Companies Acceptance of Deposit (Section 73 to Section 76 of the companies Act 2013)
283 sections of the Companies Act 2013 have been made effective now. Private Companies have also been brought under the purview of the compliances of Companies Act 2013. Earlier private companies were allowed to take loans from relatives and shareholders which were the major sources of funds for most of the private companies apart from banks. The draft rules of the new Act had specifically exempted deposits from shareholders from the definition of deposits. However the final rules have removed the exemption and, only deposits taken from directors are exempted from the definition of deposits provided he gives a declaration that the amount he is giving is not out of borrowed funds. Going forward private companies shall have to adhere to strict norms for borrowing from any person other than directors thereby increasing the compliance costs for small private companies.
Key  Highlights

1. A private Company and an un-eligible public company cannot accept loans or deposits from any person other than its Directors.  For accepting any loan from person other than Directors the company will have to comply with all the conditions mentioned including creation of reserve account, deposit insurance, credit rating, etc.
2. Share application money received but not allotted shall be treated as deposit.
3. Any money received as advance in the course of ordinary business shall be treated as deposit if goods or services are not provided within 365 days of receipt.
4. Private Companies and an un-eligible public company will have to file a return of deposits on 30^th June if they have any deposit received from person other than director.
5. As of now if the private companies have any loan received from any person other than director then they have to file a statement with the Registrar within 3 months of the commencement of the Act i.e. 30^th June 2014 in Form DPT-4.

1. A Banking Company,
2. A Non Banking Finance Company registered with RBI,
3. A Housing Finance Company registered with National Housing Bank,
4. Any other Company which the Central Government may specify.

1. Any amount received from Central Government /State Government/ local authority/statutory authority constituted under an Act of Parliament or State legislature /any other source whose repayment is guaranteed by Central Government or State Government.
2. Any amount received from Foreign or international banks / multilateral financial institutions/Foreign Government owned development financial institutions / foreign export credit agencies / foreign collaborators/ foreign body corporate /foreign citizens / foreign authorities / persons resident outside India subject to the provisions of Foreign Exchange Management Act,1999.
3. Any amount received as a loan from a Banking Institution including co-operative banks notified under Banking Regulation Act.
4. Any amount received as a loan from Public Financial Institution /Regional Financial Institutions / Insurance Companies / Scheduled Banks.
5. Any amount received against commercial paper or any other instruments issued in accordance with the guidelines of Reserve Bank of India.
6. Any amount received from any other Company.
7. Any amount received against subscription to any securities including share application money provided the securities are allotted within 60 days from the date of receipt of the application money or advance.

1. Any amount received from a person who at the time of receipt was a director provided the director furnishes a declaration that the amount given is not out of borrowed funds.
2. Any amount raised by issue of bonds or debentures secured by first charge on any assets referred to in Schedule III of the Act excluding intangible assets.
3. Any amount received from an employee of the company not exceeding his annual salary in the nature of non interest bearing security.
4. Any amount received as a Non- interest bearing amount received or held in trust.
5. Any amount received in the course of or the purpose of the business for the following :-
   1. As advance for the supply of goods or provision of services  provided such advance is appropriated against supply of goods or provision of service within 365 days from the receipt of such amount,
   2. As advance received in connection with consideration for property under an agreement or arrangement,
   3. As security deposit for the performance of the contract for supply of goods or provision of services.
   4. As advance received under long term projects for supply of capital goods.

1. Any amount brought in by the promoters themselves or their relatives by way of unsecured loan in pursuance of a stipulation of any lending institution on the promoters. Such exemption shall be available only till the loans of the Financial Institutions are not repaid and not thereafter.
2. Any amount accepted by a Nidhi Company in accordance with rules made u/s 406 of the Act.

1. A public Company and it has either of the following
2. Net worth of not less than one hundred crore rupees or turnover of not less than five hundred crore rupees.
3. It has obtained the prior consent of the company in general meeting by means of a special resolution
4. It has filed the above resolution with the Registrar of Companies before making any invitation to the Public for accepting deposits.

1. No Company shall accept or renew deposit whether, secured or unsecured, which is repayable on demand or upon receiving a notice within a period of less than 6 months or more than 36 months from the date of acceptance or renewal of such deposit.

1. Deposits may be accepted in Joint names not exceeding 3.
2. A non Eligible company Shall accept deposit only to the extent of 25% of the aggregate of paid up share capital and free reserves.
3. A Eligible companies 1) Deposit from members shall not exceed 10% of the aggregate of paid up share capital and free reserves. 2) Deposit from others shall not exceed 25% of the aggregate of paid up share capital and free reserves (excluding deposit from members)
4. A  Government companies shall not accept deposit more than 35% of the aggregate of paid up share capital and free reserves.
5. Interest or Brokerage paid should not exceed the maximum rate of interest or brokerages prescribed by the RBI for acceptance of deposits by Non Banking Finance Companies.
6. The Company shall not reserve to itself whether directly or indirectly a right to alter, to the prejudice or disadvantage of the depositor, any of the terms and conditions of the deposit, deposit trust deed and deposit insurance contract.

1. File with the Registrar a statement in form DPT-4 a statement of all deposits accepted by the company and sums remaining unpaid along with the interest payable thereon along with the arrangements made for such repayments.
2. Repay within one year from such commencement or from the date on which such payments are due whichever is earlier.