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Corporate Law

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Yami Soni

145 Points Posted on 12 August 2020

deposits
negative list given in the module of ICAI of deposits
those negative list are not eligible for taking deposits or are not necessary to comply the the given conditions and rules in the company law what is the basic concept for the negative list

Replies (3)

Quick Summary

This discussion clarifies the concept of the 'negative list' within corporate law, specifically concerning company deposits. The negative list, also known as 'amounts not considered as deposit', outlines transactions that are exempt from the strict rules and regulations governing company deposits. Companies can engage in these specific transactions without needing to comply with deposit-related conditions, simplifying certain financial dealings.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 12 August 2020

Negative list.... means
Are you asking about "AMOUNTS NOT CONSIDERED AS DEPOSIT"...?

Yami Soni

145 Points Posted on 13 August 2020

Yes yes

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 13 August 2020

Company can take deposit only if it's comply with rules and regulations as prescribed by Company Act and deposit Rule.

Negative list I.e AMOUNTS NOT CONSIDERED AS DEPOSIT is a list of those transaction which can't be considered as deposit.

So, Company can do that transaction without complying of any rule relating to deposit.

ex. (vi) any amount received by a company from any other company;
it's in negative list. So, No need comply deposit rule for this transaction.