Cen­tre ex­tends re­lief on com­pli­ance till Sept

Hindustan Times (Jalandhar) - - HTBUSINESS - Gireesh Chan­dra Prasad gireesh.p@livemint.com

NEW DELHI : The Cen­tre has given yet an­other ex­ten­sion to com­pa­nies to set aside part of the de­posits and debentures ma­tur­ing in FY21 in a ded­i­cated ac­count, which is a statu­tory re­quire­ment un­der the Com­pa­nies Act.

The cor­po­rate affairs min­istry said in a cir­cu­lar that the orig­i­nal due date spec­i­fied un­der the law was 30 April, which was ex­tended till end of June, and has now been fur­ther ex­tended till the end of Septem­ber.

A min­istry cir­cu­lar on Fri­day said the ex­ten­sion is given in view of the re­quests re­ceived from var­i­ous stake­hold­ers seek­ing more time on ac­count of the covid-19 cri­sis.

The ex­ten­sion is ap­pli­ca­ble to both de­posits as well as debentures ma­tur­ing in this fis­cal year. The Com­pa­nies (Share Cap­i­tal and Debentures) Rules of 2014 say that ev­ery com­pany needs to set up a Deben­ture Re­demp­tion Re­serve be­fore the end of April ev­ery year, and de­posit at least 15% of the debentures ma­tur­ing in that year. This in­vest­ment could be in the form of bank de­posits, or cen­tral and state gov­ern­ment se­cu­ri­ties, or spec­i­fied cor­po­rate bonds. In March, the min­istry had given a three-month ex­te­nac­cord­ing sion for com­pli­ance.

Sim­i­larly, com­pa­nies ac­cept­ing de­posits from mem­bers have to de­posit not less than 20% of such de­posits ma­tur­ing in a fi­nan­cial year and in the sub­se­quent fi­nan­cial year in a sep­a­rate ac­count of a sched­uled bank, or de­posit re­pay­ment re­serve ac­count.

For this re­quire­ment un­der the Com­pa­nies Act, too, the gov­ern­ment had in March given three months’ ex­tra time till end of June. Due dates for both the re­quire­ments now stand ex­tended till end of Septem­ber.

THE EX­TEN­SION IS AP­PLI­CA­BLE TO BOTH DE­POSITS AS WELL AS DEBENTURES MA­TUR­ING IN THIS FIS­CAL YEAR

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