In light of the prevailing COVID-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has, in General Circular dated 19th June, 2020, further extended the timeline for compliance with the following till 30th September, 2020:
i. Requirement of creation of deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21
ii. Requirement to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits
Background:
The MCA, in a previous General Circular dated 24th March, 2020, in order to support and to reduce the compliance burden of Companies and Limited Liability Partnerships, had provided time extension for a number of compliances, including the above-mentioned requirements, till 30th June, 2020.
The MCA had received requests from different stakeholders seeking extension of timeline for such compliances. Hence the MCA has issued this General Circular.
Source: Ministry of Corporate Affairs
