Rule 2: Definitions

Rule 2: Definitions · Complied AI

(b)

any adjustment of the amount for any other purpose shall not be treated as refund.

(viii)

Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or a relative of the director of the Private company:

Proviso

Provided that the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report;

(viii)

any amount received from a person who, at the time of the receipt of the amount, was a director of the company Private Company:

Proviso

Provided that the director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others ;

(ix)

any amount raised by the issue of bonds or debentures secured by a first charge or a charge ranking pari passu with the first charge on any assets referred to in Schedule III of the Act excluding intangible assets of the company or bonds or debentures compulsorily convertible into shares of the company within five ten years:

Proviso

Provided that if such bonds or debentures are secured by the charge of any assets referred to in Schedule III of the Act, excluding intangible assets, the amount of such bonds or debentures shall not exceed the market value of such assets as assessed by a registered valuer;

(ix a) any amount raised by issue of non-convertible debenture not constituting a charge on the assets of the company and listed on a recognised stock exchange as per applicable regulations made by Securities and Exchange Board of India.

(x)

any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit;

(xi)

any non-interest bearing amount received or held in trust; any non-interest bearing amount received and held in trust;

(xii)

any amount received in the course of, or for the purposes of, the business of the company,-

Notes, amendments & references (24)

I. “start-up company” means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade G.S.R. 180(E) dated 17th, February, 2016 issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry;

II. “convertible note” means an instrument evidencing receipt of money initially as a debt, which is repayable at the option of the holder, or which is convertible into such number of equity shares of the start-up company upon occurrence of specified events and as per the other terms and conditions agreed to and indicated in the instrument.

(xviii) any amount received by a company from Alternate Investment Funds, Domestic Venture Capital Funds, Infrastructure Investment Trusts, Real Estate Investment Trustand Mutual Funds registered with the Securities and Exchange Board of India in accordance with regulations made by it.

(d) ‘‘depositor’’ means,-

(i) any member of the company who has made a deposit with the company in accordance with the provisions of sub-section (2) of section 73 of the Act, or

(ii) any person who has made a deposit with a public company in accordance with the provisions of section 76 of the Act;

(e) “eligible company” means a public company as referred to in sub-section (1) of section 76, having a net worth of not less than one hundred crore rupees or a turnover of not less than five hundred crore rupees and which has obtained the prior consent of the company in general meeting by means of a special resolution and also filed the said resolution with the Registrar of Companies before making any invitation to the Public for acceptance of deposits:

Provided that an eligible company, which is accepting deposits within the limits specified under clause (c) of sub-section (1) of section 180, may accept deposits by means of an ordinary resolution;

(f) “fees” means fees as specified in the Companies (Registration Offices and Fees) Rules, 2014;

(g) ”Form” or ‘e-Form” means a form set forth in Annexure to these rules which shall be used for the matter to which it relates;

(h) “section” means section of the Act;

(i) “trustee” means the trustee as defined in section 3 of the Indian Trusts Act, 1882 (12 of 1882).

(2) Words and Expressions used in these rules but not defined and defined in the Act or in the Reserve Bank of India Act, 1934 (2 of 1934) or in the Companies (Specification of definitions details) Rules, 2014, shall have the meanings respectively assigned to them in the said Acts or in the said rules.

Refer circular 05/2015. To view the clarification, Click Here

Provided that inserted vide Companies (Acceptance of Deposits) Amendment Rules, 2015. To view the notification, Click Here

substituted vide Companies (Acceptance of Deposits) second Amendment Rules, 2015. To view the notification, Click Here

substituted vide Companies (Acceptance of Deposits) Amendment Rules, 2016. To view the notification, Click Here

inserted vide Companies (Acceptance of Deposits) Amendment Rules, 2016. To view the notification, Click Here

substituted vide Companies (Acceptance of Deposits) Amendment Rules, 2015. To view the notification, Click Here

referred to in the proviso substituted vide Companies (Acceptance of Deposits) Amendment Rules, 2015 and later omitted vide notification Companies (Acceptance of Deposits) Amendment Rules, 2016. To view the notification, Click Here

Substituted vide Companies (Acceptance of Deposits) Amendment Rules, 2020 dated 07.09.2020. To view the notification, Click Here

inserted vide Companies (Acceptance of Deposits) Amendment Rules, 2017 dated 11.05.2017. To view the notification, Click Here

Inserted vide Companies (Acceptance of Deposits) Amendment Rules, 2019 dated 22.01.2019. To view the notification, Click Here

words and expressions used and not defined in this Act but defined in the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the Depositories Act, 1996 (22 of 1996) shall have the meanings respectively assigned to them in those Acts