Deposits rule: Now, auditors, too, must confirm company’s compliance with MCA guidelines.

The Ministry of Corporate Affairs (MCA) has amended its acceptance of deposits rules so as to bring in transparency and enhance the role and responsibilities of statutory auditors.

The MCA’s move will widen the responsibility of deposit rules compliance from directors to include statutory auditors, said company law experts.

The Amendment to the Companies (Acceptance of Deposits) Rules, 2022 — which came into effect on August 29 — will bring in greater transparency on acceptance and receipt of amounts by companies as deposits and also amounts received by companies but not treated as deposits, they added.