Companies (Acceptance of Deposits) Third Amendment Rules, 2001. - G.S.R.873(E). - Companies Law

GOVERNMENT OF INDIA MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS DEPARTMENT OF COMPANY AFFAIRS NEW DELHI, THE 28th NOVEMBER, 2001 NOTIFICATION Subject:- Companies (Acceptance of Deposits) Third Amendment Rules, 2001. G.S.R.873(E).- In exercise of the powers conferred by section 58A read with section 642 of the Companies Act, 1956 ( 1 of 1956), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies ( Acceptance of Deposits ) Rules, 1975, namely :- 1. (1) These rules may be called the Companies (Acceptance of Deposits) Third Amendment Rules, 2001. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Acceptance of Deposits) Rules, 1975, -- (a) in rule 2, after clause (d ), the following clause shall be inserted, namely :- `(e) "net owned fund" has the same meaning as assigned to it in the Reserve Bank of India Act, 1934 ( 2 of 1934);'; (b) in rule 3, in sub-rule (1), after clause (d ), the following clause shall be inserted, namely:- `(e) "no company with a net owned fund of less than rupees one crore shall invite public deposits;" '; (c) after rule 8, the following rule shall be inserted, namely: "8A Penal rate of interest.- A penal rate of interest of eighteen per cent.shall be paid for the overdue period in case of public deposits matured and claimed but remaining unpaid. In case of deposit made by a small depositor, the penal rate of interest shall be twenty per cent. compoundable on an annual basis. Explanation .- For the purposes of this rule, the expression "a small depositor" has the same meaning as assigned to it in the explanation to Section 58AA of the Act." (F. No.1/17/2000-CL.V) A. RAMASWAMY Joint Secretary