Companies (Acceptance of Deposits) Rules, 2014

Deposit includes any receipt of money by way of deposit or loan or in any other form, by a
company, excluding the following receipts–

i. Received from Government: any amount received from the Central Government or a State Government or guaranteed by CG or SG , or received from a local authority
ii. Received from Foreign Institution & Govts: any amount received from foreign Governments, foreign or international banks, multilateral financial institutions, foreign Governments owned development financial institutions, foreign export credit agencies, foreign collaborators, foreign bodies corporate and foreign citizens, foreign authorities or persons resident outside India
iii. Loans from Banking Co.: any amount received as a loan or facility from any banking company, or from a co-operative bank
iv. Loans from Public Financial Institutions: any amount received as a loan or financial assistance from Public Financial Institutions notified by the Central Government
v. Issue of Commercial Papers: any amount received against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the RBI.
vi. Intercorporate Loan: any amount received by a company from any other company
vii. Subscription to Securities: Any amount received and held pursuant to an over made in accordance with the provisions of the Act towards subscription 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 of the securities applied for. (Explanation a & b)
viii. Received from Director or its relatives: any amount received from a person who, at the time of the receipt of the amount, was a director of the company or a relative of the director of the Private company. Provided that a declaration in writing to the effect that the amount is not being given out of borrowed funds shall be taken from the director and the company shall disclose the details of money so accepted in the Board’s report.
ix. Issue of Bonds/Debentures: any amount raised by the issue of bonds or debentures and secured by the charge of any assets excluding intangible assets, or compulsorily convertibles debentures or bonds into shares of the
company within 10 years.
ixa. Issue of NCD listed in stock exchange: any amount raised by issue of nonconvertible debenture not constituting a charge on the assets of the company and listed on a recognised stock exchange as per applicable regulations made by Securities and Exchange Board of India.
x. Security Deposit from Employee: any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit.
xi. Amount held in Trust: any non-interest bearing amount received and held in trust
xii. Advance/Deposits for Business Operations: any amount received in the course of, or for the purposes of, the business of the company
a. As an advance for the supply of goods or provision of services and has been adjusted within a period of 365 days.
b. As an advance for consideration for an immovable property and has been adjusted according to the terms of Agreement.
c. As security deposit for supply of goods or provision of services
d. As advance received under long term projects for supply of capital goods
e. As an advance towards consideration for providing future services in the form of a warranty or maintenance contract
f. As an advance received and as allowed by any sectoral regulator or in accordance with directions of Central or State Government
g. As an advance for subscription towards publication, whether in print or in electronic to be adjusted against receipt of such publications.

Provided that if the amount received under items (a), (b) and (d) above becomes refundable, amount received shall be deemed to be a deposit on the expiry of fifteen days from the date they become due for refund.

xiii. Unsecured loan from promoters stipulated by lending institution: any amount brought in by the promoters of the company by way of unsecured loan in pursuance of the stipulation of any lending financial institution or a bank
subject to fulfilment of the following conditions.
a. the loan is brought in pursuance of the stipulation imposed by the lending institutions on the promoters to contribute such finance;
b. the loan is provided by the promoters themselves or by their relatives or by both; and
c. the exemption under this sub-clause shall be available only till the loans of financial institution or bank are repaid and not thereafter;
xiv. Amount accepted by a Nidhi company: any amount accepted by a Nidhi company in accordance with the rules made under section 406 of the Act.
xv. Subscription of a Chit under the Chit Fund Act: any amount received by way of subscription in respect of a chit under the Chit Fund Act, 1982.
xvi. Amount received under Collective Investment Scheme: any amount received by the company under any collective investment scheme in compliance with regulations framed by the SEBI.
xvii. Convertible Note by a Startup Company: an amount of twenty five lakh rupees or more received by a start-up company, by way of a convertible note (convertible into equity shares or repayable within a period not exceeding 10 years from the date of issue) in a single tranche, from a person.
xviii. Amount received from AIF’s, Domestic VC’s, MF’s etc : any amount received by a company from Alternate Investment Funds, Domestic Venture Capital Funds, Infrastructure Investment Trusts, Real Estate Investment Trusts and Mutual Funds registered with the SEBI India in accordance with regulations made by it