Amendment in The Companies (Acceptance of Deposits) Rules, 2014

Rule No.

Mode of change

Amendment

Effect of amendment

2(1)(c)(xvii)

Substitution

“For the words "five years", the words" ten years" shall be substituted”

Relief to Start-up companies –

Twenty-five lakh 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 10 years from the date of issue) in a single tranche, from a person is excluded from the definition of Deposit.

3(3)(i)

Substitution

“for the words" five years", the words, "ten years" shall be substituted”

Relief to Start-up companies from the prohibition on acceptance of deposits from public as per section 73(2).