Saturday, April 23, 2016

Acceptance of deposits by Indian companies from a person resident outside India for nomination as Director

Under section 160 of the Companies Act, 2013, a person who intends to nominate himself or any other person as a director in an Indian company, is required to place a deposit with the said company.

Keeping such deposits with an Indian company by persons resident outside India, is a current account (payment) transaction and, as such, does not require approval from RBI. All refunds of such deposits, arising in the event of selection of the person as a director or getting more than twenty five percent votes, shall be treated similarly.
Based on the RBI notification dated 13/4/2016. For further clarifications refer ………….. Poppy