Alerts:

Regulatory Alert: MCA amends Companies (Acceptance of Deposits) Rules, 2014

23 January 2019

The Ministry of Corporate Affairs (‘MCA’) vide a Notification dated January 22, 2019 (‘MCA Notification’) has broadened the extant framework for Companies (Acceptance of Deposits) Rules, 2014 with an objective to further enhance the transparency, disclosure to the stakeholders and improve governance in the Corporate Sector. As per the notification, the Companies (Acceptance of Deposits) Amendment Rules, 2019 (“Amendment Rules”) will be enforced from the date of publication in the Official Gazette.

This Alert provides an overview of the provisions of the Amendment Rules which impacts provisions of Deposits under the Companies Act 2013 (“the Act”) and rules thereof.

Key highlights of the Amendment Rules:

  • Now, any amount received by a Company from “Real Estate Investment Trusts” shall not be considered as Deposits.
  • It has now been clarified that, every Company other than Government company must report “Deposit or particulars of Transaction not considered as deposit or both” in e-form DPT-3.
  • Every Company other than Government Company, shall file a “onetime return” of outstanding receipt of money or loan by a Company which are not considered as Deposits, from 1st April 2014 till the date of publication of Amendment Rules in the Official Gazette.

The reporting should be done within 90 (Ninety) days from the date of publication of Amendment Rules in the Official Gazette in e-form DPT-3.

BDO Comments

  • Every Company other than Government Company, shall be required to file on or before the 30th day of June, of every year “deposit or particulars of transaction not considered as deposit or both” in e-form DPT-3.
  • Clarification will be required whether the information to be furnished in Form DPT-3 (Onetime return) is to be audited by the auditor of the Company.
  • Given the short window to comply with the provision, every Company would need to ascertain its financial exposure within the stipulated period which could pose operational difficulties.