MCA extends time for Creation of deposit repayment reserve & to deposit 15% of amount of debentures

Last updated: 25 June 2020

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The Ministry of Corporate Affairs (MCA) has extended the deadline for companies to comply with certain financial requirements due to the COVID-19 pandemic. Specifically, the time for creating a 20% deposit repayment reserve and depositing 15% of debenture amounts has been extended. The new deadline for these compliances is now 30th September 2020, extended from the previous date of 30th June 2020.

General Circular No. 24/2020

File No.02/08/2020-CL-V
Government of India
Ministry of Corporate Affairs

5^thFloor, ‘A’ Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi-110001.

Dated: 19^thJune, 2020

All Regional Directors,
All Registrar of Companies,
All Stakeholders

Subject: Clarification with regard to creation of deposit repayment reserve of 20% u/s. 73 (2) (C ) of the Companies Act 2013 and to invest or deposit 15% of amount of debentures u/r.18 of Companies (Share capital and Debentures) Rules 2014 – COVID-19 –Extension of time-regarding.

Sir/Madam,

In continuation to General Circular No. 11/2020 dated 24th March 2020 and keeping in view the requests received from various stakeholders seeking extension of time for compliance of the subject requirements on account of Covid-19, it has been decided to further extend the time in respect of matters referred to in paras V , VI of the aforesaid circular, from 30^th June 2020 to 30^th September 2020. All other requirements shall remain unchanged.

2. This issues with the approval of the competent authority.

Yours faithfully,

(KMS Narayanan)
Assistant Director (policy)

Copy forwarded for information to:-

1. e-governance section and web contents officer to place the circular on MCA website.

2. Guard file.

FAQ :

The notification clarifies and extends the deadline for companies to create a deposit repayment reserve of 20% and deposit 15% of debenture amounts, due to the impact of COVID-19.

The deadlines for creating a 20% deposit repayment reserve under Section 73(2)(C) of the Companies Act 2013 and for investing or depositing 15% of the amount of debentures under Rule 18 of the Companies (Share capital and Debentures) Rules 2014 have been extended.

The deadline has been extended to 30th September 2020.

The previous deadline was 30th June 2020.

No, all other requirements related to these matters remain unchanged.