A set of Frequently Asked Questions (FAQs) has been issued by the Institute of Chartered Accountants of India (ICAI).
The ‘Banning of Unregulated Deposit Schemes Ordinance, 2019’ is the government’s endeavour to bridge the regulatory gap in the wake of difficulties faced in investigating of Ponzi-schemes, and the ordinance has been promulgated with an objective to completely ban unregulated deposit schemes; prohibit solicitation or acceptance of deposits outside the Regulated Deposit Scheme. It will also enable the creation of an online central database for information on deposit takers.
As per the set of FAQs, the contribution received towards the capital by partners of Partnership Firm/Limited Liability partnership not included under deposits under Section 2(4) (e) of the Ordinance.
The FAQs further said that the following are specifically excluded for a partnership firm or limited liability partnership, they are, (i) Amounts received by way of contribution towards capital by partners of any partnership firm or limited liability partnership are excluded from the definition of ‘deposit’. (ii) Any amount received by a firm by way of a loan from the relatives of any of its partners is excluded.
“I am glad that in view of the significance of the Ordinance, the Committee on Economic, Commercial Laws & Economic Advisory of ICAI has proactively taken an initiative of bringing out the publication ‘FAQs on the Banning of Unregulated Deposit Schemes Ordinance, 2019’. I would like to compliment CA. Tarun Jamnadas Ghia, Chairman and CA. Anuj Goyal Vice-Chairman of Committee on Economic, Commercial Laws & Economic Advisory, for their contribution and valuable efforts in bringing out the said publication. I would also like to appreciate the efforts of all the members of the Committee on Economic Commercial Laws & Economic Advisory who have given an invaluable contribution in the finalization of this Publication,” ICAI Chief CA. Prafulla P. Chhajed said in a statement.
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