487

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Department of Company Affairs)

NOTIFICATION

New Delhi, the 20th March, 1981

GJ9.R. 187(E),—In exercise of the powers conferred by

section 58A read with section 642 of the Companies Act,

1956 (1 of 1956), the Central Government, in consultation

with the Reseive Bank of India, hereby makes the following

rules further to amend the Companies (Acceptance of De-

posits) Rules, 1975, namely :—

1 (1) These rules may be called the Companies (Accep-

tance of Deposit!) Amendment Rules, 1981.

(2) Save as otherwise piovidcd in these rules, they rhall

come into force on the date of their publication in

the Official Gazette.

2. With effect from the 1st day of Apiil, 1981, in rule 2,

in sub-rule (b). in clause (iv), of the Companies (Acceptance

of Deposits) Rules, 1975 (hereinafter referred to as (he ^uid

rules), the words "wheie the former company has not gone

into commercial production and has not n-xeplcd any de-

posits from the public" shall be omitted.

3 In rule 3 of the said rules, in the proviso to sub-uilc

U), for the word "deposits" the words, figures and bracket¹;

'such deposits LIB are referred to in clause (i) of sub-rule (2)"

shall be substituted.

4. Aflei the second proviso to sub-mle (1) of rule 3 of

the said rules, Ihe following sub-clause shall he inserted,

•namely :•—

"(c) no company shall invite or accept or renew ,^riii\

deposits in any form, on a rate of interest exceeding

fifteen per cent per annum ;

(d) no company shall pay biokeuige to .my broker at ,i

rate exceeding one per cent of the deposits collec-

ted by or through such biokcr irrespective of the

periods for which deposits are accepted."

5. With effect fiorji the 1st day of April, 19K1, in rule 3,

for sub-rule (2), the following sub-rule shall be substituted,

namely :—

"(2) No company shall aixept —

ii)

any deposit against an unsecured

debenture

any deposit from a shareholder (not be^;ng a deposit

accepted by a private company fiom its shaiehoiOers)

or any deposit guaranteed by any person who, at

'he time of giMiig such giuuintce is a director of

tli

loynpany if the ;imounl of any such deposit

.og:thci with the amount of such other deposits

of all oi any of the kinds of deposits refciretl to

in this clause ami outstanding on the date of accep-

tance or renewal of such deposit, exceeds ten per

Lent, [including any deposit accepted under

the

the pioviso to sub-rule (1) of rule (3)] of the aggre-

gate of the paid-up share capital and free reserves

of the company ;

Provided that for the putpose of calculation of the

amount of deposits outstanding on the date of such

acceptance or renewal, any deposit guaranteed bv

a person who, at the time of giving such guarantee,

was the managing agent or secretaries and treasu-

rers of the company, and outstanding on such dale

shall be 1aken into account ;

Ui) any other deposit,

if the amount of such deposit

together with the amount of such other deposit

other than any of the deposits referred to in clause

(i) outstanding on the date of acceptance or lenewal,

exceeds twenty-five per

cent of

the aggregate of

the paid-up 'hare capital and free receives of the

company."

6. With effect from the 1st day of April, 1981, In the

Form annexed to the said rules, —

(a) Jn Part A —

(i) for items 1 and II and the entries relating thereto,

the following items and entries shall be substituted,

namely :—

"I. Deposits of the kind referred to in clause (i) of

sub-rule (2) of rule 3 —

(a) deposits received in the form of 16ans guaranteed

by the former managing agents or secretaries

and treasurers.

(b) unsecured debenture(a).

share-holders (not being share-holders of private

limited company) but excluding those received

from directors,

(d) deposits including unsecured loans guaranteed

by directors in their pcisonal capacity

>—

ic) Total (.i+b+c+d)-

———

II. Deposits ol the kind referred to in clause (ii) of

sub-rule (2) of rule 3.

(f) fived deposits.

(g) any other deposits——•

(h) Total (f + s)

•

" ;

MI) in item ill, for sub-item (1), the following sub-hem

shall be substituted, namely :—

"any amount leccived by a company from any other

company,"

<b) In part B, —

'a) in item I, for the words, ligures and brackets "de-

posits covcied by the first pioviso to sub-rule (1)

of rule 3", the words, figures and brackets "deposits

covered by clause (i) of sub-rule (2) of rule 3" shall

be substituted ;

b) in item II, —

for the words, figuies and brackets "depusits covered

by sub-rule (2) of rule 3", the woids, figures and

brackets

"deposits covered by clause

(ii) of sub-

rule (2) of rule 3'» shall be substituted;

<c) In Part C, —

la) in item I, for the woids, ligures and biucket "deposits

coveied by the first proviso to sub-rule (1) of rule

3", the woids, figures and

brackets

"deposits

covered by clause (i) of sub-iule (2) of rule 3",

shall be substituted ;

'b) in item II, loi the words, iigures and brackets "de-

posits covered by sub-rule P) of mle 3", the words,

iigures and brackets "Deposits covered by clause

(ii) of sub-rule (2) of rule 3", shall be substituted ;

•c) below the column relating to "rate of interest" in

items I, TI and TTI, —

d) foi the entiy against serial numbei fi, the «ntry

"At 15%" shall be substituted ;

(ii) after serial number 6 and the entry relating thereto,

following serial number and entry shall be subs-

tituted, namely :—

"7. More than 15%"

liii) after serial number 7 and entries relating thereto,

for the words and figuics 'Total 1 to 6", the

words and figures "TOIHI of 1 to 7", shall be subs-

tituted :

'd) Before the entry "Manager's Certificate", the follow-

ing Note shall be inserted, namely :—

"Note in respect of item at Serial number 7 —in

respect of deposits invited or accepted or renewed

prior to 20-3-1981.

488

THE GAZETTE OF INDIA: EXTRAORDINARY

{PARI II—SA. M)]

7. In the Manager's Certificate, —

(a) the certificate below the words "Manager's Certificate"

shall be re-numbered as 1 ;

(b) in the Manager's certificate so re-numbered, for the

words, figures and brackets "Deposits of the kind

referred to In the first proviso to sub-rule (1) of

rule 3" the words, figures and brackets "Deposits

of the kind referred to in clause (1) of sub-rule (2)

of rule 3", shall be substituted ;

referred to in sub-rule (2) of rule

3*' the words

figures and brackets "Deposits of the kinds referred

to in clause (ii) of sub-rule (2) of rule 3", shall

be substituted ;

(d) after certificate 1 as so renumbered the following

certificate and entry shall be inserted, namely :—

"2. Cci lifted that the rates of brokerage on deposits

accepted on and from 20-3-1981 were as follws" ;

(e) after certificate 2 as so inserted the following certi-

ficate and entry shall be inserted, namely :—

"3. Certified that the rates of interest and brokerage

on deposits accepted on and from 20-3-1981 have

not exceeded the limits prescribed in these rules."

[No. 4/8/81-CL. X]

S, P. GANGULY, Director

PRINTED BV THE MANAOl'R, OOVT. OF INDIA PKESS, JUNO ROAD, NEW DELUI-110064

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054, 1981