COVID-19: MCA extends Time for Creation of Deposit Repayment Reserve of 20% and to Invest or Deposit 15% of Amount of Debentures [Read Circular]

MCA - deposit repayment - debentures - COVID-19 - Taxscan

The Ministry of Corporate Affairs (MCA) on Friday further extended the time from June 30, 2020, to September 30, 2020, for creation of a deposit repayment reserve of 20% under Section 73 (2) (C ) of the companies Act 2013 and to invest or deposit 15% under Rule 18 of Companies (Share Capital and Debentures) Rules 2014 of the number of debentures.

The requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th September 2020.

The VI Requirement under Rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of the number of debentures maturing in specified methods of investments or deposits before 30th April 2020, maybe complied with till 30th September 2020.

“In continuation to General Circular No. 11/2020 dated 24th March 2020 and keeping in view the requests received from various stakeholders seeking an 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 30th June 2020 to 30th September 2020. All other requirements shall remain unchanged,” the circular said.

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