Exempted Deposits: Following amount shall not be considered as deposit and the rules shall not apply on them:
- Any amount received or guaranteed from Central Government or State Government or local government;
- Any amount received from any foreign Government or foreign or international bank pursuant to the fulfilment of FEMA regulations;
- Any loan or facility received from any banking company or from State Bank of India or its subsidiary bank or any other cooperative bank or any other bank notified by the Central Government;
- Any amount received from any public financial institution notified by the Central Government;
- Any amount received against issue of commercial paper or any other instrument;
- Any amount received by a Company from any other Company;
- Any amount received and held pursuant to an offer made, towards subscripttion to any securities, including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment applied for;
Provided that it case the securities cannot be allotted within 60 days and the amount is not returned within 15 days thereafter, such amount shall be treated as deposit.
- Any amount received from the Director of the Company;
- Any amount raised by issue of bond or debenture secured by the first charge ranking pari passu or any bond or debenture compulsorily convertible into shares within 5 years;
- Any amount received from the employee of the company not exceeding his annual salary in the nature of non interest bearing security deposit;
- Any non interest bearing amount received or held in trust;
- Any amount received in the course of or for the purpose of business of the company:
- As an advance for the supply of goods or supply of service provided such advance is appropriated against supply of goods or services within 365 days;
- As advance received in connection with consideration for property under an agreement or arrangement;
- As security deposit for performance of contract for supply of goods or services;
- As advance received under long term projects for supply of capital goods
Provided that if the amount received above a, b, d becomes refundable due to reasons the company does not have necessary approvals or permissions to deal in goods or services, such amount shall be considered as deposit after expiry of 15 days from the day they becomes refundable.
- Any amount brought in by the promoters of the company by way of unsecured loan in pursuance of the stipulation of the lending institution or bank subject to fulfilment of following conditions:
- The loan is brought in pursuance of the stipulation imposed on the promoters to contribute such finance;
- The loan is provided by the promoters themselves or by their relatives or by both;
- The exemption under this sub clause shall be available only till the loan is repaid and not thereafter.
- Any amount received by the Nidhi Company in accordance with the rules made under section 406 of the Act.