{"id":122471,"date":"2017-04-10T13:38:51","date_gmt":"2017-04-10T08:08:51","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=122471"},"modified":"2017-04-10T13:38:51","modified_gmt":"2017-04-10T08:08:51","slug":"insurance-cover-for-public-deposits","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/04\/10\/insurance-cover-for-public-deposits\/","title":{"rendered":"Insurance Cover for Public Deposits"},"content":{"rendered":"<div class=\"contentdiv\">\n<div style=\"text-align: justify;\" align=\"center\">Section 73(2) of the Companies Act, 2013 (the Act) read with Rule 5 of Companies (Acceptance of Deposits) Rules, 2014 mandates that every company inviting deposits shall enter into a contract for providing deposit insurance at least 30 days before the issue of circular or advertisement or renewal as the case may be. However, in view of non-availability of such deposit insurance products, companies were allowed to raise deposits without any deposit insurance till 31st March, 2017, as per proviso to Rule 5(1).<br \/>\nThe Act read with Rule 2 of the abovementioned Rules inclusively defines \u2018deposits\u2019 with specific exceptions, thereby requiring compliance of the aforesaid provisions for receipts of monies by whatever name called, and protect the investors from the operators of fraudulent money collection schemes. Further, the Companies Act and the aforesaid deposit Rules limit the acceptance of deposits from public to only public companies having a net worth or turnover above prescribed thresholds, prescribe norms for issue of advertisements, credit rating for companies accepting deposits, creation of security, appointment of trustee for depositors and their duties, punishment for contravention of the provisions etc. for safeguarding the interest of investors.<\/div>\n<div style=\"text-align: right;\">\n<p>Ministry of Corporate Affairs<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Section 73(2) of the Companies Act, 2013 (the Act) read with Rule 5 of Companies (Acceptance of Deposits) Rules, 2014 mandates that <\/p>\n","protected":false},"author":91,"featured_media":28141,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[],"class_list":["post-122471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot_off_the_press","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Insurance Cover for Public Deposits | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2017\/04\/10\/insurance-cover-for-public-deposits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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