POWER OF ROCS TO OBTAIN DECLARATION/ AFFIDAVITS FROM SUBSCRIBERS/FIRST DIRECTORS AT THE TIME OF INCORPORATION

Circular No.:- 11/2013               

Dated: 29/05/2013

The matter of protection of interest of investors, including depositors is very important to ensure healthy corporate capital market environment in the country. The recent instances of raising of monies by companies in a manner which is opaque/convoluted, non-accountable and which does not protect  interests of depositors have been taken  note of by the ministry seriously.

Keeping in view the need to  protect the interest of investors and ensure that companies raise monies in accordance with the provisions of the companies Act/Deposit  Rules , it is clarified that in exercise of the power under companies Act, the Registrar of companies may obtain declaration/affidavits from subscribers/first directors first  at the time of incorporation and from directors, subsequently whenever company changes its objects, to the effect that company/directors shall not accept deposits unless compliance with the applicable provisions of Companies Act, 1956,RBI Act, 1934 and SEBI Act,1992 and rules/ directions / regulations made there under are duly complied and filed with the Concerned  authorities.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in