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NIL Return of deposit under Sction 58A to RBI

CS Pooja (Company Secretary) (305 Points)

24 September 2010

Dear All,

Please clarify whether it is neccessary to Submit copy of NIL Return of Deposit under Section 58A to RBI.

Regards,
CS Pooja

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2 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 24 September 2010

Dear Pooja,

Under Rule 10 of the Acceptance of Deposit Rules, 1975, every company to which the deposit rules apply is required to file with the Registrar a return of deposit in the form annexed to the Rules on or before 30th June every year.

Rule 10 requires that "every company to whih these Rules apply" to file the return of deposit. This indicates that the return has to be filed irrespecttive of whether the company any outstanding deposits as on 31st March or not. However, by its letter no. 4/1/76-CL-XIV, dated 5th February, 1976, the Department has clarified that a NIL return is not required to be submitted to the Registrar.

Regarding this view, this has been further clarified that if the amount received and / or outstanding at the beginning and end of the year fall under the exempt categories anumerated under rule 2(b), it is not necessary to file a NIL return. If, however, deposits of the kinds other than those referred to in rule 2(b) are acdepted and / or renewed or repaid during the year in question, the return must be filed[Letter No. 3/14/84-CL-X, dated 5th December, 1984]