A start-up company may issue convertible notes (convertible into equity shares or repayable within a period not exceeding ‘ten years’ instead of ‘five years’ from the date of issue), in a single tranche, from a person, will not be considered as deposit as per Rule 2(1)(c).
In Rule 3(3), a start-up private company from the date of its incorporation will be considered as a start-up for a period of ten years instead of five years.
Effective date: September 07, 2020
Source: Companies (Acceptance of Deposits) Amendment Rules, 2020 dated September 07, 2020
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