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Deposits/ Loaons from NRI Director

Sadhana (CS) (181 Points)

08 February 2011

Can Pvt Ltd Co accept Deposits/ Loans from NRI (POI) Director ? If yes is there any restrictions/conditions and comliances with RBI?

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4 Replies

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 10 February 2011

A private limited company can accept deposits / loans from NRI (POI) Director.

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rvsekar2000 (212 Points)
Replied 10 February 2011

Hello,

Please click the following link , you can have an answer to your query:

https://rvseckarfema.blogspot.com/2010/09/can-pvt-company-accepts-deposits-from.html

Accepting deposits from NRI Director will fall under FEMA and FEMA regulations have to be observed.

R.V.Seckar

Pl do visit my blogs :https://rvseckarcompanylaw.blogspot.com/

https://rvseckarfema.blogspot.com/

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Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 10 February 2011

Dear Mr. Seckar,

As per Section 3(1)(iii)(d) a ' private company' cannot invite or accept deposits from persons other than its members, directors or their relatives.

So my understanding is, acceptance of deposits from NRI director / shareholder will not make the company loose its identity as 'private company'.

Is there any restrictive provisions contained in FEMA with regard to deposits by NRI director / Shareholder?

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 10 February 2011

Originally posted by : Jayashree S Iyer
	Dear Mr. Seckar, As per Section 3(1)(iii)(d) a ' private company' cannot invite or accept deposits from persons other than its members, directors or their relatives. So my understanding is, acceptance of deposits from NRI director / shareholder will not make the company loose its identity as 'private company'. Is there any restrictive provisions contained in FEMA with regard to deposits by NRI director / Shareholder?