sreekanth p d (article) (318 Points)
21 April 2015
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 24 April 2015
Any amount received from a foreign company is not a deposit within the meaning of CA 1956 or CA 2013 and hence no formality is required to be completed.
Rule 2(b)(i) of Companies (Acceptance of Deposits) Rules 1975 excluded from deposit "any amount received from a local authority or a foreign Government or any other foreign citizen, authority or person."
Similarly Rule 2(c)(ii) of Companies (Acceptance of Deposits) Rules 2014 excludes from deposit "any amount received from foreign Governments, foreign or international banks, multilateral financial institutions (including, but not limited to, International Finance Corporation, Asian Development Bank, Commonwealth Development Corporation and International Bank for Industrial and Financial Reconstruction), foreign Governments owned development financial institutions, foreign export credit agencies, foreign collaborators, foreign bodies corporate and foreign citizens, foreign authorities or persons resident outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999) and rules and regulations made there under."
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