MOHIT EDUCOMP PVT. LTD.

Main Centre- 59 Jatindra Mohan Avenue

9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
Rule 4.Form and particulars of advertisements or circulars.—
(1) Every company referred to in sub-section (2) of section 73 intending to invite
deposit from its members shall issue a circular to all its members by registered post
with acknowledgement due or speed post or by electronic mode in Form DPT-1:

Rule 5.Manner and extent of deposit insurance.—

(1) Every company referred to in sub-section (2) of section 73 and every other
eligible company inviting deposits shall enter into a contract for providing deposit
insurance at least thirty days before the issue of circular or advertisement or at least
thirty days before the date of renewal, as the case may be.
[Provided that the companies may accept deposits without deposit insurance
contract till the 31st March, 2018 or till the availability of a deposit insurance product,
whichever is earlier . ]

Rule 6. Creation of security.—

(1) For the purposes of providing security, every company referred to in sub-section
(2) of section 73 and every eligible company inviting secured deposits shall provide
for security by way of a charge on its assets as referred to in Schedule III of the Act
excluding intangible assets of the company for the due repayment of the amount of
deposit and interest thereon for an amount which shall not be less than the amount
remaining unsecured by the deposit insurance:

Rule 7. Appointment of trustee for depositors.—

(1) No company referred to in subsection (2) of section 73 or any eligible company
shall issue a circular or advertisement inviting secured deposits unless the company
has appointed one or more trustees for depositors for creating security for the
deposits:
Provided that a written consent shall be obtained from the trustee for depositors
before their appointment and a statement shall appear in the circular or circular in
the form of advertisement with reasonable prominence to the effect that the trustees
for depositors have given their consent to the company to be so appointed.
(2) The company shall execute a deposit trust deed in Form DPT-2 at least seven
days before issuing the circular or circular in the form of advertisement.
(3) No person including a company that is in the business of providing trusteeship
services shall be appointed as a trustee for the depositors, if the proposed trustee—
(a) is a director, key managerial personnel or any other officer or an employee of
the company or of its holding, subsidiary or associate company or a depositor in the
company;
(b) is indebted to the company, or its subsidiary or its holding or associate company
or a subsidiary of such holding company;
(c) has any material pecuniary relationship with the company;
(d) has entered into any guarantee arrangement in respect of principal debts
secured by the deposits or interest thereon;
(e) is related to any person specified in clause (a) above.
(4) No trustee for depositors shall be removed from office after the issue of circular
or advertisement and before the expiry of his term except with the consent of all the
directors present at a meeting of the board:
Provided that in case the company is required to have independent directors, at least
one independent director shall be present in such meeting of the Board.
Rule 8. Duties of trustees.—
It shall be the duty of every trustee for depositors to—
(a) ensure that the assets of the company on which charge is created together with
the amount of deposit insurance are sufficient to cover the repayment of the principal
amount of secured deposits outstanding and interest accrued thereon;
(b) satisfy himself that the circular or advertisement inviting deposits does not
contain any information which is inconsistent with the terms of the deposit scheme or
with the trust deed and is in compliance with the rules and provisions of the Act;
(c) ensure that the company does not commit any breach of covenants and
provisions of the trust deed;
(d) take such reasonable steps as may be necessary to procure a remedy for any
breach of covenants of the trust deed or the terms of invitation of deposits;
(e) take steps to call a meeting of the holders of depositors as and when such
meeting is required to be held;
(f) supervise the implementation of the conditions regarding creation of security for
deposits and the terms of deposit insurance;
(g) do such acts as are necessary in the event the security becomes enforceable;
(h) carry out such acts as are necessary for the protection of the interest of
depositors and to resolve their grievances.

Rule 9. Meeting of depositors.—

The trustee for depositors shall call a meeting of all the depositors on—
(a) requisition in writing signed by at least one-tenth of the depositors in value for the
time being outstanding;
(b) the happening of any event, which constitutes a default or which, in the opinion of
the trustee for depositors, affects the interest of the depositors.

Rule 10. Form of application for deposits.—

(1) On and from the commencement of these rules, no company shall accept, or
renew any deposit, whether secured or unsecured, unless an application, in such
form as specified by the company, is submitted by the intending depositor for the
acceptance of such deposit.
(2) The form of application referred to in sub-rule (1) shall contain a declaration by
the intending depositor to the effect that the deposit is not being made out of any
money borrowed by him from any other person.

Rule 11. Power to nominate.—

Every depositor may, at any time, nominate any person to whom his deposits shall
vest in the event of his death and the provisions of section 72 shall, as far as may
be, apply to the nomination made under this rule.

Rule 12. Furnishing of deposit receipts to depositors.—

(1) Every company shall, on the acceptance or renewal of a deposit, furnish to the
depositor or his agent a receipt for the amount received by the company, within a
period of twenty one days from the date of receipt of money or realisation of cheque
or date of renewal.
(2) The receipt referred to in sub-rule (1) shall be signed by an officer of the
company duly authorised by the Board in this behalf and shall state the date of
deposit, the name and address of the depositor, the amount received by the
company as deposit, the rate of interest payable thereon and the date on which the
deposit is repayable.
.
Rule 13. Maintenance of liquid assets and creation of deposit repayment
reserve account.—
Every company referred to in sub-section (2) of section 73 and every eligible
company shall on or before the 30th day of April of each year deposit the sum as
specified in clause (c) of the said sub-section with any scheduled bank and the
amount so deposited shall not be utilised for any purpose other than for there
payment of deposits:

Provided that the amount remaining deposited shall not at any time fall below fifteen
per cent. of the amount of deposits maturing, until the end of the current financial
year and the next financial year.

Rule 14. Registers of deposits.—

(1) Every company accepting deposits shall maintain at its registered office one or
more separate registers for deposits accepted or renewed, in which there shall be
entered separately in the case of each depositor the following particulars, namely:—
(a) name, address and PAN of the depositor/s;
(b) particulars of guardian, in case of a minor;
(c) particulars of the nominee;
(d) deposit receipt number;
(e) date and the amount of each deposit;
(f) duration of the deposit and the date on which each deposit is repayable;
(g) rate of interest or such deposits to be payable to the depositor;
(h) due date for payment of interest;
(i) mandate and instructions for payment of interest and for non-deduction of tax at
source, if any;
(j) date or dates on which the payment of interest shall be made;
(k) details of deposit insurance including extent of deposit insurance;
(l) particulars of security or charge created for repayment of deposits;
(m) any other relevant particulars;
(2) The entries specified in sub-rule (1) shall be made within seven days from the
date of issuance of the receipt duly authenticated by a director or secretary of the
company or by any other officer authorised by the Board for this purpose.
(3) The register referred to in sub-rule (1) shall be preserved in good order for a
period of not less than eight years from the financial year in which the latest entry is
made in the register.

Rule 15. General provisions regarding premature repayment of deposits.—

Where a company makes a repayment of deposits, on the request of the depositor,
after the expiry of a period of six months from the date of such deposit but before the
expiry of the period for which such deposit was accepted, the rate of interest payable
on such deposit shall be reduced by one per cent. from the rate which the company
would have paid had the deposit been accepted for the period for which such deposit
had actually run and the company shall not pay interest at any rate higher than the
rate so reduced:

Rule 16. Return of deposits to be filed with the Registrar.—

Every company to which these rules apply, shall on or before the 30th day of June,
of every year, file with the Registrar, a return in [10][Form DPT-3] along with the fee
as provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish
the information contained therein as on the 31st day of March of that year duly
audited by the auditor of the company.
[Rule 16A. Disclosures in the financial statement.- (1) Every company, other than
a private company, shall disclose in its financial statement, by way of notes, about
the money received from the director.

2) Every private company shall disclose in its financial statement, by way of notes,
about the money received from the directors, or relatives of directors.][23]

Rule 17. Penal rate of interest.—

Every company shall pay a penal rate of interest of eighteen per cent. per annum for
the overdue period in case of deposits, whether secured or unsecured, matured and
claimed but remaining unpaid.

Rule 18. Power of Central Government to decide certain questions.—

If any question arises as to the applicability of these rules to a particular company,
such question shall be decided by the Central Government in consultation with the
Reserve Bank of India.

Rule 21. Punishment for contravention.—

If any company referred to in sub-section (2) of section 73 or any eligible company
inviting deposits or any other person contravenes any provision of these rules for
which no punishment is provided in the Act, the company and every officer of the
company who is in default shall be punishable with fine which may extend to five
thousand rupees and where the contravention is a continuing one, with a further fine
which may extend to five hundred rupees for every day after the first day during
which the contravention continues.