Amendment To Acceptance Of Deposit Rules, 2014

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