Under Rule 2(1)(c) (vii) of the Companies (Acceptance of Deposit) Rules, 2014, companies were required to appropriate application money against the amount due on allotment of securities applied for within 60 days from the date of receipt of application money.
The Ministry of Corporate Affairs has vide notification dated 31st March, 2015 relaxed the above-mentioned compliance requirements. Unless otherwise required under the Companies Act, 1956 or the Securities and Exchange Board of India Act, 1992 or rules or regulations made there under to allot any share, stock, bond, or debenture, within a specified period, if a company receives any amount by way of subscriptions to any shares, stock, bonds or debentures before the 1st April, 2014 and disclosed in the balance sheet for the financial year ending on or before the 31st March, 2014 against which the allotment is pending on the 31st March 2015, the company shall, by the 1st June 2015, either return such amounts to the persons from whom these were received or allot shares, stock, bonds or debentures or comply with these rules.
Furthermore, Rule 3(8) now requires companies accepting deposits to obtain credit rating every year and to submit a copy of the same to the Registrar of Companies along with the return of deposits in DPT-3. Additionally, companies have been allowed time till March 31, 2016 to accept deposits without deposit insurance till March 31, 2016.
The Companies which received money for allotment of securities (any shares, stock, bonds or debentures) under the Companies Act, 1956 but the allotment was pending in the balance sheet of the Company as on 31st March, 2015 has been given time till 1st June, 2015 to return the money to the applicants or allot shares, stock, bonds or debentures. Further, amendment in relation to credit rating of companies issuing securities has been made robust to ensure adequate safety measures. The eligible companies would be required to get credit rating from prescribed rating agencies only and the minimum investment grade for each such rating agency has also been prescribed.