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Return of deposit

abhishek kadam (Self employed) (151 Points)

22 June 2013

Dear Friends,

Kindly tell me the difference between the Rule 3(2)(i) and Rule 3(2)(ii) of Companies (Acceptance of Deposits) Rules, 1975

I need to file retun of deposit with RBI before 30th June, 2013.

Regards,

Abhishek

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5197 Points)
Replied 24 June 2013

Originally posted by : abhishek kadam
	Dear Friends, Kindly tell me the difference between the Rule 3(2)(i) and Rule 3(2)(ii) of Companies (Acceptance of Deposits) Rules, 1975 I need to file retun of deposit with RBI before 30th June, 2013. Regards, Abhishek

the directors are also shareholders. After the withdrawal of the exemption, unsecured borrowings from directors, along with the other categories, cannot exceed 10 per cent of the aggregate paid-up share capital and free reserves of the company in terms of Rule 3(2)(i).

Hence, these deposits cannot also exceed the 10 per cent limit where the directors are also shareholders. To avoid this situation, directors who have lent money to companies by way of unsecured loan would like to give up their membership in order to come under Rule 3(2)(ii), under which, a company can accept deposits from "others" up to 25 per cent of its paid-up capital and free reserves.