Companies (Acceptance of Deposits) Amendment Rules, 2016

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....e Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as the principal rules), in rule 2, in sub-rule (1), in clause (c),- (i) in sub-clause (ix), for the words "five years" the words "ten years" shall be substituted; (ii) after sub-clause (ix), the following slab-clause shaII be inserted, namely,- "(ixa) any amount raised by issue of non-convertible debenture not constituting a charge on the assets of the company and listed on a recognised stock exchange as per applicable regulations made by Securities and Exchange Board of India."; (iii) for sub-clause (xi), the following sub-clause shall be substituted, namely:- "(xi) any non-interest bearing amount received and held in tru....

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....h rupees or more received by a start-up company, by way of a convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche, from a person. Explanation.- For the purposes of this sub-clause,- 1. "start-up company" means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 180(E) dated 17th, February, 2016 issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry; II. "convertible note" means an instrument evidencing receipt of money initially as a debt, which is repayable at the option of the holder, ....

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....dit rating agencies as specified for Non-Banking Financial Companies in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, issued by the Reserve Bank of India, as amended from time to time." 4. in rule 4 of the principal rules, for sub-rule (2), the following sub-rule shall be substituted, namely:- "(2) Every eligible company intending; to invite deposits shall issue a circular in the form of an advertisement in form DPT-1 for the purpose in English language in an English newspaper having country wide circulation and in vernacular language in a vernacular newspaper having wide circulation in the State in which the registered office of the company is situated, and shall also place such ....