 % paid-up and free reserves and premium account (without following other public company rules).

(2) Private companies accepting the deposits from its members need to file form DTP-3

(3) DPT-3 is revised to cover all types of reporting.

(4) the maximum limit in respect of deposits to be accepted from members shall not apply to following classes of private companies:

(i) Start-up private companies (5 years)

(ii) Other private company: which satisfies:

     (a) Not a associate or subsidiary to other company (holding not covering: holding can take deposits beyond limits);

     (b) not having borrowing twice of it capital or Rs.50 Cr from Banks/Financial institution/ Other body corporate; and

     (c) No default in repayment of such borrowings.


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