Amendment in acceptance of deposit rules

This is the crux of who we are. It is an articulation of precision in purpose, from the Firm’s beginnings to where we are today. Our collective eye is unerringly trained on tomorrow.

Deep sectoral expertise across services and industries.

Our insistence on strategic advisory exacts an in-depth understanding of and involvement with our clients’ businesses and industries. We engage not just individual businesses, but also contribute to the country’s legal and regulatory frameworks.

Practice Areas
Sectors

Personal commitment supported by experience and grit.

We commit early. We pull together internally for greater support. Every effort is sincere, every individual deeply dedicated to their task, their role, to the Firm.

Our undertakings for long-term impact are an organic extension of our purpose.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. To use the opportunities and skills we possess, to reflect on the culture we’re creating. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth.

Knowledge-sharing is intrinsic to equity and inclusivity.

This is a repository of thought leadership, deep insights and strong viewpoints, legal and other news and events and how they impact the industry and our clients.

Relevance is critical to growth. It necessitates a firm that is dynamic and responsive.

Amplifying intrinsic talent, sharpening skills, expanding knowledge, is vital to leading. It defines every aspect of how our firm functions and transacts. This is how we create new benchmarks and set industry standards.

DISCLAIMER & CONFIRMATION

Under the rules of the Bar Council of India, AZB & Partners (the “Firm”) is prohibited from soliciting work or advertising. By clicking, “I Agree” below, the user acknowledges that:

AGREE DISAGREE Sep 30, 2020

Amendment to Acceptance of Deposits Rules for Start-up Companies

MCA, by its Notification dated September 7, 2020 has amended the Companies (Acceptance of Deposits) Rules, 2014 (‘Deposit Rules’). Pursuant to the amendment: (a) a deposit will not include an amount of ₹ 25 lakh (approx. US$ 35,000) or more received by a start-up company in a single tranche from a person, by way of a convertible note which is convertible into equity shares or repayable within a period not exceeding 10 years (as opposed to five years provided earlier) from the date of issue; and (b) the maximum limit in respect of deposits to be accepted from members set out in Rule (3)(3) of the Deposit Rules (i.e. 35% of the aggregate of the paid-up share capital, free reserves and securities premium account of the company) will not apply to a private company which is a start-up for 10 years (as opposed to five years provided earlier) from its date of incorporation.

TAGS

SHARE

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.