Rule 2 - Definitions.

Definition of deposit clarifies excluded receipts and treats unrefunded subscription advances as deposits after prescribed refund period.

Definition of deposit includes any receipt of money by a company as deposit, loan or otherwise but excludes specified receipts such as amounts from governments, certain foreign and domestic financial institutions, banks, commercial paper, receipts from other companies, and bona fide subscription monies for securities provided allotment or refund occurs within prescribed periods. Advances for business purposes, security deposits, long-term project advances, certain warranty or maintenance advances, promoter unsecured loans under lending stipulations, and amounts from regulated investment vehicles are treated as non-deposits subject to conditions; refundable amounts due to lack of permissions become deposits after the refund period. The rule also prescribes documentary and disclosure conditions for director-related receipts and sets out definitions of depositor and eligible company.