ARTICLE · 19 MAY 2014

Companies Act Series

Nishith Desai Associates

Explore more from Nishith Desai Associates

Acceptance of deposits by India Inc. will now be governed by stricter rules.

IndiaCorporate/Commercial Law

Nishith Desai Associates

Author LinkedIn connections

INDIA INC. HIT BY NEW DEPOSIT RULES!

Acceptance of deposits by India Inc. will now be governed by stricter rules.
Securities application money that is retained for more than 60 days without issuance of securities shall be deemed deposits.
Stringent conditions for issuance of bonds and debentures – unsecured optionally convertible debentures shall be treated as deposits.
Additional compliances required for deposits accepted prior to CA 2013.

The Government of India has recently notified Companies Act, 2013 ("CA 2013"), which shall replace the erstwhile Companies Act, 1956 ("CA 1956"). To help understand the changes introduced under the CA 2013, we are undertaking a series of updates on the CA 2013 ("NDA CA 2013 Series") analyzing the key changes and their implications for all stakeholders by setting out the practical aspects of some of the important changes introduced by CA 2013.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

What Should Overseas Investors Check Before Buying Shares In An Indian Private Limited Company?

IndiaCorporate/Commercial Law

Mansukhlal Hiralal & Company

What Legal Documents Are Required For A Foreign Company Investing In An Indian Business?

IndiaCorporate/Commercial Law

Mansukhlal Hiralal & Company

A Sneak Peek Into A Historic Deal In The Entertainment Industry: How Paramount Beat Netflix For Warner Bros. – Lessons And Reforms For India

IndiaCorporate/Commercial Law

Hammurabi & Solomon Partners

Directors’ Duties And Personal Liability For Competition Breaches

IndiaCorporate/Commercial Law

Maheshwari & Co. Advocates & Legal Consultants

How To Structure A Foreign Investment In An Indian Company: Key Legal Decisions Before Investing

IndiaCorporate/Commercial Law

Mansukhlal Hiralal & Company

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Corporate/Commercial Law
- Corporate and Company Law

Related Comparative Guides

Comparative Guide

Venture Capital

Comparative Guide

Merger Control

Comparative Guide

Private Client

Comparative Guide

Enforcement of Civil and Commercial Judgments

See more popular content from

Corporate/Commercial Law

MCA21 V3: Objectives And Key Features

The Ministry of Corporate Affairs ("MCA") has introduced various changes in the MCA21 portal over the years since 2006, in order to improve the compliance by companies and Limited Liability Partnerships...

IndiaCorporate/Commercial Law

Private Placement Under The Companies Act, 2013: What Companies And Investors Need To Know

For many companies, particularly closely held and unlisted companies, private placement is a practical way of raising funds without going through the extensive process involved in a public issue. It allows a company to approach a limited set of identified investors and raise capital on mutually agreed terms.

IndiaCorporate/Commercial Law

Maheshwari & Co. Advocates & Legal Consultants

Whistleblower Protection In India Legal Safeguards And Gaps In Corporate Fraud Reporting

A whistle-blower, whether an individual or a collective entity, is generally an insider who possesses first-hand knowledge of fraud, corruption, misconduct, malpractice, or other unlawful or unethical practices occurring within an organization.

IndiaCorporate/Commercial Law

MZM Legal, Advocates & Legal Consultants

CCPS In India: Why Compulsorily Convertible Preference Shares Remain Central To Venture Capital And M&A Transactions

Compulsorily Convertible Preference Shares (CCPS) remain one of the most widely used instruments for venture capital and private equity investments in Indian companies. Their appeal lies in the ability to combine equity classification with negotiated economic and governance protections. But CCPS are not governed by a single, standalone statutory framework. Their legal treatment is instead shaped by the Companies Act, FEMA and foreign investment rules, tax law, and, where applicable, SEBI regulations.

IndiaCorporate/Commercial Law

King, Stubb & Kasiva

Issue Of Debentures Under The Companies Act, 2013 Guide

Learn the legal framework, procedure, compliance requirements and practical steps for issuing debentures under the Companies Act, 2013 in India.

IndiaCorporate/Commercial Law

Khurana & Khurana, Advocates and IP Attorneys

Sahara vs. SEBI-An In-Depth Analysis Of The Landmark Supreme Court Ruling

The Supreme Court while confirming the findings of the SAT has further asked SEBI to probe into the matter and find out the actual investor base who have subscribed to the Optionally Fully Convertible Debentures (OFCDs) issued by the two group companies SIRECL and SHICL.

IndiaCorporate/Commercial Law

Corporate Professionals - Advisors & Advocates

FCRA Amendment Rules, 2026: Key Changes And Practical Implications

AZB & Partners provides important disclaimers regarding the nature and purpose of their website, clarifying that no solicitation or advertising has occurred and that the information is provided solely at the user's request. The firm outlines the limitations of the website content and emphasizes that accessing it does not create a lawyer-client relationship. Users are informed about their responsibilities when using the site and the firm's intellectual property rights over the content.

IndiaCorporate/Commercial Law

Overview Of The Consumer Protection (E-Commerce) (Amendment) Rules, 2026

Argus Partners maintains offices in Mumbai, New Delhi, and Bengaluru, providing legal services across India's major business centers. The firm operates under strict Bar Council of India regulations that prohibit solicitation and advertising, with this website serving purely informational purposes. Users must acknowledge that no attorney-client relationship is created through website access and should seek independent legal advice for specific matters.

IndiaCorporate/Commercial Law

Registered vs Unregistered Partnership Firms: Legal Consequences Explained

For many entrepreneurs, the choice between a registered and unregistered partnership is treated as a procedural matter. In reality, the issue of registered vs unregistered partnership firm in India has serious legal...

IndiaCorporate/Commercial Law

Mansukhlal Hiralal & Company

SEBI’s New Digital Compliance Rules: What Investment Advisers Must Know In 2026

The investment advisory industry in India is changing quickly. With more investors relying on social media, online videos, AI-driven tools, and financial influencers, the risk of fraud has grown significantly.

IndiaCorporate/Commercial Law