Deposit Rules Dpt 3.docx

Publication of Notification dated January 22, 2019 BACKGROUND: The Central Government may, by notification, make rules for carrying out the provisions of the Companies Act and it may by order, require companies or any class of companies, or any company, to furnish such information or statistics as may deem fit. Accordingly, in order to protect the interest and safeguard of deposit holders or creditors of the company, the Central Government in consultation with the Reserve Bank of India (RBI), hereby makes the Companies (Acceptance of Deposits) Amendment Rules, 2019 to amend the Companies (Acceptance of Deposits) Rules, 2014 and directed that: Every Company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause 2(1)(c) of rule 2 of Companies (Acceptance of Deposits) Rules, 2014 from the April 01, 2014 to the date of publication of this notification (January 22, 2019), as specified in Form DPT-3 within 90 days from the date of said publication of this notification. ANALYSIS: 

Deposits as per clause 2(1)(c) of rule 2: includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include – Any amount received from: (i) The Central Government (CG)/State Government (SG), or any amount received from any other source whose repayment is guaranteed by the CG/SG, the local authority. (ii) Foreign Gov’t/foreign or international banks/multilateral financial institutions /foreign Gov’t owned development financial institutions/foreign export credit agencies/foreign collaborators/foreign bodies corporate and foreign citizens, foreign authorities or persons resident outside India. (iii) Loan or facility from any banking company/State Bank of India or any of its subsidiary banks/from a banking institution notified by the Central Government/ co-operative bank. (iv) Loan or financial assistance from Public Financial Institutions/regional financial institutions or Insurance Companies or Scheduled Banks. (v) Against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the Reserve Bank of India. (vi) Any amount received by a company from any other company; (vii) Any amount received towards allotment of shares and pending for allotment. Explanation- For the purposes of this sub-clause (vii), it is clarified that If the securities for which application money was received cannot be allotted within 60 days from the date of receipt of the application money and such application money is not refunded to the subscribers within 15 days from the date of completion of sixty days, such amount shall be treated as a deposit under these rules. Applicability

 

of

the

Companies

(Acceptance

of

Deposits)

Rules,

2014:

Receipt of money by way of deposits or loans from public or from shareholders of a public limited company Loan from shareholders of a private limited company



Share application money received and is not allotted within 60 days from the date of receipt and is not refunded within 15 days from the date of completion of 60 days. Note: Every company, to which these rules apply, shall on or before the June 30th, of every year, file form DPT-3 with the Registrar. IMPACT OF NEW NOTIFICATION: Form DPT-3 shall be used for filing return of deposit or particulars of the transaction not considered as a deposit (as specified in rule 2(1)(c) of Companies(Acceptance of Deposits) Rules, 2014) or both by every company other than Government company required to be filed on One Time Basis. Key points of the new notification and its applicability:

1. 2. 3. 4. 5.

All companies (Private, Public, OPC, etc.) except Government Companies are required to file form DPT-3. One Time return in form DPT-3 is required to be filed within 90 days of publication of this notification in Official Gazette i.e. 90 days from 22nd January, 2019. Filling is required to be done for both secured & unsecured outstanding money/loan not considered as deposits. Period of outstanding loan/money shall be from April 01, 2014 till January 22, 2019. The form shall also be filed in case the loan/money outstanding is taken from its holding/subsidiary or associate company. CONCLUSION: Every company other than Government Company shall file a one-time return (e-Form DPT-3) within 90 days from the date of publication of this notification (i.e. January 22, 2019), the total outstanding money or loan (secured or unsecured) received by the company but which is not considered as deposits. Particulars

       

  

not

considered

as

a

deposit

but

required

to

file

e-form

DPT-3:

Any amount received from Governments (Central/State) including foreign gov’t Any amount received from foreign Governments, foreign or international banks Any amount received as a loan or facility from banks Any amount received as a loan or financial assistance from Public Financial Institutions Any amount received by a company from any other company Share application money (not allotted) outstanding beyond 75 days from the date of receipt Loans or any amount received from Directors Loans from holding company, subsidiary company or associated companies Sources: Companies Act, 2013 – Section 73 &469 – Prohibition of Acceptance of Deposits from Public & Power of Central Gov’t to make rules Companies (Acceptance of Deposits) Rules, 2014 – Rule 16, Rule 16A & Form DPT 3 – Insertion of explanation, Insertion of sub-rule and Modification of Form DPT 3 The Companies (Acceptance of Deposits) Amendment Rules, 2019 – Published in the official Gazette on 22nd January 2019