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MCA introduces The Companies Amendment Rules, 2022
The Ministry of Corporate Affairs (MCA) has amended 'The Companies (Acceptance of Deposits) Rules, 2014,' 'The Companies (Appointment and Qualification of Directors) Rules, 2014,' and 'The Companies (Registration of Charges) Rules, 2014' by introducing 'The Companies (Acceptance of Deposits) Amendment Rules, 2022,' The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2022;' and 'The Companies (Registration of Charges) Second Amendment Rules, 2022' respectively. All these amendments are effective from 29 August 2022.
While MCA released these three notifications separately, we have consolidated all the updates in a single document for ease of reference.
| The Companies (Acceptance of Deposits) Amendment Rules, 2022 |
| The Companies (Acceptance of Deposits) Rules, 2014 |
The Companies (Acceptance of Deposits) Amendment Rules, 2022 |
| Companies to whom these rules are applicable shall file a return in Form DPT-3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2014 on or before 30 June every year with the Registrar and furnish the information contained therein as on the 31 March of that year duly audited by the company auditor. |
Companies to whom these rules are applicable shall, on or before 30 June every year, file with the Registrar a return in Form DPT-3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2022 and furnish the information contained therein as on the 31 March of that year duly audited by the auditor of the company and the declaration to that effect shall be submitted by the auditor in Form DPT-3. |
Now, the companies are additionally required to obtain a declaration from statutory auditors, which shall be filed along with Form DPT-3.
Furthermore, there are certain additions to Form DPT-3 (Return of deposits) with respect to disclosures of details pertaining to loans and the aging of such loans.
With this amendment, detailed reporting is required to be made for exempt deposits, which shall contain:
- Opening Balance as on 1 April
- Additional loan during the year
- Loans repaid during the year
- Any other amendments
- Closing Balance as on 31 March
Also, the companies are now required to provide details of loans along with aging of loans which are:
- Outstanding for less than or equal to 1 year
- Outstanding for more than 1 year but less than 3 years
- Outstanding for more than 3 years
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Our Comments
- The Government of India wants to ensure greater transparency in reporting of loans and deposits and restrict the misappropriation of funds under the umbrella of exempt deposits.
- This amendment will cause an additional administrative burden on the companies for maintaining various statutory records.
The circular link is given for your ready reference.
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| The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2022 |
New versions of e-form DIR-3 KYC and web-based DIR-3 KYC have now been substituted. The MCA has made a few modifications to it, as mentioned below:
e-form DIR-3 KYC
- Earlier, there was no option to resend OTP on Director's personal mobile number and email, which has now been enabled w.e.f., 29 August 2022;
- Now, the Foreign Directors, who have their permanent residential address outside India, have to mandatorily provide details of such address;
- For the verification of a Director, MCA has introduced a new clause w.r.t. the jurisdiction of the police station in both permanent as well as present address;
- Earlier, the verification clause mentioned liability under section 448 (Punishment for false statement) only, now, liability is extended to Section 447 (Punishment for Fraud).
DIR-3 KYC WEB
- Earlier, this was a purely web-based form that only required OTP verification on phone number as well as on email, but now it is mandatory for the Directors to insert their personal details such as Father’s Name, DOB, Nationality, Residency, etc;
- Furthermore, the option to resend OTP on Director's personal mobile number and email has been enabled w.e.f., 29 August 2022;
- Earlier, the verification clause covered liability under section 448 (Punishment for false statement) only and now, liability is extended to Section 447 (Punishment for Fraud).
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Our Comments
Section 447 of the Companies Act, 2013 is for punishment for fraud. By including this section along with Section 448 (punishment for false statement), the Ministry has amplified the responsibility of the Director to verify his details through the Director KYC process. The other amendments are made to ease out the verification details of the Director (Indian as well as Foreign National) by enabling the option to resend the OTP on his personal email ID and phone number.
The circular link is given for your ready reference.
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| The Companies (Registration of Charges) Second Amendment Rules, 2022 |
The following Rule 13 has been introduced in the Companies (Registration of Charges) Rules, 2014:
Rule 13: Signing of charge e-forms by insolvency resolution professional (IRP) or resolution professional (RP) or liquidator for companies under resolution or liquidation.
- As per the amended norms, the charge-related forms (i.e. CHG-1, CHG-4, CHG-8, and CHG-9) of the companies under liquidation or resolution shall be mandatorily signed by the IRP/ RP or liquidator as the case may be;
- Accordingly, the new forms are substituted in place of the already notified forms to provide the digital signing functionality to IRP/RP or liquidator.
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Our Comments
Charges are created on the company’s assets against the loan taken by them. Certification of the above-mentioned forms by liquidation professionals will make it more reliable for the stakeholders and authorities.
The circular link is given for your ready reference.
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