New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Proposed Amendments in COMPANIES (ACCEPTANCE OF DEPOSIT) RULES 2014

News and Press Release - Dated:- 2-2-2016 - Definition of Deposits - exclusions 5.1 Rule 2 (1)(c)(xii)(a) of the Companies (Acceptance of Deposits) Rules, 2014 (Deposits Rules) excludes advance received for supply of goods or provision of services from the definition of deposit if it is appropriated within 365 days from the date of its acceptance. The Committee noted that there are many businesses like heavy engineering and IT Services industries where customer advance beyond 365 days is prevale .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

videnced by a written contract and during normal business cycle subject to disclosure of details of such outstanding amounts in the financial statements. However, such relaxation should be made only after ensuring that all regulatory concerns have been addressed. 5.2 In terms of Rule 2(1)(c) (ix) of the Deposits Rules, any amount raised by issue of debentures compulsorily convertible into shares of the company within five years is excluded from the definition of deposits . The Committee recommen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

well regulated, it may not be necessary to extend the extensive disclosure and compliance requirements intended to protect public debenture-holders/ bond-holders under the Deposits Rules to amounts raised from such entities. It was noted that the corresponding RBI guidelines for NBFCs expressly exclude such amounts from the definition of the term public deposit . The Committee recommended amendment of Rule 2(1)(c) of the Deposits Rules to exclude amounts directly received by a company from Alte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

may also be exempted, and unsecured debentures may be excluded from definition of deposit. This would allow greater flexibility on issue of debentures. Security created over intangible assets is not a certain security and prone to high variability. Second and third charges are also not sufficient security for investors. The Committee, therefore, did not recommend including debentures secured by second and third charges, or consideration of security created against intangible assets for secured d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

instruments to raise capital. The Committee, therefore, recommended that convertible notes, convertible into equity or repayable within 5 years from the date of issue, if issued to a person with a minimum investment size of Rupees Twenty Five lakh brought in a single tranche, should not be treated as deposits under the Companies Act, 2013. Further, safeguards to prevent misuse may be finalised in consultation with RBI. Amount brought in by promoters 5.6 As per Rule 2(1)(c)(xiii) of the Deposits .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version